Accounting Policies of Kanchi Karpooram Ltd. Company

Mar 31, 2025

Note 2: Summary of Significant Accounting Policies

2.1 Basis of Preparation

The financial statements comply in all material aspects with Indian Accounting Standards ("Ind AS") notified
under Section 133 of the Companies Act, 2013 ("the Act") [Companies (Indian Accounting Standards) Rules,
2015] and other relevant provisions of the Act. The financial statements have been prepared on the historical
cost convention under accrual basis of accounting except for certain financial assets and liabilities (as per the
accounting policy below), which have been measured at fair value.

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,
2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the
new pronouncements and based on its evaluation has determined that it does not have any significant impact
in its financial statements.

2.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that
affect the amounts reported in the financial statements and notes thereto. The management believes that
these estimates and assumptions are reasonable and prudent. However, actual results could differ from these
estimates. Any revision to accounting estimates is recognized prospectively in the current and future period.

2.3 Significant Estimates and Judgments

The areas involving critical estimates or judgments are:

• Estimation of fair value of financial assets and liabilities (Refer Note 34 to the Accounts)

• Estimation of useful life of Property, Plant and Equipment (Refer Note 2.7 below)

• Valuation of defined benefit obligations - (Refer Note 2.11 to the accounts)

• Estimation of income tax provision for the year.

The management has exercised its judgement in assessing whether a present obligation arising from the past
events would result in outflow of resources embodying economic benefits.

2.4 Revenue Recognition
Sale of Products

Revenue is recognized upon transfer of control of promised products or services to customers in an amount
that reflects the consideration we expect to receive in exchange for those products or services. The Company
considers indicators for assessing the transfer of control, including:

(a) The entity has a present right to payment for the assets.

(b) The customer has legal title to the asset.

(c) The entity has transferred physical possession of the asset.

(d) The customer has the significant risks and rewards of ownership of the asset

(e) The customer has accepted the asset.

The Company earns revenue primarily from sale of Camphor and allied products. Payment for the sale is made
as per the credit terms in the agreements with the customers. The credit period is generally short term, thus
there is no significant financing component. The Company''s contracts with customers do not provide for any
right to returns, refunds or similar obligations.

Dividend, interest and other income

• Dividend income from investments is recognized when the right to receive payment has been established.

• Interest Income is recognized on a time proportion basis taking into account the amount outstanding and
the interest rate applicable in line with the effective interest rate method.

• Rental income is accounted on starting line basis over the term of the relevant lease.

• Insurance claims are accounted on the basis of claims admitted or expected to admitted and to the extent
that there is no uncertainty in receiving the claims.

• Export benefits are accounted in the year of exports based on eligibility and when there is no uncertainty in
receiving the same.

2.5 Property, Plant and Equipment

Freehold Land and all other items of Property, Plant and Equipment are stated at deemed cost on transition
IndAS or cost of acquisition, as applicable less accumulated depreciation / amortization and impairment, if any.
Cost includes purchase price, taxes and duties, labour cost and directly attributable overheads incurred upto
the date the asset is ready for its intended use. However, cost excludes Excise Duty, Value Added Tax and Service
Tax / GST, to the extent credit of the duty or tax is availed of.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and
the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate
asset is derecognized when replaced. All other repairs and maintenance are charged to Profit or Loss during
the reporting period in which they are incurred. Gains and losses on disposals are determined by comparing
proceeds with carrying amount and recognized in Statement of Profit and Loss.

2.6 Investment Property

Investment properties are measured at cost of acquisition less accumulated depreciation/ amortization
and impairment, if any. Cost includes purchase price, taxes and duties, labour cost and directly attributable
overheads incurred upto the date the asset is ready for its intended use. However, cost excludes Excise Duty,
Value Added Tax and Service Tax / GST, to the extent credit of the duty or tax is availed of.

Investment properties are properties held to earn rentals and/or capital appreciation. Depreciation on
investment property is calculated based on useful life estimated valuation report issued by a chartered engineer.

2.7 Depreciation and Amortization

Depreciation on tangible fixed assets is provided over the estimated useful life of the asset or part of the asset,
on straight line method, in accordance with Part A of Schedule II to the Companies Act, 2013. Residual value is
considered upto five per cent of the cost of assets.

The assets residual values, estimated useful lives and depreciation method are reviewed at the end of each
reporting period.

Gains and losses on disposal are determined by comparing proceeds with carrying amount and are credited/
debited to the Statement of Profit and loss.

Residual values and useful lives are reviewed and adjusted, if appropriate, for each reporting period.

On assets added / disposed during the year, depreciation is charged on pro-rata basis from the date of addition
/ till the date of disposal.

2.8 Intangible Assets

Intangible assets acquired are recorded at their acquisition cost and are amortized on straight line basis over its
useful life of 3 years.

2.9 Inventories

a) Raw materials, stores and spares are valued at cost under First-In-First-Out (FIFO) method or net realizable
value whichever is lower.

b) Finished goods are valued at cost (including applicable overheads) or net realizable value, whichever is lower

c) Work-in-progress is valued at lower of cost and net-realizable value. Cost is calculated as material cost plus
appropriate portion of overheads.

2.10 Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the amount by which the asset''s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs
of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash inflows and are largely independent of the cash inflows from
other assets or groups of assets (cash-generating units).

2.11 Employee Benefits

(i) Short term obligations:

Liabilities for wages, salaries and bonuses, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the related
service are recognized in respect of employees'' services upto the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented
as current liabilities in the balance sheet.

(ii) Post-employment obligations:

a) Provident Fund and pension:

Provident Fund and pension benefits are defined contribution plans under which the Company pays
fixed contribution into funds established under the Employees'' Provident Fund and Miscellaneous
Provisions Act, 1952. The Company has no legal or constructive obligations to pay further contributions
after the payment of the fixed contribution. Contributions due to the provident fund are recognized
as an expense on monthly basis.

b) Gratuity:

The Company has a defined benefit gratuity plan funded with Life Insurance Corporation of India,
covering eligible employees. The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or in termination of employment. The company obligation
towards gratuity is valued at the date of each balance sheet with the help of an actuary using
projected unit credit method and considered accordingly in the books of accounts.

(iii) Other long-term employee benefit obligations:
a) Leave encashment:

The company allows accumulation of leave and encashment thereof based on its policy for eligible
employees. The company''s obligation towards leaves that could be carried over by employees beyond
12 months from the date of the balance sheet is valued on with the help of an actuary using the
projected unit credit method and considered accordingly in the books of accounts.

2.12 Taxes on Income

Income tax expense represents the sum of the current tax and deferred tax.

a) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before
tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable
or deductible in other years and items that are never taxable or deductible. The Company''s current tax is
calculated using tax rates that are enacted and applicable for the reporting period. The company offsets
current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis or to realize the assets and settle the liability
simultaneously.

b) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally
recognized for all deductible temporary differences to the extent that it is probable that taxable profits will

be available against which those deductible temporary differences can be utilized. Such deferred tax assets
and liabilities are not recognized if the temporary difference arises from the initial recognition (other than
in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Company expects, at the end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities. Accordingly, the deferred tax assets and liabilities that were
recognized during the previous reporting periods are remeasured using the tax rates enacted or substantively
enacted as at the reporting date.

c) Current and deferred tax for the year

Current and deferred tax are recognized in the Statement of Profit and loss, except when they relate to
items that are recognized in other comprehensive income or directly in equity, in which case, the current
and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

2.13 Leases

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
predominantly include the net present value of the fixed lease payments and other components of lease
payments where applicable.

Lease payments to be made under reasonably certain extension options are also included in the measurement
of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate
cannot be readily determined, which is generally the case for leases in the Company, the lessee''s incremental
borrowing rate is used.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease incentives received

• any initial direct costs, and

• restoration costs

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a
straight-line basis.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognized on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

2.14 Functional and presentation currency and Foreign Currency Transactions

Items included in the financial statements of the Company are measured using the currency of the primary
economic environment in which these entities operate (i.e. the "functional currency"). The financial statements
are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

In preparing the financial statements of the Company, transactions in currencies other than the entity''s
functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of
the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated
in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.
Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognized in profit or loss in the period in which they arise.

2.15 Earnings per Share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares. Basic EPS is calculated
by dividing the profit or loss attributable to equity shareholders by the weighted average number of equity
shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive
potential equity shares.

2.16 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker. The Company is principally engaged in the following business segments, viz.,
(i) Manufacture of Camphor and allied products and (ii) Real Estate.

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Mar 31, 2024

Note 2: Summary of Significant Accounting Policies

2.1 Basis of Preparation

The financial statements comply in all material aspects with Indian Accounting Standards ("Ind AS") notified under Section 133 of the Companies Act, 2013 ("the Act") [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The financial statements have been prepared on the historical cost convention under accrual basis of accounting except for certain financial assets and liabilities (as per the accounting policy below), which have been measured at fair value.

2.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. The management believes that these estimates and assumptions are reasonable and prudent. However, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future period.

2.3 Significant Estimates and Judgments

The areas involving critical estimates are:

• Estimation of fair value of financial assets and liabilities (Refer Note 33 to the Accounts)

• Estimation of useful life of Property, Plant and Equipment (Refer Note 2.7 below)

• Valuation of defined benefit obligations - (Refer Note 2.11 to the accounts)

• Estimation of income tax provision for the year

The management has exercised its judgement in assessing whether a present obligation arising from the past events would result in outflow of resources embodying economic benefits.

2.4 Revenue Recognition Sale of products:

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. The Company considers indicators for assessing the transfer of control, including:

(a) The entity has a present right to payment for the assets

(b) The customer has legal title to the asset

(c) The entity has transferred physical possession of the asset

(d) The customer has the significant risks and rewards of ownership of the asset

(e) The customer has accepted the asset

The Company earns revenue primarily from sale of Camphor and allied products. Payment for the sale is made as per the credit terms in the agreements with the customers. The credit period is generally short term, thus there is no significant financing component. The Company''s contracts with customers do not provide for any right to returns, refunds or similar obligations.

Dividend, interest and other income

• Dividend income from investments is recognized when the right to receive payment has been established

• Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable in line with the effective interest rate method.

• Rental income is accounted on straight line basis over the term of the relevant lease.

• Insurance claims are accounted on the basis of claims admitted or expected to admitted and to the extent that there is no uncertainty in receiving the claims

• Export benefits are accounted in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

2.5 Property, Plant and Equipment

Freehold Land and all other items of Property, Plant and Equipment are stated at deemed cost on transition IndAS or cost of acquisition, as applicable less accumulated depreciation / amortization and impairment, if any. Cost includes purchase price, taxes and duties, labour cost and directly attributable overheads incurred upto the date the asset is ready for its intended use. However, cost excludes Excise Duty, Value Added Tax and Service Tax / GST, to the extent credit of the duty or tax is availed of.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate asset is derecognized when replaced. All other repairs and maintenance are charged to Profit or Loss during the reporting period in which they are incurred. Gains and losses on disposals are determined by comparing proceeds with carrying amount and recognized in Statement of Profit and Loss.

2.6 Investment Property

Investment properties are measured at cost of acquisition less accumulated depreciation/ amortization and impairment, if any. Cost includes purchase price, taxes and duties, labour cost and directly attributable overheads incurred upto the date the asset is ready for its intended use. However, cost excludes Excise Duty, Value Added Tax and Service Tax / GST, to the extent credit of the duty or tax is availed of.

Investment properties are properties held to earn rentals and/or capital appreciation. Depreciation on investment property is calculated based on useful life estimated valuation report issued by a chartered engineer.

2.7 Depreciation and Amortization

Depreciation on tangible fixed assets is provided over the estimated useful life of the asset or part of the asset, on straight line method, in accordance with Part A of Schedule II to the Companies Act, 2013. Residual value is considered upto five per cent of the cost of assets.

Residual values and useful lives are reviewed and adjusted, if appropriate, for each reporting period.

On assets added / disposed during the year, depreciation is charged on pro-rata basis from the date of addition / till the date of disposal.

2.8 Intangible Assets

Intangible assets acquired are recorded at their acquisition cost and are amortized on straight line basis over its useful life of 3 years.

2.9 Inventories

a) Raw materials,stores and spares are valued at cost under First-In-First-Out (FIFO) method or net realizable value whichever is lower.

b) Finished goods are valued at cost (including applicable overheads) or net realizable value, whichever is lower

c) Work-in-progress is valued at lower of cost and net-realizable value. Cost is calculated as material cost plus appropriate portion of overheads.

2.10 Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows and are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

2.11 Employee Benefits

(i) Short term obligations:

Liabilities for wages, salaries and bonuses, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are

recognized in respect of employees'' services upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current liabilities in the balance sheet.

(ii) Post-employment obligations:

a) Provident Fund and pension:

Provident Fund and pension benefits are defined contribution plans under which the Company pays fixed contribution into funds established under the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The Company has no legal or constructive obligations to pay further contributions after the payment of the fixed contribution. Contributions due to the provident fund are recognized as an expense on monthly basis.

b) Gratuity:

The Company has a defined benefit gratuity plan funded with Life Insurance Corporation of India, covering eligible employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or in termination of employment. The company obligation towards gratuity is valued at the date of each balance sheet with the help of an actuary using projected unit credit method and considered accordingly in the books of accounts.

(iii) Other long-term employee benefit obligations: a) Leave encashment:

The company allows accumulation of leave and encashment thereof based on its policy for eligible employees. The company''s obligation towards leaves that could be carried over by employees beyond 12 months from the date of the balance sheet is valued on with the help of an actuary using the projected unit credit method and considered accordingly in the books of accounts.

2.12 Taxes on Income

Income tax expense represents the sum of the current tax and deferred tax.

a) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that are enacted and applicable for the reporting period. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the assets and settle the liability simultaneously.

b) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Accordingly, the deferred tax assets and liabilities that were recognized during the previous reporting periods are remeasured using the tax rates enacted or substantively enacted as at the reporting date.

c) Current and deferred tax for the year

Current and deferred tax are recognized in the Statement of Profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

2.13 Leases

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities predominantly include the net present value of the fixed lease payments and other components of lease payments where applicable.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, the lessee''s incremental borrowing rate is used.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease incentives received

• any initial direct costs, and

• restoration costs

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

2.14 Functional and presentation currency and Foreign Currency Transactions

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which these entities operate (i.e. the "functional currency"). The financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

In preparing the financial statements of the Company, transactions in currencies other than the entity''s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognized in profit or loss in the period in which they arise.

2.15 Earnings per Share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

2.16 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Company is principally engaged in a single business segment, viz., manufacture and sale of Camphor and allied products.

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Mar 31, 2023

Note 1: Company Overview

Kanchi Karpooram Limited ("the Company") was incorporated on 31st January 1992. It is a public limited company incorporated and domiciled in India whose shares are publicly traded. The registered office is located at Parandur Road, Enathur village, Karapettai Post, Kanchipuram - 631552, Tamilnadu, India. The Company manufactures Camphor and allied products. The Company has its manufacturing Plant at Kanchipuram in Tamil Nadu.

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards ("Ind AS") notified by the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time. Accordingly, the financial statements for the year ended 31st March 2023 are prepared as per IND AS financial statements. The financial statements for the year ended 31st March 2023were authorized and approved for issue by the Board of Directors on 27thMay, 2023.

Note 2: Summary of Significant Accounting Policies

2.1 Basis of Preparation

The financial statements comply in all material aspects with Indian Accounting Standards ("Ind AS") notified under Section 133 of the Companies Act, 2013 ("the Act") [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The financial statements have been prepared on the historical cost convention under accrual basis of accounting except for certain financial assets and liabilities (as per the accounting policy below), which have been measured at fair value.

2.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. The management believes that these estimates and assumptions are reasonable and prudent. However, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future period.

2.3 Significant Estimates and Judgments

The areas involving critical estimates are:

• Estimation of fair value of financial assets and liabilities (Refer Note 33 to the Accounts)

• Estimation of useful life of Property, Plant and Equipment (Refer Note 2.7 below)

• Valuation of defined benefit obligations - (Refer Note 2.11 to the accounts)

• Estimation of income tax provision for the year

The management has exercised its judgement in assessing whether a present obligation arising from the past events would result in outflow of resources embodying economic benefits.

2.4 Revenue Recognition Sale of products:

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. The Company considers indicators for assessing the transfer of control, including:

(a) The entity has a present right to payment for the assets

(b) The customer has legal title to the asset

(c) The entity has transferred physical possession of the asset

(d) The customer has the significant risks and rewards of ownership of the asset

(e) The customer has accepted the asset

The Company earns revenue primarily from sale of Camphor and allied products. Payment for the sale is made as per the credit terms in the agreements with the customers. The credit period is generally short term, thus there is no significant financing component. The Company''s contracts with customers do not provide for any right to returns, refunds or similar obligations.

Dividend, interest and other income

• Dividend income from investments is recognized when the right to receive payment has been established

• Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable in line with the effective interest rate method.

• Rental income is accounted on straight line basis over the term of the relevant lease.

• Insurance claims are accounted on the basis of claims admitted or expected to admitted and to the extent that there is no uncertainty in receiving the claims

• Export benefits are accounted in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

2.5 Property, Plant and Equipment

Freehold Land and all other items of Property, Plant and Equipment are stated at deemed cost on transition IndAS or cost of acquisition, as applicable less accumulated depreciation / amortization and impairment, if any. Cost includes purchase price, taxes and duties, labour cost and directly attributable overheads incurred upto the date the asset is ready for its intended use. However, cost excludes Excise Duty, Value Added Tax and Service Tax / GST, to the extent credit of the duty or tax is availed of.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate asset is derecognized when replaced. All other repairs and maintenance are charged to Profit or Loss during the reporting period in which they are incurred. Gains and losses on disposals are determined by comparing proceeds with carrying amount and recognized in Statement of Profit and Loss.

2.6 Investment Property

Investment properties are measured at cost of acquisition less accumulated depreciation/ amortization and impairment, if any. Cost includes purchase price, taxes and duties, labour cost and directly attributable overheads incurred upto the date the asset is ready for its intended use. However, cost excludes Excise Duty, Value Added Tax and Service Tax / GST, to the extent credit of the duty or tax is availed of.

Investment properties are properties held to earn rentals and/or capital appreciation. Depreciation on investment property is calculated based on useful life estimated valuation report issued by a chartered engineer.

2.7 Depreciation and Amortization

Depreciation on tangible fixed assets is provided over the estimated useful life of the asset or part of the asset, on straight line method, in accordance with Part A of Schedule II to the Companies Act, 2013. Residual value is considered upto five per cent of the cost of assets.

The assets'' residual values, estimated useful lives and depreciation method are reviewed at the end of each reporting period.

Gains and losses on disposal are determined by comparing proceeds with carrying amount and are credited/ debited to the Statement of Profit and loss.

The useful lives of various classes of property, plant and equity are as provided below:

Class of Asset	Useful Life
Electrical Installation	10
Buildings	30
Plant and Equipment	8
Furniture and Fixtures	10
Vehicles	8-20
Lab Equipment	10
Air Conditioners	5
Office Equipment	5
Computer	3

Residual values and useful lives are reviewed and adjusted, if appropriate, for each reporting period.

On assets added / disposed during the year, depreciation is charged on pro-rata basis from the date of addition / till the date of disposal.

2.8 Intangible Assets

Intangible assets acquired are recorded at their acquisition cost and are amortized on straight line basis over its useful life of 3 years.

2.9 Inventories

a) Raw materials,stores and spares are valued at cost under First-In-First-Out (FIFO) method or net realizable value whichever is lower.

b) Finished goods are valued at cost (including applicable overheads) or net realizable value, whichever is lower

c) Work-in-progress is valued at lower of cost and net-realizable value. Cost is calculated as material cost plus appropriate portion of overheads.

2.10 Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows and are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

2.11 Employee Benefits

(i) Short term obligations:

Liabilities for wages, salaries and bonuses, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current liabilities in the balance sheet.

(ii) Post-employment obligations:

a) Provident Fund and pension:

Provident Fund and pension benefits are defined contribution plans under which the Company pays fixed contribution into funds established under the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The Company has no legal or constructive obligations to pay further contributions after the payment of the fixed contribution. Contributions due to the provident fund are recognized as an expense on monthly basis.

b) Gratuity:

The Company has a defined benefit gratuity plan funded with Life Insurance Corporation of India, covering eligible employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or in termination of employment. The company obligation towards gratuity is valued at the date of each balance sheet with the help of an actuary using projected unit credit method and considered accordingly in the books of accounts.

(iii) Other long-term employee benefit obligations:

a) Leave encashment:

The company allows accumulation of leave and encashment thereof based on its policy for eligible employees. The company''s obligation towards leaves that could be carried over by employees beyond 12 months from the date of the balance sheet is valued on with the help of an actuary using the projected unit credit method and considered accordingly in the books of accounts.

2.12 Taxes on Income

Income tax expense represents the sum of the current tax and deferred tax.

a) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that are enacted and applicable for the reporting period. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the assets and settle the liability simultaneously.

b) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Accordingly, the deferred tax assets and liabilities that were recognized during the previous reporting periods are remeasured using the tax rates enacted or substantively enacted as at the reporting date.

c) Current and deferred tax for the year

Current and deferred tax are recognized in the Statement of Profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

2.13 Leases

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities predominantly include the net present value of the fixed lease payments and other components of lease payments where applicable.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, the lessee''s incremental borrowing rate is used.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease incentives received

• any initial direct costs, and

• restoration costs

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

2.14 Functional and presentation currency and Foreign Currency Transactions

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which these entities operate (i.e. the "functional currency"). The financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

In preparing the financial statements of the Company, transactions in currencies other than the entity''s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognized in profit or loss in the period in which they arise.

2.15 Earnings per Share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

2.16 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Company is principally engaged in a single business segment, viz., manufacture and sale of Camphor and allied products.

2.17 Provisions, Contingent Liabilities and Contingent Assets

a) Provision

A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expenses.

b) Contingent Liabilities

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because

• It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• The amount of the obligation cannot be measured with sufficient reliability.

c) Contingent Asset

Contingent assets are not recognized but are disclosed only where an inflow of economic benefits is probable.

2.18 Current and Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification. Cash or cash equivalent is treated as current, unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. In respect of other assets, it is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in the normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

• It is expected to be settled in the normal operating cycle

• It is held primarily for the purpose of trading

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

• 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. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

2.19 Financial instruments

(a) Recognition:

Financial assets and financial liabilities are recognized when a company entity becomes a party to the contractual provisions of the instruments.

(b) Classification of financials instruments

The Company classifies its financial assets in the following categories:

• Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• Those measured at amortized cost.

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

(c) Measurement

(i) Initial Recognition:

At Initial recognition, the Company measures a financial asset at its fair value plus transaction cost (in the case of a financial asset not a fair value through profit or loss) that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement of profit or loss.

(ii) Subsequent measurement:

• Debt Instruments

Subsequent measurement of debt instruments depends on the company''s business model for managing the asset and the cash flow characteristics of the asset. There are two measurement categories into which the Company classifies its debt instruments.

- Amortized Cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is de-recognized or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

- Fair Value through profit and loss statement

Assets that do not meet the criteria for amortized cost or Fair Value through Other Comprehensive Income (FVOCI) are measured at Fair Value Through Profit or Loss (FVTPL). A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in profit or loss and presented in the statement of profit and loss within other gains/ (losses) in the period in which it arises. Interest income from these financial assets is included in other income.

• Equity Instruments

The Company subsequently measures all investments in equity (except of the subsidiaries/associate) at fair value. Where the company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognized in profit or loss as other income when the Company''s right to receive payments is established.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately.

Where the Company elects to measure fair value through profit and loss, changes in the fair value of such financial assets are recognized in the statement of profit and loss.

(d) Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Expense is recognized on an effective interest basis for debt instruments other than those financial liabilities classified as at FVTPL. Interest expense is recognized in profit or loss and is included in the ''finance cost'' line item.

(e) Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortized cost, lease receivables, trade receivables, and other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss 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 (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument through the expected life of that financial instrument.

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

(f) De-recognition of financial assets and financial liabilities

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.

The Company de-recognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

2.20 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts/cash credits. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

2.21 Key sources of estimation uncertainty

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key assumption concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as given below.

a) Estimation of long term and post employment benefits

The Company engages the services of an actuary to compute the present value of its defined benefit obligations in respect of compensated absences and gratuity payable to its employees. The estimation involves use of assumptions and inputs such as life expectancy, attrition rate, salary increment rate etc.

b) Useful life of Property, Plant &Equipments and Intangible Assets

The Company reviews the estimated useful lives of Property, plant and equipment at the end of each reporting period. During the current year, there has been no change in life considered for the assets.

c) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor, land access and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment and the use of estimates regarding the outcome of future events.

d) Deferred Tax Assets

The recognition of deferred tax assets requires assessment of whether it is probable that sufficient future taxable profits will be available against which deferred tax assets can be utilized. The Company reviews at each balance sheet the carrying amount of deferred tax asset if any.

e) Income tax provision:

The company provides for income tax expenditure in respect of the year taking into consideration the applicable income tax laws which include usage of conclusions drawn from precedents pronounced by various fora. The actual income tax expense may undergo a change upon completion of tax audit or assessment by tax authorities and the resultant expense/credit is accounted as and when it arises.

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Mar 31, 2018

Note 28: Capital management

The Company’s objective of capital management is to maximize the return to its shareholders through optimal mix of debt and equity.

The Company determines the amount of capital required on the basis of annual and long-term operating plans. The funding requirements are met through equity and long term/short term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

The following table summarizes the capital of the Company:

Note 29: Fair values

1 Fair value measurement hierarchy is as follows:

a) Level 1 item of fair valuation is based on market price quotation at each reporting date

b) Level 2 item of fair valuation is based on significant observable input like PV of future cash flows, MTM valuation, etc.

c) Level 3 item of fair valuation is based upon significant unobservable inputs where valuation is done by independent valuer.

2 The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial assets and are considered to be the same as their fair values, due to their short-term nature.

3 For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values. The fair value of the financial assets and financial liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties , other than in a forced or liquidation sale.

Method and assumption

The following methods and assumption were used to estimate the fair value at the reporting date:

Loans to employees and security deposit paid are valued using discounted cash flow using rates currently available for items on similar terms, credit risk and maturities

Note 30: Financial instruments and Risk factors Financial Risk factors

The Company’s financial liabilities comprise of short term and long term borrowings, trade payables, employees dues and unpaid dividend. The main purpose of financial liabilities is to support the Company’s financial operations. The Company’s financial assets includes security deposit, investments, trade receivable, staff advance, cash and cash equivalents, Bank balance etc that derive directly from the operations.

To ensure alignment of risk management system with the corporate and operational objective and to improve upon the existing procedure, the Company oversees various risk factors for managing of these risks.

Interest rate risk

The Company is exposed to interest rate risk from the possibility that the inflow in the interest rate will affect future cash flows of a financial instruments.

The Company’s interest rate mix management includes to maintain a mix between fixed or floating rate based on liquidity.

Credit risk

Customer credit risk is managed according to the Company’s policy, procedure and control relating to customers’ credit risk management. Outstanding receivables are monitored regularly.

Liquidity risk

"The Company monitors its risk of shortage of funds using detailed cash flow projections which is monitored closely on a daily basis. The Company has been sanctioned credit facilities for meeting its working capital equipment of the Company."

Note 31: Transition to Ind AS

"These are the Company’s first financial statements prepared in accordance with Ind AS, notified under Section 133 of the Companies Act, 2013 read with the Rules made thereunder. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the preparation of opening Ind AS balance sheet as at 1st April 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP)."

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position and financial performance is set out below:

Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

Ind AS optional exemptions:

1. Deemed cost - Property, Plant and Equipment and Intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at previous GAAP carrying value, except freehold land which is measured at its market value as at the transition date.

2. Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investment in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption and accordingly, opted to:

a. Designate financial assets at FVTPL as per Ind as 109 based on fact and circumstances at the transition date.

Ind AS mandatory exceptions:

1. Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1st April 2016 are consistent with estimates as at the same date made in conformity with previous GAAP.

2. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Financial assets such as loans to employees and security deposit paid have been classified and measured at amortized cost on the basis of facts and circumstances at the date of transition to Ind AS.

Note 32: Contingent liabilities

(a) Contingent Liability- Performance Guarantee issued by Bank of India to TNPCB for Rs.Nil (2016-17: Rs.2 lakh)

(b) Estimated amount of contracts remaining to be executed on capital accounts not provided for - Rs._lakh (201617: Rs.16.04 lakh)

Note 33: Related Party disclosures

I) Key Managerial Personnel (KMP)

a Shri. Suresh V Shah Managing Director

b Shri. Arun V Shah Director

c Shri. Dipesh S. Jain Whole Time Director

d Shri. KC.Radhakrishnan CFO

II) Director

Smt. Pushpa S Jain Director

III) Other Related Parties

a M/s. Suresh Industries Firm in which directors have significant influence

b M/s. Ambika Industries Firm in which directors have significant influence

c Shri. Mukesh Goal Relative of Director

Note 35: Segment reporting

The Board of Directors of the Company has been identified as the Chief Operating Decision Maker ("CODM"). The Directors evaluate the Company performance and allocate resources based on the analysis of various performance indicators of the Company as a single unit. Therefore there is no reportable segment for the Company.

The entire revenue from operations is derived from India.

All non-current assets are situated within India.

Note:*The amount excludes contribution to Gratuity fund and provision for leave encashment liability Note 38:

Previous years’ figures have been regrouped and rearranged, wherever necessary, to conform to current year classification and rounded off to the nearest lakh of rupee.

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Mar 31, 2015

1 BASIS OF PREPARATION

The financial statement are prepared under the historical cost convention method in accordance with the Generally Accepted Accounting Principles (GAAP) and the provisions of the Companies Act 2013 and Mandatory Accounting Standards as prescribed under section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014.

2 USE OF ESTIMATES

The preparation of financial statements requires management of the company to make certain estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of financials and reported amounts of income and expenses during the year. Example of such estimate include provision for doubtful receivables, employee benefits, provision for income taxes, accounting for contract costs expected to be incurred, the useful lives of depreciable fixed assets and provision for impairment.

The Management believes that these estimates and assumptions are reasonable and prudent. However actual results could differ from these estimates. Differences between actual results and estimates are recognized in the period in which they materialize.

3 INCOME RECOGNITION

Revenue from sale of goods is recognized upon dispatch of goods. Sales are accounted net of Excise Duty, returns, sales tax and freight.

Interest income is recognized using time proportion method.

4 FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are carried at cost less Accumulated depreciation and impairment loss if any. Cost includes all expenses incurred to bring the assets to its present location and condition and allocated preoperative expenditure during construction period. Income earned out of Trial operations is netted against the cost of the Project.

b) Fixed assets are depreciated as per Schedule II of the Companies Act, 2013 based on the useful life of the Assets.

c) Impairment loss, if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount.

d) Borrowing Costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

5 INVENTORIES

a) Raw materials and Stores and spares are valued at cost under First-In-First-Out (FIFO) method.

b) Finished goods are valued at cost (including applicable overheads and excise duty) or net realizable values whichever is lower

c) Work-in-progress value is derived from the value of finished goods less estimated cost of work still to be completed.

d) Modvat / Cenvat / Service Tax credits on materials / capital items are availed on purchases / installation of assets respectively and utilized for payment of excise duty on goods manufactured and the unutilized credit is carried forward in the books.

6 FOREIGN CURRENCY TRANSLATIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at theyearend are recognized in the profit and loss account.

7 EMPLOYEE BENEFITS

a. Short term employee benefits are charged off at the undiscounted amount in the year in which related service is rendered.

b. The company has a defined benefit gratuity plan funded with Life Insurance Corporation of India, covering eligible employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or in termination of employment. Liability for unavailed leave is actuarially valued and is funded with Life Insurance Corporation of India.

8 TAXES ON INCOME

Taxes expense comprises of current tax and Deferred Tax. Current income taxis provided on the taxable income for the period as per the provisions of Income Tax Act, 1961. Deferred Tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

9 EARNINGS PER SHARE

The earnings considered in ascertaining earnings per share comprises of the net profit after tax before exceptional items. The number of shares used in computing earnings per share is the weighted average number of shares outstanding during the year. Diluted earnings per share comprises of weighted average number of share considered for deriving basic earnings per share as well as dilutive potential equity shares.

10 LEASES

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rental payments made under operating leases are charged to the statement of Profit and Loss.

11 SEGMENT REPORTING

The Company's primary segment is identified as Business segment based on nature of product, risks, returns and the internal business reporting system and the secondary segment is identified based on Geographical location of the customers as per Accounting Standard -17. The Company is principally engaged in a single business segment Viz, manufacture and sale of Camphor and allied products.

12 PROVISIONS, CONTINGENT LIABIUTIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.

Contingent Liabilities are not recognized, but are disclosed in the notes.

Contingent assets are neither recognized nor disclosed in the financial statements.

13 IMPAIRMENT OF ASSETS

Thecompany determines whether there is any indication of impairment of the carrying amount of its assets. The recoverable amount of such assets is estimated and if any indication of impairment exists, impairment loss is recognized where the carrying amount of the assets exceeds its recoverable amount.

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Mar 31, 2014

1. SYSTEM OF ACCOUNTING

A. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis, unless and otherwise specified.

The financial statements have been prepared in all material respects in compliance of Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006.

B. Financial statements are prepared under historical cost convention and on "going concern” basis.

2. USE OF ESTIMATES

The preparation of financial statements requires management of the company to make certain estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of financials and reported amounts of income and expenses during the year. Example of such estimate include provision for doubtful receivables, employee benefits, provision for income taxes, accounting for contract costs expected to be incurred, the useful lives of depreciable fixed assets and provision forimpairment.

The Management believes that these estimates and assumptions are reasonable and prudent. However actual results could differ from these estimates. Differences between actual results and estimates are recognized in the period in which they materialize.

3. INCOME RECOGNITION:

Revenue from sale of goods is recognized upon dispatch of goods. Sales are accounted net of Excise Duty, returns, sales tax and freight.

Interest income is recognized using time proportion method.

4. FIXED ASSETS & DEPRECIATION:

1) Fixed Assets are carried at cost less Accumulated depreciation and impairment loss if any. Cost includes all expenses incurred to bring the assets to its present location and condition and allocated preoperative expenditure during construction period. Income earned out of Trial operations is netted against the cost of the Project.

2) Depreciation on assets is provided using Straight Line Method based on rates specified in Schedule XIV of the Companies Act, 1956 or on estimated useful lives of assets estimated by the management, whichever is higher. Individual assets costing less then Rs.10,000/-are fully depreciated in the yearof purchase.

3) Impairment loss, if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount.

4) Borrowing Costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

5. INVENTORIES:

1) Raw materials and Stores and spares are valued at cost under First - In - First - Out (FIFO) method.

2) Finished goods are valued at cost (including applicable overheads and excise duty) or net realizable values whichever is lower.

3) Work-in-progress value is derived from the value of finished goods less estimated cost of work still to be completed.

4) Modvat / Cenvat / Service Tax credits on materials / capital items are availed on purchases / installation of assets respectively and utilized for payment of excise duty on goods manufactured and the unutilized credit is carried forward in the books.

6. FOREIGN CURRENCY TRANSLATIONS:

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the yearend are recognized in the profit and loss account.

7. EMPLOYEE BENEFITS:

a. Short term employee benefits are charged off at the undiscounted amount in the year in which related service is rendered.

b. The company has a defined benefit gratuity plan funded with Life Insurance Corporation of India, covering eligible employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or in termination of employment. Liability for unavailed leave is actuarially valued and is funded with Life Insurance Corporation of India.

8. TAXES ON INCOME:

Taxes expense comprises of current tax and Deferred Tax. Current income tax is provided on the taxable income for the period as per the provisions of Income Tax Act, 1961. Deferred Tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

9. EARNINGS PER SHARE:

The earnings considered in ascertaining earnings per share comprises of the net profit after tax before exceptional items. The number of shares used in computing earnings per share is the weighted average number of shares outstanding during the year. Diluted earnings per share comprises of weighted average number of share considered for deriving basic earnings per share as well as dilutive potential equity shares.

10. LEASES:

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rental payments made under operating leases are charged to the statement of Profit and Loss.

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Mar 31, 2013

A. ACCOUNTING CONCEPTS:

The financial statements are prepared under the historical cost convention on the accrual basis of accounting and in accordance with Accounting principles generally accepted in India and in compliance with the accounting standards notified by the Central Government of India, under the Companies (Accounting Standards) rules 2006 and relevant provisions of the Companies Act, 1956.

b. REVENUE RECOGNITION:

Sale of Finished Goods is recognized upon despatch of goods. Sales are accounted net of Excise Duty, returns, Sales Tax and freight.

Interest income is recognized using time proportion method.

c. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation. The assets are depreciated under straight line method. Depreciation is provided in accordance with Schedule XIV of the Companies Act, 1956.

d. INVENTORIES:

Inventories are valued at lower of cost and net realisable value. Cost includes all costs of purchase, conversion cost and other costs incurred in bringing the inventories to their present location and condition. The inventories are valued at First-in-First-out (FIFO) method.

e. EMPLOYEE RETIREMENT BENEFITS:

Contribution payable by the Company under defined contribution scheme towards Retirement Benefits in the form of Provident Fund for the year are charged to Profit & Loss account.

Gratuity Liability is funded and the appropriate accrual of Liability for the year is Charged to Profit and Loss based on actuarial valuation.

Provision towards Leave encashment is made based on actuarial valuation and is funded with Life Insurance Corporation of India.

The actuarial valuation is done as per projected unit credit method.

Actuarial gains / losses are immediately taken to Profit and Loss Account.

f. FOREIGN CURRENCY TRANSACTIONS :

Foreign Currency transactions are accounted on the basis of exchange rates prevailing on the transaction date and gain or loss on settlement is recognised in the Profit and Loss Account.

Foreign Currency Assets and Liabilities outstanding at the end of the year are being converted at the closing rates. The exchange gain / loss is adjusted to Revenue.

g. TAXATION :

Income tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability are calculated by applying tax rate applicable and tax laws that have been enacted or subsequently enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisations, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.