NOTE NO. 1. SIGNIFICANT ACCOUNTING POLICIES

The Management has followed appropriate accounting policies consistently. Judgments and estimates are prudently and reasonably used so as to give a true and fair view of the state of affairs of the Company as at 31.03.2015 and of the profit of the Company for the year ended on that date.

1.1 Basis of Preparation of Financial Statements

The financial statements are brpared on accrual basis and under the historical cost convention in accordance with the generally accepted accounting principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The brvious year figures have been reworked, regrouped, rearranged and reclassified wherever necessary and also to comply with the requirements of Schedule III under Section 129 of the Companies Act, 2013.

1.2 Use of Estimates

The brparation 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, disclosure of contingent liabilities as on date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3 Own Fixed Assets (Both Tangible and Intangible)

Fixed Assets are stated at cost net of recoverable taxes, less accumulated debrciation and impairment loss, if any. Net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized. Assets which are not ready their intended use are disclosed under capital working progress.

1.4 Debrciation and Amortization

Debrciation on fixed assets is provided to the extent of debrciable amount on Written Down Value (WDV) method. Debrciation is provided based on useful life of the asstes as brscribed in Schedule II to the Companies Act, 2013.

1.5 Impairment of Assets

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value and the Management periodically assess using, external and internal sources, whether there is an indication of impairment of any assets. The Company foresees no such impairment indication as on the balance sheet date.

1.6 Foreign Currency Transactions

Export/Import Invoices in foreign currencies are recorded at the rate of exchange in force at the time of transactions. Provisions have been made as per Accounting Standard AS-11 issued by the Institute of Chartered Accountants of India for overseas debtors/creditors and other foreign currency commitments / foreign currency in hand for exchange rate difference at the end of the year.

1.7 Investments

All Investments are stated at cost and the same is consistently being followed. Investments in gratuity funds held with Life Insurance Corporation of India and Reliance Life Insurance Co. Ltd. are shown at net fund value as on date after netting off from provisions made as per actuarial valuation against its estimated liability. Excess of fund value Z29,40,273/- as on 31.03.2015 over its total liability towards Gratuity Provision as per actuarial valuation is shown as long term Investment.

1.8 Inventories

As per practice consistently followed, the consumption of raw materials is net of Cenvat Credit availed.

Items of inventories are measured after providing for obsolescence, if any. Inventory has been valued at lower of cost or net realizable value. All Materials are valued on the basis of FIFO. In the case of finished goods cost comprises material, labour and factory overheads. Goods in process have been valued at raw material cost incurred up to the stage of production plus conversion cost apportioned. All stocks have been certified by the management.

The Company's manufacturing units are continuous processing units and are located at a remote areas i.e far away from local markets. It needs uninterrupted 24 hours operations of its plants and hence all major spare parts, accessories, components for its huge plants has to be kept in reserve/stock to ensure the uninterrupted 24 hours operation of the plant. With the passage of time and due to fast changing technology, some very old/obsolete Engineering stores and other spares out of it has rare possibility of its use and has a market price at almost scrap value. Keeping in view the above, Engineering stores and other spares arevalued at cost or market price whichever is less. This practice is consistently being followed from year after year.

1.9 Revenue Recognition

Sales have been accounted for exclusive of sales tax and are net of returns and discounts. Exports benefits have been accounted for separately. The Export benefits are accrued on the date of export.

The Company follows the Accrual System of Accounting and on assumptions of an ongoing concern. Revenue is recognized only when it can be reliably measured.

Sales does not includes captive consumption and stock transfer

1.10 Employee Benefits

(i) Short-term employee benefits are recognized as an expense in the Statement of Profit and Loss of the year based on report of Actuarial Valuation.

(ii) Long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year based on report of Actuarial Valuation. The expenses are recognized at the brsent value of the amounts payable determined using actuarial valuation techniques.

1.11 Borrowing Costs

The Company incurred No Borrowing cost attributable to the acquisition or construction of any qualifying assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

1.12 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" 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. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

1.13 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent 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.

1.14 Operating Cycle

The Normal Operating cycle cannot be identified. It is assumed to have a duration of twelve months as operating cycle.

1.15 Segment Reporting

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" notified in Companies (Accounting Standards) Rules 2006, the Company's business segments includes only manufacturing of pesticides-technical, formulations and its Intermediates, hence constitutes one single segment.

NOTE NO. - 2. : The Company is liable to pay income tax of Rs.15,27,38,697/- under normal tax provisions

of Act for the year which was much more than the liability under MAT provisions. The Company has set off full amount of brought forwarderd MAT credit of Rs.76,63,597/- during the year.

NOTE NO. - 3 : As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs.74.73 (Last Year Rs.47.42).