Accounting Policies of Crestchem Ltd. Company

Mar 31, 2025

NOTE - 3 - SIGNIFICANT ACCOUNTING POLICIES:

(a) Financial instruments

1. Financial Assets:

i) Classification

The Company classifies its financial assets in the following measurement categories:

• Those measured at ''Amortized cost'' and

• Those to be measured subsequently at either ''Fair value through other comprehensive income''
(FVTOCI) or'' Fair value through profit or loss'' (FVTPL).

The classification depends on the Company''s business model for managing the financial assets and
the contractual terms of the cash flows.

• A financial asset is measured at amortized cost if it meets both following conditions and is
not designated as at FVTPL:

- the asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and

- the contractual terms of a financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

• A debt investment is measured at FVOCI if it meets both following conditions and is not
designated as at FVTPL:

- the asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and

- the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.

• Financial assets are not reclassified after their initial recognition except if and in the period
the Company changes its business model for managing financial assets.

ii) Measurement

At initial recognition, the company measures a financial asset when it becomes a party to the
contractual provisions of the instruments and measures at its fair value except trade receivables
which are initially measured at transaction price. Transaction costs are incremental costs that are
directly attributable to the acquisition of the financial asset. Transaction costs of financial assets
carried at fair value through profit or loss are expensed in profit or loss. A regular way purchase and
sale of financial assets are accounted for at trade date.

iii) Subsequent measurement and gains and losses

Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains including
any interest or dividend income, are recognized in profit or loss.

Financial assets These assets are subsequently measured at At amortised method

amortized cost using the effective interest method.

The amortized cost is reduced by impairment losses. Interest income,
foreign exchange gains and losses and impairment are recognized in
profit or loss. Any gain or loss on de-recognition is recognized in profit

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iv) De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction
in which substantially all the risks and rewards of ownership of the financial asset is transferred or
in which the Company neither transfers nor retains substantiallyall the risks and rewards of ownership
and does not retain control of the financial asset.

If the Company enters transactions whereby it transfers assets recognized on its balance sheet, but
retains either all or substantially all the risks and rewards of the transferred assets, the transferred
assets are not derecognized.

2. Financial liabilities:

i) Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held- for- trading, or it is a derivative or it is designated as
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and
losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are
subsequently measured at amortized cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on de-recognition
is also recognized in profit or loss.

ii) De-recognition

The Company derecognizes a financial liability when its contractual obligations are discharged or
cancelled or expired.

The Company also derecognizes a financial liability when its terms are modified and the cash flows
under the modified terms are substantially different. In this case, a new financial liability based on
the modified terms is recognized at fair value. The difference between the carrying amount of the
financial liability extinguished and the new financial liability with modified terms is recognized in
the profit or loss.

3. Offsetting

Financial assets and financial liabilities are off set and the net amount presented in the balance sheet
when, and only when, the Company currently has a legally enforceable right to set off the amounts and
it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(b) Property, plant and equipment

1. Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs,
less accumulated depreciation, and accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and
non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost
of bringing the item to its working condition for its intended use and estimated costs of dismantling and
removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and
direct labour, any other costs directly attributable to bringing the item to working condition for its intended
use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

2. Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
March 31, 2025, MCA has not notified any new standards or amendments to the existing standards
applicable to the Group.

3. Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated
with the expenditure will flow to the Company.

4. Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual
values over their estimated useful lives using the straight-line method, and is generally recognized in the
statement of profit and loss.

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted
if appropriate. Based on technical evaluation and consequent advice, the management believes that its
estimates of useful lives as given above best represent the period over which management expects to use
these assets.

Depreciation on additions / disposals is provided on a pro-rata basis i.e. from /upto the date on which
asset is ready for use / disposed off.

(c) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the
first-in first-out formula, and includes expenditure incurred in acquiring the inventories, production or conversion
costs and other costs incurred in bringing them to their present location and condition. In the case of manufactured
inventories and work-in-progress, cost includes an appropriate share of fixed production overheads based on
normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.

The net realizable value of work-in-progress is determined with reference to the selling prices of related finished
products.

Raw materials, components and other supplies held for use in the production of finished products are not written
down below cost except in cases where material prices have declined and it is estimated that the cost of the
finished products will exceed their net realizable value.

Related items or items of the similar nature are grouped for comparison of cost and net realizable value.

(d) Impairment of assets

1. Impairment of financial assets

The Company recognizes loss allowances for financial assets measured at amortized cost using expected
credit loss model.

At each reporting date, the Company assesses whether financial assets carried at amortized cost is credit-
impaired. A financial asset is ''credit- impaired'' when one or more events that have a detrimental impact
on the estimated future cash flows of the financial asset, have occurred.

For trade receivables, the Company always measures the loss allowance at an amount equal to lifetime
expected credit losses.

For all other financial assets, the Company measures loss allowances at an amount equal to twelve months
expected credit losses unless there has been a significant increase in credit risk from initial recognition in
which those are measured at life time expected credit risk.

Life time expected credit losses are the expected credit losses that result from all possible default events
over the expected life of a financial asset. Twelve months expected credit losses are the portion of lifetime
expected credit losses that represent the expected credit losses that result from default events on a
financial instrument that are possible within the twelve months after the reporting date (or a shorter
period if the expected life of the instrument is less than twelve months).

When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating expected credit losses, the Company considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on the Company''s historical experience and informed credit
assessment and including forward-looking information.

The Company assumes that the credit risk on a financial asset has increasedsignificantly if it is more than
360 days past due. The Company considers a financial asset to be in default when the borrower is unlikely
to pay its credit obligations to the Company in full.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as
the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in
accordance with the contract and the cash flows that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying
amount of the assets.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that
there is no realistic prospect of recovery. This is generally the case when the Company determines that the
debtor does not have assets or sources of income that could generate sufficient cash flows to repay the
amounts subject to the write- off. However, financial assets that are written off could still be subject to
enforcement activities in order to comply with the Company''s procedures for recovery of amounts due.

2. Impairment of non-financial assets

The Company''s non-financial assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated.

An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable
amount. Impairment losses are recognized in the statement of profit and loss.

In respect of assets for which impairment loss has been recognized in prior periods, the Company reviews
at each reporting date whether there is any indication that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. Such a reversal is made only to the extent that the asset''s carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortization, if no impairment
loss had been recognized.

(e) Employee benefits

1. Short term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided.

2. Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions
to State plans and will have no legal or constructive obligation to pay further amounts. The Company
makes contributions towards Government administered provident fund scheme. Obligations for contributions
to defined contribution plans are recognized as an employee benefit expense in profit or loss in the
periods during which the related services are rendered by employees.

Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future
payments is available.

3. Defined benefit plan

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The
Company''s obligation in respect of defined benefit plans is calculated by estimating the amount of benefit
that employees have earned in the current and prior periods.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service (''past service cost'' or ''past service gain'') or the gain or loss on curtailment is
recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of
a defined benefit plan when the settlement occurs.

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Mar 31, 2024

Data Not Available

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Mar 31, 2015

A) Basis for preparation of accounts :

The financial statements are prepared under the historical cost convention and comply with the applicable Accounting Standards and the relevant provisions of the Companies Act, 2013.

b) Use of estimates :

The presentation of the Financial Statements in conformity with the Generally Accepted Accounting policies requires the management to make estimates and assumptions that affect the reported amount of Assets and Liabilities, Revenues and Expenses and disclosure of contingent liabilities. Such estimation and assumptions are based on management's evaluation of relevant facts and circumstances as on date of Financial Statements. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

c) Revenue Recognition :

Sales are stated net of rebate and trade discount and excludes Central Sales Tax, State Value Added Tax. With regard to sale of products, income is reported when practically all risks and rewards connected with the ownership have been transferred to the buyers. This usually occurs upon dispatch, after the price has been determined.

d) Fixed Assets :

Fixed Assets are stated at cost net of Cenvat/Value Added Tax and includes amount added on revaluation, less accumulated depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production.

e) Depreciation:

Depreciation has been provided on Straight line method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies act, 2013.

f) Inventories:

Inventories of raw materials and finished goods are valued at cost or Net Realizable Value whichever is lower. Net Realizable Value is the estimated selling price in the ordinary course of business less estimated cost of completion and to make sale.

g) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

h) Taxes of Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized 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 periods. Where there is unabsorbed deprecation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance Sheet date to reassess realization.

i) Provisions, Contingent Liabilities and Contingent Assets:

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

j) Earning Per Share:

Basic earning per share is calculated by dividing the Net Profit After Tax for the year attributable to Equity Shareholders of the Company by the weighted average number of Equity Shares issued during the year. Diluted Earning Per Share is calculated by dividing the Net Profit attributed to the Equity Shareholders (after adjustment for diluted earnings) by average number of weighted Equity shares outstanding during the year.

k) Cash and Cash Equivalents :

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and shortterm investments with an original maturity of three months or less.

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Mar 31, 2014

A) Basis for preparation of accounts :

The financial statements are prepared under the historical cost convention and comply with the applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

b) Use of estimates :

The presentation of the Financial Statements in conformity with the Generally Accepted Accounting policies requires the management to make estimates and assumptions that affect the reported amount of Assets and Liabilities, Revenues and Expenses and disclosure of contingent liabilities. Such estimation and assumptions are based on management''s evaluation of relevant facts and circumstances as on date of Financial Statements. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

c) Revenue Recognition :

Sales are stated net of rebate and trade discount and excludes Central Sales Tax, State Value Added Tax. With regard to sale of products, income is reported when practically all risks and rewards connected with the ownership have been transferred to the buyers. This usually occurs upon dispatch, after the price has been determined.

d) Fixed Assets :

Fixed Assets are stated at cost net of Cenvat / Value Added Tax and includes amount added on revaluation, less accumulated depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production.

e) Depreciation:

Depreciation has been provided on Straight line method at the rates and in the manner specified in schedule XIV to the Companies Act, 1956

f) Inventories:

Inventories of raw materials and finished goods are valued at cost or Net Realizable Value whichever is lower. Net Realizable Value is the estimated selling price in the ordinary course of business less estimated cost of completion and to make sale.

g) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

h) Taxes of Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized 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 periods. Where there is unabsorbed deprecation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance Sheet date to reassess realization.

i) Provisions, Contingent Liabilities and Contingent Assets:

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

j) Earning Per Share:

Basic earning per share is calculated by dividing the Net Profit After Tax for the year attributable to Equity Shareholders of the Company by the weighted average number of Equity Shares issued during the year. Diluted Earning Per Share is calculated by dividing the Net Profit attributed to the Equity Shareholders (after adjustment for diluted earnings) by average number of weighted Equity shares outstanding during the year.

k) Cash and Cash Equivalents :

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

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Mar 31, 2012

A) Basis for preparation of accounts :

The financial statements are prepared under the historical cost convention and comply with the applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

b) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended 31st march 2012, the revised schedule VI is notified under the companies act, 1956, has become applicable to the company, for preparation and presentation of its financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figure in accordance with the requirements applicable in current year.

c) Use of estimates :

The presentation of the Financial Statements in conformity with the Generally Accepted Accounting policies requires the management to make estimates and assumptions that affect the reported amount of Assets and Liabilities, Revenues and Expenses and disclosure of contingent liabilities. Such estimation and assumptions are based on management's evaluation of relevant facts and circumstances as on date of Financial Statements. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

d) Revenue Recognition :

Sales are stated net of rebate and trade discount and excludes Central Sales Tax, State Value Added Tax. With regard to sale of products, income is reported when practically all risks and rewards connected with the ownership have been transferred to the buyers. This usually occurs upon dispatch, after the price has been determined.

e) Fixed Assets :

Fixed Assets are stated at cost net of cenvat / value added tax and includes amount added on revaluation, less accumulated depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production.

f) Depreciation:

Depreciation has been provided on Straight line method at the rates and in the manner specified in schedule XIV to the Companies Act, 1956

g) Inventories:

Inventories of raw materials and finished goods are valued at cost or Net Realizable Value whichever is lower. Net Realizable Value is the estimated selling price in the ordinary course of business less estimated cost of completion and to make sale.

h) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

i) Taxes of Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized 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 periods. Where there is unabsorbed deprecation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance Sheet date to reassess realization.

j) Provisions, Contingent Liabilities and Contingent Assets:

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

k) Earning Per Share:

Basic earning per share is calculated by dividing the net profit After Tax for the year attributable to Equity Shareholder of the Company by the weighted average number of Equity Shares in issue during the year. Diluted earning per Share is calculated by dividing net profit attributed to equity Shareholders (after Adjustment for diluted earnings) by average number of weighted Equity share outstanding during the year.

l) Cash and Cash Equivalents :

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

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Mar 31, 2011

A) Basis for preparation of accounts :

The financial statements are prepared under the historical cost convention and comply with the applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

b) Use of estimates :

The presentation of the Financial Statements in conformity with the Generally Accepted Accounting policies requires the management to make estimates and assumptions that affect the reported amount of Assets and Liabilities, Revenues and Expenses and disclosure of contingent liabilities. Such estimation and assumptions are based on management's evaluation of relevant facts and circumstances as on date of Financial Statements. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

c) Revenue Recognition :

Sales are stated net of rebate and trade discount and excludes Central Sales Tax, State Value Added Tax. With regard to sale of products, income is reported when practically all risks and rights connected with the ownership have been transferred to the buyers. This usually occurs upon dispatch, after the price has been determined.

d) Fixed Assets :

Fixed Assets are stated at cost net of cenvat / value added tax and includes amount added on revaluation, less accumulated depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production.

e) Depreciation :

Depreciation has been provided on Straight line method at the rates and in the manner specified in schedule XIV to the Companies Act, 1956.

f) Inventories :

Inventories of raw materials and finished goods are valued at cost or Net Realizable Value whichever is lower. Net Realizable Value is the estimated selling price in the ordinary course of business less estimated cost of completion and to make sale.

g) Impairment of Assets :

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

h) Taxes of Income :

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized 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 periods. Where there is unabsorbed deprecation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance Sheet date to reassess realization.

i) Provisions, Contingent Liabilities and Contingent Assets :

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

j) Earning Per Share :

Basic earning per share is calculated by dividing the net profit After Tax for the year attributable to Equity Shareholder of the Company by the weighted average number of Equity Shares in issue during the year. Diluted earning per Share is calculated by dividing net profit attributed to equity Shareholders (after Adjustment for diluted earnings) by average number of weighted Equity share outstanding during the year.

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Mar 31, 2010

A) Basis for preparation of accounts :

The financial statements are prepared under the historical cost convention and comply with the applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

b) Revenue Recognition :

Sales are stated net of rebate and trade discount and excludes Central Sales Tax, State Value Added Tax. With regard to sale of products, income is reported when practically all risks and rewards connected with the ownership have been transferred to the buyers. This usually occurs upon dispatch, after the price has been determined.

c) Fixed Assets:

Fixed Assets are stated at cost net of cenvat / value added tax and includes amount added on revaluation, less accumulated depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production.

d) Depreciation:

Depreciation has been provided on Straight line method at the rates and in the manner specified in schedule XIV to the Companies Act, 1956

e) Retirement Benefits:

As the company do not have any employee, the provision for gratuity and retirement benefits are not applicable.

f) Inventories:

Inventories of raw materials and finished goods are valued at cost or Net Realizable Value whichever is lower. Net Realizable Value is the estimated selling price in the ordinary course of business less estimated cost of completion and to make sale.

g) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.