Accounting Policies of Indo Borax & Chemicals Ltd. Company

Mar 31, 2025

Corporate Information

Indo Botax£ Chemicals Limited{theCompany) isa public limitedcompany incorporatedand domiciled in liidla.The registeredoffice
is at 302, Link Rose, Linking Road. 5antacrusi( West), Mumbai 4Q0Q54. The Company is engaged in manufacturing of Boron products
and Lithium.

a) General i nfofiliationa n d Compl iance with It id AS:

HiKcfinaocialstatements liave been prepared in accordance with the Indian Accounting Standaids (horeinaflei referred id
as the''Ind AS'') as notified by Ministry 0FC01 porate Affairs pursuant to section! 33dffiic Companies ActZQl3 lead with Rule 3
ul tile Companies [Indian Accounting Standards) Ruies, 2015 and Gniti panics (Indian Accounting Standards) Amendment
Ruies, 2016.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied
consistently Eo aJE the periods presented in the financial statements, including the preparation of the openlugfnd AS Balance
Sheet as at 1 st Apii E. 2016 bei ng th e ''date of transition to h id AS''. A1J assets and liabilities liave been classified as current or no n
current as per the Company''s non:ml operating cycle and other criteria as set uut in the Division II o! Schedule I El to die
Companies Act. 2013. Based on the nature of products and the time between acquisition or assets fur processing and their
realise Lion in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months lor the purpose of
cu nenLoi no n -cm j ent classification ofassets and liali ilities.

Authorisation of financial statements

The financial statements of the Company for the ycai ended 31st Mai eh, 2025 were approved fui issue in accordance with tfie
resolution of U ie 0 oar d of If irectors on 13 tli May. 20 25.

b) Current versus non current classifies ti on

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. Ail asset is
classifi ed as current when itis:

L Expected to be realised or intended to sold or consumed in normal operating cycle,
ii. I leld p riAtarily for th e pu rpnsc of trading,

i ii. Expected to be realised wj thi n twelve mo ntl is a tier die re po rting period, oi

iv. Cash or cash equivalent uni css restricted from Eieing exchanged or used ta settle a liability for at least twefw months
after the reposting period.

All other assets are class died as non current
A lia bi lity is classi fied as cu ircnt when:

L It is expected tu be settled in non nal operating cycle
ii. IE is hold primarily for the purpose of trading

i ii. It is due to lie settled within twelve in onths after the reporting period, or

iv. There is tio unconditional right to defer the settlement of the liability for at least twelve munths after the reporting
period.

A1J other t ini hi i lies a re class ii ied as ooti -curron L

The operating cycle 1s the lime between the acquisition of assets for processing and their realisation in cash and cash
cq uivaJents. Defier red tax assets and lia Eli titi ea are classified as n on-cun ent assets and 1 la bi lit i cs.

c) Property, Plane and Equipment:

Prooerty. plant and equipment are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost if
capitalisation li iteriaare mot and directly attributable cost of bringing the asset to iLs world tig condition Ibr the intended use.
Subsequent costs are included in the asset''s eartying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will How to the Company. Ail other repair and maintenance
costs are recognised in statement oE p refit and loss as incurred.

Subsequent measurement (dtp red at ion an d u sefuJ lives):

Depreciation on properly, plant and equipment is provided on straight line method on assets located in Factory premises.The
company has lollowed written-down value method of providing depreciation with respect In assets located at f lead Office. The
Depreci^Loo is computed on the basis of useful lives (as setout below] f irescribodin Schedule II the Act

The amortisation period and the amortisation method fur finite-life intangible assets is reviewed at each financial year end

LeasehbHimprmnnfaits have been *K»rtised over die estimated useful life of the assetsdi the period uf''Eease, whichever is
lower. The residual values, useful lives and method of depreciation are reviewed ut each Financial year end and adjusted
prospectively, if afjpr op: utc.

De-recognition

Art item of prop city, plant and equipment a rid any significant part initially recognised is derecognised upon disposal or when
rio future economic benefits ate exacted From its use or disposal. Any gain or loss arising on dir-recognition of the asset
[calculated as tire (fifferencp between the net disposal proceeds and the canning amount of the asset) is included in the
in come statement when the asset is derecognised.

Transit! on to- fed AS

Du transition to Ind AS, the Company has elected to continue with tire carrying value of all its property, plant and equipment
recognised as at 1st April 2016 measured as per tile provisions of previous GAAP and us-e that carrying value as the deemed
cost of pro pcily. plant and equipment,
d | lntpa irm ent of non-fi nan rial assets

At each reporting date, the Company assesses whether there is any indicati oil based on in ten tal/external factors, that an asset
i nay be impaired. If any su da in di ca tic ri exists, the dump a ny estimates Lh e (itco verahle aims un t ol the a sseL If such recoverable
amount of the asset m tfie recoverable amount of tire cash generating unit to which the asset belongs is less than its tallying
amount, the cunying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is
reccgnis ed i n Die sta teme nt of p m fit and 1 oss. Ail assets are su bscq uenUy reassessed fur i ndicatmos that an impair merit loss
previously recognised may no longer exist An impairment loss is reversed if the asset''s or cash generating unit''s recoverable
amount exceeds its canyi ng am ount

TlieimpaimticnL tosses and i everasls are recognised in statement ofpnjru and loss.

e) Investments in Subsidiary

Investments in subsidiary is carried at cost less accumulated impairment losses, if any. Where an indication of impairment
exists, the partying jmount of the investment is assessed and written down immediately to its recoverable amount. On
disposal of investments in subsidiary, the difference between net disposal proceeds and the carrying a mounts are recognized
in tlie Statement of Profit and Less.

f) Financial instruments
Financial assets

In it id I r ecog n iti on a nd measurement

Fi nan da E ass efa and financia I tiabili ties a re recogi used wbei i the Coni puny becomes a party to t fie contractual provisions of the
1Ii id ncial instrument and are measured initially at la ir value ad| u s ted fortransaetion costs.

Subsequ ent mea surement

L Financial instruments at amortised cost the financial instrument is measured at the amortised cost if both tile
lo bowing conditions are met

The asset is held within a business model whose objective is to hold assets lor collecting contractual cash flows, and
Contractual terms of the asset give rise on specified dates to cash flaws that are solely payments of principal and interest
(UP FI) o it the pri ncipa E a mourn ou tsta nding.

After'' i n i tial measurement, su cli financial assets are su bseq uently measu red at ai no rtised cost usi rig the effective i nte rest
i-ate (EIR) method, All the debt instnini^ltB of the company are measured at amortised cosL

Trade Receivables and Loans:

Trade receivables are initially recognised at lair value. Subsequently. these assets are belli at a mortised cost, using the
effective interest rate f El R] method net of any expected credit lasses. The II l R is tile rate that discounts estimated future
cash Income through the expected life of financial instrument
Mu tua I Fun ds, Eq ulty I lives tin ent, bonds and other f i na n ciai instrume n ts:

Mutual Funds, Equity investment, bunds and oUiei¹ financial instruments in t tie scope of Ind As 109 are measured at fair
value thru ugh other comprehensive income (FVTOCIJ..

Financial liabilities

In itiai reoogni tion and m ea sure m ent

All fiiinncia I lialul dies are fecogn ised j ni tially at fai r val ue and transac tinn tost Lhat is attributable to the acqq Lsiti on of the
financial liabilities Is also adjusted. These liabilities are classified as amortised cost.

Subsequent measurement

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.
Th ese liabil ities inci ude borrowings,

De ¦ retufl n i ti r) n of i i n anci al I ia b il i ties

A financial liability is de-recognised when the obligation under the Ji a in I Ely is discliai ged oi'' cancelled or expires. When an
existing finandnl liability is replaced by another from the same lender on substantially different terms, or the berms of an
existing liability are substantially modified, such an exchange or modification is treated as the dc- recognition of the
original liability and the recognition of a new lia bil ily. The difference in the respedhne carrying amounts is recognised in
Lhc statement of profit and loss,

g) Impairment of financial assets

In accordance with End AS 109, the Company applies expected credit loss (ECLl model for measurement and recognition ut
impairment loss lor financial assets.

ECL is tli e difference between all contractual cash iluws that a re due to the Company in accordance with theccmtiactand all the
cashflows titut tile Company expects in receive. When estimating Lli ecash Rows, the Company is required to consider:

i. All contractual terms afthd financial assets (including p i cpayrtient and extension) over tiie expected lile of the assets.

ii. (lash flows from the sale of collateral held or other cieJ it enhancements that are integral to the contractual terms.
Trade receivables

The Company applies Approach permitted by End AK109, financial instruments, which requires expected lifetime losses to be
recognised from initlaf recognition of receivables.

Other financial assets

For recognition of impairment loss on other financial assets and risk exposure, theConqiany determines whether there has
been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment
loss is provided,
b] Inventories

Raw Mu ten at: Lower of oust ay net realisable value. Cost is determined on fir it in firs taut (''FIFO'') basis.

Work in progress, are valued at lower of cost and net realisable value. Cost of work in pi ogress and manufactured finished
goods comprises direct material, cost of conversion and other costs Incurred in bringing these inventories tu tfieii present
location and condition.

Finished goods: Lower of cost or net realisable value. Cost is determined on FIFO basis, includes direct material and labour
expenses and a ppropriate pro portion of ma nufactur i ng overheads based on Ui e normal capacity for manufactured goods.

Net realisable value Ls the estimated selling price in the ordinary course of business less estimated costs of oompJc-Eion and
ustinia ted costs ofnecessary Id make the sale,
i) Foreign Currency Tra nsa ctl oils

Initial recognition

The Company''s financial statements arc- presented in I NR, which is also the Company''s functional currency. Transactions in
foreign cun encies are recorded on initial recognition in tire functional currencyatthc exchange rates prevailing on the date of
tiietransactiun.

Me asureiuen tat the balance sheet da te

Foreign currency monetary items of the Company, outstanding at the balance sheet dale arc restated at the year-end rates.

Nod-monetary LteniK which an) carried at historical cost denominated in a fai eigrt currency arc reported using the exchange
rate aL the date cE the tnUsadiuiL Non-munetai y items measured at lair value in a foreign currency are translated using the

exchange rat es at ti lc date when tl lc fa ir value is deter mil ied_

Trea tm ent of exchu nge d i Etc rente

Exchange differences Lhstirise uii settlement of monetary items iron reporting at each balance sheet date of the Company''s
monetary items atthe closing rate are recognised as income or expenses in the period in which tii^ arise.

j) Income taxes

Tax expense recognised in statement of profit and loss comprises the sum of deferred taxahd current tax not recognised m
Otb er Compr chunsive income COCf) or directly in ajp&jt.

Current income-tax is measured at the amount expected to he paid to the tax authorities in accordance with Lhe Indian
Income-tax Act Current income-tax relating tn items recognised outside statementdF profit and Loss Es recognised outside
statentent of pro fitai id loss {either i n OCI or in equity ].

Deterred income-tax is calculated using the liability method. Dole) led tax liabilities are gcneiaJly recognised in full foe all
taxable temporary differences. Deferred tax assets are recognised to the extent that it is ptiofeabte that the under lying Lax loss,
unused tax credits or deductible temporary difference will lie utilised against future taxable income. This is assessed based on
the Company''s forecast of future operating results, adjusted tor significant non-taxable income and expenses and specific
limits on lhe use of any unused, tax kiss iff credit. Unrecognised deferred tax assets are re-assessed at each reporting date and
me recognised Id the extent Lied it Jus become probable that future taxable profits will allow the deferred Lax asset to be
recovered.

Deferred tux assets and liabilities are measured at die tax rates that a re expected to apply in the year when the asset is realised
or the liability is settled, based on tax rates \ and Lax Jaws) slut have been enacted or substantively enacted at the reporting
date. Deferred tux reiating to items recognised outside statement of profit and loss is recognised outside statement of profit
and (either in OCI nr in equity ).

k) Cash and cask equivalents

Cash and cash equivalents comprise cash in fund, demand deposit:, with banks/corporalions and short- term highly liquid
j nves tu i ents [ origins I maturity less than 3 months) that are readily convertible i nto know) l a mou nt or cash and a re so bjcct to
an insign i (leant riskol eiiange m value.

11 Post - e i n pi oyment, I o ng term an d short term employee benefi ts

i) S ho rtTerni Employee Benefits

All employee benefits payable within twelve months of receiving employee services are classified as dbort-term
employee benefits. These benefi ts include salaries and wages, bu nus and ex- gratia,
ill Defined contribution plans

Employee benefits in the form of contribution to Provident Fund managed by Government authorities. Employees
Slate Insurance Corporation and Labour Welfare Fund are considered as defined contribution plan and lhe
contrlbutiuiisare charged to the Profit and Loss Account of the year when the contributions to the respective funds
are due.

ill) Defined benefit plans

Retirement benefi t in the form of Giatuity benefit is considered as defined benefit obligation and is provided for cm
the basis of an actuarial valuation,
iv 1 Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees.
The plan provides tor payment to vested employees at ret: rement. death while memploymentoroii termination of
employ meutof an amount based on the respective employee''s salary and the tenure of einploy merit Vesting occurs
upon completion of given yea is of service. The company makes contribution to employees group gratuity fund
established by Life Insurance Corporation of India. Actuarial gains and losses arising Freni changes in actuarial
ass umptio ns a re r ecognised in th e Profit and Loss aecoun t i n Lb e period in which they a i ise,

m) Op crating expenses

Op cm aliii" expenses are recognised in profitur loss upon utilisation nfdiesrnttk or as incurred.
n> Boi''l owing costs

Borrowing costs directly attributable to the acquisitions, const! action 01 production of a qualifying asset are capitalised
during the period of time that is necessary to complete and prepaid the asset For its intended use or sale. Other boi rowing
costs are expensed in the period in which they a re incurred and reported in finance costs,
o) Fair value measurement

The Company i aeasu res (inancia i i nstmmei its. at fair va Eue at each balance sheet date.

Fair value is the price tiiat would be received In sell an asset or paid Go transfer a liability in an orderly ti ansacLioii between
market participants at the measurement date. The lair value measurement is based on the presumption that the transaction to
soil the asset oi''transfer Hie liability takes place either
L in tire principal market Tor the asset or liability, or

ii. In the absence uFaprinci pal market, in Lhc most advantageous market for the asset or liability
Hi e principal or the most advantageous market must be access ibie by the Company.

Hi e fair valueoF an asset or a liaiiiEity is measured using the assump tions that market participants would use when pricing Else
asset or I ialiility, assumi no Lhatmarket parliri p ants act in theireconcuni c bust interest

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Mar 31, 2024

Summary of Material Accounting Policies and Other Explanatory Information for t lie year ended 3lst March 2024 Corporate Informstinh

Indo Borax § Chemicals Limned (tie Cfrtnp^ny) ls a publir: limited company Incorporated and domiciled in India, The registered office I vat 302, i, ink Rose, Ei (iki :ij; Road, Sijntavruz [Wesl), Mumbai -401)054. Tlitr Company is h i tgrj ge l! m me ClUfaetllri bgOf Forufl ptyduCls arid Lithium.

j) General Information and Compliance Wtth mid AS:

These financial statements have been prepared In accordant^'' with die Indian Accounting Standards [l^dnaftericftrrrcd Lh> as tlic''lnd AS''J as notified by MjEjiietiy of Corporate Affairs pursuant to section l33ofthe Companies Act_r2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 20IS and Companies [Indian Accounting Standards) Amendment Rules, 2016,

The financial statements have been prepared on accrual and going concern basis. The accounting policies are .applied consistently to all the periods presented in the financial statements, including the preparation of the opening fnd AS Balance b h eet as at 1 st A p ri 1,2 D16 bei ng the¹ date o f tra ns itio n to l ltd ASAll assets a ltd I lab it iti es have been cl assi fied a s cu tre itl orn on cmTent as per the Company''s normal operating cycle and other criteria as set out in the Division IE of Schedule Ul to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its opera ting cycle as E2 months for the purpose of CU mentor no n -ci i rre nt class i f I cation o f as sc ts a nd I i a b i I it j ns.

AuthoilBJtiDnof fl na n clal statements

The financial statements of the Company for the year ended 31st March, 202 4 were approved for issue in accordance with the resolution ofihfi RoordiifDinecLorsf.nl 2!>" May, 2024.

h) Current versus non current classification

The Company presents assets and liabilities in the balance sheet based on current/ no recurrent classification. An asset i.s cl ;i ssi fled as cu rre nt wh cuius:

i. ]¦! * pet ted Li i be tea Lis ed m- i j i L c i til clI to sol d o r cu ns u n i ml i n norm a I opcrari i ig cycle, i i. ! I eld primarily for the purpose of trad trig,

iii. Expected to he realised within twelve months after the rc-purring period, of

lv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months ^fter the reporting ptried.

AIL c>t ii e r assets are cl awililud as non -cu rren t.

A Liability is classified as current when:

i. It is expected to be settled in normal opetating cycie

ii. Tt is ituld primarily tor the purpose of trading

iii. [ t i.i d ye to tie settled w Lth in iwu Ive moil Ll is a fter t lie j''l: porting period, o r

iv. There is no u neon d itio rial right to di:fer t!ie settlement of the liahility for at least twelve mouths after the reporting period.

All other I iah iii ties a re class If i ed a s no n-c orrent

The operating cycle is the time between the acquisition of assets ibr processing and ilictr realisation in cash and cash eq u ivatents, Deterred tax ass ets and :i a bi I ities are ci a s sifted as n on - cu rrent ass e ts and) i a bi I iti es. c] Prope rty, P la nt an d Lqu ip me nt:

Property, plantand equipment are stated at their tost of acquisition. The cost comprises purchase price, borrowing cost if capital isaticui criteria are met and directly a ttrihu table cost of bringing the asset to its working condition for the intended use 5 uhsequ ent costs a re in cl ud ed i n th e as set''s ca nying a nto mi t or recog uis ed as a separate as se t, as app ro priiite, or ly when it is probable that Incline economic benefits associated with the item will flow to the fiompauy, Ail other repair and maintenance co sts a re recog n ised i n statem e nt of profit an d toss as incurre d, i''libsequeni measurement (depreciation and useful lives):

Depre ciation on prope rty. plan t a nd equ ipm e nt i s provi tied on s tra iglit ] i no meth od on as s e ts I oca ted in Factory premi ses. The company has folio well written-down vaiue method of providing depreciation with respect to assets I oca led at Head Office. The Depreciation is computed on ihe basis of useful lives fjjfe set out below) prescribed Iti Schedule 11 the Act:

The amortisation period and the amortisation method for finite-life intangible assets is reviewed at oath financial year end

Leasehold Improve mentsliave been amprtlS^d twee tlie estimated useful life of the assets dr the period offoast, whichever is lower- The residual values, useful lives and method of depreciation are reviewed at each financial year end and adjusted prospectively, if a pprop ri a te,

De-recognition

An item of p roperty, pla nt and equ ip me nt and any signifies nt pa rt in Ltially recogn i sed i s de necogn i sed upon d i sposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset fcalculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the i nconie sta te inent whe n t he as se t i s derecogn ised.

Transition to I ltd AS

On transition to Ind AS, the Company has elected to coot I mie with the carrying value; of all its property, plant and equipment recognised ox at 1st April, 201A measured as per the provisions of previous QAAPand use Unit currying value as the? deemed cost of property; plant and cqu jpm out. il) ! in painnent of mi n ¦ fi mucin! a ssets

At each reporting date, the Company assesses whether there is any indi cation based on intern al/external factors, that an asset may be imp aired. If any such indication exists, the Com pa nyesti mutes the recoverable a mount of the asset. I fsudt recoverable amount of the asset or the recoverable a mo tint of the cash generating unit to which the asset belongs ls less than its carrying amount the carrying amount A reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and Joss. All assets are subsequently reassessed fur indications that an impairment loss previously recognised may no longer exist. An impairment loss i s reversed if the asset''s or cash-generating unit''s recoverable amount exceeds its carrying Amount.

! be impa ii rm''ent losses a ltd reversals a re re cogti ised i n statement ofprttfit an d 1c ss. e| Investments in Subsidiary

Investments in suhsidbjiy is carried at uust Jess accumulated impairment losses, Li''any. VVhei van indication of impaii ment exists, the carrying amount ul the investment is assessed and ventre u drawn immediately to its recoverable amount; On disposal ofiiivestmoiriLs in subsidiary, the difference between net disposal proceeds and the ta r ry i tig amounts are recognized i n t he State me: 11 of Profit a i id Loss. f) F i na nclal itistrum ei its

Financial assets

Initial re cog n it ion ;i n d mens it re me n I

Fi nan rial assets and f ira nc i ? L iiab ilities a ne recogn i sed when the Company becomes a party to the contractua I pro vis ions of the f i na nci a I i nstrument and are measu red in itia I ly at tai r va Lue adj us ted for tra nsactio n costs.

Subset) uent in easurem ent

i. Rnanrta) instruments at amortised cosi the financial instrument Is measured at the amortised cost if both the fo] lowing conditions are met

The asset Is held Wdhih a business model whose objective is Lo hold itsseis fur Collecting Contractual cash flows, and tio n i rac 1 Lta i iftrms of I he asse I giye n se on sfigeIfied dat es lo cash flows 1 hat are so I k ly pAjyments of prlac i pal and i Mere s t [5PPI) on 1 heBfltid pal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest

rate [ EIR] method; Al I the debt Lr strufnents of the coinpa ny a re m ea su red at am drtis ed cost.

1 rude Receivables and Leans:

Trade receivables are initially recognised at [air vaine. Subsequently, these assets are held at amortised cost, using the effective interest rate (EIRJ method net of any expected credit losses The Elk is the rate that d is counts estimated future cash iitcome t [trough the expected life of finaricsa I ilistmm ent,

Mutual Fund s, E q u ity i lives t men t, bonds and o the r tin anci al Instruments;

Mutual Funds, Equity investment, bonds and other financial instruments in the scope of Jnd As 109 arc measured at fair

value through other comprehensive income {FVTQC1]-

Fin and a) liabilities

Initial ire cognition and measurement

All financial liabilities are recognised initially at fair value and tra usact ion cost that is attribu table to the acquisition ot the f i i tan cial i i a bi I Lues is also ad j u ste ri '' I hese I iab i I i t ies a re class ifipd ?&amortised cos:

Subsequent in ea surein ent

Subsequent to initial recognition, these liabilities ore measured at a mortised com using Lite effective interest method. These I labii i t its in elude borrow i ngs.

Do- rrecog i if don of f i i m 111: ia 11 id hi 11 lie s

A fiosncial liability is he-recognised when the obligati on under the liability is discharged or cam oiled or expires, When an existing financial liability es replaced by another from the same lenderon substantially different terms, or the terms of art existing liability ace substantially modified, such an exchange or modification rs treated as the de- recognition of the original liability a nr I the necegnitiod of a iiewliabiUly-.Tbe diMrencre in the respective carrying a mourns is recognised m l he re ta te me nt of prof! t and I css ¦ g) I m piurmenl of fina mia I assets

In accordance with Jrd A5 109, the Company applies expected credit loss f''LCL) model for measurement and recognition of i mpa i mi ent Id ss fo r fina nci a I assets.

EC L is the d i ft''erc neo h ctw cc null co nti¹ a ctu a l cash tl ows tli at are thi e to ill e Co m pany i n acco txUnce with the contract a rtd all the cash flows that the Company expects to receive. When estimating the cash flows, the Company is required to consider.

i. All cm ml me I util terms oflhe finajttla tassels (Irududlng prepay men Land ex tension) over the expected life of; lie assets.

IT Cashflows from thesalecFiajilatera] held or other credit enhancements that are Integral to the contractual terms. Trade receivables

The Co m pany o pplies a pproach pe rm i tted by 1 rid Ail 109, fir uncial i nstrmner ts, which req u ires expected I ifeti me losses to be recognised from initial recognition of receivables Oth er fi ita nc La I assets

For recognition of impairment loss on othej^L financial asset: and i isk exposure, the Company determines whetlicr there has [seen a significant increase Jit the credit ri sit since initial recognition and If credit risk has increased significantly Impaii ment loss is provided.

Ii) I riven tori G:t

Row Materia I: Lower of cost or net ire a I i.sob I e vu in e, Cost is dreterni i lied on fi rst in first out f F1 FO'') ba s is.

Work in progress, are valued at lower of cost and net realisable value. Cost of work in progress and ciaruifactmed finished goods comprises direct material, cost of conversion and other costa incurred in bri ngi ng these i nventories to their present location and condition.

Finished goods: Lower of cost or net realisable value. Cost is determined on FIFO basis, includes direct material and labour expe uses and a ppropriate proportion o f man ufactuvi ng overhead s based cm the normal capaci ty to r man ufnctu red go od s.

Net realisable value Is the esti mated s el brig price in the ordinary course of business less estimated costs of completion and cst i m a ted cost; o f nteos sa ry to make the sale, if Foreign Currency Transactions

Initial recognition

The Company''s financial statements arc presented in INK, which is also the Company''s functional currency. Transactions m foreign currencies a re recorded on initial recognition in the functional currency at the exchange rates prevailing on the date of the transaction.

Measurement at the balance sheet date

foreign currency monetary items of the Company, outstanding at the balance sheet date are restated at the year-end rates-Non monetary items which Sri carried at historical cost deiinmmacecl in q foreign ctirreji^ are reported using the exchange rate at the date of the transaction. Non-monetaiy items measured at fair value in a foreign currency are translated using the exchange rafes at the date when the fan-value is tie ret mined.

Treatment of exchange difference

Exchange differences that arise on settle men to f monetary items or on reporting at each balance sheet date of the Company''s mo n eta ry I te i ns at the dosi ng rate a re nceogn I serf as inco rue o r expenses J n th e pe ri od i n w|i I ch they a ri se. f| Income taxes

Tax expense recognised in statement of profit and loss comprises the sum of deferred tax and current tax not recognised in Other Comprehensive 3 ntjSfne (^rOCT) qr directly in equity.

Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Ac6Current income-tax relating, to ilems reeoEbised nuiside statement of profit and loss is recSjgnlsed outside statem e nt of pro fit and los s (eiiiier i n 0 G i or in eq u i ty).

Deferred income-tax is calculated using the liability method, Deferred tax Liabilities are generally recognised in full for ail [ a xahfe tem porn ry d i herenc cs_ Deferred tax assets are reengn Ised to the exten t ilia L li is p robah I e Lhal line u nderly in g t a x I ess, unused tax credits or deductible temporary difference will he utilised against future taxable income.This is assessed based on the Company''s forecast of future operating results. adjusted for significant nun-taxable income and expenses and specific Li m its on th e use o f any un used tax J oss or credit. Uimecogn ised deferred tax assets are re-assessed at each repo rting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

deferred tax assets and liabilities a re measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled,based cm tax rates [and tax laws] that have been enacted or substantively enacted at the reporting dal*. Deferred tax relating to items recognised outside statement of profit end loss it recognised outside state meat of profit and loss(eithenn OCforinequity).

k) Cash a net cash equivalents

Cash and cash equivalents comprise cash lit hand, demand deposits with banks/corporntions and short- term highly liquid investments [original maturity I es^ than 3 months) that are readily Convertible into known amount of cash and -dre subject to anln sigm fica nt its k a f d i a ngc in valu e.

l) Pc st- em pi oyinent, long term and sh ort term em ployee b ene fits

i) Short Te rm Emp! uyee Bend fits

All employee henefIts payable within twelve months of receiving employee services are classified as short-term em p I oyee b e nef its.'' f Itese ben e fits i ncl tide s a I ari es a ltd wages, bo nu sand ex-g ra tia. li) Defined contribution plans

Employee benefits In the form orcantrlbut log to Provident Fund managed hy Government authorities, Employees State Insurance Corporation and Labour Welfare Fund are considered as defined contribution plan hod tlte do n i ri b iiLici ns a re ch o rgod to ih e Ptibflt and! -oss Aci''ou nt of the year wh e n ih e co 11 tflbu i i o n $ to th e res pert i ve funds aredue.

iii) Defined benefit plans

Reu reman L ben ef i L lu t in < form o r Grate tty be nefit Is no ns I tiered as defi )i ed benefit obiIgatlnn arid Is prevl tied lor n 11 tfi e basi s of an actuarial va In a ti o n.

iv) Gratuity

The Company has an obi lotion towards gratuity, a defined benefit retirement plan cover!tig eligible employees. The plan provides for payment to vested employees at retirement, death while in employ men tor on termination of employments!fan amount based on the respective employee''s salary and the tenure of employment, Vesting occurs upon completion of given, years of service. The company makes contribution, to employees group gratuity fund established by Life Insurance Corporation of India, Actuarial gains anti losses arising from changes in actuarial assu i) i [i t i on s a re rccogn ised I ti tilt Prof i t a nd Loss accou tit i n the period In w!i i d 11 hey a r ise.

m] Opera ti n y expenses

Ope rating expo rises an: recognised in profit or loss upon utilisation Qfthi''fcsrvire nra>; jncum.-d.

n) Borrowing costs

Btrmwihg costs directly ;*ti riburtibl-F* to thu acquisitions,, construction or production of a qualifying asset are enpitsitised during the period of time that is necessary to complete and pi''epare the asset tor its intended use or safe, Other borrowing costs are expensed in the period in which they are incurred cmd reported in finance costs, oj Fair value measurement

TbeCompany tn ensures i inane iali ns i rumen ts, at fair eminent each balance sheet dale.

Fairvalno is the price that would be received to SeEl an asset or paid to transfer a liability 111 an drdCrfy transaction between market pa rtl ci pants at th c measure mcnl date. The fat j¹ va I ue in easu cement is based on iti e presurti ption til a t the tra nsactton to sel I the assetijirtransfer the liability tafcesjtlace either I. tn the principal market fb-rllitasset nr liability, or

ii. In the-absence cFa principal market, in the most advantageous market for the asset or liability The principal or the m ust a dvn r tageu-us m a rket must I ie a ccess ible by the Co mpa ny

Tiui fair value nT an.issei.dr a liability js rueasui’edusingtbe assumptions that market pari i ripa 11 Lk would use when pricing thn as 5 et 0 r i iabi I ity_r jissu mi ug that ni a rke t pa rtic i pants jet i n til eir cemi omie best in te rest.

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Mar 31, 2023

Summary nf Significant Accounting Policies and Oilier Explanatory Informal inn for the year ended 31st March 2023 Corporate Information

IndeBdrax^Cheoil^lj Limited [the Company! is a pub he I united company incorporated a nil dDtiifttUeijji In India.''Hu.- registered cancels at 302, Link H use. Li nki j i g Ro; m, d; 1111; 11 Hu i. {Wes l}. M n inba i - 40 f)l l !i 4. Tlh; Cum pa ny Is enga ged I n m;i m i f; 11 n i n rsg c F Pi m m prod m :ts.

Corporate Information

a) Central i nibrmill ion and Compliance with lnd AS:

f''tiL:s.L- finiiiiLi.il statement; have been prepared in aceordonce wuh tile Indian Recounting Standards (hereinafter roterted to as tin: ''lnd AS'') as notified by Ministry of Corporate Affairs pursuant to section 13d of the Companies Act,21 >13 read with Rule 3 ot the Companies (Indian Account ing^utidardsj Rules, £015 and Companies (Indian Accounting Standards) A mend merit Rules, 2d 16

The financial statements have been prepared on accrual itidgoJngcnnc&ii b. is i s. Thflaecnii riling policies a rt> applied consistently m all the periods piiisentedin the financial statomentf^liidudlngthi preparation of the operilrtglnd AS Balance Sheet as at 1st Aprlj/2t)16 being the ''date tit transition to indAfs''. All assets and liabilities have been classified as current oj non Current-as per the Company''s nm mal (fpt''i''atijjg cy c I e a i id! o the r crite ri a asot o m j ii the L)i v i si-on 11 of isched u I e 1111 o tb c La mpa n ies Act. 2 013. Basdd on the nahjiig% products and the tijm between Ln.quisitmn bt assets for processing and their realisation in cash and cash equivalents, the Company innn ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets anti liabilities F urther. In accordance with the noli Ficattoa issued by the M i nistry of Corporate Affairs under t h t Contpan les Act,. 2 013 (18 of 2013), dai ed 24i h. March 2021, t lie Company has adopted the amendments in Schedule ill to the said Act, while preparing Financial statements namely Balance Shoe I, Statement of Profit and Loss, Stateine nt of Change in Equity, Cash flow statement aiifiNotes to the Stand ni one financial statements with elf ectfnnn April 01,2021.

Authorisation of financial statements

Thefm,uiciaJ statements of the Loin pauy fur the yea r c tided 31st March, 2 (123 were approved for issue in accordance W:th the res olu firm ot the Hoard of Directors on J3tli May, 2023

b) Curreiftversus non current classification

The Company presents assets and liabilities in the balance sheet based on current/ non current ciassiFication. An asset is classified as current when it is;

i. Expuci^T I e> b£ realised 11 r i n tended to sol d or ctjnnsiimed in normal operat Ing ii H c-ld p ri mars ly fo r the p u r po se of trad i ng,

i i i. Expectctl lo be reo I ised w i th i n twelve rn o nths a her the reporti ng peri rxl, a i ¦

iv. Cash or cash equivalent unless restricted Imm being exchanged ui ;i:;ed to sellle n liability tor at least twelve months after the re porting period.

A11 otlier assets ;ine cljssifii;d ns non-currcnt-Aliability Isclassified ascu rrentwhen!

i, It is expected to be settled in normal operating cycle 11. 11 is held [i rl ma r| iy for th* |tu rpose t if 1 rad11 ig

liL 11 is d u e to be sett J ed w ilii in twelve mo nt hs after t b e repo liting pe riot!. or

lv, There Is noun to nditicniu] rig hi to defeir''t he settlement n r L ti h 1 i: ¦ b ii i Ly foriil least twelve months after the repo rtlrg-petiod,

Alio the r! ia h i 11 ties are cl as s= la ed as n nn ¦ c u rre nt.

The oporuting cytlo is ibe time between tlie acquisition flfassets for processing and thei! real i sal Ion in cash and cash equivalents, deferred i a x asset s an d 1 labilities a re class! Tied as non-ci > rre nt asse ts and [fab i Litl es

c] Property, Pin lit a ltd Equipment:

Property, pi nr Land equipment me stated at tlieir Past oi''aajiiisition. The Cast comprises purchase price, borrowing cost if Capitalisation criteria are me I arid directly attributable cost of bringing the asset iqjlsworldjig condition for the intended use

Subsequent costs are included in the asset''s currying amount or recognised us a separate asset, as agpuoprlale, only when it is probable that future econo m i l beneftfe associated with the item i-vitl il Pit to ti: c Company. All Other repair and maintenance fflfs Is are if ecognised in statement of p refit a n d loss as mturred.

Su hs L''i[ Li entimasu re men t (d e pit ciatiem a nd use fu I lives ]:

Depreciation tm property, plant and equipment is provided on straight line method oil assets located in factory premises. The company has followed written-down value method of providing depreciation with respect to assets located at Head Office. The JJepreclintUm is co imputed on the baslsbf useful II ves [ns set n i u h-e low) preset ibed i n Schet 11 de 11 the Act:

Lensehoidl improvements have been BOiorthted over the estiajated useful lift of the assets or the period of lease, whichever is lower. The residual values, useful! ives and method oFriepredatlcsG are revlewedat each financial year end anti adjusted prospectively Lfap pnop riate

He-recognition

An item of property, plarvl and equipment and any significant part initially recognised is denueng Hired Upon disposal or when tiu future economic benefits tre expected from rtsuseordispttsaEAnygainorlOsharlsinjionde-rpr''ognttinii nftheassei [calculated as the dIfifieremre between the net disposal proceeds and the carrying amount of the asset) is included In the income statement When clu> asset is derecognised,

Tnmsittentolnd AS

Oft Iren sitlon to I nd AS, the Co m pa ny has elected to wnll nue w| th the carryl ng va I ue of a IU ts property, p I a n t and cqu Ipmcnt rccogn Istd as .it 1st Aprtlj 2tiln measured as per the provisions of previous GAAP ,uid usd lull carrying value as 1 he deemed cost nl properly, planLimiJ

H _L] LLi p rij L±ti L.

d] Impairment of nno bnaiiidol assets

At each reporting date, the Company assesses whether the re is any indication based on interna i/esternai factors, that an asset may he imptil l ed. If n ny s uch i u d icati on esis ts, Lhe Co m on ny estimates the receive table a m ou n t of t h e as set. i f s uch ret overa hle o mo ll i it o f tire asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to Ms recoverable amount and the reduction is treated as an impair merit loss and is recognised in the statement Of profit and loss. AH assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. An impai tine lit loss Is rove rsed i f the asset¹ s or cos b-gc oc rat ing mi it''s recoverable amount exceeds its carrying amount

file ini pai rmient tosses an d re versa I s ? re recogn is e d in state n le nt o f profit an d I nss.

tg) I uvestineati in Suli s id jury

investments in subsidiary is Carried at cost less accumulated impairment losses, it any Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidirii''yt he difference between net disposal proceeds and the carry¹ ing amounts are recognized in the Statement of Profit and Loss.

I''j Financial instruments Fi nanci a I assets

I uiUiil recog nltfaa and m e.i s uremen t

Financial assets and financial liabilities are recognised when Lhe Company becomes a party to the contractual provisions oi the MmuieiaJ i nstru m eu t a nd ore m ea sti re d i ni tEa I ly at fa irvn lue a tij us ted for trim sacti o n costs.

Subsequent measurem e 111

l. E''inauciai instrumeiits at ;i mortised cost - the financial instrument is measured at the amortised cost if both the following conditions are met

The .asset is held within a business model whose objective Is to hi hid for collect lag coni factual cash rid Contractual lerms ¦ it the asset give rise on specified dates to cash flows that arc solely payments of principal and intcresi fiiFPI | pn the principal amount outstanding.

Alter initial TTifoeuiemnsi. such financial assets are Subsequently measured at amortised cost using the effective Interest rate (EIR) met hod. Ail t he debt instruments of Hie eSnlt pa ny a re me. i ? u red at am ort i sed cost.

Trade Receivables and Loans:

Trade receivables are Initially recognised us fa I rvalue. Subsequently, these assets are held at amortised cost, using the effect ivp interest rate [EIRJ method net of any e^peeled credit losses-. The ELK Is the rate that discounts estimated future cash income through llte

exph cl f d 11 fit fif Hn.t n [¦ iah nsl rn munl.

M utna IFu itds, L q u Lty i uvestmcnt, b o n d s and tvrtier financia I instru menu:

Mutual Funds. Equity investment, bunds and other financial i instruments in the scope of Jnd As 10? tire m&as tired at fair value through m Ii t c i ijti | infh etisive i ii tom t [ FVTOC [ J,

Financia 11 labilities

Initial recognition aittfmeas urement

All financial liabilities are n¦ i_-1_-h:¦ |j;]|LsH_-ht initially at fair VUluo and I t;l I iX action CiUJt tint ix ;Lltr iiiutilblc 1o Lbi: Li''. qLLi.xlliuli III tins I in.ira-Li;(! Ii a b i titles j.i .a Iso j-d; :¦ sted. Tliex e 11 ab ii itie.s are da.; sstied a a mu itised cn sf.

Subset] uent metisureni e at

Subsequent tn initial recognition, these liabilities are measured atammiised cost us mgtheei fee five interest method. These liabilities include borrowings.

De-reuugniUotioffinanctnl liabilities

A financial liability is de-recognised when the obligation under ilie liability is discharged or cancelled or expires. When an existing Tijunci.jl liability is replaced by another from the same tender on substantially different terms, nr the terra; of an existing liability are substantially modified, sucha.n exchange or modification treated as the de- recognition of the original liability add |be recognition of a new I sabi Iny. The difference ip. the respec Li ve carrying time un is is recognised m the statement of prtjfi land loss.

g) Impairment of financial assets

In accordance with Ind A3 ] (lb. the Company applies expected credit loss fMCL | model for measurement and recognition ci; impairment loss for fir an rial assets,

RCI,is the differr-rce between .ill contractual cosh flows Hi mart-due to the (Lnrnjftniiy in accordance wild the contract a ndaU the cash flows that th e Com pa ny expect; to receive. When estimating the cash hows, the Company Is required toco us i clef

L All con tractua! terms of the fl n a ncial assets (inclndt ng prepayme nt and rate nsion] over the exp e rtecl J ife of the assets.

Il Cashflows from the xn I l-of a dint era l held or other credit enhancements th^tfi''pe Integral to thcvinitrarTiialfeims.

Trjde receivables

iJifl Company applies approach permitted by! in I AS 109. financial Instruments* which requires expected Lifetime losses m be recognised from j is itiii I recognitlon of recoivelties.

Other financial assets

For recognition of Impairment loss On other financial assejts add risk exposure. Hie Company determines whrihei there lias been .1 significant Increase Inihe credit ^ uicia itnc juI recognition and iicredir risk has increased stoifu aptly. impairment lossSsi provided

h} Inventories

Row Material; Loweiofcostortiet realisable value. Cost Is determined on HrstEn First out (.''FIFO''J basls.

Work in progress, are valued at lower of cost and nej realisable value. Cost of work in progress and manufactured finished goods comprises (i ire rt mateml, cost nfconveni on and othercD-its incurred in bringing these inventories to rhddpges enllocatinn Lind condition

Finished goods: Lower 1 if cost or net realisable V^lue. Cost Iff determined on FIFO basis. Includes direct materia] and labour expenses and appropriate proportion of manufacturing overlie ads based outlie normal capacity for man u far lured goods.

N e t rea I i sable va I lie is the estimated sell mg price in the ordinary course of business less estimated costs of completion and estimated costs ofnecessary to mLike the sale.

il Fli re ign Currency Tea ns la lion

Initi;iI recognition

The Company''s financial statements are presented m I Nil. which Is alsffll the Company''s functional currency. Transactions In foreign currencies are recanted on initial recognition in the Functional currency at the exchange rates prevailing on Hie date of the transaction.

Mon xu re in on l at the balance sheet dale

Foreign cu rrtfftey monetary Items of the Com pa n^-nutstan ding at thelialauce sheet date are restated aithcycar-eiid rates, fen-monetary items which are carried at historical cost denominated in a Foreign currency are re polled using the exchange rate at the date of the transaction. Nun-monefcarjf items measured at fair value in a foreign currency are trail stated using the exchange rates: at the date when the fa i r va iue is d etc rmi ned

Treatmentof exchange difference

Exchange differences thru arise on sett I c men 1 of monetary items or cm j^e porting at each balance sheet date of tSie Company''s monetary

items at the closing rate arts reuogtilibd as intomsdutexpenses inihefferlud in which i hey arise.

j) I ncom etaxes

lax expense recognised In statement of profit and loss comprises the sum of deferred tax and current lax not recognised in Other Comprehensive Ifliniite (‘O.Cn ojfdlrECtly in eq id iy.

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian income tax Act. Current income-tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit and loss [either in OCI or m equity).

Deterred Income-tax Is calculated using the liability method; Deferred tax liabilities are generally recognised In full for all taxable temporary cl i Iterances. Deferred tax assets are recognised to the extent that it is p mb able that the under lying tax loss, unused tax credits 01 deductible; temporary difference will be utilised against future taxable income, This is assessed based on the Company''s forecast of future operating results, adjusted for significant n on-taxable income and expenses and specific limits on the use of any unused tax loss or credit, Unrecognised deferred tax assets are re-assesMCd at each reporting tiate ontl are recognised to the extent 1 hot It has become probable that In 111 re i iixable p refits will alfcnvthe delie rred tax asset i o be recovered.

Deferred tax assets and liabilities tire measured at the tax. rate-; that art expected to apply in the year when the asset is realised cn the liability i s settled, based on tax rates Jo ltd tax laws) that have been enacted nt substantively enacted at the reporting date. Deferred tax relating ft) j terns recognised Outside statement of profit and loss Is recognised mil side Statement of profit and loss [either in OCI nr in equity).

k) Cash and cash equivalents

Cash imd cash equivalents comprise cash in h$nd, demand deposits with banks/corporaLions unr! short- term highly liquid investments [ t> n gi tin I ma l tl ri ly less 1 ha n 3 mon Lhs] ¹ h a L a re read i Iv t< i nve rl i 11 e m i o k rsu Wn amount of h :;tsh ;i mi u re s u bjtett 11 j a m i ttsEfp liftitent ri sk

l) Post- e m p loy mei 11, !o Fig te rn> a n d s h o rt term eiu pi oy ee b e n efits

i) Short Term Employe* Benefits

All employee benefits payable within twelve mouths nF receiving employer services are classified as she re-term employee benefits. These benefits I u cl ud gs a nd wages, Isortiis a nd c:o gratia.

if) Defined imitrihm ion plana

Employee benefits in th-e torm of contribution to Provident Fund managed hy Government authorities, Emji''nyees State Insurance Corpm at mu and LaboqrVjflelfahe Fund are considered as defined contribution plan and the contributions#!,'' charged totFic Profit jdh''L Loss Account oil he year when; he cunt rib ut ions to ihtresjtectiveJ''undsaiedue

iiij Defined benefit pinns

FTetirernenl benefit in the form of Gratuity benefit IS corSldCftd.-as tie filled benefit obligation and is provided for on the basis of an actUdJ-Lat Valuation,

iv) Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for payment to vested era ployees at retirement, death while In employment or oil termination of employment of an amount based oh the respective employee''s salary and l he termite of employment. Vesting occurs upon torn pie turn of given year* of service. The companymakes contribution to employees group gratuity fend established by Trie Insurance Corporation ol''lndia. Actuarial gains and losses arising from changes in actual ial assumptions arc recognised in the profit and Loss account in t he peria d i n whi ch they ari se.

m) Opera ting expenses

Operating expenses are vocogn iscri in profit or less upon utilisati tut of the service oras Incurred

n) Durr owing costs

nmniwingcusLs tin c( tly attributable to the acquisitions, const} ucttonoi production ol a qualifying asset arjf.cajntalisud during the |Htrli>d of time that is necessary to complete .iiKlprrparetlic asset tor its Intended useoi sale, Other borrowing costs are expensed In the period in which they are incurred and reported in Jinance costs.

o) Fair valute measurement

The Coin pany nteas urns flu ? n cia 11 n str uments, a t fa s r va l ue a teach balance s lieet d a tc.

fair value is the price that would be received to sell un asset or paid to trunsler a IIability in an orderly Transaction between market participants at I he measurement duke. The fair value measure men l is bused on Hie presumption that tile transaction to sell the asset ur irmi sl''c r t he! I Li h 111 ty ta h i''s [j I a ct- pit he ii. In the principal market for Ll :c asset ur liability, Dr

it. In the absence

The principal orlhe must advantageous rrtarlfcel IHe accessible by the Company.

The fair value of an asset ora liability is measured using the assumptions that market partici pants would use when pricing the asset or liability, ass um in g that market partici pants act in their economic best interest,

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Mar 31, 2018

1. Significant accounting policies

a) General information and Compliance with Ind AS:

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to section133 of the Companies Act,2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

These financial statements for the year ended 31^st March,2018 are the first financial statements of the Company has prepared under Ind AS. For all periods upto and including the year ended 31^st March,2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (herein after referred to as ‘Previous GAAP’) used for its statutory reporting requirement in India immediately before adopting Ind AS. The financial statements for the year ended 31^st March,2017 and the opening Balance Sheet as at 1^stApril, 2016 have been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from Previous GAAP to Ind AS on the Company’s Balance Sheet, Statement of Profit and Loss and Statement of Cash Flows are provided in financial statement. The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at 1^st April, 2016 being the ‘date of transition to Ind AS’. All assets and liabilities have been classified as current or non current as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

The financial statements of the Company for the year ended 31^st March, 2018 were approved for issue in accordance with the resolution of the Board of Directors on 30 ^th May, 2018.

b) Standards issued but not yet effective:

i) Ind AS 21 - The effects of changes in Foreign Exchange Rates

ii) Ind AS 40 - Investment Property

iii) Ind AS 12 - Income Taxes

iv) Ind AS 28 - Investments in Associates and Joint Ventures and

v) Ind AS 112 - Disclosure of interests in Other Entities

c) Recent Accounting Developments :

IND AS 115: Revenue from Contracts with Customers

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying Ind AS 115, ‘Revenue from Contracts with Customers’. The Standard is applicable to the Company with effect from 1st April, 2018.

Revenue from Contracts with Customers Ind AS 115 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard Ind AS 18 Revenue, Ind AS 11 Construction Contracts when it becomes effective. The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligation in contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer. The Company has completed its evaluation of the possible impact of Ind AS 115 and will adopt the standard from 1st April, 2018.

d) Current versus non current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as current when it is :

i. Expected to be realised or intended to sold or consumed in normal operating cycle,

ii. Held primarily for the purpose of trading,

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

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

i. It is expected to be settled in normal operating cycle

ii. It is held primarily for the purpose of trading

iii. It is due to be settled within twelve months after the reporting period, or

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

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

e) Property, Plant and Equipment:

Property, plant and equipment are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

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. All other repair and maintenance costs are recognised in statement of profit and loss as incurred.

Subsequent measurement (depreciation and useful lives) :

Depreciation on property, plant and equipment is provided on straight line method on assets located in Factory premises. The company has followed written-down value method of providing depreciation with respect to assets located at Head Office. The Deprectiation is computed on the basis of useful lives (as set out below) prescribed in Schedule II the Act:

The amortisation period and the amortisation method for finite-life intangible assets is reviewed at each financial year end and adjusted prospectively, if appropriate.

Leasehold improvements have been amortised over the estimated useful life of the assets or the period of lease, whichever is lower. The residual values, useful lives and method of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all its property, plant and equipment recognised as at 1st April, 2016 measured as per the provisions of previous GAAP and use that carrying value as the deemed cost of property, plant and equipment.

f) Leased Assets :

Operating Leases :

Assets acquired on leases where a significant portion of risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rental are charged to statement of profit and loss on straight line basis.

g) Impairment of non-financial assets

At each reporting date, the Company assesses whether there is any indication based on internal/external factors, that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. All assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. An impairment loss is reversed if the asset’s or cash-generating unit’s recoverable amount exceeds its carrying amount.

At each reporting date, the Company assesses whether there is any indication based on internal/external factors, that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. All assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. An impairment loss is reversed if the asset’s or cash-generating unit’s recoverable amount exceeds its carrying amount.

The impairrment losses and reversals are recognised in statement of profit and loss.

h) Financial instruments

Financial assets

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs.

Subsequent measurement

i) Financial instruments at amortised cost - the financial instrument is measured at the amortised cost if both the following conditions are met:

The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. All the debt instruments of the Group are measured at amortised cost.

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 the expected life of financial instrument.

Mutual Funds, Equity investment, bonds and other financial instruments :

Mutual Funds, Equity investment, bonds and other financial instruments in the scope of Ind As 109 are measured at fair value through profit and loss account( FVTPL).

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. These liabilities are classified as amortised cost.

Subsequent measurement

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. These liabilities include borrowings.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de- recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

i) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company is required to consider.

i. All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

ii. Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Trade receivables

The Company applies approach permitted by Ind AS 109, financial instruments, which requires expected lifetime losses to be recognised from initial recognition of receivables.

Other financial assets

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.

j) Inventories

Raw Material: Lower of cost or net realisable value. Cost is determined on first in first out (‘FIFO’) basis.

Work in progress, are valued at lower of cost and net realisable value. Cost of work in progress and manufactured finished goods comprises direct material, cost of conversion and other costs incurred in bringing these inventories to their present location and condition.

Finished goods: Lower of cost or net realisable value. Cost is determined on FIFO basis, includes direct material and labour expenses and appropriate proportion of manufacturing overheads based on the normal capacity for manufactured goods. Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs of necessary to make the sale.

k) Foreign Currency Translation

Initial recognition

The Company’s financial statements are presented in INR, which is also the Company’s functional currency. Transactions in foreign currencies are recorded on initial recognition in the functional currency at the exchange rates prevailing on the date of the transaction.

Measurement at the balance sheet date

Foreign currency monetary items of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.

Treatment of exchange difference

Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company’s monetary items at the closing rate are recognised as income or expenses in the period in which they arise.

l) Income taxes :

Tax expense recognised in statement of profit and loss comprises the sum of deferred tax and current tax not recognised in Other Comprehensive Income (‘OCI’) or directly in equity.

Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act. Current income-tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit and loss (either in OCI or in equity).

Deferred income-tax is calculated using the liability method. Deferred tax liabilities are generally recognised in full for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that the underlying tax loss, unused tax credits or deductible temporary difference will be utilised against future taxable income. This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit. Deferred tax assets or liability arising during tax holiday period is not recognised to the extent it reverses out within the tax holiday period. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit and loss (either in OCI or in equity).

m) Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, demand deposits with banks/corporations and short- term highly liquid investments (original maturity less than 3 months) that are readily convertible into known amount of cash and are subject to an insignificant risk of change in value.

n) Post-employment, long term and short term employee benefits

i) Short Term Employee Benefits:

All employee benefits payable within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia.

ii) Defined contribution plans

Employee benefits in the form of contribution to Provident Fund managed by Government authorities, Employees State Insurance Corporation and Labour Welfare Fund are considered as defined contribution plan and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

iii) Defined benefit plans

Retirement benefit in the form of Gratuity benefit is considered as defined benefit obligation and is provided for on the basis of an actuarial valuation.

iv) Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for payment to vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee''s salary and the tenure of employment. Vesting occurs upon completion of given years of service. The company makes contribution to employees group gratuity fund established by Life Insurance Corporation of India. Actuarial gains and losses arising from changes in actuarial assumptions are recognised in the Profit and Loss account in the period in which they arise.

o) Operating expenses

Operating expenses are recognised in profit or loss upon utilisation of the service or as incurred.

p) Borrowing costs

Borrowing costs directly attributable to the acquisitions, construction or production of a qualifying asset are capitalised during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred and reported in finance costs.

q) Fair value measurement

The Company measures financial instruments, at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

i. ln the principal market for the asset or liability, or

ii. ln the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

r) Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

i. Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

ii. Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized. However, when inflow of economic benefit is probable, related asset is disclosed.

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

t) Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the related disclosures.

Significant management judgements and estimates

The following are significant management judgements and estimates in applying the accounting policies of the Company that have the most significant effect on the financial statements.

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilised.

Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

Recoverability of advances/receivables - At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.

Defined benefit obligation (DBO) - Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date

Useful lives of depreciable/amortizable assets - Management reviews its estimate of the useful lives of depreciable/amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence.

u) Revenue recognition

Sales of goods

Revenue from sale of goods is recognised on transfer of risk and rewards of ownership of goods to the buyer and when no significant uncertainty exists regarding the amount of consideration that will be derived. Domestic sales are accounted on dispatch of products to customers and are disclosed net of Value Added Tax / Goods and Service tax and returns as applicable.

Interest Income

Interest income is recognised on an accrual basis using the effective interest method.

Dividend

Dividends are recognised at the time the right to receive the payment is established.

v) Segment Information

The managing committee is considered to be the ‘Chief Operating Decision Maker’ (CODM) as defined in IND AS 108. The Operating Segment is the level at which discrete financial information is available. The CODM allocates resources and assess performance at this level. The Company has identified "Manufacturing of Chemicals" is the only operating segments:

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Mar 31, 2016

The accounts have been prepared under the historical cost conservation on an actual basis in accordance with applicable accounting standard-notified under the relevant provisions of the Companies Act, 2013.

b) FIXED ASSETS

Fixed assets ore stated at coat along with cost directly attributable to bring the assets to their working condition.

c) DEPRECIATION

Deprivation is provided on all assets at Ptthampur on straight line method and at head office on written-down-value method with reference to the useful life of the respective assets specified In and In the manner prescribed In Schedule II of the Companies Act, 2013.

d) INVESTMENTS

Current investment are stated at lower of cost or market value. Non-current Investments are stated at cost except where diminution in value, if any, it other than temporary in nature.

e) INVENTORIES

I) Raw material-are valued at cost or at net realizable value whichever is lower.

II) Work In progress in valued at estimated cost.

III) Finished goods are valued attest or net realizable value whichever is lower.

iv) Stores and spares, packing material and fuels are valued at Cost

f) FOREIGN CURRENCTTRAH8ACT1CN8

Al foreign currency transactions are accounted at the rate prevailing at total time of transaction.,

D) SALES

Sales are Inclusive of excise duty but net of rate difference, sales return and Central Sales Tax/Value Added Tax.

h) EMPLOYEES BENEFITS

Defined Contribution Benefits

Company''s contributions pa id/payable during the year to Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are recognized in Profit & Lobs Account,

Defined Benefit Plan

I. The payments to Life Insurance Corporation of India for all the employees covered under ''Employees Group Gratuity cum Life Assurance Scheme'' are based on amount of premium determined by them Premiums so paid for the year are recognized in the profit and loss account after adjusting for effect of actuarial valuation for the year,

ii. Annual Leave Encashment Es accounted on accrual basis.

I) CONTINGENT LIABILITY

Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

J) DEFERRED TAXAT(OK

Deferred Tax resulting from timing differences between book profit and tax profit is accounted for under the liability method, at the current rate of tax.

k) SEGMENT REPORTING

Manufacturing of chemicals is considered a single reportable segment within the meaning of AS-17.

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Mar 31, 2015

A) METHOD OF ACCOUNTING

The accounts have been prepared under the historical cost convention on an accrual basis in accordance with applicable accounting standards notified under the relevant provisions of the Companies Act, 2013.

b) FIXED ASSETS

Fixed assets are stated at cost alongwith cost directly attributable to bring the assets to their working condition.

c) DEPRECIATION

Depreciation is provided on all assets at Pithampur (straight line method ) and at head office (written- down-value method) with reference to the useful life of the respective assets specified in and in the manner prescribed in Schedule II of the Companies Act, 2013.

d) INVESTMENTS

Current investments are stated at lower of cost or market value. Non-current Investments are stated at cost except where dimunition in value, if any, is other than temporary in nature.

e) INVENTORIES

i) Stores and spares, packing material and fuel are valued at Cost.

ii) Raw materials are valued at cost or in case where the resultant finished goods are expected to be sold at less than cost, at net realisable value.

iii) Work in progress is valued at estimated cost.

iv) Finished goods are valued at cost or net realisable value whichever is lower.

f) FOREIGN CURRENCY TRANSACTIONS.

All foreign currency transactions are accounted at the rate prevailing at the time of transaction.

g) SALES

Sales is inclusive of excise duty but net of rate difference payable, sales return and Central Sales Tax/ value added tax.

h) EMPLOYEES BENEFITS Defined

Contribution Benefits

Company's contributions paid/payable during the year to Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are recognized in Profit & Loss Account.

Defined Benefit Plan

i. The payments to Life Insurance Corporation of India for all the employees covered under 'Employees Group Gratuity cum Life Assurance Scheme' are based on amount of premium determined by them. Premiums so paid/payable for the year adjusted for effect of acturial valuation at year end are recognized in the Profit & Loss Account.

ii. Annual Leave Encashment is accounted on accrual basis.

i) CONTINGENT LIABILITY

Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

j) DEFERRED TAXATION

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that timing differences are expected to crystallize.

k) SEGMENT REPORTING

Manufacturing and selling of chemicals is considered a single reportable segment within the meaning of AS- 17.

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Mar 31, 2014

A) METHOD OF ACCOUNTING

The accounts have been prepared under the historical cost convention on an accrual basis in accordance with applicable accounting standards referred to in section 211(3C) of the Companies Act, 1956.

b) FIXED ASSETS

Fixed assets are stated at cost alongwith cost directly attributable to bring the assets to their working condition.

c) DEPRECIATION

Depreciation on all assets at Pithampur is provided on straight line method and assets at head office on written-down-value method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.

d) INVESTMENTS

Current investments are stated at lower of cost or fair market value. Long Term Investments are stated at cost except where dimunition in value, if any, is other than temporary in nature, in which case they are stated net of provision for such dimunition in value

e) INVENTORIES

i) Stores and spares, packing material and fuel are valued at Cost.

ii) Raw materials are valued at cost or in case where the resultant finished goods are expected to be sold at less than cost, at net realisable value.

iii) Work in progress is valued at estimated cost.

iv) Finished goods are valued at cost or net realisable value whichever is lower.

f) FOREIGN CURRENCY TRANSACTIONS.

All foreign currency transactions are accounted at a predetermined exchange rate which is approximately equal to the rate prevailing at the time of transaction and necessary adjustements are made when transactions are finally settled.

Outstanding foreign currency assets and liabilities are translated at the exchange rate prevailing as on Balance Sheet date and all exchange gains/losses arising therefrom, are adjusted in Profit & Loss Account.

g) SALES

Sales is inclusive of excise duty but net of rate difference payable, sales return and Central Sales Tax/ value added tax.

h) EMPLOYEES BENEFITS Defined Contribution Benefits

Company''s contributions paid/payable during the year to Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are recognized in Profit & Loss Account.

Defined Benefit Plan

i. The payments to Life Insurance Corporation of India for all the employees covered under ''Employees Group Gratuity cum Life Assurance Scheme'' are based on amount of premium determined by them. Premiums so paid/payable for the year adjusted for effect of acturial valuation at year end are recognized in the Profit & Loss Account.

ii. Annual Leave Encashment is accounted on accrual basis.

i) CONTINGENT LIABILITY

Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

j) DEFERRED TAXATION

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that timing differences are expected to crystallize.

k) SEGMENT REPORTING

Manufacturing and selling of chemicals is considered a single reportable segment within the meaning of AS-17.

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Mar 31, 2013

A) METHOD OF ACCOUNTING

The accounts have been prepared under the historical cost convention on an accrual basis in accordance with applicable accounting standards referred to in section 211(3C) of the Companies Act, 1956.

b) FIXED ASSETS

Fixed assets are stated at cost alongwith cost directly attributable to bring the assets to their working condition.

c) DEPRECIATION

Depreciation on all assets at Pithampur is provided on straight line method and assets at head office on written-down-value method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.

d) INVESTMENTS

Current investments are stated at lower of cost or fair market value. Long Term Investments are stated at cost except where dimunition in value, if any, is other than temporary in nature, in which case they are stated net of provision for such dimunition in value

e) INVENTORIES

i) Stores and spares, packing material and fuel are valued at Cost.

ii) Raw materials are valued at cost or in case where the resultant finished goods are expected to be

sold at less than cost, at net realisable value. iii) Work in progress is valued at estimated cost. iv) Finished goods are valued at cost or net realisable value whichever is lower.

f) FOREIGN CURRENCY TRANSACTIONS

All foreign currency transactions are accounted at a predetermined exchange rate which is approximately equal to the rate prevailing at the time of transaction and necessary adjustements are made when transactions are finally settled. Outstanding foreign currency assets and liabilities are translated at the exchange rate prevailing as on Balance Sheet date and all exchange gains/losses arising therefrom, are adjusted in Profit & Loss Account.

g) SALES

Sales is inclusive of excise duty but net of rate difference payable, sales return and Central Sales Tax/ value added tax.

h) EMPLOYEES BENEFITS

Defined Contribution Benefits Company''s contributions paid/payable during the year to Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are recognized in Profit & Loss Account.

Defined Benefit Plan

i. The payments to Life Insurance Corporation of India for all the employees covered under ''Employees Group Gratuity cum Life Assurance Scheme'' are based on amount of premium determined by them. Premiums so paid/payable for the year adjusted for effect of acturial valuation at year end are recognized in the Profit & Loss Account.

ii. Annual Leave Encashment is accounted on accrual basis.

i) CONTINGENT LIABILITY

Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

j) DEFERRED TAXATION

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that timing differences are expected to crystallize.

k) SEGMENT REPORTING

Manufacturing and selling of chemicals is considered a single reportable segment within the meaning of AS-17.

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Mar 31, 2012

A) METHOD OF ACCOUNTING

The accounts have been prepared under the historical cost convention on an accrual basis in accordance with applicable accounting standards referred to in section 211(3C) of the Companies Act, 1956.

b) FIXED ASSETS

Fixed assets are stated at cost alongwith cost directly attributable to bring the assets to their working condition.

c) DEPRECIATION

Depreciation on all assets at Pithampur is provided on straight line method and assets at head office on written-down- value method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.

d) INVESTMENTS

Current investments are stated at lower of cost or fair market value. Long Term Investments are stated at cost except where dimunition in value, if any, is other than temporary in nature, in which case they are stated net of provision for such dimunition in value.

e) INVENTORIES

i) Stores and spares, packing material and fuel are valued at Cost.

ii) Raw materials are valued at cost or in case where the resultant finished goods are expected to be sold at less than cost, at net realisable value.

iii) Work in progress is valued at estimated cost.

iv) Finished goods are valued at cost or net realisable value whichever is lower.

f) FOREIGN CURRENCY TRANSACTIONS

All foreign currency transactions are accounted at a predetermined exchange rate which is approximately equal to the rate prevailing at the time of transaction and necessary adjustments are made when transactions are finally settled.

Outstanding foreign currency assets and liabilities are translated at the exchange rate prevailing as on Balance Sheet date and all exchange gains/losses arising therefrom, are adjusted in Statement of Profit & Loss.

g) SALES

Sales is inclusive of excise duty but net of rate difference payable, sales return and Central Sales Tax/value added tax.

h) EMPLOYEES BENEFITS

Defined Contribution Benefits

Company's contributions paid/payable during the year to Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are recognized in Statement of Profit & Loss.

Defined Benefit Plan

i. The payments to Life Insurance Corporation of India for all the employees covered under 'Employees Group Gratuity cum Life Assurance Scheme' are based on amount of premium determined by them. Premiums so paid/payable for the year adjusted for effect of acturial valuation at year end are recognized in the Statement of Profit & Loss.

ii. Annual Leave Encashment is accounted on accrual basis.

i) CONTINGENT LIABILITY

Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

j) DEFERRED TAXATION

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that timing differences are expected to crystallize.

k) SEGMENT REPORTING

Manufacturing and selling of chemicals is considered a single reportable segment within the meaning of AS-17.

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Mar 31, 2011

Not Available

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Mar 31, 2010

A) METHOD OF ACCOUNTING

The accounts have been prepared under the historical cost convention on an accrual basis in accordance with applicable accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

b) FIXEDASSETS

Fixed assets are stated at cost alongwith cost directly attributable to bring the assets to their working condition.

c) DEPRECIATION

Depreciation on all assets at Pithampur is provided on straight line method and assets at head office on written-down-value method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.

d) INVESTMENTS

Current investments are stated at lower of cost or fair market value. Long Term Investments are stated at cost except where dimunition in value, if any, is other than temporary in nature, in which case they are stated net of provision for such dimunition in value

e) INVENTORIES

i) Stores and spares, packing material and fuel are valued at Cost.

ii) Raw materials are valued at cost or in case where the resultant finished goods are expected to be sold at less than cost, at net realisable value.

iii) Semifinished Goods are valued at estimated cost.

iv) Finished goods are valued at cost or net realisable value whichever is lower.

f) FOREIGN CURRENCY TRANSACTIONS.

All foreign currency transactions are accounted at a predetermined exchange rate which is approximately equal to the rate prevailing at the time of transaction and necessary adjustements are made when transactions are finally settled.

Outstanding foreign currency assets and liabilities are translated at the exchange rate prevailing as on Balance Sheet date and all exchange gains/losses arising therefrom, are adjusted in Profit 6 Loss Account.

g) SALES

Sales is inclusive of excise duty but net of rate difference payable, sales return and Central Sales Tax/value added tax.

h) EMPLOYEES BENEFITS

Defined Contribution Benefits

Companys contributions paid/payable during the year to Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are recognized in Profit & Loss Account.

Defined Benefit Plan

i. The payments to Life Insurance Corporation of India for all the employees covered under Employees Group Gratuity cum Life Assurance Scheme are based on amount of premium determined by them. Premiums so paid/payable for the year are recognized in the Profit & Loss Account.

ii. Annual Leave Encashment is accounted on accrual basis.

i) CONTINGENT LIABILITY

Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

j) DEFERRED TAXATION

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that timing differences are expected to crystallize.

k) SEGMENT REPORTING

Manufacturing and selling of chemicals is considered a single reportable segment within the meaningof AS-17.