1. Significant Accounting Policies

a) Basis of Accounting:

The financial statements have been brpared and brsented under the historical cost convention on the accrual basis of accounting with the accounting principles generally accepted in India ('GAAP') and comply with the mandatory Accounting standards ('AS') issued by the Institute of Chartered Accountants of India to the extent applicable and with the relevant provisions of the Companies Act, 1956.

b) Fixed Assets:

Fixed Assets are stated at cost of acquisition (net of CENVAT, wherever applicable), less accumulated debrciation till the end of financial year. Cost is inclusive of freight, duties, levies, installation expenses and any directly attributable cost of bringing the assets to their working condition for intended use which are capitalized till the assets are ready to be put to use.

c) Debrciation:

Debrciation on fixed assets is provided on written down value method (WDV) at the rate and in the manner brscribed in schedule XIV to the Companies Act, 1956. On the addition of the assets, debrciation has been provided from the day on which the asset was actually put to use. Debrciation in case of disposal/sale of assets is provided up to the date of disposal/sale of assets on pro rata basis.

d) Revenue Recognition:

Revenue from sales of goods is recognized when risk and rewards in respect of ownership of goods are transferred to the customers and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods.

Revenue from sales of products is stated exclusive of Returns, Sales Tax/VAT, and applicable rebates & discounts as per policy of the Company.

Insurance claims are booked on the basis of best estimates/loss as surveyed/assessed.

Interest income is accounted for on accrual basis.

e) Inventories:

• Inventories of raw materials, packing materials and work in progress (WIP) are valued at the lower of cost (net of CENVAT) and net realizable value on First in First out basis.

• Finished Goods are valued at the lower of cost (including overheads and excise duty) or net realizable value.

• Costs are generally calculated at standards adjusted to actual in case of raw materials & packing materials & in the case of manufactured inventories & the work in progress (WIP) same is valued at cost. The finished goods cost includes cost of conversion and other cost incurred in bringing the inventories to their brsent location and condition.

• Excise duty in respect of closing inventory of finished goods is included as a part of inventory.

• CENVAT credits in respect of raw materials consumed and packing materials used for manufacture of goods is deducted from the cost of raw materials and packing materials consumed in the production of finished goods.

f) Foreign Currency Transactions:

(i) Initial Recognition:

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(ii) Conversion:

At the year end, monetary items denominated in the foreign currencies are converted into equivalent rupee value by applying brvalent exchange rates at the year end.

(iii) Exchange Differences:

All the exchange differences arising on settlement / reinstatement of foreign currency transactions are adjusted in the Profit and Loss Account, except in cases where they relate to the acquisition of fixed assets acquired from outside India, in that case they are adjusted in the cost of the corresponding assets.

(iv) Forward Exchange Contracts not intended for trading or speculation purposes:

The Company's derivative instruments comprise of forward exchange contracts which are not intended for trade or speculation purposes. In respect of Derivative contracts, provision for losses on restatement and gains/losses on settlement are recognized along with the underlying transaction and charged to Profit and Loss Account.

g) Investments:

Unquoted Shares are valued at cost.

h) Employee Benefits:

i) Defined Contribution Plans:

The Company has Defined Contribution plans for post employment benefits namely Provident Fund and Superannuation Fund which are administered through appropriate authorities.

The Company contributes to a Government administered Provident Fund, Employees' Deposit Linked Insurance Scheme and Family Pension Fund on behalf of its employees and has no further obligation beyond making its contribution.

The Superannuation Fund applicable to certain employees is a defined contribution plan as the Company makes contributions to Officers' Superannuation Scheme which is administered by an insurance Company and has no further obligation beyond making the payment to the insurance Company.

The Company makes contributions to State plans namely Employees' State Insurance Fund and has no further obligation beyond making payment to them.

The Company's contributions to the above funds are charged to revenue every year.

ii) Defined Benefit Plans:

The Company has a Defined Benefit Plan namely Gratuity covering its employees. The gratuity scheme is funded through Group Gratuity-cum-Life Assurance Scheme and the liability for the defined benefit plan of Gratuity and Pension is provided based on an actuarial valuation at the year-end.

(iii) Termination benefits are recognized as an expense as and when incurred.

(iv) Other Employee Benefits:

The employees of the Company are entitled to leave encashment and long service awards as per the policy of the Company. The liability in respect of the same is provided, based on an actuarial valuation carried out by an independent actuary at the year-end.

(i) Taxes on Income:

Provision for Income Tax comprises of current tax, deferred tax charge or release. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

Deferred Tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income and expenditure that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are not recognized unless there is "virtual certainty" that sufficient future taxable income will be available against which such deferred tax assets will be realized.

(j) Provisions and Contingencies:

Provision, Contingent Liabilities and Contingent Assets:

The Company recognises a provision when there is a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a brsent obligation that the likelihood of outflow of resources is remote, no provision or disclosure as specified in Accounting Standard 29 -"Provisions, Contingent Liabilities and Contingent Assets" is made.

Contingent Assets are not recognised in the financial statements.

k) Earnings Per Share (EPS)

The earnings considered in ascertaining the Company's EPS comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

Dilutive potential equity shares are deemed to be converted as of the beginning of the year, unless they have been issued at a later date. The number of shares used for computing the diluted EPS is the weighted average number of shares outstanding during the year after considering the dilutive potential equity shares.

1) Deferred Revenue Expenditure:

Revenue expenditure where benefit is expected to accrue over a longer period is amortized equally over a period of 5 years.

2. Defined-Benefit Plans (Accounting Standards AS-15):

The Company offers its employees defined-benefit plans in the form of a gratuity scheme. Benefits under the defined-benefit plans are typically based either on years of service and the employee's compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees. For the gratuity scheme, the Company contributes funds to Gratuity Trust.

3. On 9th July 2010 a fire broke out at Gurgaon plant situated at Daulatabad Road, Gurgoan. The claim for the same was filed with the Insurance Company. The accounting effect for claim has been given on the basis of provisional assessment of the surveyor. The claim has not yet been received by the Company.

11. In terms of Accounting Standard (AS 28) on "impairment of Asset" issued by Institute of Chartered Accountant of India (ICAI), the Company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said accounting standard. The Company has identified that no asset of the Company has been impaired during the year.

4. Segment information:

The Company is engaged in the business of manufacturing and trading of various types of pesticides. The entire operations are governed by same set of risk and returns. Hence the same has been considered as rebrsenting a single primary segment. The said treatment is in accordance with the guiding principles enunciated in the Accounting Standard -17 on segment reporting.

5. In pursuance to Section 81(1A) of the Companies Act, 1956 read with Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 ("the Regulations") The Company has issued and allotted 41,25,000 equity shares of Rs. 2/- each on brferential basis, at a brmium of Rs.80.20 per share, constituting post issue 8.25% of the total issued and paid-up share capital of the Company to M/s 2020 Equity Investors Limited, a sub account of Muse Capital Advisors Limited, in the Board meeting held on 13th September, 2010. The approval of the shareholders was accorded in the Extra-Ordinary General Meeting of the Company held on 30th August, 2010.

6. The Company has subdivided its equity shares of face value of Rs.10/- each into 5 equity shares of face value of Rs.2/-each. The record date for this purpose was 4th September, 2010. Due to the aforesaid split up of shares the basic & diluted earning per share has been restated for the brvious year.

7. In accordance with notification no S.O.301 (E) dated 08th Feb., 2011 issued by Ministry of Corporate Affairs Govt, of India, exempting manufacturing Company from disclosing information required under Para 3(i) (a) and 3(ii)(a) of the Part II of Schedule VI i.e. disclosure of information about sales and raw materials consumed , the Board has approved not to disclose the aforesaid information.

8. Sundry Debtors/Customers are shown net of trade discounts and rate differences.

9. Previous year's figures have been regrouped and rearranged wherever considered necessary.

10. All the figures have been shown to the nearest rupee.

For DINESH MEHTA & CO.

Chartered Accountants 

Firm Registration No: 000220-N

Sd/-

ANUP MEHTA

Partner

Membership No: 093133

For and on behalf of the Board of Directors

Sd/-

SHUBHA SINGH 

Company Secretary 

Sd/-

V.K.BANSAL

C.F.O

Sd/-

M.K.DHANUKA

Managing Director 

Sd/-

R.G.AGARWAL

Chairman

Place: Gurgaon

Dated: 23rd May, 2011