I. Basis of preparation of financial statements
These financial statements have been prepared on an accrual basis and
under historical cost convention and in compliance, in all material
aspects, with the applicable accounting principles in India, the
applicable accounting standards notified under 211 (30 and the other
relevant provisions of the Companies Act, 1956.
The company generally fallows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
II. Use of Estimates
The preparation or financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial the reported amounts of revenues and expenses
during the reporting period. Differences between actual results and are
recognised in the period in which the results are known/materialised.
III. Fixed Assets and Capital Work in Progress
a) Fixed assets as accounted at cost of acquisition or construction
less depreciation. The company capitalised all direct and indirect
costs relating to the acquisition and installation of fixed assets.
Interest on borrowed funds, if any used to finance
acquisition/construction of fixed assets are capitalised till date of
b) Capital work in progress comprises outstanding advances paid to
acquire Fixed Assets and cost of Fixed Assets that are not yet
IV. Depreciation and Amortisation
a) Depreciation has been provided on straight-line method at the rates
and in the manner specified in schedule XIV to the companies Act, 1956.
Depreciation is provided on pro-rata to the period of use,
b) Leasehold land is amortised over the period of lease.
Revenue from sale of products includes sale value of goods and excise
duty collected thereon, but excludes sales tax.
Sales turnover are staled at net of trade discount and rebates granted
during the ordinary course of business.
Inventories of Raw Materials, Packing Material, Stores and Spares are
valued ''at cost''. Finished Goods and Work in Progress are stated ''at
cost or net realisable value, whichever is lower. Cost comprises all
cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
Investments are classified into Current and Long-term Investments.
Current Investments are stated at lower of cost and fair value.
Long-term Investments are stated at cost.
VIII. Impairment of Fixed Assets
At each Balance Sheet date, the company reviews the carrying value of
tangible and intangible assets for any possible impairment. An
impairment loss is recognised when the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is higher of the
asset''s net selling price or estimated future cash flows, which are
discounted to their present value based on appropriate discount rates.
During the year no provision for Impairment of fixed assets has been
IX. Excise Duty and Custom Duty
Excise duty/Customs duty has been accounted on the basis of payments
made in respect of goods Cleared, Cenvat credit on raw materials and
capital goods has been accounted for, by reducing the purchase cost of
raw materials and capital goods respectively,
X. Segment Reporting
In accordance with the requirement of Accounting Standard -17, Segment
Reporting issued by the Institute of Chartered Accountants of India,
the Company''s Business Segment is Manufacturing of Agro and Pharma
Chemicals and hence it has no other reportable segment.
Thus the segment wise revenue, Segment wise result, total carrying
amount of Segment wise assets and Segment wise liability, total cost
incurred to acquire Segment wise assets, total amount of charge for
deprecation during the year, is as reflected in the Financial Statement
as of and for the year ended March 31, 2012.
XI. Foreign Currency Transaction
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of the transaction. Exchange differences, if
any, arising out of transactions settled during the year are recognized
in the profit & loss account.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the closing exchange rate on
that date. The exchange differences if any, are recognised in the
profit and loss account and related assets and liabilities are
accordingly restated in the balance sheet
XII. Retirement Benefits
Provision for Gratuity & Leave encashment are made and provided on
actuarial valuation basis. Other retirement benefits are accounted as
per company''s policy.
XIII. In absence of information with the company, the nature of
suppliers who are registered as micro. Small or medium enterprises
under the Micro, Small and Medium Enterprises Development Act 2006, as
at 31st March 2012 have not been given.