Accounting Policies of Taaza International Ltd. Company

Mar 31, 2025

2.1 Basis of preparation of Standalone Financial Statements and
Compliance with Indian Accounting Standards (Ind AS)

The standalone financial statements of the Company have been prepared in
accordance with Indian Accounting Standards (“Ind AS”) notified under the
Companies (Indian Accounting Standards) Rules, 2015 (as amended from
time to time) and presentation requirements of Division II of Schedule III to
the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to
the Standalone Financial Statements.

Accordingly, the Company has prepared these Standalone Financial
Statements which comprise the Balance Sheet as at 31st March, 2025, the
Statement of Profit and Loss for the year ended 31st March 2025, the
Statement of Cash Flows for the year ended 31st March 2025 and the
Statement of Changes in Equity for the year ended as on that date, and
accounting policies and other explanatory information (together hereinafter
referred to as ‘Standalone Financial Statements’ or ‘financial statements’).

The separate financial statements have been prepared in accordance with
Indian Accounting Standards (Ind AS) under historical cost convention on
accrual basis except the assets and liabilities which have been measured at
Fair Values.

• Financial instruments - measured at fair value;

• Assets held for sale - measured at fair value less cost of sale;

• Plan assets under defined benefit plans - measured at fair
value

• Employee share-based payments - measured at fair value

• Biological assets - measured at fair value

• In addition, the carrying values of recognized assets and
liabilities, designated as hedged items in fair value hedges that
would otherwise be carried at cost, are adjusted to record
changes in the fair values attributable to the risks that are being
hedged in effective hedge relationship.

2.2 Current and Non-Current Classification:

The Company presents assets and liabilities in the balance sheet based on
current / non-current classification.

An asset is classified as current when it satisfies any of the following
criteria:

• Expected to be realised, or is intended to be sold or consumed, the
Company’s normal operating cycle.

• held primarily for the purpose of trading;

• It is expected to be realised within twelve months after the reporting
date; or

• It is cash or cash equivalent unless restricted from being exchanged
or used to settle a liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.

A Liability is classified as current when it satisfies any of the following
criteria:

• It is expected to be settled in the Company’s normal operating cycle;

• It is held primarily for the purpose of being trading;

• It is due to be settled within 12 months after the reporting date; or
the Company does not have an unconditional right to defer
settlement of the liability for at least 12 months after the reporting
date.

• Terms of a liability that could, at the option of the counterparty,
result in its settlement by the issue of equity instruments do not
affect its classification.

All other liabilities are classified as non-current.

2.3 Use of estimates and judgment

The preparation of financial statements requires estimates and assumptions
to be made that affect the reported amount of assets and liabilities on the
date of the financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between the results and
estimates are recognized in the period in which the results are known /
materialized.

2.4 Effects of changes in Foreign exchange rates (Ind AS 21)

The financial statements are presented in Indian rupees, which is the
functional currency of the Company.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Company in
INR at spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are
translated at INR spot rates of exchange at the reporting date. Exchange
differences arising on settlement or translation of monetary items are
recognised in the statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a
foreign currency are translated using the exchange rates at the dates of the
initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair
value is determined. The gain or loss arising on translation of non-monetary
items measured at fair value is treated in line with the recognition of the
gain or loss on the change in fair value of the item (i.e., translation
differences on items whose fair value gain or loss is recognised in OCI or
profit or loss are also recognised in OCI or profit or loss, respectively).

opted the period of 1^st day of April to 31^st day of March, each year as its
financial year for the purpose of preparation of financial statements
under the provisions of Section 2(41).

2.5 Fair Value Measurement: Ind AS-103

The Company measures financial instruments, such as, derivatives at fair
value at each balance sheet date. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair
value measurement is based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most advantageous
market for the asset or liability

The principal or the most advantageous market must be accessible by the
Company.

The fair value of an asset or a liability is measured using the assumptions
that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a
market participant’s ability to generate economic benefits by using the asset
in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure the fair
value, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorized within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the
fair value measurement as a whole:

> Level 1 — Quoted (unadjusted) market prices in active markets for
identical assets or liabilities

> Level 2 — Valuation techniques for which the lowest level input

that is significant to the fair value

measurement is directly or indirectly observable

> Level 3 — Valuation techniques for which the lowest level input
that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on
a recurring basis, the Company determines whether transfers have occurred
between levels in the hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

The Company determines the policies and procedures for both recurring fair
value measurement, such as derivative instruments and unquoted financial
assets measured at fair value, and for non-recurring measurement, such as
assets held for distribution in discontinued operations.

External valuers are involved for valuation of certain unquoted financial
assets. Involvement of external valuers is decided upon annually by the
Board after discussion with and approval by the Company’s Audit
Committee. Selection criteria include market knowledge, reputation,
independence and whether professional standards are maintained. The
Management decides, after discussions with the Company’s external
valuers, which valuation techniques and inputs to use for each case.

For the purpose of fair value disclosures, the Company has determined
classes of assets and liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

Revenue 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:

a) Sales Revenue is recognized on dispatch to customers as per the
terms of the order. Gross sales are net of returns and applicable
trade discounts and excluding GST billed to the customers.

b) Subsidy from Government is recognized when such subsidy has
been earned by the company and it is reasonably certain that the
ultimate collection will be made.

c) Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head “other income” in the
statement of profit and loss.

d) All other incomes are recognized based on the communications held
with the parties and based on the certainty of the incomes.

e) Revenue from contract with customers:

Revenue from contracts with customer is recognised when control of
the goods or services are transferred to the customer at an amount
that reflects the consideration to which the Company expects to be
entitled in exchange for those goods or services. The company has
concluded that it is the principal in its revenue arrangements because
it typically controls the goods or services before transferring them to
the customers.

Ind AS 115 establishes a five-step model to account for revenue
arising from contracts with customers and requires that revenue be
recognised at an amount that reflects the consideration to which an
entity expects to be entitled in exchange for transferring goods or
services to a customer.

Ind AS 115 requires entities to exercise Judgement, taking into
consideration all of the relevant facts and circumstances when
applying each step of the model to contracts with their customers.

The standard also specifies the accounting for the incremental costs
of obtaining a contract and the cost directly related to fulfilling a
contract. In addition, the standard requires extensive disclosures.

The Goods and service Tax (GST) is not received by the Company on
its own account. It is a tax collected on value added to the
commodity by the seller on behalf of the government. Accordingly, it
has been excluded from revenue.

The specific recognition criteria described below must also be met
before revenue is recognised.

f) Revenue from Sale of goods:

Revenue from sale of goods is recognised when all the significant
risks and rewards of ownership of the goods have been passed to the
buyer, usually on delivery of the goods. Revenue from the sale of
goods is measured at the fair value of the consideration received or
receivable, net of returns and allowances.

g) Interest income:

For all financial instrument measured at amortised cost, interest
income is recorded using effective interest rate (EIR), which is the rate
that exactly discounts the estimated future cash payments or receipts
through the expected life of the financial instrument or a shorter
period, where appropriate, to the net carrying amount of the financial
asset. Interest income is included under the head “other income” in
the statement of profit and loss.

h) Dividend Income:

Revenue is recognised when the Company’s right to receive the
payment is established, which is generally when shareholders
approve the dividend.

i) Other Operating Income:

The Company presents incentives received related to refund of
indirect taxes as other operating income in the statement of profit
and loss. Interest on the contract assets/ financial assets arising
from the Company’s principal or ancillary revenue generating
activities are classified as ‘Other operating revenue ’ in Statement of
Profit and Loss.

j) Other Income:

Other Income is accounted for on accrual basis except, where the
receipt of income is uncertain.

2.7 Taxes (Ind AS 12)

Current income tax

Current income tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date in India.

Current income tax relating to items recognised outside profit or loss is
recognised outside profit or loss (either in OCI or in equity). Current tax
items are recognised in correlation to the underlying transaction either in
OCI or directly in equity. Management periodically evaluates positions
taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provision where
appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary
differences between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary
differences.

Deferred tax assets are recognised for all deductible temporary
differences, the carry forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the extent that it is probable
that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting
date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised. Unrecognised deferred tax assets are re¬
assessed at each reporting date and are recognised to the extent that it
has become probable that future taxable profits will allow the deferred
tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the period/year when the asset is realised or the
liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is
recognised outside profit or loss (either in OCI or in equity).

Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

The Company offsets deferred tax assets and deferred tax liabilities if
and only if it has a legally enforceable right to set off current tax assets
and current tax liabilities and the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same taxation authority on
either the same taxable entity which intends either to settle current tax
liabilities and assets on a net basis, or to realise the assets and settle the
liabilities simultaneously, in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or
recovered.

2.8 Property, Plant & Equipment (Ind AS 16)

Property, plant and equipment and capital work in progress are stated at
cost, net of tax / duty credit availed, less accumulated depreciation and
accumulated impairment losses, if any. Such cost includes the cost of
replacing part of the plant and equipment and borrowing costs for long-term
construction projects if the recognition criteria are met. When significant
parts of plant and equipment are required to be replaced at intervals, the
Company depreciates them separately based on their specific useful lives. All
other repair and maintenance costs are recognised in the statement of profit
and loss as incurred.

Cost includes expenditures that are directly attributable to the acquisition of
the asset. The cost of self-constructed assets includes the cost of materials
and other costs directly attributable to bringing the asset to a working
condition for its intended use. Borrowing costs that are directly attributable
to the construction or production of a qualifying asset are capitalized as part
of the cost of that asset.

Subsequent expenditure related to an item of property, plant and equipment
is added to its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance or
extends its estimated useful life.

Capital Work in Progress (CWIP) includes Civil Works in Progress, Plant &
Equipment under erection and Pre-Operative Expenditure pending allocation
on the assets to be acquired/commissioned, capitalized. It also includes
payments made to towards technical know-how fee and for other General
Administrative Expenses incurred for bringing the asset into existence.

When parts of an item of property, plant and equipment have different
useful lives, they are accounted for as separate items (major components) of
property, plant and equipment.

Gains and losses upon disposal of an item of property, plant and equipment
are determined by comparing the proceeds from disposal with the carrying
amount of property, plant and equipment and are recognized net within
“other (income)/expense, net” in the statement of profit and loss.

Depreciation is calculated on a straight-line basis using the rates arrived at
based on the useful lives estimated by the management, which is equal to the
life prescribed under the Schedule II to the Companies Act, 2013.

The lives of the assets including Right to Use Assets are as follows:

The management believes that these estimated useful lives are realistic and
reflect fair approximation of the period over which the assets are likely to be
used.

An item of property, plant and equipment and any significant part initially
recognised is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on de¬
recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the statement
of profit and loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property,
plant and equipment are reviewed at each financial period/year end and
adjusted prospectively, if appropriate.

2.9 Intangible Assets (Ind AS 38)

Costs relating to computer software, which is acquired, are capitalized and
amortised on a straight-line basis over their estimated useful lives of three
years.

Gains or losses arising from de-recognition of an intangible asset are
measured as the difference between the net disposal proceeds and the
carrying amount of the assets and are recognised in the statement of profit
and loss when the asset is derecognised.

2.10 Borrowing Costs (Ind AS 23)

Borrowing costs directly attributable to the acquisition, construction or
production of an asset that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the period in which they
occur. Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds. Borrowing cost also
includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.

2.11 Leases (Ind AS 116)

The Company assesses at contract inception whether a contract is, or
contains, a lease. That is, if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all
leases, except for short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the
lease (i.e., the date the underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any re-measurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Right-of-
use assets are depreciated on a straight-line basis over the shorter of the
lease term and the estimated useful lives of the assets.

Lease Liabilities

At the commencement date of the lease, the Company recognises lease
liabilities measured at the present value of lease payments to be made over
the lease term. The lease payments include fixed payments. In calculating
the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a modification, a change

in the lease term, a change in the lease payments or a change in the
assessment of an option to purchase the underlying asset.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short¬
term leases of those leases that have a lease term of 12 months or less from
the commencement date and do not contain a purchase option.

2.12 Inventories (Ind AS 2)

Inventories are valued at the lower of cost and net realisable value. Cost is
determined on weighted average basis Costs incurred in bringing each
product to its present location and conditions are accounted for as follows:

? Raw materials and Components: 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. Cost includes cost of purchase
and other costs incurred in bringing the inventories to their present
location and condition.

? Finished goods and work in progress: cost includes cost of direct
materials and labour and a proportion of manufacturing overheads
based on the normal operating capacity, but excluding borrowing
costs.

? Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and the
estimated costs necessary to make the sale.

2.13 Impairment of Non-Financial Assets (Ind AS 36)

The Company assesses, at each reporting date, whether there is an
indication that an asset may be impaired. If any indication exists, or when
annual impairment testing for an asset is required, the Company estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal
and its value in use. Recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. When the
carrying amount of an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions can be
identified, an appropriate valuation model is used. These calculations are
corroborated by valuation multiples, quoted share prices for publicly traded
companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and
forecast calculations, which are prepared separately for each of the
Company’s CGUs to which the individual assets are allocated.

Impairment losses, including impairment on inventories, are recognised in
the statement of profit and loss. An assessment is made at each reporting
date to determine whether there is an indication that previously recognised
impairment losses no longer exist or have decreased. If such indication
exists, the Company estimates the asset’s or CGU’s recoverable amount. A
previously recognised impairment loss is reversed only if there has been a
change in the assumptions used to determine the asset’s recoverable
amount since the last impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for
the asset in prior periods/ years. Such reversal is recognised in the
statement of profit and loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as a revaluation increase.

---

Mar 31, 2015

I. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) 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 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014.

Management evaluates all recently issued or revised accounting standards on an ongoing basis. The financial statements are prepared under the historical cost convention. Recognition of income and expenses, accrual basis of accounting is followed.

ii. Use of Estimates;

The preparation of financial statements in conformity with generally 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 result of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

iii. Fixed Assets and Depreciation;

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets are also included to the extent they related to the period till such assets are ready to be put to use.

Depreciation on fixed assets has been provided on straight-line method based on useful life of asset specified in Schedule II of the Companies Act, 2013 on pro-rata basis.

iv. Investments;

Long-term Investments are stated at cost. Provision for diminution is being made if necessary to recognize a decline, other than temporary in the value thereof.

v. Inventories;

Inventories are valued as follows;

i) Finished Goods : At Cost

vi. Revenue Recognition;

Sale of Goods are accounted on delivery to customers. Sales are net of returns, discounts and Sales Tax / Value Added basis.

vii. Employee Benefits;

a. Gratuity & Leave Encashment;

Provisions for Gratuity and Leave Encashment have been provided in the books of accounts as the management estimates.

b. Provident fund;

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employee and the company make monthly contributions to the Regional Provident Fund Commissioner equal to a specified percentage of the covered employee's salary.

c. Employee State Insurance Fund;

Eligible employees receive benefits from employee state insurance scheme, which is a gross salary of less than Rs.15,000 per month are entitled to receive benefit under employee state insurance fund scheme. The employer makes contribution to the scheme at a predetermined rate (presently 4.75%) of employee's gross salary. The Company has no further obligations under the plan beyond its monthly contributions. These contributions are made to fund administered and managed by the Government of India.

viii. Provision for current and deferred tax;

Provision for current tax is made on the basis of estimated taxable income and fringe benefits respectively for the current accounting period in accordance with the provisions of Income Tax Act, 1961. Deferred tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax liability is recognized and carried forward only to the extent that there is a virtual certainty that the liability will be realized in future.

ix. Provisions, Contingent Liabilities and Contingent Assets;

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

x. Earnings per Share

In determining earnings per share, the company considers the net profit after tax expense. The number of shares used in computing basic earnings per share is the weighted average shares outstanding during the period.

xi. Cash flow statement

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.

xii. Foreign Exchange Transactions:

Transactions in foreign currencies are translated at the exchange rates prevailing on dates of transactions on case of purchases of materials; sale of goods and services rendered the exchange gains/losses on settlements during the year, are treated as expenditure and transferred to profit and loss account.

---

Mar 31, 2014

I. Basis of Accounting;

The Financial Statements are prepared under the historical cost convention on an accrual basis and in accordance with applicable Accounting Standards notified by the Government of India / issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

ii. Use of Estimates;

The preparation of financial statements in conformity with generally 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 result of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

iii. Fixed Assets and Depreciation;

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets are also included to the extent they related to the period till such assets are ready to be put to use.

Depreciation is provided on Straight Line Method as per the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 with reference to the month of acquisition / installation.

iv. Investments;

Long-term Investments are stated at cost. Provision for diminution is being made if necessary to recognize a decline, other than temporary in the value thereof.

v. Inventories;

Inventories are valued as follows; i) Finished Goods : At Cost

vi. Revenue Recognition;

Sale of Goods are accounted on delivery to customers. Sales are net of returns, discounts and Sales Tax / Value Added basis.

vii. Employee Benefits;

a. Gratuity & Leave Encashment;

Provisions for Gratuity and Leave Encashment have been provided in the books of accounts as the management estimates.

b. Provident fund;

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employee and the company make monthly contributions to the Regional

Provident Fund Commissioner equal to a specified percentage of the covered employee''s salary.

c. Employee State Insurance Fund;

Eligible employees receive benefits from employee state insurance scheme, which is a gross salary of less than Rs.10,000 per month are entitled to receive benefit under employee state insurance fund scheme. The employer makes contribution to the scheme at a predetermined rate (presently 4.75%) of employee''s gross salary. The Company has no further obligations under the plan beyond its monthly contributions. These contributions are made to fund administered and managed by the Government of India.

viii. Provision for current and deferred tax;

Provision for current tax is made on the basis of estimated taxable income and fringe benefits respectively for the current accounting period in accordance with the provisions of Income Tax Act, 1961. Deferred tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax liability is recognized and carried forward only to the extent that there is a virtual certainty that the liability will be realized in future.

ix. Provisions, Contingent Liabilities and Contingent Assets;

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

x. Earnings per Share

In determining earnings per share, the company considers the net profit after tax expense. The number of shares used in computing basic earnings per share is the weighted average shares outstanding during the period.

xi. Cash flow statement

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.

xii. Foreign Exchange Transactions:

Transactions in foreign currencies are translated at the exchange rates prevailing on dates of transactions on case of purchases of materials; sale of goods and services rendered the exchange gains/losses on settlements during the year, are treated as expenditure and transferred to profit and loss account.

---

Mar 31, 2013

1. Basis of Accounting;

The Financial Statements are prepared under the historical cost convention on an accrual basis and in accordance with applicable Accounting Standards notified by the Government of India / issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Use of Estimates;

The preparation of financial statements in conformity with generally 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 result of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

3. Fixed Assets and Depreciation;

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets are also included to the extent they related to the period till such assets are ready to be put to use.

Depreciation is provided on Straight Line Method as per the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 with reference to the month of acquisition / installation.

4. Inventories;

Inventories are valued as follows;

i) Finished Goods : At Cost

5. Revenue Recognition;

Sale of Goods are accounted on delivery to customers. Sales are net of returns, discounts and Sales Tax / Value Added basis.

6. Employee Benefits;

a. Gratuity & Leave Encashment;

Provisions for Gratuity and Leave Encashment have been provided in the books of accounts as the management estimates.

b. Provident fund;

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. An aggregate contribution along with interest thereon is paid at retirement, death, incapacitation or termination of employment. Both the employee and the company make monthly contributions to the Regional Provident Fund Commissioner equal to a specified percentage of the covered employee''s salary.

c. Employee State Insurance Fund;

Eligible employees receive benefits from employee state insurance scheme, which is a gross salary of less than Rs.10,000 per month are entitled to receive benefit under employee state insurance fund scheme. The employer makes contribution to the scheme at a predetermined rate (presently 4.75%) of employee''s gross salary. The Company has no further obligations under the plan beyond its monthly contributions. These contributions are made to fund administered and managed by the Government of India. of India.

7. Provision for current and deferred tax;

Provision for current tax is made on the basis of estimated taxable income and fringe benefits respectively for the current accounting period in accordance with the provisions of Income Tax Act, 1961. Deferred tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax liability is recognized and carried forward only to the extent that there is a virtual certainty that the liability will be realized in future.

8. Provisions, Contingent Liabilities and Contingent Assets;

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

9. Earnings per Share

In determining earnings per share, the company considers the net profit after tax expense. The number of shares used in computing basic earnings per share is the weighted average shares outstanding during the period.

10. Cash flow statement

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.

---

Mar 31, 2010

1. Basis of Accounting;

The Financial Statements are prepared under the historical cost convention on an accrual basis and in accordance with applicable Accounting Standards notifed by the Government of India / issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Use of Estimates;

The preparation of fnancial statements in conformity with generally 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 fnancial statements and the result of operations during the reporting period. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates.

3. Fixed Assets and Depreciation;

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fxed assets are also included to the extent they related to the period till such assets are ready to be put to use.

Depreciation is provided on Straight Line Method as per the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 with reference to the month of acquisition / installation.

4. Investments;

Long-term Investments are stated at cost. Provision for diminution is being made if necessary to recognize a decline, other than temporary in the value thereof.

5. Inventories;

Inventories are valued as follows;

i) Finished Goods : At Cost

ii) Shares : At Cost

6. Revenue Recognition;

Sale of Goods are accounted on deliver to customers. Sales is net of returns, discounts and Sales Tax / Value Added basis. Dividend income is accounted for when the right to receive is established.

7. Miscellaneous Expenditure;

Amalgamation expenses are written off 1/5 ever year

8. Retirement and other employee benefits;

No provision has been made for retirement benefits, as they are not applicable to the company.

9. Provision for current and deferred tax;

Provision for current tax is made on the basis of estimated taxable income and fringe benefits respectively for the current accounting period in accordance with the provisions of Income Tax Act, 1961. Deferred tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax liability is recognized and carried forward only to the extent that there is a virtual certainty that the liability will be realized in future.

10. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outfow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the fnancial statements.

11. Leases;

Operating lease payments are recognized as expenses in the proft and loss account as per the terms of the agreements which are representative of the time pattern of the users benefit.