I. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of Preparation of Financial Statements

The financial statements are prepared and presented under
the historical cost convention, on the accrual basis of
accounting in accordance with the accounting principles
generally accepted in India (‘Indian GAAP') and comply with
the Accounting Standards issued by the Institute of
Chartered Accountants of India ('ICAI') specified in Section
133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rule 2014 and relevant provisions of
Companies Act, 2013 ("the Act") to the extent applicable.

1.2 Use of Estimates

The preparation of financial statements in conformity with
generally accepted accounting principles (“GAAP") requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the
disclosure of contingent liabilities on the date of financial
statements. Actual results could differ from those estimates.
Any revision to accounting estimates is recognized
prospectively in current and future periods.

1.3 Fixed Assets and Depreciation

The company has adopted Cost Model as prescribed in
Accounting standard -10 (Revised) “Property Plant &
Equipment".

Depreciation on fixed assets is provided on Written down
Method at the manners provided in Schedule II of the
Companies Act, 2013. Depreciation is charged on fixed
assets from last day of the month in which such assets were
put to use. Further, Govt. Grant received if any related to
depreciable assets are reduced from depreciation over the
period of useful life of qualifying assets on systematic and
rational basis. Leasehold land is amortized over the period
of lease.

1.4 Impairment of Assets

The Company assesses at each balance sheet date whether
there is any indication that an asset or a group of assets
(cash generating unit) may be impaired. If any such

indication exists, the Company estimates the
recoverable amount of the asset or a group of assets. If
such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset
belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. The reduction
is treated as an impairment loss and is recognized in the
profit & loss account. If at the balance sheet date there is an
indication that a previously assessed impairment loss no
longer exits, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a
maximum of depreciable historical cost.

1.5 Inventories

a. Inventories are valued at cost or net realizable value
whichever is lower.

b. The cost of finished goods and stock in process includes
estimated cost of conversion and other costs included in
bringing the inventories to their present location and
condition.

c. Cost of raw materials, packaging material and oils and
fuels on First Come First Out basis.

d. Cost of Store and Spares is determined at Estimated
Cost.

e. By-product and scrap are valued at net realisable value.

1.6 Revenue Recognition

a. Revenue from sale is recognized on transfer of all
significant risk and rewards of ownership of products to
the customers, which is generally on dispatch of goods.
Sales are stated exclusive of GST.

b. Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the rate
applicable.

1.7 Employee Benefits
Short Term Employee Benefits

All employee benefits payable wholly within twelve months
of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, wages, and
short term compensated absences, etc. are recognized in
the period in which the employee render the related
services.

Post- Employment Benefits

i. Defined Contribution Plans: The Employee State
Insurance Scheme and Contributory Provident Fund
administered by Provident Fund Commissioner are
defined contribution plans. The Company's contribution

paid/payable under the schemes is recognized as
expense in the profit and loss account during the period
in which the employee renders the related service. No
provision has been made towards leave encashment
payable to employees on their retirement or termination
of service.

ii. Defined Benefit Plans: The Company has taken Group
Gratuity and Cash Accumulation Policy issued by the
Kotak Life Insurance . The present value of the obligation
under such defined benefit plans is determined based on
actuarial valuation as advised by Kotak Life Insurance,
using the Projected Unit Credit method, which
recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and
measures each unit separately to build up the final
obligation.

The obligation is measured at the present value of the
estimated future cash flows. The discount rates used for
determining the present value of the obligation under
defined benefit plans, are as advised by Kotak Life
Insurance.

Actuarial gains and losses are recognized immediately in
the Profit & Loss Account by way of contribution for the
year.

iii. Other Benefits: The Company has not made provision for
leave encashment in respect of accumulated encashable
leave of employees as at the balance sheet date. The
liability, if any, on account of leave encashment will be
recognized in the year of actual payment.

1.8 Foreign Currency Transactions

Transactions denominated in foreign currency are recorded
at the exchange rate prevailing on the date of transactions.
Exchange differences arising on foreign exchange
transactions settled during the year are recognized in the
statement of profit and loss of the year.

Monetary assets and liabilities in foreign currency, which are
outstanding as at the year-end, are translated at the closing
exchange rate and the resultant exchange differences are
recognized in the statement of profit and loss.

1.9 Borrowing Costs

Borrowing costs are capitalized as a part of the cost of
qualifying assets when it is probable that they will result in
future economic benefits to the enterprise and the cost can
be measured reliably. A qualifying asset is one that
necessarily takes substantial period of time to get ready for
its intended use. Other borrowing cost is recognized as an
expense in the period in which they are incurred. Interest
on term loan taken for acquisition of fixed assets till the
date of commencement of commercial production unit is
capitalized and determined in accordance with Accounting

Standard (AS) 16- Borrowing Costs issued by the Institute of
Chartered Accountants of India (ICAI) and notified under the
Companies (Accounts) Rules 2014.

1.10 Taxation

Tax expenses for the current year comprises of current tax
and deferred tax. Current tax is the amount of tax payable
on the taxable income for the year as determined in
accordance with the provisions of Income Tax Act 1961.
Deferred tax is recognized, on timing difference between
the taxable income and accounting income that originate in
one period and are capable of reversal in one or more
subsequent periods.

1.11 Earning Per Share

Basic and diluted earnings per share is computed by
dividing the net profit attributable to equity shareholders
for the year, by the weighted average number of equity
shares outstanding during the year. There are no diluted
potential equity share.