NOTE-1 SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF brPARATION OF FINANCIAL STATEMENTS

The financial statements are brpared under historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 2013 and comply with the Generally Accepted Accounting Principles (GAAP) in India and the accounting standard specified in section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

2. USE OF ESTIMATES

The brparation of financial statements requires estimates and assumptions to be made that affect the reported amount of the 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 actual results and estimates are recognized in the period in which the results are known/ materialized.

3. REVENUE RECOGNITION

Sale is recognized when the significant risks and reward of ownership of the goods have passed to the customer. Sales are net of sales returns, trade discounts and rebate. Sales tax/Value added tax paid is charged to Profit & Loss Account.

4. FIXED ASSETS

Fixed Assets are stated at cost less Accumulated debrciation. Cost Include all expenses incurred to bring the assets to its brsent location and condition. Expenditure during construction/erection period is included under Capital Work-in-Progress and allocated to the respective fixed assets on completion of construction/erection.

5. DEbrCIATION

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

6. INVENTORIES

Finished Goods are valued at cost or net realizable value which ever is lower; Raw Materials/Packing Materials are valued at cost. Damaged/Defective stocks are valued at net realizable value.

7. TAXATION

a. Tax on income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of Income Tax Act, 1961.

b. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax Assets is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be adjusted in future.

8. RETIREMENT & OTHER BENEFITS

a. Companys contribution to Provident Fund and Employees State Insurance Fund are charged to Profit & Loss Account.

b. The provision for gratuity has been made on the assumption that all the employees eligible for gratuity will retire at the close of the financial year.

9. IMPAIRMENT OF ASSETS

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed would be recognized in the account in the relevant year.

10. EARNING PER SHARE

The earning considered in ascertaining the Company’s earning per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential diluted equity shares.

11. 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 deferral or accruals of past or future cash receipts or payment. The cash flows from regular operating, investing and financing activities of the Company are segregated.

12. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

Provisions involving a 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.

13. MAT CREDIT ENTITLEMENT

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent that there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period. T

14. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rate brvailing on the date of the transaction.Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the profit and loss account.

Additional Notes:

1. Other expenses include Rs. 1,083,000.00 provision made towards Corporate Social Responsibility as brscribed under section 135 of the Companies Act, 2013.

a) Gross amount required to be spent by the company during the year: Rs.1,083,000

b) Company has spend Rs. 831,125.00 towards Corporate Social Responsibility which includes such expenses incurred out of unspend amount of earlier year.

2. Earnings per Share

	As at 31st March, 2016	As at 31st March, 2015
Net Profit as per Profit & Loss Account (in Rs.)	45423800.03	44216569.98
Weighted average number of Equity Shares for EPS Calculation. (in No.)	900000	900000
Basic/Diluted EPS. (in Rs.)	50.47	49.13

3. Contingent Liabilities

The Income Tax Assessment of the Company has been completed up to Assessment Year 2013-2014. However, the Company is in Appeal before the Appellate Authorities against the Assessment of the earlier years. The Company expects to succeed in these proceedings and hence no additional provision is considered necessary.

4. Balance in the accounts of Trade receivables, Advance, Security Deposits and Trade Payables has in some cases not been confirmed by the respective parties and are subject to confirmation by them.

5. In the opinion of the board, Current Assets, Loans & Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

6. Figures of Previous year have been regrouped whenever found necessary to make them comparable with that of current year.

7. The company's liability for Gratuity to employees under the Payment of Gratuity Act, 1972 has been made in the accounts which is included under the head Employee Benefit Expenses, and the same is not based on acturial valuation.

8. The Company has only one business segment i.e. Dairy Products; hence segment reporting as defined in Accounting Standard -17 is not applicable.

9. Land at Akbarpur amounting to Rs. 7,69,600.00 and Land at Jainpur, Kanpur Dehat amounting to Rs.11,10,582.00 are registered in the name of the employees of the Company.

10. As per AS-18, the Companys related parties and transactions with them are disclosed as per Annexure-II

	As at 31st March, 2016	As at 31st March, 2015
11. Expenditure in foreign currency         Earning in foreign Currency            4240797.12                                        `	3465733.37	1531493.2 -

a) Company’s contribution to Provident Fund and Employee’s State Insurance Fund are charged to Profit & Loss Account.

b) The provision for gratuity has been made on the assumption that all the employees eligible for gratuity will retire at the close of the financial year.