Par Drugs & Chemicals Ltd. कंपली की लेखा नीति

Mar 31, 2025

(B) Significant Accounting Policies

1) Basis of Preparation of Financial Statement

These financial statements are prepared
in accordance with the Indian Accounting
Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended ("Ind AS")
and other accounting principles generally
accepted in India under the historical cost
convention on the accrual basis except for certain
financial instruments which are measured at fair
values. GAAP comprises mandatory accounting
standards as prescribed under Section 133 of
the Companies Act, 2013 (''Act'') read with Rule
7 of the Companies (Accounts) Rules, 2014.
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.

2) Use of Estimates:

The preparation of the financial statements in
conformity with GAAP requires management to
make estimates and assumptions that affect the
reported balances of assets and liabilities and
disclosures relating to contingent liabilities as at

the date of the financial statements and reported
amounts of income and expenses during the
period. Examples of such estimates include
computation of percentage of completion which
requires the Company to estimate the efforts or
costs expended to date as a proportion of the
total efforts or costs to be expended, provisions
for doubtful debts, future obligations under
employee retirement benefit plans, income
taxes, post-sales customer support and the use-
full lives of fixed tangible assets and intangible
assets. Accounting estimates could change
from period to period. Actual results could differ
from those estimates. Appropriate changes
in estimates are made as the Management
becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates
are reflected in the financial statements in
the period in which changes are made and, if
material, their effects are disclosed in the notes
to the financial statements.

3) Property, Plant and Equipment and Intangible
assets & Depreciation:

Tangible Assets:

All items of fixed assets are stated at historical
cost less accumulated depreciation. Historical
cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset''s
carrying amount or recognized as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with
the item will flow to the Company and the cost of
the item can be measured reliably. The carrying
amount of any component accounted for as a
separate asset is derecognized when replaced.
All other repairs and maintenance expenses are
charged to profit or loss during the reporting
period in which they are incurred

Depreciation on fixed assets is provided on
pro rata basis as per WDV method based on
the estimated useful life of various assets, as
specified in Schedule II of the Companies Act,
2013.

Intangible Assets:

An intangible asset is recognized when it is
probable that the future economic benefits
attributable to the asset will flow to the
enterprise and where its cost can be reliably
measured. Intangible assets are stated at cost

of acquisition less accumulated amortization
and impairment losses, if any. Cost comprises
the purchase price and any cost attributable
to bringing the assets to its working condition
for its intended use which includes taxes
and allocated incidental expenditure during
development / acquisition and exclusive of Input
tax credit (IGST/CGST and SGST) or other tax
credit available to the Company.

Subsequent expenditure relating to intangible
assets is capitalized only if such expenditure
results in an increase in the future benefits
from such asset beyond its previously assessed
standard of performance.

Assets Acquired as Lease:

Leases under which the Entity assumes
substantially all the risks and rewards of
ownership are classified as finance leases. Such
assets are capitalized at fair value of the asset
or present value of the minimum lease payments
at the inception of the lease, whichever is lower.
Lease payments under operating leases are
recognized as an expense in the Proft and Loss
Account on a straight-line basis over the lease
term.

The cost of leasehold land is amortized over the
period of the lease. Leasehold improvements and
assets acquired on finance lease are amortized
over the lease term or useful life, whichever is
lower.

Advances paid towards the acquisition of
Property, Plant and Equipment

Advances paid towards the acquisition of
Property, Plant and Equipment, outstanding
at each balance sheet date are shown under
capital advances. The cost of the Property, Plant
and Equipment not ready for its intended use on
such date, is disclosed under capital work-in¬
progress.

4) Impairment of Assets:

An asset is treated as impaired when the
carrying cost of assets exceeds its recoverable
value. Impairment loss is charged to the
Statement of Profit and Loss in the year in
which an asset is identified as impaired. The
impairment loss recognized in prior accounting
period is reversed if there has been a change in
the estimate of recoverable amount.

5) Investments:

Investments are classified and measured
in accordance with Ind AS 109 - Financial
Instruments.

• Equity investments are measured at fair
value through profit or loss (FVTPL) unless

irrevocably designated at fair value through
other comprehensive income (FVOCI) at

initial recognition.

• Debt instruments are classified based
on the Company''s business model and
contractual cash flow characteristics and
are measured at amortised cost, FVOCI, or
FVTPL accordingly.

• All investments are initially recognized at
fair value.

• Changes in fair value of investments
measured at FVTPL are recognized in the
Statement of Profit and Loss.

• Investments classified at FVOCI are
measured at fair value, and changes therein
are recognized in Other Comprehensive
Income (OCI).

• The Company assesses expected credit
losses (ECL) for debt investments where
applicable.

6) Inventories : The inventories are valued on the
following basis :

a) Raw Materials : Valued at Cost Price.

b) Finished goods : Valued at lower of Cost or
Net Realizable Value.

c) Stock in Process : Valued at Cost Price.

7) Employee Benefits:

All short term employee benefits are accounted
on undiscounted basis during the accounting
period based on services rendered by
employees.

The Company''s contribution to Provident Fund
and Employees State Insurance Scheme is
determined based on a fixed percentage of the
eligible employees'' salary and charged to the
Statement of Profit and Loss on accrual basis.

The Company''s liability towards gratuity and
compensated absences, being defined benefit
plans are accounted for on the basis of an
independent actuarial valuation and actuarial
gains/losses are charged to the Statement of
Profit and Loss.

8) Revenue Recognition:

(A) Revenue/income and Cost / Expenditure
are generally accounted on accrual basis as
they are earned or incurred, except those
with significant uncertainties.

(B) Sales are recognized at the point of dispatch
of goods to the customers. Sales are net of
discounts, GST and returns.

(C) Interest income is recognized on time
proportion basis.

(D) Dividend on Investments is accounted when
approved by the shareholders'' in the annual
general meeting.

(E) Insurance claim receivable is recognized
in the year of the loss to the extent
ascertainable.

(F) The CENVAT / GST Credit available on
purchase of raw materials / capital items and
other eligible inputs are adjusted against
GST payable on clearance of finished goods.

9) Foreign Currency Transaction:

Monetary assets and liabilities related to foreign
currency transactions remaining unsettled at
the end of the year are translated at year end
rates.

The difference in translation of monetary assets
and liabilities and realized gains and losses
on foreign transactions are recognized in the
Statement of Profit and Loss.

The premium or discount on forward exchange
contracts is recognized in the statement of
profit and loss over the period of the contract.

10) Accounting for Government Grants/Refunds:

Government grants/subsidies and refunds due
from Government Authorities are accounted
when there is reasonable certainty of their
realization.

11) Taxation

Tax expenses comprise current tax (amount of
tax for the period determined in accordance
with the Income Tax Regulations in India) and
deferred tax charge or credit (reflecting the
tax effects of timing differences between
accounting income and taxable income for the
period).

The deferred tax charge or credit and the
corresponding deferred tax liabilities or assets
are recognised using the tax rates that have been
enacted or substantively enacted by the Balance
Sheet date, Deferred tax assets are recognised
only to the extent there is reasonable certainty
that the assets can be realized in future; however,
when there is unabsorbed depreciation or carry
forward losses under taxation laws, deferred tax
assets are recognised only if there is a virtual
certainty of realization of such assets. Deferred
tax assets are reviewed at each Balance Sheet
date and written down or written up to reflect
the amount that is reasonably / virtually certain,
as the case may be, to be realized

Tax credit is recognised in respect of Minimum
Alternate Tax (MAT) as per the provisions of
Section 115JAA of the Income Tax Act, 1961
based on convincing evidence that the Company

will pay normal income tax within the statutory
time frame and is reviewed at each Balance
Sheet date.

Company has policy of not considering MAT tax
credit available to them under the Income Tax
Act.

12) Borrowing Cost:

Borrowing Costs relating to the acquisition/
construction of qualifying assets are capitalized
until the time all substantial activities necessary
to prepare the qualifying assets for their
intended use are complete. A qualifying asset is
one that necessarily takes substantial period of
time to get ready for its intended use. All other
borrowing costs are charge to revenue.

13) Earning Per Share:

Basic earning per share is calculated by
dividing the net profit or loss after tax for the
year attributable to Equity Shareholders of the
Company by the weighted average number of
Equity Shares outstanding during the year.

Diluted earning per Share is calculated by
dividing net profit or loss attributable to equity
Shareholders by the weighted average number
of equity shares outstanding during the year
with adjustment of all dilutive potential equity
shares.

---

Mar 31, 2024

(A) Corporate Information

Company was originally incorporated on February 26, 1999 as Par Drugs and Chemicals Private Limited under the provisions of the Companies Act, 1956 with the Registrar of Companies, Ahmedabad, Gujarat. Company was converted in to Public Limited Company and consequently name of company was changed from Par Drugs and Chemicals Private Limited to Par Drugs and Chemicals Limited vide special resolution passed by the Shareholders at the Extraordinary General Meeting held on October 24, 2018 and a fresh certificate of incorporation dated November 5, 2018 issued by the Registrar of Companies, Ahmedabad.

The Company is primarily engaged in manufacturing of Active Pharma Ingredients and fine chemicals (API) for domestic market as well as for exports to international markets. APIs, also known as "bulk drugs" or "bulk actives" are the principal ingredient used in making finished dosages in the form of capsules, tablets, liquid, or other forms of dosage, with the addition of other APIs or inactive ingredients.

(B) Significant Accounting Policies

1) Basis of Preparation of Financial Statement

These financial statements are prepared in accordance with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended ("Ind AS") and other accounting principles generally accepted in India under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. 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.

2) Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported

amounts of income and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the use-full lives of fixed tangible assets and intangible assets. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

3) Property, Plant and Equipment and Intangible assets & Depreciation:

Tangible Assets:

All items of fixed assets are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance expenses are charged to profit or loss during the reporting period in which they are incurred

Depreciation on fixed assets is provided on pro rata basis as per WDV method based on the estimated useful life of various assets, as specified in Schedule II of the Companies Act, 2013.

Intangible Assets:

An intangible asset is recognized when it is probable that the future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably measured. Intangible assets are stated at cost of acquisition less accumulated amortization and impairment losses, if any. Cost comprises

the purchase price and any cost attributable to bringing the assets to its working condition for its intended use which includes taxes and allocated incidental expenditure during development / acquisition and exclusive of Input tax credit (IGST/CGST and SGST) or other tax credit available to the Company.

Subsequent expenditure relating to intangible assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Assets Acquired as Lease:

Leases under which the Entity assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense in the Proft and Loss Account on a straight-line basis over the lease term.

The cost of leasehold land is amortized over the period of the lease. Leasehold improvements and assets acquired on finance lease are amortized over the lease term or useful life, whichever is lower.

Advances paid towards the acquisition of Property, Plant and Equipment

Advances paid towards the acquisition of Property, Plant and Equipment, outstanding at each balance sheet date are shown under capital advances. The cost of the Property, Plant and Equipment not ready for its intended use on such date, is disclosed under capital work-inprogress.

4) Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

5) Investments:

Investments, which are readily realizable and intended to be held for not more than 12 months from the date on which such investments are made, are classified as current investments. All other investments are classified as longterm investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly

attributable acquisition charges such as brokerage, fees and duties. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments

6) Inventories : The inventories are valued on the following basis :

a) Raw Materials : Valued at Cost Price.

b) Finished goods : Valued at lower of Cost or Net Realizable Value.

c) Stock in Process : Valued at Cost Price.

7) Employee Benefits:

All short term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.

The Company''s contribution to Provident Fund and Employees State Insurance Scheme is determined based on a fixed percentage of the eligible employees'' salary and charged to the Statement of Profit and Loss on accrual basis. The Company''s liability towards gratuity and compensated absences, being defined benefit plans are accounted for on the basis of an independent actuarial valuation and actuarial gains/losses are charged to the Statement of Profit and Loss.

8) Revenue Recognition:

(A) Revenue/income and Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred, except those with significant uncertainties.

(B) Sales are recognized at the point of dispatch of goods to the customers. Sales are net of discounts, GST and returns.

(C) Interest income is recognized on time proportion basis.

(D) Dividend on Investments is accounted when approved by the shareholders'' in the annual general meeting.

(E) Insurance claim receivable is recognized in the year of the loss to the extent ascertainable.

(F) The CENVAT / GST Credit available on purchase of raw materials / capital items and other eligible inputs are adjusted against GST payable on clearance of finished goods.

9) Foreign Currency Transaction:

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.

The difference in translation of monetary assets and liabilities and realized gains and losses on foreign transactions are recognized in the Statement of Profit and Loss.

The premium or discount on forward exchange contracts is recognized in the statement of profit and loss over the period of the contract.

10) Accounting for Government Grants/Refunds:

Government grants/subsidies and refunds due from Government Authorities are accounted when there is reasonable certainty of their realization.

11) Taxation

Tax expenses comprise current tax (amount of tax for the period determined in accordance with the Income Tax Regulations in India) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date, Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realized in future; however, when there is unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each Balance Sheet date and written down or written up to reflect the amount that is reasonably / virtually certain, as the case may be, to be realized

Tax credit is recognised in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within the statutory time frame and is reviewed at each Balance Sheet date.

Company has policy of not considering MAT tax credit available to them under the Income Tax Act.

12) Borrowing Cost:

Borrowing Costs relating to the acquisition/ construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charge to revenue.

13) Earning Per Share:

Basic earning per share is calculated by dividing the net profit or loss after tax for the year attributable to Equity Shareholders of the Company by the weighted average number of Equity Shares outstanding during the year.

Diluted earning per Share is calculated by dividing net profit or loss attributable to equity Shareholders by the weighted average number of equity shares outstanding during the year with adjustment of all dilutive potential equity shares.

14) Provisions, Contingent Liabilities & Contingent Assets:

The company recognizes as provisions, the liability being present obligations arising from past events, the settlement of which is expected to result in outflow of resources and which can be measured only by using a substantial degree of estimation. Contingent liabilities are disclosed by way of a note to the financial statement after careful evaluation by the management of the facts and legal aspect of the matters involved. Contingent assets are being neither recognized nor disclosed.

15) Curent Assets, Loans And Avances

The balance under items of Sundry Debtors, Loans and Advances and current liabilities are subject to confirmation and reconciliation and consequential adjustments, wherever applicable. However, in the opinion of the Management, the realisable value of the current assets, loans and advances in the ordinary course of business will not be less than the value at which they are stated in the Balance Sheet.

16) Cash Flow

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

17) Segment Reporting

As the company is dealing in only one segment i.e. manufacturing industry, API, hence segment reporting is not applicable. Company does not have distinguishable component of an enterprise that is engaged in providing an individual product or service or group of related product or services and that is subject to risks and returns that are different from those of other business segment.

---

Mar 31, 2023

NOTES NO.01 : SIGNIFICANT ACCOUNTING POLICIES

(A) Corporate Information

Company was originally incorporated on February 26, 1999 as Par Drugs and Chemicals Private Limited under the provisions of the Companies Act, 1956 with the Registrar of Companies, Ahmedabad, Gujarat. Company was converted in to Public Limited Company and consequently name of company was changed from Par Drugs and Chemicals Private Limited to Par Drugs and Chemicals Limited vide special resolution passed by the Shareholders at the Extraordinary General Meeting held on October 24, 2018 and a fresh certificate of incorporation dated November 5, 2018 issued by the Registrar of Companies, Ahmedabad.

The Company is primarily engaged in manufacturing of Active Pharma Ingredients and fine chemicals (API) for domestic market as well as for exports to international markets. APIs, also known as "bulk drugs" or "bulk actives" are the principal ingredient used in making finished dosages in the form of capsules, tablets, liquid, or other forms of dosage, with the addition of other APIs or inactive ingredients.

(B) Significant Accounting Policies

1) Basis of Preparation of Financial Statement

These financial statements are prepared in accordance with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended (" Ind AS") and other accounting principles generally accepted in India under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. 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.

2) Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes,

post-sales customer support and the use-full lives of fixed tangible assets and intangible assets. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

3) Property, Plant and Equipment and Intangible assets & Depreciation:

Tangible Assets:

All items of fixed assets are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance expenses are charged to profit or loss during the reporting period in which they are incurred

Depreciation on fixed assets is provided on pro rata basis as per WDV method based on the estimated useful life of various assets, as specified in Schedule II of the Companies Act, 2013.

Intangible Assets:

An intangible asset is recognized when it is probable that the future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably measured. Intangible assets are stated at cost of acquisition less accumulated amortization and impairment losses, if any. Cost comprises the purchase price and any cost attributable to bringing the assets to its working condition for its intended use which includes taxes and allocated incidental expenditure during development / acquisition and exclusive of Input tax credit (IGST/CGST and SGST) or other tax credit available to the Company.

Subsequent expenditure relating to intangible assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Assets Acquired as Lease:

Leases under which the Entity assumes substantially all the risks and rewards of ownership are classified as

finance leases. Such assets are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense in the Proft and Loss Account on a straight-line basis over the lease term.

The cost of leasehold land is amortized over the period of the lease. Leasehold improvements and assets acquired on finance lease are amortized over the lease term or useful life, whichever is lower.

Advances paid towards the acquisition of Property, Plant and Equipment

Advances paid towards the acquisition of Property, Plant and Equipment, outstanding at each balance sheet date are shown under capital advances. The cost of the Property, Plant and Equipment not ready for its intended use on such date, is disclosed under capital work-in- progress.

4) Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

5) Investments:

Investments, which are readily realizable and intended to be held for not more than 12 months from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments

6) Inventories : The inventories are valued on the following basis :

a) Raw Materials : Valued at Cost Price.

b) Finished goods : Valued at lower of Cost or Net Realizable Value.

c) Stock in Process : Valued at Cost Price.

7) Employee Benefits:

All short term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.

The Company''s contribution to Provident Fund and Employees State Insurance Scheme is determined based on a fixed percentage of the eligible employees'' salary and charged to the Statement of Profit and Loss on accrual basis.

The Company''s liability towards gratuity and compensated absences, being defined benefit plans are accounted for on the basis of an independent actuarial valuation and actuarial gains/losses are charged to the Statement of Profit and Loss.

8) Revenue Recognition:

(A) Revenue/income and Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred, except those with significant uncertainties.

(B) Sales are recognized at the point of dispatch of goods to the customers. Sales are net of discounts, GST and returns.

(C) Interest income is recognized on time proportion basis.

(D) Dividend on Investments is accounted when approved by the shareholders'' in the annual general meeting.

(E) Insurance claim receivable is recognized in the year of the loss to the extent ascertainable.

(F) The CENVAT / GST Credit available on purchase of raw materials / capital items and other eligible inputs are adjusted against GST payable on clearance of finished goods.

9) Foreign Currency Transaction:

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.

The difference in translation of monetary assets and liabilities and realized gains and losses on foreign transactions are recognized in the Statement of Profit and Loss.

The premium or discount on forward exchange contracts is recognized in the statement of profit and loss over the period of the contract.

10) Accounting for Government Grants/Refunds:

Government grants/subsidies and refunds due from Government Authorities are accounted when there is reasonable certainty of their realization.

11) Taxation

Tax expenses comprise current tax (amount of tax for the period determined in accordance with the Income Tax Regulations in India) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date, Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realized in future; however, when there is unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each Balance Sheet date and written down or written up to reflect the amount that is reasonably / virtually certain, as the case may be, to be realized

Tax credit is recognised in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of the Income Tax Act, 1961 based on convincing evidence that the Company will pay normal income tax within the statutory time frame and is reviewed at each Balance Sheet date.

Company has policy of not considering MAT tax credit available to them under the Income Tax Act.

12) Borrowing Cost:

Borrowing Costs relating to the acquisition/construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charge to revenue.

13) Earning Per Share:

Basic earning per share is calculated by dividing the net profit or loss after tax for the year attributable to Equity

Shareholders of the Company by the weighted average number of Equity Shares outstanding during the year.

Diluted earning per Share is calculated by dividing net profit or loss attributable to equity Shareholders by the weighted average number of equity shares outstanding during the year with adjustment of all dilutive potential equity shares.

14) Provisions, Contingent Liabilities & Contingent Assets:

The company recognizes as provisions, the liability being present obligations arising from past events, the settlement of which is expected to result in outflow of resources and which can be measured only by using a substantial degree of estimation. Contingent liabilities are disclosed by way of a note to the financial statement after careful evaluation by the management of the facts and legal aspect of the matters involved. Contingent assets are being neither recognized nor disclosed.

15) Curent Assets, Loans And Avances

The balance under items of Sundry Debtors, Loans and Advances and current liabilities are subject to confirmation and reconciliation and consequential adjustments, wherever applicable. However, in the opinion of the Management, the realisable value of the current assets, loans and advances in the ordinary course of business will not be less than the value at which they are stated in the Balance Sheet.

16) Cash Flow

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

17) Segment Reporting

As the company is dealing in only one segment i.e. manufacturing industry, API, hence segment reporting is not applicable. Company does not have distinguishable component of an enterprise that is engaged in providing an individual product or service or group of related product or services and that is subject to risks and returns that are different from those of other business segment.