Ovobel Foods Ltd. कंपली की लेखा नीति

Mar 31, 2025

1.2. Material Accounting Policies

1.2.1 Statement of compliance

These financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as “Ind AS”) as prescribed under section 133 of the
Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time.

1.2.2 Basis of preparation of financial statements

The financial statements have been prepared in accordance with (Ind AS) under the historical cost convention on accrual basis, except for certain financial instruments that
are measured at fair value at the end of each reporting period, the provisions of Companies Act, 2013 ("''the Act") (to extent notified) and guidelines issued by Securities
Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards Rules, 2015 and
relevant amendment rules issued there after.

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 policy hitherto in use.

The operating cycle in the normal course has been identified to have a duration of 12 months. Accordingly, all assets and liabilities have been classified as current or non¬
current as per the Company’s operating cycle and other criteria set out in Ind AS - 1 “Presentation of Financial Statements” and Schedule - III to the Companies Act, 2013.

The Balance sheet, the Statement of Profit and Loss and the statements of Changes in Equity are prepared in the format prescribed in Schedule III to the Act. The Cash Flow
Statement has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash flows”. The disclosure requirements with respect to items in the Balance
Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes
required to be disclosed under the Ind AS.

The financial statements are presented in Indian Rupees (In Lakhs) and all values are rounded off to two decimals except as otherwise stated.

1.2.3 Use of Estimates & Judgements

The preparation of financial statements in conformity with Ind AS requires management to make estimates and assumptions that affect the applications of accounting
policies and the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations
during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Appropriate change in estimates are made as management become aware of changes in
circumstances surrounding the estimates. Revisions to accounting estimates are recognised in the year in which the estimates are revised, and, if material, their effects are as
disclosed in the notes to the financial statements.

Application of accounting policies that require critical accounting estimates involving judgements and the use of assumptions in the financial statements have been disclosed
below:

a) Inventories: Signifcant estimates and judgements are involved in dertermining the allocation of cost to each product and in determining the net realisable value (NRV) for
each category of product.

b) Defined Benefit Obligations: The cost of the defined benefit plan and the present value of the obligation are determined using actuarial valuation. An actuarial valuation
involves various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, expected return, future salary
increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

c) Income Taxes: The company has only one tax jurisdiction in India. The Company applies significant judgment in identifying uncertainties over income tax treatments.
Uncertain tax positions are reflected in the overall measurement of the Company’s tax expense and are based on the most likely amount or expected value that is to be
disallowed by the taxing authorities whichever better predict the resolution of uncertainty. Uncertain tax balances are monitored and updated as and when new information
becomes available, typically upon examination or action by the taxing authorities or through statute expiration.

d) Expected Credit Loss (ECL): The measurement of expected credit loss reflects a probability-weighted outcome, the time value of money and the best available forward¬
looking information. The correlation between historical observed default rates, forecast economic conditions and expected credit loss is a significant estimate. The amount of
expected credit loss is sensitive to changes in circumstances and forecasted economic conditions. The company’s historical credit loss experience and forecast of economic
conditions may not be representative of the actual default in the future.

e) Property, plant and equipment & Other intangible assets

Useful life of property, plant and equipments and other intangible assets (note 1.2.4)

1.2.4 Property, plant and equipment

Property, plant and equipment except land are carried at cost, less accumulated depreciation and impairment, if any. Cost directly attributable to acquisition are capitalised
and bringing the asset to its working condition capable of operating in the manner as intended by the management. The charge in respect of periodic depreciation is derived
at after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The Company depreciates property, plant and
equipment over their estimated useful lives using the written down value method.

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. The useful lives are based on historical experience
with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current
assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and
equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured
reliably. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement
of the asset.

1.2.5 Leases

The lease asset classes primarily consist of leases for land and buildings . The Company assesses whether a contract contains a lease, at inception of a contract. A contract is,
or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the company assesses whether: (i) the contract involves the use of an identified asset; (ii) the company has
substantially all of the economic benefits from use of the asset through the period of the lease; and (iii) the company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is
a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes
the lease payments as an operating expense on a straight-line basis over the term of the lease.

As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such
option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain
that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold
improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys’s operations taking into
account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the
current economic circumstances.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when
it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment
losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use
assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent of those from other assets.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit
in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset if the company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

1.2.6 Financial Instruments

(i) Initial Recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities
are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition.
Regular way purchase and sale of financial assets are accounted for at trade date.

(ii) Subsequent Measurement
Financial assets carried at amortised cost:

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

Financial assets at fair value through other comprehensive income:

A financial asset is subsequently measured at fair value through other comprehensive income (FVOCI) if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding. The company has made an irrevocable election for it''s investments which are classified as equity
instruments to present the subsequent changes in fair value in other comprehensive income based on business model.

Fair value through profit or loss:

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

iii) Financial Liabilities

Financial liabilities are carried at amortized cost using the effective interest method.

iv) Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers qualifies for derecognition under Ind
AS 109. A financial liability(or a part of financial liability) is derecognised from the company''s balance sheet when the obligation specified in the contract is discharged
cancelled or expires

v) Fair Value of financial intruments

In determining the fair value of its financial instruments, the company uses a variety of methods and assumptions that are based on market conditions and risks existing at
each reporting date. The fair values are generally determined based on discounted cash flow analysis and quoted prices. The method of assessing fair value results in
general approximation of value, and such value may never actually be realised.

1.2.7 Impairment of financial assets

The company recognises loss allowances using expected credit loss (ECL) model for the financial assets which are not at fair value through profit and loss. Loss allowance
for trade receivables with no significant financial component is measured at amount equal to Lifetime ECL. For all the other financial assets expected credit losses are
measured at an amount equal to the 12 month ECL, unless there has been significant increase in credit risk from the initial recognition in case those are measured at lifetime
ECL.

The company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The
company considers current and anticipated future economic conditions relating to industries the company deals with and the countries where it operates.

The amount of ECLs(reversal) that is required to adjust the loss allowance at the reporting date to the amount that is recognised as an impairment loss or gain in statement of
profit and loss.

1.2.8 Inventories

Inventories are valued at the lower of cost and net realisable value. nventories consist of raw materials, stores and spares, work-in-progress and finished goods. Cost includes
expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition.

The cost of all categories of inventories is as follows:

Raw materials, stores and spares are valued at cost including all the cost incurred in bringing the inventory to present location and condition and the same is determined on
First-In-First-out basis. Materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost.

Work in progress and finished goods are valued at cost including direct materials and labour and a proportion of manufacturing overheads based on normal operating
capacity . Cost is determined based on standard input output ratio.

Net realisable value (NRV) is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

1.2.9 Revenue Recognition
Sale of goods

The company derives revenue primarily from sale of processed egg powders and frozen egg products.

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved in writing by the parties, by the parties, to the
contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable.Revenue from the sale of the
goods is recognised when delivery has taken place and control of the goods has been transferred to the customer according to the specific delivery term that have been agreed
with the customer and when there are no longer any unfulfilled obligations. When there is uncertainly as to collectability, revenue recognition is postponed until such
uncertainity is resolved.

Revenue is measured after deduction of any discounts, price concessions, volume rebates and any taxes or duties collected on behalf of the government such as goods and
services tax, etc. The Company accrues for such discounts, price concessions and rebates based on historical experience and specific contractual terms with the customer.

No element of financing is deemed present as the sales are made with credit terms largely ranging between 30 days and 120 days depending on the specific terms agreed
with customers.

The company recognizes the revenue at the point in time when the performance obligation is satisfied.

Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured
reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Dividends

Dividend income is recognised when right to receive is established (provided that it is probable that the economic benefits will flow to the Company and the amount of
income can be measured relaibly.

1.2.10 Taxation

Tax expense comprises current income tax and deferred income tax and includes any adjustments related to past periods in current and / or deferred tax adjustments that may
become necessary due to certain developments or reviews during the relevant period.

Income tax expense is recognized in net profit in the Statement ofProfit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is
recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from
the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the
financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be
realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are
expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred
income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset
is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.

The Company offsets current tax assets and current tax liabilities; deferred tax assets and deferred tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

1.2.11 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended March 31, 2025, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

1.3 Non Material Accounting Policy

1.3.1 Intangible assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a
straight-line basis, from the date that they are available for use. The estimated useful life of computer software in 10 years. The estimated useful life of an identifiable
intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry,
and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and
useful lives are reviewed periodically including at each financial year end.

Intangible assets are derecognised when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are
determined as the carrying amount of the asset (net of disposal proceeds, if applicable) and recognised in the Statement of Profit and Loss when the asset is derecognised.

1.3.2 Impairment of non financial assets

A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or
groups of assets.

The Company''s non-financial assets, other than inventories and deferred tax assets, are evaluated for recoverability whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (ie the higher of the fair value less cost to sell and the
value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases,
the recoverable amount is determined for the CGU to which the asset belongs

If such assets are considered to be impaired, the impairment to be recognised in the standalone statement of profit and loss is measured by the amount by which the carrying
value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the standalone statement of profit and loss if there has been a
change in the estimates used to determine the recoverable amount.

The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been
determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.

1.3.3 Foreign currency transactions and balances
Functional and presnetation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the copany operates (the
functional currency). The financial statements are presented in Indian rupee (Rs), which is functional and presentation currency of the Company.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchangegains and losses resulting
from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreigncurrencies at the year end exchange rates are
recognised in statement of profit and loss.

1.3.4 Accounting of Government Grants

Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received and the Company will comply with all attached
conditions.

Income from export incentives are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement is established in respect of
exports made and disclosed as other operating revenues.

Income from government incentives (other than export incentive) are recognised in the statement of profit and loss when the right to receive credit as per the terms of the
entitlement and disclosed as a reduction to the related expenses.

1.3.5 Borrowing costs

Borrowing costs include interest expense calculated using the effective interest method.

Borrowing costs specifically identified to the acquisition or construction of qualifying assets is capitalized as part of such assets. A qualifying asset is one that necessarily
takes substantial period of time to get ready for intended use.

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Mar 31, 2024

1.1 Corporate Information

Ovobel Foods Limited (the Company) (CIN: L85110KA1993PLC013875) is a public limited company, incorporated and domiciled in India and has its registered office at Aga AbbasAli Road, Ulsoor, Bengaluru. The company has it''s primary listing on the Bombay Stock Exchange. The Company is engaged in the business of manufacturing and distribution of Eggs powders & other egg related products. The Company sells its products in India as well as in various other global markets.

The financial statements are approved for issue by Company''s Board of Directors on May 30, 2024.

1.2. Material Accounting Policies

1.2.1 Statement of compliance

These financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as “Ind AS”) as prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time.

1.2.2 Basis of preparation of financial statements

The financial statements have been prepared in accordance with (Ind AS) under the historical cost convention on accrual basis, except for certain financial instruments that are measured at fair value at the end of each reporting period, the provisions of Companies Act, 2013 ("''the Act") (to extent notified) and guidelines issued by Securities Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards Rules, 2015 and relevant amendment rules issued there after.

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 policy hitherto in use.

The operating cycle in the normal course has been identified to have a duration of 12 months. Accordingly, all assets and liabilities have been classified as current or non-current as per the Company’s operating cycle and other criteria set out in Ind AS - 1 “Presentation of Financial Statements” and Schedule - III to the Companies Act, 2013.

The Balance sheet, the Statement ofProfit and Loss and the statements ofChanges in Equity are prepared in the format prescribed in Schedule III to the Act. The Cash Flow Statement has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash flows”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the Ind AS.

The financial statements are presented in Indian Rupees (In Lakhs) and all values are rounded off to two decimals except as otherwise stated.

1.2.3 Use of Estimates & Judgements

The preparation of financial statements in conformity with Ind AS requires management to make estimates and assumptions that affect the applications of accounting policies and the reported amounts ofassets and liabilities and disclosure ofcontingent assets and liabilities at the date ofthe financial statements and the results ofoperations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Appropriate change in estimates are made as management become aware ofchanges in circumstances surrounding the estimates. Revisions to accounting estimates are recognised in the year in which the estimates are revised, and, if material, their effects are as disclosed in the notes to the financial statements.

Application of accounting policies that require critical accounting estimates involving judgements and the use of assumptions in the financial statements have been disclosed below:

a) Inventories: Signifcant estimates and judgements are involved in dertermining the allocation of cost to each product and in determining the net realisable value (NRV) for each category of product.

b) Defined Benefit Obligation s: The cost of the defined benefit plan and the present value of the obligation are determined using actuarial valuation. An actuarial valuation involves various assumptions that may differ from actual developments in the future. These include the determination ofthe discount rate, expected return, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

c) Income Taxes: The company has only one tax jurisdiction in India. The Company applies significant judgment in identifying uncertainties over income tax treatments. Uncertain tax positions are reflected in the overall measurement of the Company’s tax expense and are based on the most likely amount or expected value that is to be disallowed by the taxing authorities whichever better predict the resolution of uncertainty. Uncertain tax balances are monitored and updated as and when new information becomes available, typically upon examination or action by the taxing authorities or through statute expiration.

d) Expected Credit Loss (ECL): The measurement of expected credit loss reflects a probability-weighted outcome, the time value of money and the best available forward-looking information. The correlation between historical observed default rates, forecast economic conditions and expected credit loss is a significant estimate. The amount of expected credit loss is sensitive to changes in circumstances and forecasted economic conditions. The company’s historical credit loss experience and forecast of economic conditions may not be representative of the actual default in the future.

e) Property, plant and equipment & Other intangible assets

Useful life of property, plant and equipments and other intangible assets (note 1.2.4)

1.2.4 Property, plant and equipment

Property, plant and equipment except land are carried at cost, less accumulated depreciation and impairment, if any. Cost directly attributable to acquisition are capitalised and bringing the asset to its working condition capable of operating in the manner as intended by the management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The Company depreciates property, plant and equipment over their estimated useful lives using the written down value method.

The estimated useful lives of assets are as follows:

Asset Class	Useful Life
Factory Buildins	30
Office Equipments	5
Furniture and fixtures	10
Plant & Machinery - Continuous process plant	8
Plant & Machinery - Electrical Installations and genial laboratory equipment''s	10
Plant & Machinery - Others < Material handlmg pipelines and wedding equipments)	12
Plant & Machinery - Others equipments	15
Plant & Machinery - Vessels / storage tanks and drying equipments / centrifuges	20
Plant Machinery - Transmission liiuies. cables & other network assets	40
Computer & Data processing units	j
Motor vehicles	8
Electrical Fittings	10

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. The useful lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset.

1.2.5 Leases

The lease asset classes primarily consist of leases for land and buildings . The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether: (i) the contract involves the use of an identified asset; (ii) the company has substantially all of the economic benefits from use of the asset through the period of the lease; and (iii) the company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys’s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

1.2.6 Financial Instruments (i) Initial Recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale offinancial assets are accounted for at trade date.

(ii) Subsequent Measurement Financial assets carried at amortised cost:

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income:

A financial asset is subsequently measured at fair value through other comprehensive income (FVOCI) if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The company has made an irrevocable election for it''s investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on business model.

Fair value through profit or loss:

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

iii) Financial Liabilities

Financial liabilities are carried at amortized cost using the effective interest method.

iv) Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers qualifies for derecognition under Ind AS 109. A financial liability(or a part of financial liability) is derecognised from the company''s balance sheet when the obligation specified in the contract is discharged cancelled or expires

v) Fair Value of financial intruments

In determining the fair value of its financial instruments, the company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The fair values are generally determined based on discounted cash flow analysis and quoted prices. The method of assessing fair value results in general approximation of value, and such value may never actually be realised.

1.2.7 Impairment of financial assets

The company recognises loss allowances using expected credit loss (ECL) model for the financial assets which are not at fair value through profit and loss. Loss allowance for trade receivables with no significant financial component is measured at amount equal to Lifetime ECL. For all the other financial assets expected credit losses are measured at an amount equal to the 12 month ECL, unless there has been significant increase in credit risk from the initial recognition in case those are measured at lifetime ECL.

The company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The company considers current and anticipated future economic conditions relating to industries the company deals with and the countries where it operates.

The amount of ECLs(reversal) that is required to adjust the loss allowance at the reporting date to the amount that is recognised as an impairment loss or gain in statement of profit and loss.

1.2.8 Inventories

Inventories are valued at the lower of cost and net realisable value. nventories consist of raw materials, stores and spares, work-in-progress and finished goods. Cost includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition.

The cost of all categories of inventories is as follows:

Raw materials, stores and spares are valued at cost including all the cost incurred in bringing the inventory to present location and condition and the same is determined on First-In-First-out basis. Materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

Work in progress and finished goods are valued at cost including direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity . Cost is determined based on standard input output ratio.

Net realisable value (NRV) is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

1.2.9 Revenue Recognition Sale of goods

The company derives revenue primarily from sale of processed egg powders and frozen egg products.

Revenues from customer contracts are considered for recognition and measurement when the contract has been approved in writing by the parties, by the parties, to the contract, the parties to contract are committed to perform their respective obligations under the contract, and the contract is legally enforceable.Revenue from the sale of the goods is recognised when delivery has taken place and control of the goods has been transferred to the customer according to the specific delivery term that have been agreed with the customer and when there are no longer any unfulfilled obligations. When there is uncertainity as to collectability, revenue recognition is postponed until such uncertainity is resolved.

Revenue is measured after deduction of any discounts, price concessions, volume rebates and any taxes or duties collected on behalf of the government such as goods and services tax, etc. The Company accrues for such discounts, price concessions and rebates based on historical experience and specific contractual terms with the customer.

No element of financing is deemed present as the sales are made with credit terms largely ranging between 30 days and 120 days depending on the specific terms agreed with customers.

The company recognizes the revenue at the point in time when the performance obligation is satisfied.

Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Dividends

Dividend income is recognised when right to receive is established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured relaibly.

1.2.10 Taxation

Tax expense comprises current income tax and deferred income tax and includes any adjustments related to past periods in current and / or deferred tax adjustments that may become necessary due to certain developments or reviews during the relevant period.

Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.

The Company offsets current tax assets and current tax liabilities; deferred tax assets and deferred tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

1.2.11 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

1.3 Non Material Accounting Policy

1.3.1 Intangible assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life ofcomputer software in 10 years. The estimated useful life ofan identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end.

Intangible assets are derecognised when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are determined as the carrying amount of the asset (net of disposal proceeds, if applicable) and recognised in the Statement of Profit and Loss when the asset is derecognised.

1.3.2 Impairment of non financial assets

A cash-generating unit (CGU) is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

The Company''s non-financial assets, other than inventories and deferred tax assets, are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (ie the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent ofthose from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs

If such assets are considered to be impaired, the impairment to be recognised in the standalone statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount ofthe asset. An impairment loss is reversed in the standalone statement ofprofit and loss ifthere has been a change in the estimates used to determine the recoverable amount.

The carrying amount ofthe asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net ofany accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.

1.3.3 Foreign currency transactions and balances Functional and presnetation currency

Items included in the financial statements ofthe Company are measured using the currency ofthe primary economic environment in which the copany operates (the functional currency). The financial statements are presented in Indian rupee (Rs), which is functional and presentation currency of the Company.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchangegains and losses resulting from the settlement ofsuch transactions and from the translation ofmonetary assets and liabilities denominated in foreigncurrencies at the year end exchange rates are recognised in statement ofprofit and loss.

1.3.4 Accounting of Government Grants

Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received and the Company will comply with all attached conditions.

Income from export incentives are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement is established in respect of exports made and disclosed as other operating revenues.

Income from government incentives (other than export incentive) are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and disclosed as a reduction to the related expenses.

1.3.5 Borrowing costs

Borrowing costs include interest expense calculated using the effective interest method.

Borrowing costs specifically identified to the acquisition or construction of qualifying assets is capitalized as part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.

1.3.6 Contingent Liabilities and Provisions Contingent Liabilities

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

1.3.7 Employee Benefits Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the

period in which the employees render the related service are recognised in respect of employee''s services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current financial liabilities in the balance sheet.

Post-employment obligations

The company operates the following post-employment schemes:

(a) defined benefit plans - gratuity, and

(b) defined contribution plans such as provident fund.

Gratuity: Defined benefits obligations

The liability or asset recognised in the balance sheet in respect ofdefined benefit gratuity plan is the present value ofthe defined benefit obligation at the end ofthe reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have term approximating the term of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. Such accumulated re-measurement balances are never reclassified into the statement of profit and loss subsequently.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service costs.

Defined contribution plan

Retirement benefit in the form of provident fund scheme are the defined contribution plans. The Company has no obligation, other than thecontribution payable. The Company recognizes contribution payable to these schemes as an expenditure, when an employee renders the related service.

1.3.8 Earnings Per Share

Basic earnings per share amounts are computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.3.9 Segment reporting Identification of segments

An operating segment is a component ofthe company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company’s chief operating decision maker to make decisions about resources to be allocated to these segment and assess its performance, and for which discrete financial information is available. Operating segments of the company are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The company’s operating businesses are organized and managed on a single segment considering the entire manufacturing and distribution of eggs powders & other egg related productsas one single operating segment.

The analysis of geographical segments is based on the location in which the customers are situated.

1.3.10 Cash Flow Statements

Cash flows are reported using the indirect method. whereby net profit/(loss) 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 ofincome or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

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Mar 31, 2016

1 Basis of preparation of financial statements

The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The Company is a Non- Small and Medium size Company (“Non-SMC") as defined in the General Instructions of the Rules in respect of Accounting Standards notified. Accordingly, the Company has complied with the accounting standards as applicable to a Non-Small and Medium size Company. All amounts are stated in Indian Rupees, except as otherwise specified.

2 Use of Estimates

The preparation of financial statements in conformity with general accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

3 Change in accounting estimate for accounting of FPS (MEIS) License

During the year, the Company has changed the method of recognizing Focus Product Scheme (FPS) from receipt basis to accrual basis as the Management is of the opinion that the Company is receiving most of the entitlement applied with Director General of Foreign Trade (DGFT) authorities. Accordingly, the Company is carrying forward FPS receivable balance of Rs. 365 lakhs and contending that the amount will be recoverable and there is no doubtful receivable amount as at year-end.

4 Tangible and Intangible Fixed Assets and depreciation

Fixed assets are stated at cost less accumulated depreciation. The Company capitalizes all costs relating to the acquisition and installation of fixed assets.

Till the year ended 31 March 2014, Schedule XIV to the Companies Act, 1956, prescribed requirements concerning depreciation of fixed assets. From the current year, Schedule XIV has been replaced by Schedule II to the Companies Act, 2013. The applicability of Schedule II has resulted in the changes related to depreciation of fixed assets. Unless stated otherwise, the impact mentioned for the previous year is likely to hold good for future years also.

Intangible assets are amortized over a period of 3 years.

Till year ended 31 March 2014, to comply with the requirements of Schedule XIV to the Companies Act, 1956, the company was charging 100% depreciation on assets costing less than 5,000/- in the year of purchase. However, Schedule II to the Companies Act 2013, applicable from the current year, does not recognize such practice. Hence, to comply with the requirement of Schedule II to the Companies Act, 2013, the company has changed its accounting policy for depreciations of assets costing less than 5,000/-. As per the revised policy, the company is depreciating such assets over their useful life as assessed by the management. The management has decided to apply the revised accounting policy prospectively from accounting periods commencing on or after 1 April 2014.

The change in accounting for depreciation of assets costing less than 5,000/- did not have any material impact on financial statements of the company for the previous year.

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the Company measures its ''value in use'' on the basis of undiscounted cash flows of next five years projections estimated based on current prices.

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

Assets under installation or under construction and the related advances as at the Balance Sheet date are shown as Capital Work in Progress.

5 Inventories

Inventories comprising of raw materials, finished goods and goods in transit are valued at cost or net realizable value whichever is less. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

6 Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are valued at the lower of cost and fair value. Changes in the carrying amount of current investments are recognized in the Statement of Profit and Loss. Long-term investments are valued at cost, less any provision for diminution, other than temporary, in the value of such investments; decline, if any, is charged to the Statement of Profit and Loss. Cost comprises cost of acquisition and related expenses such as brokerage and stamp duties.

7 Revenue Recognition

A. Sale of Products:

Revenue from Sale of products is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

1. Export Sales

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer usually on delivery of the goods.

2. Domestic Sales

Revenue from the sale of product is recognized at the point of dispatch of goods from the factory/warehouse of the company. Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer usually on delivery of the goods.

B. Sale of Export license:

Revenue from sales of export license is recognized on accrual basis

C. Interest Income:

Interest Income is recognized using time-proportion method, based on rates implicit in the transactions.

D. Dividend Income:

Dividend Income is recognized when the company''s right to receive the same has been established.

E. Duty Draw Back Income:

Duty Draw Back are accounted on accrual basis

8 Expenditure

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. The Estimates towards warranty claims made against the company is on a technical basis.

9 Foreign Currency Transactions

Sales made to Overseas Clients and collections deposited in bank accounts are recorded at the exchange rates prevailing on the date of the respective transactions. Expenditure in foreign currency is accounted at the exchange rate prevailing on the date on which such expenditure is incurred. Exchange differences are recorded when the amount actually received on sales or actually paid when expenditure incurred is converted into Indian Rupees. The exchange difference arising on Foreign Currency transactions are recognized as income/ expense during the period in which they arise.

Monetary Current Assets and Monetary Current Liabilities denominated in foreign currency are translated at the exchange rate prevailing at the date of the Balance Sheet. The resulting difference is also recorded in the Statement of Profit and Loss.

10 Cash Flow

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

11 Sales Commission

Sales Commission payable is provided as and when the revenue from such sales is accounted.

12 Earnings Per Share

Basic earnings per share amounts are computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

13 Retirement Benefits

Retirement benefit costs for the year are determined on the following basis:

1. All employees are covered under contributory provident fund benefit of a contribution of 12% of salary and certain allowances. It is a defined contribution scheme and the contributions are charged to Statement of Profit and Loss for the year when the contributions to such fund is due. There is no obligation other than the contributions payable to the respective fund.

2. All employees are covered under Employees'' Gratuity Scheme which is a defined benefit plan. The Company has made contribution to LIC of India. Gratuity cost is recognized on the basis of the year-end liability actuarially determined as per the actuarial valuation report in accordance with AS-15 (Revised). All actuarial gains/losses arising during the accounting year are recognized immediately in the Statement of Profit & Loss as income or expense.

3. Accrual for leave encashment benefit is made on the basis of a year-end actuarial valuation in pursuance of the Company''s leave encashment policy. The liability as at the Balance sheet date is provided for based on the actuarial valuation in accordance with the requirements of revised AS 15 at the end of the year.

13 Segment reporting Identification of segments

The company''s operating businesses are organized and managed according to the geographical locations of the customers.

14 Accounting for Tax on Income

Current tax is determined based on the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized on timing differences: being the difference between the taxable incomes and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets and liabilities have been enacted or substantively enacted by the Balance sheet date. Deferred tax assets arising on account of unabsorbed depreciation or carry forward of tax losses are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

15 Contingent Liabilities & Provisions

In terms of the requirements of the Accounting Standard 29 (AS 29) on “Provisions, Contingent Liabilities and Contingent Assets” notified by Companies (Accounting Standards) Rules, 2006:

- where, as a result of past events, there is a present obligation that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation- an appropriate provision is created and disclosed;

- where, as a result of past events, there is a possible obligation that may, but probably will not require an outflow of resources- no provision is recognized but appropriate disclosure made as contingent liabilities unless the possibility of outflow is remote.

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Mar 31, 2014

1 Basis of preparation of financial statements

The financial statements are prepared under the historical cost convention on the accrual basis of accounting and in accordance with the accounting standards specified in section 211 [3C] or the Companies Act, 1953. The company follows accounting pnliries consistcuilly in accordance with generally accepted accounting principles, other than those specifically stated.

The Company's a Non- Small and Medium size Company ("Non-SMC") as defined the General Instructions of the Rules in respect ot Accounting Standards notified under the Companies Act, 1956. Accordingly, thp Company has complied with the accounting standards as applicable to a Non- Small and Medium size Company. All amounts are stated m Indian Rupees, except as otherwise specified.

2 Use of Estimates

The preparation of financial statements in conformity with general accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disrlosure ol contingent liabilities at the date of the financial statements and the results of operations during the reporting pcuod end. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates.

3 Tangible and Intangible Fixed Assets and depreciation

Fixed assets are slated at cost less accumulated depreciation. The Company capitalises all costs relating to the acquisition and installation of fixed assets.

Depreciation on fixed assets is calculated based on straight-lme method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. In case of plant & machinery depreciation is being charged based on 3 shifts at the rates mentioned m Schedule XIV.

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication nf impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount uf an asset exceeds its recoverable amount. The recoverable amount, is the greater of the asset's net selling price and value in use in assessing value in use, the Company measures its 'value in use' on the basis ol undiscounted cash flows of next five years projections estimated based on current prices.

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

Inventories

Inventories are valued at cost or net realisable value whichever is less

5 Investments

Investments that are readily realizable and intended to bp held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are valued at the lower or cost and fair value. Uianges in the carrying amount of current investments ore recognized in die Profit and Loss Account. Long-term investments are valued at cost, less any provision for diminution, under maintain temporary, in the value of such investments; decline, if any, is charged to the Profit and Loss Account. Cost comprises cost of acquisition and related expenses such as brokerage and stamp dulicS.

6 Revenue Recognition

A. Sale of Products:

J. Export Sales

Revenue from the sale of products is recognised at the point of bill oflading of goods at the customs port & Domestic Sales

Revenue from the sale of product is recognized at the point of dispatch of goods frem the factory/warehouse of die company.

B. Sale of Export license:

Revenue from sales of export license is recognized as & when licenses are sold to third party.

C. Interest Income:

Interest Income is recognised using time-proportion method, based on rates implicit in the transactions.

U. Dividend Income:

Dividend Income is recognised when the company's right to receive die same has teen established.

7 Expenditure

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be mode. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation aL the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect die current best estimates. The Estimates towards warranty cla.ms made against the company is on a technical basis.

H Foreign Currency Transnctions

Sales marie to Overseas Clients and collections deposited tn hank accounts accorded at the exchange rates prevailing on the date of the respective transactions. Expenditure in foreign currency is accounted at the exchange rate prevailing on the date on winch such expenditure is incurred. Exchange differences are recorded whet) the amount actually received un sales or actually paid when expenditure incurred is converted into Indian Rupees. The exchange difference arising on Foreign Currency liansuctluilS are recognized as income/ expense during the period in which they arise.

Monetary Current Assets and Monetary Current Liabilities denominated in foreign currency are translated at the exchange rate prevailing at the date of tin balance Sheet. The resulting difference is also recorded in the Profit & Loss Account Cash flows are reported using the indirect method, whereby net profit before lax is adjusted for the elterts of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or paymeiiLs. The cash Hows from regular revenue generating, investing and financing activities of the Lump any are segregated.

Sales Commission

Sales Commission payable is provided as and when the revenue from such sales is accounted.

11 Earnings Per Share

in determining Earnings Per Share the company considers the net profit alter tax and includes the post effect of any extra-ordinary items. I lie number uf shares used in computing basic earnings per share is the weighted average number nf shares outstanding during the year.

12 Retirement Benefits

Retirement benefit costs for the year are determined on the following basis:

1. All employees are covered under contributory provident fund benefit of a contribution nf 12% of salary and certain allowances. It is a defined contribution scheme and the contributions are charged to Pr -ofit and Loss Account of the year when the contributions tn such lund is due. There is no obligation oilier titan the contributions payahle tn the respective fund

2. Accrual for gratuity' is made on the hasis nf a year-end actuarial valuation in pursuance of the Company's leave encashment policy. The liability as at the Balance sheet date is provided for hased cm the actuarial valuation in accordance with the requirements of revised AS 15 at the end of the year.

3. Accrual for leave encashment benefit is mack on the basis of a year-end actuarial valuation m pursuance of the Company's leave encashment policy. The liability as at the Balance sheet date is provided for based on the actuarial valuation in accordance with the requirements of revised AS 15 at ihe end of the year.

13 Accounting for Tax on Income

Current tax is determined based on the amount of tax payable in respect uf taxable income tor the year. Deferred tax is recognized on timing differences: being Lite difference between the taxable incomes and accounting income that originate in one year and are capable of reversal in one nr more subsequent years. Deferred tax assets and liabilities have been enacted or substantively enacted by the Balance sheet date. Deferred rax assets arising un account of unabsorbed depreciation or carry' forward of tax losses arc recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will he available against which such deferred tax assets can be realized.

14 Contingent Liabilities & Provisions

In terms of the requirements of the Accounting Standard 29 (AS 29) on "Provisions, Contingent Liabilities and Contingent Assets" notified by Companies (Accounting Standards) Rules, 2006:

- where, as a result uf past events, there is a present obligation that probably requires an outflow of resources and a reliable estimate coil be made nf the amount of obligation- an appr opriate provision is created and disclosed;

- where, as a result of past events, Lherc is a possible obligation that may, but probahly will not require an outflow of resources- mi provision is recognized hut appropriate disclosure made as contingent liabilities unless the possibility of outflow is remote.

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Mar 31, 2013

1 Basis of preparation of financial statements '

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting and in accordance with the accounting standards specified in section 211 (3C} of the Companies Act, 1956. The company follows accounting policies consistently in accordance with generally accepted accounting principles, other than those specifically stated.

The Company is a Non- Small and Medium size Company ("Non-SMC") as defined in the General Instructions of the Rules in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the accounting standards as applicable to a small and medium sized Company. All amounts are stated in Indian Rupees, except as otherwise specified.

2 Use of Estimates

The preparation of financial statements in conformity with general accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3 Tangible and Intangible Fixed Assets and depreciation

Fixed assets are stated at cost less accumulated depreciation. The Company capitalises all costs relating to the acquisition and installation of fixed assets.

Depreciation on fixed assets is calculated based on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. In case of plant & machinery depreciation is being charged based on 3 shifts at the rates mentioned in Schedule XIV.

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the Company measures its 'value in use' on the basis of undiscounted cash flows of next five years projections estimated based on current prices.

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

4 Inventories

Inventories are valued at cost or net realisable value whichever is less

5 Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are valued at the lower of cost and fair value. Changes in the carrying amount of current investments are recognized in the Profit and Loss Account. Long-term investments are valued at cost, less any provision for diminution, other than temporary, in the value of such investments; decline, if any, is charged to the Profit and Loss Account. Cost comprises cost of acquisition and related expenses such as brokerage and stamp duties.

6 Revenue Recognition

A. Sale of Products:

1. Export Sales

Revenue from the sale of products is recognised at the point of bill of lading of goods at the customs port.

2. Domestic Sales

Revenue from the sale of product is recognized at the point of dispatch of goods from the factory/warehouse of the company.

B. Sale of Export license:

Revenue from sales of export license is recognized as & when licenses are sold to third party.

C. Interest Income:

Interest Income is recognised using time-proportion method, based on rates implicit in the transactions.

D. Dividend Income:

Dividend Income is recognised when the company's right to receive the same has been established.

7 Expenditure

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. The Estimates towards warranty claims made against the company is on a technical basis.

8 Foreign Currency Transactions

Sales made to Overseas Clients and collections deposited in bank accounts are recorded at the exchange rates prevailing on the date of the respective transactions. Expenditure in foreign currency is accounted at the exchange rate prevailing on the date on which such expenditure is incurred. Exchange differences are recorded when the amount actually received on sales or actually paid when expenditure incurred is converted into Indian Rupees. The exchange difference arising on Foreign Currency transactions are recognized as income/ expense during the period in which they arise.

Monetary Current Assets and Monetary Current Liabilities denominated in foreign currency are translated at the exchange rate prevailing at the date of the Balance Sheet. The resulting difference is also recorded in the Profit & Loss Account.

9 Cash Flow

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

10 Sales Commission

Sales Commission payable is provided as and when the revenue from such sales is accounted.

11 Prior Period Adjustments

Income or Expenses if it is more than Rs 25,000/-on materiality basis, which arises, in the current period as a result of error or omission in the preparation of financial statements for previous years have been treated as prior period adjustments.

12 Earnings Per Share

In determining Earnings Per Share the company considers the net profit after tax and includes the post effect of any extra-ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year.

13 Retirement Benefits

Retirement benefit costs for the year are determined on the following basis:

1. All employees are covered under contributory provident fund benefit of a contribution of 12% of salary and certain allowances. It is a defined contribution scheme and the contributions are charged to Profit and Loss Account of the year when the contributions to such fund is due. There is no obligation other than the contributions payable to the respective fund.

2. Accrual for gratuity is made on the basis of a year-end actuarial valuation in pursuance of the Company's leave encashment policy. The liability as at the Balance sheet date is provided for based on the actuarial valuation in accordance with the requirements of revised AS 15 at the end of the year.

3. Accrual for leave encashment benefit is made on the basis of a year-end actuarial valuation in pursuance of the Company's leave encashment policy. The liability as at the Balance sheet date is provided for based on the actuarial valuation in accordance with the requirements of revised AS 15 at the end of the year.

14 Accounting for Tax on Income

Current tax is determined based on the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized on timing differences: being the difference between the taxable incomes and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets and liabilities have been enacted or substantively enacted by the Balance sheet date. Deferred tax assets arising on account of unabsorbed depreciation or carry forward of tax losses are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

15 Contingent Liabilities & Provisions

In terms of the requirements of the Accounting Standard 29 (AS 29) on "Provisions, Contingent Liabilities and Contingent Assets" notified by Companies (Accounting Standards) Rules, 2006:

- where, as a result of past events, there is a present obligation that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation- an appropriate provision is created and disclosed;

- where, as a result of past events, there is a possible obligation that may, but probably will not require an outflow of resources- no provision is recognized but appropriate disclosure made as contingent liabilities unless the possibility of outflow is remote.

16 Measurement of EBITDA

As permitted by the guidance note on the revised schedule VI to the Companies Act 1956, the company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss account. The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurements, the company does not include depreciation and amortization expenses, finance costs and tax expense.