Accounting Policies of Hardcastle & Waud Manufacturing Company Ltd. Company

Mar 31, 2024

1, Corporate Information

Hardcastle And Waud Mfg Co. Limited is a Public limited company incorporated under the Companies Act 1913, having its registered office at Kalyan. Its shares are listed on BSE Limited .The company is engaged in trading of Industrial Chemicals, Investments and Leasing activity.

l.A MATERIAL ACCOUNTING POLICIES :

1.01 Basis of accounting and preparation of Financial statements

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act 2013 ("the Act") read together with the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

The financial statements have been prepared on a historical cost basis, except certain financial assets and liabilities which have been measured at fair value.

1.02 Current & Non-current Classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in Schedule III to the Act.

1.03 Use of Estimates

The estimates and judgments used in preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialized. The said estimates are based on facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

1.04 Property, Plant and Equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that Is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised 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. All other repairs and maintenance are charged to statement of profit or loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using straight line method at useful lives specified in Schedule II of the Act, pro rata from date of acquisition.

1.05 Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, carrying amount of the replaced part is derecognised.

Depreciation methods, estimated useful lives and residual value

Investment properties are depreciated using straight-line method so as to write off cost of the investment property less their residual values over their useful lives specified in Schedule II of the Act, pro rata from the respective date of acquisition,

1.06 Capital work in progress and Capital advances:

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given towards acquisition of fixed assets outstanding at each Balance Sheet date are disclosed as Other Non-Current Assets.

1.07 Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are recognised in Statement of profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost Is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

Borrowing costs attributable to acquisition or construction of a qualifying asset are capitalized as part of cost of that asset. Other borrowing costs are recognized as expense in the period in which these are incurred.

1.08 Impairment of Assets

At each balance sheet date, management reviews the carrying amounts of assets included in each cash generating unit to determine whether there is any indication that the assets were impaired, If any such indication exists, recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects current market assessment of time value of money and the risks specific to the asset. Reversal of impairment loss is recognized as income in the Statement of Profit and Loss.

1.09 Inventories

Raw materials, finished goods, stores, components and other consumables are valued at cost or net realisable value whichever is iower. ^^J.10 Foreian Currency Transactions

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of transaction.

Foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the balance sheet date. w2t. \0\\Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit ZrSj/VoiVnd Loss.

Vi //a I Vrf f I

1-11 Revenue Recoanition

Revenue from contracts with customers is recognized on transfer of control of promised goods or services to a customer at an amount that reflects the consideration to which the Company is expected to be entitled to in exchange for those goods or services.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract. This variable consideration is estimated based on the expected value of outflow. Revenue (net of variable consideration) is recognized only to the extent that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved.

Sale of Goods

Revenue from sale of Goods is recognized when the control on the goods have been transferred to the customer. Sales are shown net of Tax, returns and trade discounts.

Rendering of services

Revenue from services is recognized over time by measuring progress towards satisfaction of performance obligation for the services rendered.

1.12 Emolovee Benefits

Short-term employee benefits based on actuarial valuation made at end of the year are recognised as expense at the undiscounted amount in the year in which the related service is rendered.

Post-employment employee benefits are recognised as expense in the year in which the employee has rendered services. The expense is recognised at present value of the amount payable determined using actuarial valuation techniques at end of the year. Actuarial gains and losses in respect of post employement benefits are charged to Statement of Profit and Loss. Re-measurement arising because of change in effect of asset ceiling is recognised in the period in which they occur directly in Other Comprehensive Income. Re-measurement is not reclassified to profit or loss in subsequent periods.

1.13 Taxation on Income

Tax on income for the current period Is determined on the basis of taxable income and tax rates computed in accordance with the provisions of the Income Tax Act, 1961, and based on the expected outcome of assessments/appeals.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company''s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are generally recognized for all taxable temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets relating to unabsorbed depreciation / business losses / losses under the head "capital gains" are recognised and carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient future taxable income will be available.

Measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at end of reporting period, to recover or settle the carrying amount of its assets and liabilities.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.

1.14 Cash and cash eauivalents

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

For the purpose of 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.

1.15 Seoment Reoortina

The Company''s chief operating decision making (CODM), examines the Company''s performance from business perspective and has identified three reportable business segments viz. Industrial Chemicals, Leasing and Investing. Segment disclosures are consistent with the information provided to CODM which primarily uses operating profit/loss of the respective segments to assess their performance. CODM also periodically receives Information about segment revenues and assets. The Company has disclosed Business Segments as the primary segment. Segments have been identified taking into account nature of the products & services, the differing risks and returns, the organisation structure and internal reporting system.

Segment policies:

The Company prepares its segment information in conformity with accounting policies adopted for preparing and presenting the financial statements for the ComDanv as a whole.

1.16 Earninas oer share

Basic Earnings per share is calculated by dividing net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.

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

1*17 Financial instruments Financial assets

(i) Initial recognition and measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.

On initial recognition, a financial asset Is recognised at fair value, in case of Financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction cost is recognised in the statement of profit and loss. In other cases, the transaction cost is ^attributed to the acquisition value of the financial asset.

(ii) Subsequent measurement

Financial assets are subsequently classified and measured at

• amortised cost,

• fair value throuqh profit and loss (FVTPL), and

• fair value throuqh other comprehensive income (FVOCI).

Financial assets are not reclassified subsequent to their recognition, except if and in the period the Company changes its business model for managing financial assets.

(iii) Trade Receivables and Loans

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised cost, using the effective interest rate (EIR) method net of any expected credit losses. The EIR is the rate that discounts estimated future cash income through expected life of a financial instrument.

(iv) Debt Instruments

Debt instruments are initially measured at amortised cost, fair value through other comprehensive income (''FVOCI'') or fair value through profit or loss (''FVTPL'') till derecognition on the basis of (i) the Company''s business model for managing financial assets and (ii) contractual cash flow characteristics of the financial asset,

(a) Measurement of amortised cost: Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortised cost using the effective interest rate (''EIR'') method less impairment, if any. Amortisation of EIR and loss arising from impairment, if any, is recognised in the Statement of Profit and Loss.

(b) Measurement of fair value through other comprehensive income: Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in other comprehensive income (OCI). Interest income measured using the EIR method and impairment losses, if any, are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in OCI Is reclassified from the equity to ''Other Income'' in the Statement of Profit and Loss.

(c) Measurement at fair value through profit or loss: A financial asset not classified as either amortised cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income, if any, recognised as ''Other Income'' in the Statement of Profit and Loss.

(v) Equity Instruments

All investments in equity instruments classified under financial assets are initially measured at fair value, the Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL. The Company makes election at FVOCI basis. Fair value changes excluding dividends, on equity Instruments measured at FVOCI are recognized in OCI. Amounts recognised in OCI are not . subsequently reclassified to the Statement of Profit and Loss. Dividend income on investments in equity instruments are recognised as ''other income'' in Statement of Profit and Loss,

(vi) Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

vii) Impairment of Financial Asset

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category. For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12-month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset Increases significantly since its initial recognition. The Company''s trade receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e, expected cash shortfall. The impairment losses and reversals are recognised in Statement of Profit and Loss.

Financial Liabilities

(i) Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to contractual provisions of an instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit and loss. In case of trade payables, they are initially recognised at fair value and subsequently, these liabilities are held at amortised cost, using the effective interest method.

(ii) Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

(iii) Derecognition

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

1.18 Provisions

A provision is recognised for a present obligation as a result of past event; if it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made, Provisions are not discounted to their present value and are determined based on best estimated amount required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current best estimates.

1.19 Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-^T^^occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized yjjatouse it is not probable that an outflow of resources will be required to settle the obligation, A contingent liability also arises in ^yf^v^xtremelv rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not afze a contingent liability but discloses its existence in the financial statements.

1.20 Leases

A contract is, or contains, a tease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the underlying asset to the condition required by the terms and conditions of the lease, or restoring the site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised In the statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease, The lease liability Is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised insubstance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of alt assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value, The lease payments associated with these leases are recognized as an expense on a straight-line basis over the tease term.

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating tease or a finance lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and awards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not then it is an operating lease. The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term.

---

Mar 31, 2023

U SIGNIFICANT ACCOUNTING POLICIES :

1.01 Basis of accounting and preparation of financial statements

Th»e financial statements of the Company have been prepared m accordance with Indian Accounting Standards (Ind AS) notified under sect''on 133 of the Compan es Act 2013 ("the Act**) read together with the Companies (Indian Accounting Standards) Rues, 2015 (as amended).

The franc at statements nave been prepared on a historical cost basis, except certain financial assets and liabilities wh.ch have been measured at fair value.

1.02 Current & Non-currcnt Classification .

All assets and habit ties have been classified as current or ron-current as p

1.03 Use of Estimates

7he est rates and lodgments used in preparation of the financial statements arc continuously evaluated t»y the company and art based on historical mpiKienc* and various other assumpt ons and factors (indudirg expectations of future events) that the Company believes to be reasonable under the existing circumstance*. Ddfaenta* between actua. results and espnates are reccgr sed in the period in which the results ara known/metcrieUzed The said estimates are based on facts and nvents, that existed as at the reporting cata, or that occurred after dial date but provide additional evidence about ccndidcns existing as at the reporting date.

1.04 Property, Plant and Equipment

Property, plant ard equipment are stated at historical cost less depreciation. Historical u*t includes expenditure that ts directly attributable to the* acquisition of the items.

Subsequer: costs are included in the asset''s carrying amount or moynfcpd .»s a svpaiate asset, as appropriate, orry when it if probable that future nconomid ber.efitS associated with th« Item will flow to the Company and the cost of the Itrm can be measured reliably. All utiier repairs ard maintenance arc charged to statement of profit or ’oss during th* reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation n calculated jitfQ itrargM line method at usef jlfves specified In Schedule II of the Act, pm rata from date of acquisition.

1.05 investment properties

Property that is hrid lot long-term rental yMs or for capital appreciation or both, ard that h not occupied by the Company, is classified as investment property Investment property is measured ml ally at its cost. xtudiog related transaction costs ard where app ?cab''e bc*rowinq loH£. Subsequer: e>p«nc-ture is capitalised to the asset''s carrying amount only wiien it i*, probable that fiiture economic benefits assoc ated with the expetKiiturv wiB flow to the Company anc th« cost of the item can be measured reliably AH other repairs and maintenance costs Ate expensed when Incurred. When part of an investment property is replaced, carrying amount of the rep-''aced part is derecognised.

Depreciation methods, estimated useful lives and residual value

Investment properties ant depnec attd usng straight-line method ;o as to write off ant of the investment pmp«ty lets the.r residual va uts over their useful lives spcoflrd in Scneduie II of the Act. pro rata from the respective date o''ecquidtor.

1.06 Capitol work In progress and Capital advances;

Cost of assets not ready for Intended use, as on the Balance Sheet date, ts shown os capital week in progress Advances given towards accuisAror of fixed assets outstanding at each Balance Sheet dale are dferiosed as Ollier Non-Current Assets.

1.07 Loans and Borrowings

After initial recognition. if.terest-beanng leans and borrow ngs are subsequently measured at amortised cost using tl» Effective lnte.es: Kale (C1R) method. Cabis and losses are reunited m Statement of profit or loss when the liabilities are derecogn.sed es well as through the EIR amort sat an process

Amortised cost ts calculated by taidrg into eccount any discount or premium on acquisdmn and lees or costs that are an integral part of the HR The FIR amortisation is included as finance costs n the Statement of rrcfit and loss.

borrowing costs attributable to acqulslt on or ccmtrudon of a qualifying asset are capitalized as part c^# cost of that asset. Other borrowing costs arr rccogrwed as expense in de penod n which these are incurred.

106 xmoairment of Assets

At each balance sheet dace, management reviews the carrying amounts of assets included in each cash generating unit to determine whether there is any ind.caton that the assets were impaired. If any such indication exists, recoverable amount ur the asset u estimated in order to determine the extent of Impairment. RvcuvaaL.e amount ts h»gh«r of an asset s ret sc Ming price ard value In use In assessing value In use, the estimated future cash flows expected from continuing use of the aw**: at d hum its disposal are discounted to the r present value using a pro tax discount rale that leflects current market assessment of time value of money and I he risks specific to the asset. Reversal of impairment loss Is rccognlred as Income In Hie Statement of PfOflt and Loss.

1.09 Inventories

Raw materials, fan shed goods, stores, components ard other consumables are valued at cost or nut toalisab:* value whichever is lower.

1.10 Pore ion Currency Transactions

Income ard expenses In foreign currencies are converted at exchange rates prevailing on the date of transaction

Foreign currency monetary assets and hat,: ties a*e translated at the exchange rate prevail ng on the balance sheet date

Any .neema or expense on account of exchange (Bflcrcnce cither on settlement or on trohstaocn if recognized in the Statement of Profit and

Loss.

1-11 Revenue Recoonition

Revenue from contacts with customers is recog-iiad or trans''er of control of promised goods or sr-vices to a customer at ar amount that reflects the consideration to Which the Company •$ expected to be entitled to In cxcherge for those goods or services

Revenue towards satisfaction of a performance cbkgabon is measured at the amount cf transaction price [net of variable consideration) allocated to that performance obligator. The transactor price of goods sold and services tendered is net ol variable consideration or account of various discounts and schemes offered by the Company as part of the contract. This variable consideration Is estimated based on the expected value of outflow. Revenue (net of variable consxfcration) is tecognlzed only to tlw extent that it Is h.ghly probable that the amount *111 not be subject to significant reversal when uncertainty relating to Its recognition is resolved.

Sale of Goods

Revenue from sale of Goods is recognized when the control on the goods have been transferred to the customer. Sales are shown net of Tax, returns and trade discounts.

Rendorina of services

Revenue from services Is recognized over time by measuring progress towards satisfaction of performance obligation for the services rendered.

1.12 Emolovee Benefits

Short-term employee benefits based on actuarial valuation marie at end of the year are recognised as expense a: the undlseoimted amount In the year In which the related service Is rendered.

Post-employment employee benrliti are recognised as expense In the year in which the employee has rendered sendees. The expense Is ¦ecogmsed at present value of die amount payable determined using .iciuarial valuation tech ucues at end of the year Actuarial gains and losses in respect ul post employement tenefrts are Charged to Statement of Profit and Loss. Rr measurement arising became of change In effect of asset celling h recognised In the period In which they occur directly In Other Comprehensive Income Re-measurement Is not reclass tied to croflt or loss in subsequent periods

1.13 Taxation on Tncomtr

Tax on income lot lire Current period is determ ned on the basts of taxable Income and tax rates computed in accordance with the provisions of the Income Tax Act, lflfil, and based on the expected outcome of asses jr ents/ebpeaij

Deferred tax Is recognised on temporary ditleiences between the carry,ng emounls of assets and liabeitlcs In the Company''s financial statements and the corresponding tax bases used in computation ot taxable profit and cuantified usirg tax rates end lews enacted or substantively enacted as Oh the da-area Sheet date

Culture J lax assets are generally recognized ter all taxable temporary differences to the extent that it is probate that taxable profits will be available against which tliose deductible temporary differences car be utilised. The carrying amount of deferred lax assets is reviewed al end of each reporting period and reduced to the extent lint .t Is no longer probable that sufficient taxable profits will be available to allow all or part cf the asset to be recovered

Deferred tax assets relating to unabscrbed depreciation / business losses / losses under toe heed "capital gains" me recognised and earned forward to the extent of available taxable tcmirorary d.llaonces or where there is convincing other evidence that sufficient future taxable income will be available.

Measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Con*paIV expects, at end of reporting period, to recover or settle the carrying amount of Its assets and liabilities.

Transaction or event witch is recognised outside profs o» loss, cither in lit lid compwhviuUve income or in equity, is recorded eloig with the tax as applicable,

1.1* Cash and cash eouivalents

Cash and cash egulvalent In the balance shpet comprise cash ai banxs and on hand and short-term deposits with original maturities at three manllis ot less, which are subject to an Insignificant risk of changes In value.

For the purpose of statement of cash flows, cash and cash equivalents consist of cash and short Term depus Is, as defined above, net of outstanding bank overdrafts os they ore considered on mlrgr.il part of the Company''s cash management.

1.15 Seumenl Reporting . . .

The com pa Ty''s chief operator! decision mat ng (CODM), examines the company''s performance from business perspective and has Identified three reportable business segments viz Industrial Chemicals. Leasing and tnvrstirg. Segment disclosures are consistent with the information provided to CODM which primarily uses apeiat vg profit/loss of the respective segments to assess thru performance. CODM also periodically iem.es information about segment revenues and assets. The Company has discfostd Business Segments as the primary segment. Segments luive been identified taking ''hto account nature of the products & services, the differing risks and returns, the organise! on Structure and Internal reporting system.

Segment policies:

The Company pcepeies Its segment information In conform ty with accounting policies adopted foi pieparing and presenting the financial statements ter the Comoanv as a whole.

1.16 Earnings car share

Basic Carnirgi per share Is calculated by dividing net profit or less fo- the psriod attributable to equity shareholders by weighted aveiage number of equity shares outstanding during the period

For purpose of calculating diluted earrings per share, net profit 0" ''OSS for the period attributab e to equity shareholders and weighted average number of shares outstanding during the period are adjusted for the effects of all d lutive potential equity shares

1.17 Financial instruments tirarKu! assets

(I) Initial reccgntion and measurement

Flnarclal assets are recogr sed when the Company becomes a party to the contractual provisions of the Instrument

On Initial recognition, a rnanrt.il asset Is recognised at la.r va''ue. in case of financial assets which are recognised at fair value through profit and loss (FVrPL), its transact on cost is recognised In the statement ol piofit and loss. In other cases, the transection cost Is attributed to the acquisition value of the financial asset.

(II) Subsequent measurement

Unre al assets we subsequently class lied and measured at

• amortised cost.

• fair value throjeh oroft and lass (FVTRC), end

• fair value avouch other comeovmsive income (FVOC1J.

riranc al assets arc not reclasslf cd subsequent to their recognition, except If and in the period the Company changes Its business model for managing financial assets.

(III) Trade Reccvatrics and Loans

Trade receivables are Initially recognised at lair value. Subsequently, these assets are held at amortised cost using the effective Interest rate (EIR) method net of any expected credit losses. The FIR Is the rale that discounts estimated future cash income through expected life ef a financial instrument.

(hr) Dept Instruments

Sett instruments are initially measured at amortised cost, fa r value through other comprehensive income (’FVOCT) or fair value through prold or loss (TVtPL'') till derecognition or. the basis of (¦) the Company''s business model for managing financial assets and (ii) contractual cash flow characteristics of the financial asset

(a) Measurement of amortised cost: Financial assets that are held within a business model whose objective is to ho''d ftnanc el assets In order » collect contractual cash flows that are seteiy payments of prlnclp.il and Interest, are subsequently measured al amollsed cost using the effective interest rate ( EIR''J method less impairment. If any Amortisation of FIR and loss arising (ram Impairment, If any, Is recognised In the Statement of Profit and Loss.

(b) Kousieement uf fall value through other comorahens ve income: financial assets that ere held within a business model whose objective s achieved by both, selling financial assets and ujRccimg contractual cash lloms that are solely payments of principal and Interest, are subsecuency measured at fair value through Other comprehensive Income Fa r value movements Jrc recognlved in oilier compiefiendve income (OCI). Interest incurr.* measured usmg the EIR method erd Impairment losses. If »ry. a re recognised in the Statement of Profit and loss On derecognition, cumulative gain or loss previously recognised in OCI is ledassihed from the equity to ''Other income’ in the statement of Profit and loss.

(e) Measurement at fair value through pc util or loss: A financial asset not classified as either amort tec cost or rvOCl, is classified as fVTPL Such financial assets are measured at fair value with an changes n fair value, including x te.est income and dividend income. If any, recognised as other income'' in the Statement of Praf t and Loss

(v) Equity Ircslrunttlti

All investment* in eqjfty Instruments classified under financial assists air initially AMASurtd at fair value, in« Lxnpany may. on fwtul recognition, inevoca&ty elect to measure seme e ther et FVOCI or FVTPL. The Company main*-, pled on at FVOCI basis. Fair value changes excluding dividends, on equ.ty instruments measured at fVOCl ere recognlted In OO. Amounts recognised In OCI are not subsequently reclassified to the Statement of Profit and toss. Dividend income un investments in equity Instruments are recognised ts other income'' in statement of Profit end loss.

(vi] DeiecOQrtitOO

The Company dercrognlsrs a financial asset when Hie contiactual rights to the cash Hows from the financial asset expire, or It transfers the contractual rights to receive the cash flows from the asset.

vtl) Impediment of : Asset

txp*ci«

financial liabilities

(I) Intiel rocogniton end measurement

Financial liabilities are recognised when the Company becomes a party to contractual provisions of an Instrument. Financial liabilities are InR ally measured at the amort.sod coil unless at initial recc jr non. they are clisi ded as feu ve''ue through profit and loss. In cose of trade payables, they ere initially recoon sec a: fax value and subsequently, these liabilities are held at amortised cost using the effective Interest method.

(II) Subsequent measurement

Financial liabilities aie subsequently measurec et emorbsod cost using the FIR method. Financial llabiatlrs carried al fair value through profit or loss ere measured at fair value with alt dotages m fair value recognised in the Statement of Profit end Loss.

(III) Derecognition

A financial liab i-ty Is derecognised when the obligation specified in the contiact is discharged, cancelled or expires.

---

Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements

The financial statements are prepared to comply in all material aspects under the Historical Cost convention and in accordance with generally accepted accounting principles in India and the mandatory Accounting Standards prescribed under Section 133 of the Companies Act 2013 (Act') read with Rule-7 of the Companies (Accounts) Rules, 2014 and provisions of the Act (to the extent notified).

1.2 Use of Estimates

Preparation of financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting period. Although such estimates and assumptions are made on reasonable and prudent basis taking into account all available information, actual results could differ from these estimates and assumptions and such differences are recognised in the period in which results get crystallised.

1.3 Fixed Assets

Fixed Assets are stated at cost except Trade Marks which are valued based on valuation carried out by an independent agency,

1.4 Depreciation and Amortization

Depreciation on fixed assets is provided on straight line method according to the useful life mentioned in Schedule II Part C to the Companies Act, 2013, Leasehold assets are amortised over the respective residual lease period

1.5 Borrowing costs

Borrowing costs attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cosl of that asset. Other borrowing costs are recognized as expense in the period in which these are incurred.

1.6 Impairment of Assets

At each balance sheet date, the management reviews the carrying amounts of the assets included in each cash generating unit to determine whether there is any indication that those assets were impaired, if any such indication exists, the recoverable amount of the asset is estimaied in order to determine the extent of impairment. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognized as income in the statement of profit and loss.

1.7 Inventories

Raw materials Finished Goods, stores, components and other consumables are valued at cost or net realisable value whichever is lower. Work-in-progress is valued at cost on estimate.

1.8 Investments

Long term Investments are valued at cost. Provision for other than temporary diminution in value of such investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower.

1.9 Foreign Currency Transactions

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction, Foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the balance sheet date. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.10 Lease

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the less or, are recognized as operating leases. Lease rentals under operating leases are recognized in the Statement of Profit and Loss,

1.11 Revenue Recognition

Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it is not possible to estimate it with reasonable accuracy. Deferred revenue expenditure is written off over six years Dividends from investments are recognized when the company's right to receive payment is established

1.12 Employee Benefits

Short-term employee benefits (compensated absences) are recognised as expense at the undiscounted amount in the year in which the related service is rendered based on actuarial valuation made at end of the year. Post employment employee benefits are recognised as expense in the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year. Actuarial gains and losses in respect of post employment benefits are charged to the Statement of Profit and Loss.

1.13 Taxation

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. In the event of unabsorbed depreciation and carry forward of losses, deferred lax assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available to realize such assets. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

1.14 Cash and Cash Equivalents

Cash and cash equivalents in the Cash Flow Statement comprise cash al bank and in hand.

1.15 Segment Reporting

Identification of Segments: Segments are identified and reported taking into account the nature of products and services, the differing risks and returns, the organizational structure and the internal financial reporting system. The analysis of geographical segments is based and the areas in which major operating divisions of the Company operate. Allocation of common costs: Common allocable costs are allocated to each segment according to the turnover of the respective segments.

---

Mar 31, 2014

A) Fixed Assets

Stated at cost except Trade Marks which are valued based on valuation carried out by independent agencies

b) Borrowing costs

Borrowing costs comprising of interest etc. relating to projects are capitalised upto the date of project completion. Other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation *

Depreciation on fixed assets is provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. However, In case of Motor Vehicles & Office Computers, the rates are based on technical evaluation of the economic life of assets by the management which are 15% & 24% instead of 9.50% & 16.21% respectively specified in the said Schedule. In case of trade marks, the book value is written off over the residual period of the validity of the relevant registration certificate. An amount equal to the additional depreciation on account of revaluation is transferred to the Profit & Loss Account from the Revaluation Reserve. Value of Leasehold assets is amortised over the respective residual lease period.

d) Inventories

Inventories are valued at lower of cost or net realisable value. Cost of own manufactured goods comprises of materials, labour and other appropriate overheads including depreciation. Cenvat on stocks is added to value of stocks Values of stocks of raw materials, stores and packing materials are determined on first-in first-out basis.

e) Investments

Long term Investments are valued at cost Provision for any permanent diminution in value of investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower. However, investments under Portfolio Management Services are stated at cost

f) Foreign Currency Transactions

All foreign currency transactions are accounted for at prevailing rates on the respective date of transactions Liabilities remaining unsettled at the year-end are translated at year-end rates. Differences in transactions of assets and liabilities and realised gams and losses on foreign currency transactions are recognised in the Profit and Loss Account.

g) Lease

Lease Rentals are charged to/accounted for in Profit and Loss Account.

h) Revenue Recognition

Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it is not possible lo estimate it with reasonable accuracy. Deferred revenue expenditure is written off over six years.

Dividends from investments are recognized when the company's right to receive payment is established

i) Retirement Benefits

a) Short-term employee benefits (compensated absenses) are recognised as expense at the undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered based on actuarial valuations made at the end of the year.

b) Post employment employee benefits are recognised as expense in the Profit & Loss Account for the year in which the employee has rendered V services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year Actuarial gains and losses in respect of post employment benefits are charged to the Profit & Loss Account.

j) Taxation

a) Provision for current taxes is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act. 1961 and considering assessment orders and decisions of appellate authorities

b) Deferred Tax for timing difference between tax profits and book profits is accounted for. using tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

k) Impairment of Assets

Factors giving rise to any indication of any impairment of the carrying amount of the Company's assets are appraised at each Balance Sheet date to determine and provide/revert an impairment loss following Accounting Standard - 28 for Impairment of Assets

l) Accounting of Derivatives

Realised Income/Losses from dealings in derivative instruments are accounted for and the unrealised gains/losses are not considered till the derivative agreement is not completed. Such profits/losses are shown as exceptional items in the Profit and Loss Account.

---

Mar 31, 2012

A) Fixed Assets

Stated at cost except Trade Marks which are valued based on valuation carried out by independent agencies.

b) Borrowing costs

Borrowing costs comprising of interest etc. relating to projects are capitalised upto the date of project completion. Other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation

Depreciation on fixed assets is provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. However, in case of Motor Vehicles & Office Computers, the rates are based on technical evaluation of the economic life of assets by the management which are 15% & 24% instead of 9.50% & 16.21% respectively specified in the said Schedule. In case of trade marks, the book value is written off over the residual period of the validity of the relevant registration certificate. An amount equal to the additional depreciation on account of revaluation is transferred to the Profit & Loss Account from the Revaluation Reserve. Value of Leasehold assets is amortised over the respective residual lease period.

d) Inventories

Inventories are valued at lower of cost or net realisable value. Cost of own manufactured goods comprises of materials, labour and other appropriate overheads including depreciation. Cenvat on stocks is added to value of stocks. Values of stocks of raw materials, stores and packing materials are determined on first-in first-out basis.

e) Investments

Long term Investments are valued at cost.Provision for any permanent diminution in value of investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower. However, investments under Portfolio Management Services are stated at cost.

f) Foreign Currency Transactions

All foreign currency transactions are accounted for at prevailing rates on the respective date of transactions. Liabilities remaining unsettled at the year-end are translated at year-end rates. Differences in transactions of assets and liabilities and realised gains and losses on foreign currency transactions are recognised in the Profit and Loss Account.

g) Lease

Lease Rentals are charged/accounted for in Profit and Loss Account.

h) Revenue Recognisition

Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it is not possible to estimate it with reasonable accuracy. Deferred revenue expenditure is written off over six years.

i) Retirement Benefits

a) Short-term employee benefits (compensated absenses) are recognised as expense at the undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered based on actuarial valuations made at the end of the year,

b) Post employment employee benefits are recognised as expense in the Profit & Loss Account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year. Actuarial gains and losses in respect of post employement benefits are charged to the Profit & Loss Account.

j) Taxation

a) Provision for current taxes is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities.

b) Deferred Tax for timing difference between tax profits and book profits is accounted for, using tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

k) Impairment of Assets

Factors giving rise to any indication of any impairment of the carrying amount of the Company's assets are appraised at each Balance Sheet date to determine and provide/revert an impairment loss following Accounting Standard - 28 for Impairment of Assets.

I) Accounting of Derivatives

Realised Income/Losses from dealings in derivative instruments are accounted for and the unrealised gains/losses are not considered till the derivative agreement is not completed. Such profits/losses are shown as exceptional items in the Profit and Loss Account.

---

Mar 31, 2011

(I) Fixed Assets Stated at cost except Trade Marks which are valued based on valuation carried out by independent agencies.

(ii) Borrowing costs: Borrowing costs comprising of interest etc. relating to projects are capitalised upto the date of project completion. Other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

(iii) Depreciation:Depreciation on fixed assets is provided oh straight line method in accordance with Schedule XIV of the Companies Act. 1956. However, in case of Motor Vehicles & Office Computers, the rates are based on technical evaluation of the economic life of assets by the manaqement which are 15% & 24% instead of 9.50% & 16 21 % respectively specified in the said Schedule. In case of trade marks, (he book value is written off over the residua? period of the validity of the relevant registration certificate. An amount equal to the additional depreciation on account of revaluation is transferred to the Profit & Loss Account from the Revaluation Reserve. Value of Leasehold assets is amortised over the respective residual lease period

(iv) Inventories Inventories are valued at lower of cost or net realisable value. Cost of own manufactured goods comprises of materials, labour and other appropriate overheads including depreciation Cenvat on stocks is added to value of stocks. Values of stocks of raw materials, stores and packing materials are determined on first-in first-out basis.

(v) Investments Long term Investments are valued at cost.Provision tor any permanent diminution in value of investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower. However, investments under Portfolio Management Services are stated at cost.

(vi) Foreign Currency : All foreign currency transactions are accounted for at prevailing rates on the respective dale of transactions. Liabilities remaining unsettled at the year-end are translated Transactions at year-end rates. Differences in transactions of assets and liabilities and realised gains and losses on foreign currency transactions are recognised in the Profit and Loss Account.

(vii) Lease : Lease Rentals are charged/accounted for in Profit and Loss Account.

(viii) Revenue: Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it is not possible to estimate it with reasonable accuracy. Deferred revenue

Recognisition expenditure is written off over six.years.

(iX)Retirement : a) Short-term employee benefits (compensated absenses) are recognised as expense at the undiscounted amount in the Profit & Loss Account of the year in which the « Benefits related service is rendered based on actuarial valuations made at the end of the year

b) Post employment employee benefits are recognised as expense in the Profit & Loss Account for the year in which the employee has rendered services The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year. Actuarial gains and losses in respect of post employement benefits are charged to the Profit & Loss Account.

(x) Taxation a) Provision for current taxes is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act. 1961 and considering assessment orders and decisions of appellate authorities.

b) DeferrecTTaxfor timing difference between tax profits and book profits is accounted for, using tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

(xi) Impairment of Factors giving rise to any indication of any impairment of the carrying amount of the Company s assets are appraised at each Balance Sheet date to determine and provide/

Assets revert an impairment toss following Accounting Standard-28 for Impairment of Assets.

(xii) Accounting of derivative : Realised Income/Losses from dealings in instruments are accounted for and the unrealised gains/losses are not considered till the derivative agreement is not Derivatives completed. Such profits/losses are shown as exceptionalitems in the Profit and Loss Account

---

Mar 31, 2010

(i) Fixed Assets : Valued at cost except Trade Marks which are valued based on valuation carried out by independent agencies.

(ii) Borrowing costs : Borrowing costs comprising of interest etc. relating to projects are capitalised upto the date of project completion. Other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

(iii) Depreciation Depreciation on fixed assets is provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. However, in case of trade marks, the book value is written off over the residual periodof the validity of the relevant registration certificate. An amount equal to the additional depreciation on account of revaluation is transferred to the Profit & Loss Account from the Revaluation Reserve. Value, of Leasehold assets is amortised over the respective residual lease period.

(iv) Inventories : Inventories are valued at lower of cost or net realisable value. Cost of own manufactured goods comprises of materials, labour and other appropriate overheads including depreciation. Cenvat on stocks is added to value of stocks. Values of stocks of raw materials, stores and packing materials are determined on first-in first- out basis.

(v) Investments : Long term Investments are valued at cost.Provision for any permanent diminution in value of investments is made, if necessary. Current investments are stated at cost or market value, whichever is lower. However, investments under Portfolio Management Services are stated at cost.

(vi) Foreign Currency : All foreign currency transactions are accounted for at prevailing rates on the respective date of transactions. Liabilities remaining unsettled Transactions at the year-end are translated at year-end rates. Differences in transactions of assets and liabilities and realised gains and tosses on foreign currency Transactions are recognised in the Profit and Loss Account.

(vii) Lease Lease Rented are charged/accounted for in Profit and Loss Account.

(viii) Revenue Accounts are maintained on accrual basis. Revenue recognition is postponed to a later year when it Recognisition is not possible to estimate it with reasonable accuracy. Deterred revenue expenditure is written off over six years.

(ix) Retirement a) Short-term employee benefits (compensated absenses) are recognised as expense at the undiscounted Benefits amount in the Profit & Loss Account of the year in whicn the related service is rendered based on actuarial valuations made at the end of the year.

b) Post employment employee benefits are recognised as expense in the Profit & Loss Account Account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques at the end of the year. Actuarial gains & losses in respect of post employement benefits are charged to the Profit & Loss Account.

(x) Taxation : a) Provision for current taxes is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities.

b) Deferred Tax for timing difference between tax profits and book profits is accounted for, using tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

(xi) Impairment Factors giving rise to any indication of any impairment of the carrying amount of the Companys assets of Assets are appraised at each Balance Sheet date to determine and provide/ revert an impairment loss following Accounting Standard - 28 for Impairment of Assets.

(xii) Accounting : Realised lncome/Losses from dealings in derivative instruments are accounted for and the unrealised of Derivatives gains/losses are not considered till the derivative agreement is not completed. Such profits/losses are shown as exceptional items in the Profit and Loss Account.