1.  Basis for preparation of financial statements
 
 I) The financial statements of Nectar Lifesciences Limited ( the
 Company ) have been prepared and presented to comply with the
 historical cost conventions in accordance with the Indian Generally
 Accepted Accounting Principles (GAAP), mandatory Accounting Standards
 referred to in the Companies (Accounting Standards) Rule 2006 issued by
 the Central Government in exercise of the power conferred under
 sub-section (1) (a) of Section 642 read with sub section (3C) of
 Section 211 & sub-section (1) of Section 210 A to the extent applicable
 and the provisions of the Companies Act, 1956 and on the basis of going
 concern.
 
 ii) All the Incomes & Expenditures are recognized on accrual basis.
 
 2.  Fixed Assets and Depreciation
 
 i) Fixed Assets have been stated at cost net of Cenvat/Value Added Tax
 availed, but inclusive of attributable costs of bringing the asset to
 their working condition for their intended use less depreciation and
 impairment loss, if any.
 
 ii) Depreciation on fixed assets is provided on straight-line method at
 the rates and in the manner prescribed in Schedule XIV to the Companies
 Act, 1956.
 
 iii) Cost of leasehold assets is amortized over the period of the
 lease.
 
 3.  Investments
 
 Investments are classified into current and non current investments.
 Non current Investments are stated at cost and provision for diminution
 in value is made if decline is other than temporary in the opinion of
 the management. Current Investments are valued at cost and provision is
 made for decline in market value.
 
 4.  Inventories
 
 I.  Raw materials, Stores and Spares and Packing material
 
 Lower of Cost and Net Realizable Value. Cost of inventory comprises all
 cost of purchase and other cost incurred in bringing the inventories to
 their present location and condition.
 
 ii.  Finished Goods and work in process
 
 Lower of Cost and Net Realizable Value. Cost includes direct material,
 labour and proportionate of manufacturing overheads.  Cost of finished
 goods includes excise duty.
 
 iii. Traded goods
 
 Lower of Cost and Net Realizable Value. Cost includes the purchase
 price and other associated costs directly incurred in bringing the
 inventory to its present location.
 
 Net reliazable 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.
 
 5.  Foreign Exchange Transactions
 
 a.  Initial Recognition
 
 Investments in foreign entities are recorded at the exchange rate
 prevailing on the date of making the investment. Transactions
 denominated in foreign currencies are recorded at the exchange rates
 prevailing on the date of the transaction.
 
 b.  Conversion
 
 Monetary assets and liabilities denominated in foreign currencies, as
 at the balance sheet date, not covered by forward exchange contracts,
 are translated at year end rates.
 
 c.  Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in the
 previous financial statements, are recognized as income or expense in
 the year in which they arise. The exchange difference on foreign
 currency denominated long term borrowings relating to the acquisition
 of depreciable capital assets are adjusted in the carrying cost of such
 assets for current year.
 
 6.  Revenue Recognition
 
 i) Revenue from product sales is stated exclusive of returns,
 inter-division transfers, sales tax but includes excise duty.
 
 ii) Dividend income is recognized as and when the right to receive is
 established.
 
 iii) Export benefits and other benefits are accounted for on accrual
 basis. Export entitlements are recognized as reduction from material
 consumption when the right to receive credit is established in respect
 of the exports made and when there is no significant uncertainty
 regarding the ultimate collection of the relevant export proceeds.
 
 7.  Employee Benefits
 
 i) Short Term Employee Benefits:
 
 Employee benefits payable fully within twelve months of rendering the
 service are classified as short term employee benefits and are
 recognized in the period in which the employee renders the related
 service.
 
 Contributions to the Provident Fund, which is a defined contribution
 scheme, is recognized as an expense in the profit and loss account in
 the period in which the contribution is due.
 
 ii) Long Term Employee Benefits:
 
 Post Employment Benefits (Defined Benefit Plans)
 
 The employees gratuity scheme is a defined benefit plan. The present
 value of the obligation under such defined benefit plan is determined
 at Balance Sheet date based on an actuarial valuation carried out by an
 independent actuary using the projected unit credit method. Actuarial
 gains and losses and past service cost are recognized immediately in
 the profit and loss account.
 
 Long term employee benefit also comprises of compensated absences.
 These are measured based on an actuarial valuations carried out by an
 independent actuary using the projected unit method at balance sheet
 date unless they are insignificant.  Actuarial gains and losses and
 past service cost are recognized immediately in the profit and loss
 account.
 
 8.  Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized. Other borrowing
 costs are recognized as an expense in the period in which they are
 incurred.
 
 9.  Leases
 
 Leases, where the lessor retains substantially all the risks and
 benefits of the ownership of the leased item are classified as
 operating leases. Lease rentals for assets taken on operating lease are
 charged to the profit and loss account in accordance with Accounting
 Standard 19 on leases.
 
 10.  Government Grants and Subsidies
 
 Grants and Subsidies are recognized when there is a reasonable
 assurance that the grant or subsidy will be received and that all
 underlying conditions will be complied with. When the grant or subsidy
 relates to an asset, its value is deducted in arriving at the carrying
 amount of the related asset.
 
 11.  Earnings Per Share
 
 Basic earning per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of equity shares outstanding during the
 year are adjusted for the effects of all dilutive potential equity
 shares.
 
 12.  Other Non Current Assets
 
 Preliminary expenses are written off over a period of 10 years.
 
 13.  Impairment of Assets
 
 Management periodically assesses using external and internal sources
 whether there is an indication that an asset may be impaired.
 Impairment occurs where the carrying value of future cash flows
 expected to arise from the continuing use of the assets and its
 eventual disposal. The impairment loss to be expensed is determined as
 the excess of the carrying amount over the higher of the asset''s net
 sales price or present value as determined above.
 
 14.  Deferred Tax
 
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognized using the tax rates that have been
 enacted by the balance sheet date. Deferred tax assets are recognized
 only to the extent there is reasonable certainty that the assets can be
 realized in future. Deferred tax assets and liabilities are reviewed at
 each balance sheet date and are restated to reflect the amount that is
 reasonably certain to be released/ payable.