1.       The Consolidated Financial Statements relate to Rossari Biotech Limited (the Company) and its subsidiary. The Consolidated Financial Statements have been brpared in accordance with Accounting Standard 21 (AS 21) “Consolidated Financial Statements”, notified by the Companies (Accounting Standard) Rules,2006. The Consolidated Financial Statements have been brpared on the following basis:

(A) Investments in Subsidiary:

(i) The Financial Statements of the Company and its subsidiary company have been combined on a line by line basis by adding together the book values of like items of assets, liabilities, income and expenses. Intra group balances, intra group transactions and unrealised profits or losses have been fully eliminated.

(ii) The difference between the costs of investment in the subsidiary and the Company’s share of equity at the time of acquisition of shares in the subsidiaries is recognised in the Financial Statements as Capital Reserve on consolidation.

(iii) The Financial Statements of the subsidiary is drawn up to 31st March, 2019.The subsidiary (which along with Rossari Biotech Limited, the parent, constitute the group) considered in the

brsentation of these Consolidated Financial Statements is:

Name of the Subsidiary Company	Country of Incorporation	Proportion of ownership interest		Proportion of voting power where different
Indian Subsidiary		As at 31-03-19	As at 31-03-18	As at 31-03-19	As at 31-03-18
Neutron Impex Private Limited	India	100%	100%	NA	NA

2. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Accounting:

The financial statements of the Company have been brpared in accordance with the        generally accepted accounting principles in India (Indian GAAP) and comply with the Accounting Standards brscribed under Section 133 of the Companies Act, 2013.

b) Revenue Recognition:

Sale of products including export benefits thereon are recognized when the products are shipped. Revenue, including any amounts invoiced for shipping and handling costs, rebrsents the value of goods supplied to customers, net of returns, quantity / quality rebates and discounts except cash discount and goods and service tax.  Revenue from Export Benefit and Duty Drawback is accounted on accrual basis. Dividend from investments are recognized in the Statement of Profit and Loss when the right to receive payment is established.

c) Property, Plant and Equipment, Capital Work in Progress & Debrciation and Amortization:

Property, plant and equipment are carried at cost less debrciation. Cost includes financing cost relating to borrowed funds attributable to the construction or acquisition of qualifying property, plant and equipment upto the date the assets are ready for use. When an asset is scrapped or otherwise disposed off, the cost and related debrciation are removed from the books of account and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.

Debrciation is calculated on Written Down Value method over the estimated useful life of all assets, these lives are in accordance with Schedule II to the Companies Act, 2013. In case of additions to fixed assets there has been change in policy, brviously when asset was put to use for period More than 180 Days, debrciation for full year has been provided and if additions to fixed assets put to use for period Less than 180 Days, debrciation at half of the amount of debrciation for full year has been provided from FY 2018-19 debrciation is calculated from the month in which asset is available for use. The impact of change in debrciation has resulted in higher change of debrciation by 8,61,490/-.

d) Intangible Assets:

Intangible assets are carried at cost and amortized on a Straight-Line Basis so as to reflect the pattern in which the asset’s economic benefits are consumed.

i) Patent and Copyright : The expenditure incurred is amortized over the estimated period of benefit, not exceeding six years commencing with the year of purchase of the technology.

ii) Software Expenditure : The expenditure incurred is amortized over three financial years equally commencing from the year in which the expenditure is incurred.

e) Research and Development:

Revenue expenditure incurred on Research and Development has been charged to the Profit and Loss Account in the year it has been incurred. Capital expenditure has been included in the Cost of Acquisition of the appropriate Fixed Assets and Debrciation thereon has been charged at regular rates brscribed.

f) Impairment

The carrying value of assets/cash generating units at each balance sheet date are reviewed for    impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life to their brsent value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

g) Inventories:

Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their brsent location and condition. Raw materials are value at the lower of cost or  net realisable value. Cost is determined on the basis of the First in First Out (FIFO) method. Finished goods produced and purchased for sale and work-in-progress are carried at cost or net realisable value whichever is lower. Stores, spares and tools other than obsolete and slow moving items are carried at cost. Obsolete and slow moving items are valued at cost or estimated net realisable value, whichever is lower.

h) Employees Retirement Benefits

i. Defined Contribution Plan:

Contribution payable to recognised provident fund which are substantially defined contribution plan, is recognised as expense in the Statement of Profit and Loss, as they are incurred.

ii. Defined Benefit Plan:

Company’s contributions paid/payable during the year to Provident Fund, ESIC and Labor Welfare Fund are recognised in the Statement of Profit and Loss. Company’s liability towards gratuity is determined by independent actuaries, using the projected unit credit method. Past services are recognised on a straight line basis over the average period until the benefits become vested. Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss as income or expense. Obligation is measured at the brsent value of estimated future cash flows using a discounted rate that is determined by reference to the market yields at the Balance Sheet date on Government Bonds where the currency and terms of the Government Bonds are consistent with the currency and estimated terms of the defined benefit obligation.

The scheme provides for payment as under:

i. On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii. On death in service:

As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.

i) Foreign Exchange Transactions:

Transactions in foreign currencies (other than firm commitments and highly probable forecast transactions) are recorded at the exchange rates brvailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference between the rate brvailing on the date of transaction and on the date of settlement as also on translation of monetary items at the end of the year is recognised as income or expense, as the case may be.

j) Forward exchange contracts:

The use of foreign currency forward contract is governed by the company’s strategy. Approved by board of Directors, which provides principle on uses of such forward contract consistent with the company’s risk management policy. The company uses foreign currency forward contract to hedge its risk associated with foreign currency fluctuation relating to certain firm commitment and forecasted transaction for amount in excess of natural hedge available on export realization against import payment. The company doesn’t use forward contract for speculative purpose.

k) Tax (Current and Deferred):

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising on account of unabsorbed debrciation are recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax assets can be realised. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax against which the MAT paid will be adjusted.

l) Minimum Alternate Tax (MAT)

Minimum alternative tax paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, I.e. the period for which MAT credit is allowed to carry forward. In the year in which company recognizes MAT credit to statement of profit and loss and shown as “MAT credit Entitlement.” The company reviews the “MAT credit Entitlement” Asset at each reporting date and writes down the asset to extent the company does not have convincing evidence that it will pay normal tax during the specified period.

m) Financial Expenses:

Financing expenses comprise costs paid / payable on loans & borrowings and processing fees paid to bank & other bank charges.

Interest on Term Loan to the extent attributable to the Acquisition/Construction of the Fixed Assets which has not been put to use till the date of the Balance Sheet is capitalized and added to the Cost of respective Fixed Assets.

In case of Interest on Term Loan to the extent attributable to the Capital Work in Progress has been classified under Capital Work in Progress to be included in the Cost of respective Fixed Assets, as and when the Fixed Asset will be put to use.

The interest pertaining to the assets put to use on or before date of the Balance Sheet and working capital facilities is written off to Profit & Loss Accounts.

n) Lease :

i. Operating Lease:

The Company does not have any operating Lease.

ii. Finance Lease:

The Company has future obligations under finance lease arrangements to procure Vehicle .