Accounting Policies of Continental Chemicals Ltd. Company

Mar 31, 2025

2. Summary of significant accounting policies
2.1 Current Vs Non- current classification

The company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is current when it is:

i) Expected to be realized or intended to be sold or consumed in normal operating cycle

ii) Held primarily for the purpose of trading

iii) Expected to be realised within twelve months after the reporting period, or

iv) Cash or cash equivalents 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 current when it is:

i) Expected to be settled in normal operating cycle

ii) Held primarily for the purpose of trading

iii) Due to be settled within twelve months after the reporting period, or

iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
All other liabilities are treated as non-current

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2. 2 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received
or receivable net of discounts, taking into account contractually defined terms and inclusive of excise duty, taking into account
contractually defined terms of payment excluding taxes or duties collected on behalf of the government.

Income from project and services

Revenue from long term service contracts is recognized using the proportionate completion method, and recognized net of service tax.
Completion is determined as a proportion of cost incurred till date to the total estimated contract cost. Provision is made for any loss in
the period in which it is foreseen. Billing in excess of contract revenue has been reflected as ‘Billing in excess of revenues'' under ‘Other
liabilities'' in the Balance Sheet. In case of contracts where payments have been received in advance, revenue is deferred until the
related service is complete as per the terms of the agreement with the customers and shown as “’’Unbilled revenue”” under other
current assets.

In case of other service contracts, revenue is recognized when services are rendered. In case of services are rendered as per the terms
of contract. ”

Interest income

Interest income is recognized using effective interest method (EIR). EIR is the rate that exactly discounts the estimated future cash
payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross amount of the
financial asset or to the amortized cost of a financial liability. When calculating the EIR, the Company estimates the expected cash flows
by considering all the contractual terms of the financial instrument but doesn''t consider the expected credit losses. Interest income is
included in the other income in the Statement of Profit and Loss.”

Dividend income

Dividend income from investments is recognized when the shareholder''s rights to receive payment have been established.

2.3 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity
of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

2.4 Property, plant and equipment (PPE) and Investment property

Under the previous GAAP (Indian GAAP), fixed assets are stated at cost net of accumulated depreciation and accumulated impairment
losses, if any. The cost comprises the purchase price, borrowing costs, if capitalization criteria are met, directly attributable cost of bringing
the asset to its working condition for the intended use.

Property, plant and equipment are stated at cost of acquisition or construction net of accumulated depreciation and impairment loss (if
any). All significant costs relating to the acquisition and installation of property, plant and equipment are capitalized. Subsequent costs
are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of the replaced part is derecognized. All other repairs and maintenance are charged to the Statement of Profit and Loss during
the financial period in which they are incurred.

Borrowing cost relating to acquisition / construction of property, plant and equipment which take substantial period of time to get ready
for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

Depreciation and Amortisation

Depreciation is charged on the basis of useful life of assets on Straight line method Life as prescribed under Schedule-II of Companies
Act, 2013

Freehold land is carried at cost.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognized 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
derecognized.

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

2.5 Intangible assets

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the assets will flow to the
Company and the cost of the assets can be measured reliably.

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment losses. Internally generated intangibles, excluding capitalized development
costs, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a
finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as
appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is
recognized in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash¬
generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be
supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

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 asset and are recognized in the statement of profit or loss when the asset is derecognized.

Intangible assets with finite life are amortized on a written down value basis over the estimated useful economic life of 7 years.

2.6 Employees benefits

Short term employee benefits

Short term benefits comprise of employee costs such as salaries, bonuses, and accumulated absents are accrued in the year in which
the associated services are rendered by employees of the Company and are measured at the amounts expected to be paid when the
liabilities are settled.

The liabilities are presented as current employee benefit obligations in the balance sheet.

Compensated absences

Provision for compensated absence is determined using the projected unit credit method with actuarial valuation being carried out at
each balance sheet date. Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short term
employee benefits.

Other long term employee benefits

The liabilities which are not expected to be settled wholly within 12 months after the end of the period in which the employees render the
related service are classified as long-term employee benefits. They are therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit
method. The benefits are discounted using the market yields of Indian Government at the end of the reporting period that have terms
approximating to the terms of the related obligation. Re-measurements as a result of experience adjustments and changes in actuarial
assumptions are recognized in the statement of profit and loss.”

- Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity and

(b) defined contribution plans such as provident fund.”

(a) Gratuity

The Company has unfunded benefit plans in the form of post-retirement gratuity. The liability or asset recognised in the balance sheet
in respect of defined benefit is the present value of the defined benefit obligation at the end of the reporting period less the fair value of
plan assets, if any. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to
market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation. This cost is included
in employee benefit expense in the statement of profit and loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period
in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity
and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in the statement of profit and loss as past service cost.

(b) Defined contribution plan

A defined contribution plan is a plan under which the Company pays fixed contributions into an independent fund administered by the
government. The entity has no legal or constructive obligations to pay further contributions after its payment of the fixed contribution.
Contributions to provident fund, labour welfare fund and employee state insurance are deposited with the appropriate authorities and
charged to the Statement of Profit and Loss on accrual basis. The Company has no further obligations under these plans beyond its
monthly contributions.

2.7 Borrowing costs

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 capitalized 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.

2.8 Leases

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified
as operating leases. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately.
The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease. For operating
leases, rental income is recognized on a straight-line basis over the term of the relevant lease.

2.9 Earnings per share

“Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting
attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of
equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.10 Segment reporting

The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making
decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is
measured consistently with profit or loss in the financial statements.

In accordance with the Ind-As 108 -“Operating segments” , the company has determined its business segment as business process
outsourcing. Since there are no other business segments in which the company operates, there are no reportable segments. Therefore,
the segment revenue, results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge
are all as is reflected in the financial statement.

2.11 Taxes

The tax expense for the period comprises current and deferred tax. Tax is recognized in the statement of Profit and Loss, except to the
extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in
other comprehensive income or directly in equity, respectively.

Current income tax

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing and
applicable for the relevant assessment year. Management periodically evaluates positions taken in tax returns with respect to situations
in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.

Deferred tax

Deferred income taxes are recognized for the future tax consequences attributable to temporary differences between the financial
statement carrying amounts of existing assets and liabilities and their tax bases in the financial statements. The effect on deferred tax
assets and liabilities of a change in the tax rates is recognized using the tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax liabilities are recognized for all taxable temporary differences, except when the
deferred tax liability arises from the initial recognition of an asset or liability in a transaction that affects neither the accounting profit nor
taxable profit or loss.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognized 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, except when the
deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction
that affects neither the accounting profit nor taxable profit or loss.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilized. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to
set-off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable
entity and the same taxation authority.

“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 future taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax
assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.

Impairment of non-financial assets

At each balance sheet date, the Company reviews the carrying values of its property, plant and equipment and intangible assets to
determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any
such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss (if any).

Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount
of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 for which the estimates of future cash flows have not been adjusted. An impairment loss is
recognized in the statement of profit and loss as and when the carrying value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised
estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that would have been
determined had no impairment loss been recognized for the asset (or cash generating unit) in prior years. A reversal of an impairment
loss is recognized in the statement of profit and loss immediately

---

Mar 31, 2015

A. Significant Accounting Policies :

i. Basis of Accounting

The Company follows the Mercantile System of accounting and recognises Income and Expenditure on Accrual Basis. Th e financial statement are prepared under the historical cost convention and are In accordance with the requirements of the Companies Act, 2013 and accepted accounting principles.

ii- Fixed Assets and Depreciation

Fixed as sets are stated at cost, less accumulated depreciation/amortisatlon. Costs Include all expenses Incurred to bring the assets to Its present location and condition. Fixed assets exclude computers and other assets individually costing 5000 or less which are not capitalised except when they are part of a larger capital Investment programme. All Fixed Assets are stated at Historical Cost Less Depreciation.

Depreciation / Amortization In respect of fixed assets (other than freehold land and capital work-ln-progress) acquired during the period, depreciation/ amortization is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1. 2014 is depreciated over the remaining useful life as per the requirements of Schedule - II of the Companies Act 2013.

Type of asset Poriod

Buildings 60 years

Plant and machinery 15 years

Computer equipment 3 years

Vehicles 8years

Office equipment 5 years

Eloctrical installations 10 years

Furniture and fixtures 5 years

iii. Taxes on Income

a. Current tax is the amount of tax payable on the estimated taxable Income for the Current year as per the provisions of Income Tax Act. 1961.

b. Deferred tax asaets/lltibilitles is provided on significant timing differences arising from the different treatments in accounting and taxation of relevant item. Deferred tax assets/ liabilities shall be reviewed as at each Balance Sheet date, based on development during the year, to reassess realization/ liabilities.

c. Deferred Tax Assets in respect of accumulated Loss and unabsorbod Depreciation are recognized and carried forward only if there is virtual certainty of its realization.

IVt Contingent Liabilities

Contingent Liabilities are not provided for in the Accounts

---

Mar 31, 2014

(A) Company Overview:

The Company was incorporated on 27.11.1984 presently having its Registered Office at A-7, Sector-7, Noida, U.P.-201301.

ACCOUNTING CONVENTION

The Accounts are prepared on Accrual Basis under the Historical Cost Convention in accordance with the applicable Accounting Standards and relevant provision of the Companies Act, 1956.

FIXED ASSETS

All Fixed Assets are stated at Historical Cost less Depreciation.

DEPRECIATION

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with & in the manner specified in amended Schedule XIV to the Companies Act,1956 , read with circular no. 14/93 dt. 20.12.1993 of the Department of Company Affairs.

TAX EXPENSES

Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred Tax Assets and Liabilities is recognized in respect of current year and prospective years.-

---

Aug 31, 2011

A) BASIS OF PREPARATION

The Financial statements are prepared under the historical cost convention on the accruals basis of accounting and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India.

B) The Managing Director's remuneration has been provided only at the minimum remuneration as per the Companies Act. 1956.

C) The Company's refund claims for refund due under The Excise Act amounting to Rs. 1062137/- (Previous years Rs.1062137/-) are pending with excise authorities at various levels. This has not been taken in accounts.

D) Claims against the company not acknowledge as debt are as under:- In respect of electricity charges Rs.1210595.90 (Previous year Rs. 1210595.90).This has not been taken in account

E) EARNING PER SHARE

(i) Earning per share of the company has been calculated considering the Profit (Loss) after

Taxation, Rs 339552/- (Previous year Rs.(6991949/-) are the numerator,

(ii) The weighted average number of equity shares used as denominator is 994550

(iii) The nominal value of shares is Rs.9945500/- .The basic and diluted EPS for the year on the above mentioned basis comes to Rs. 0.34. Previous year Rs.7.0303).

F) Electricity charges paid Rs.67097/- was under protest and the matter of refund of the said amount is still pending with the court. This amount has not been taken in accounts.

G) Balance confirmation from sundry debtors, Loans & Advances, Sundry Creditors, Advances and Deposits from Customers has been obtained.

H) Provision has been made on account of Rs. 21000/- (previous year – 483450/-) in respect of gratuity for the amount due to employees who have completed service for Five years.

I) DEFERRED TAXATION

(i) Based on Accounting standard on accounting for Taxes on income (AS- 22) during the year deferred tax liability of Rs. 59482/- for the year ended 31.8.2011 has been adjusted.

---

Aug 31, 2010

A) BASIS OF PREPARATION

The Financial statements are prepared under the historical cost convention on the accruals basis of accounting and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India.

B) The Managing Directors remuneration has been provided only at the minimum remuneration as per the Companies Act. 1956.

C) The Companys refund claims for refund due under The Excise Act amounting to Rs. 1062137/- (Previous years Rs. 1062137/-) are pending with excise authorities at various levels.

D) Claims against the company not acknowledge as debt are as under:-

i) In respect of electricity charges Rs. 1210595.90 (Previous year Rs. 1210595.90)

E) EARNING PER SHARE

(i) Earning per share of the company has been calculated considering the Profit (Loss) after Taxation, Rs. (6991949/-) (Previous year Rs. (330713/-) are the numerator,

(ii) The weighted average number of equity shares used as denominator is 994550

(iii) The nominal value of shares is Rs. 9945500/- The basic and diluted EPS for the year on the above mentioned basis comes to Rs. (7.0303). Previous year Rs. (0.3325).

F) Electricity charges paid Rs.67097/- was under protest and the matter of refund of the said amount is still pending with the court.

G) Balance confirmation from sundry debtors, Loans & Advances, Sundry Creditors, Advances and Deposits from Customers has not been obtained.