Accounting Policies of Parker Agrochem Exports Ltd. Company

Mar 31, 2024

2. MATERIAL ACCOUNTING POLICY AND KEY ACCOUNTING ESTIMATES AND JUDGEMENTS:

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The financial statements have been prepared under the historical cost basis and in accordance with Indian Accounting Standards (IND
AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

(b) USE OF ESTIMATES :

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the results of operations during the reporting year end. Although these estimates are based upon
management''s best knowledge of current events and actions, actual results could differ from these estimates.

(c) PROPERTY, PLANT AND EQUIPMENT:

i) Property, Plant and Equipment are stated at original cost (net of tax/duty credit availed) less accumulated depreciation and
impairment losses. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental expenses
related to the acquisition, and pre-operative expenses including attributable borrowing costs incurred during pre-operational
period.

ii) 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 as a separate asset is derecognized when replaced. All other repairs and
maintenance are charged to profit and loss during the reporting period in which they are incurred.

iii) On transition to IND AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment as
at 1st April 2017 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and
equipment.

iv) Property, Plant and Equipment are depreciated and/or amortized on the basis of their useful lives as notified in Schedule II to the
Companies Act, 2013. The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.

v) Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are
ready for use.

vi) An asset''s carrying amount is written down immediately on discontinuation to its recoverable amount if the asset''s carrying amount
is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with
carrying amount. These are included in Profit/ Loss on Sale and Discard of Fixed Assets.

vii) At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to determine whether
there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order
to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the value in use,
determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

(d) REVENUE RECOGNITION:

i) The Company derives revenues primarily from renting of storage tank and related services. Effective 01 April 2018, the
Company has adopted Indian Accounting Standard 115 (IND AS 115) -''Revenue from contracts with customers'' using the
cumulative catch-up transition method, applied to contracts that were not completed as on the transition date i.e. 01 April
2018.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or services
to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products
or services.

The Company satisfies a performance obligation and recognizes revenue over time, if one of the following criteria is met:

1. The customer simultaneously receives and consumes the benefits provided by the Company''s performance as the
Group performs; or

2. The Company''s performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or

3. The Company''s performance does not create an asset with an alternative use to the Company and an entity has an
enforceable right to payment for performance completed to date.

For performance obligations where one of the above conditions is not met, revenue is recognized at the point in time at
which the performance obligation is satisfied.

Revenue from sale of products and services are recognized at a time on which the performance obligation is satisfied

ii) Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable.

iii) Other income is recognized when there is certainty of its being ultimate realization.

4. EMPLOYEE BENEFITS:

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and
Loss of the year in which the related service is rendered. The provisions of Provident and Miscellaneous Provisions
Act,1952 are not applicable to the Company.

ii) Post-Employment and Retirement benefits in the form of Gratuity are considered as defined benefit obligations and is
provided based on actuarial valuation using the projected unit credit method, as at the date of the Balance Sheet. Every
Employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the
provisions of The Payment of Gratuity Act, 1972.

5. CASH FLOW STATEMENT:

i) Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions
of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from
regular revenue generating, financing and investing activities of the Company is segregated.

ii) Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term
investments with an original maturity of three months or less.

6. FINANCIAL ASSETS:

i) The Company classifies its financial assets as those to be measured subsequently at fair value (either through other
comprehensive income, or through profit or loss), and those to be measured at amortized cost.

ii) Trade receivables are impaired using the lifetime expected credit loss model under simplified approach. The Company
uses a matrix to determine the impairment loss allowance based on its historically observed default rates over expected
life of trade receivables and is adjusted for forward looking estimates. At every reporting date, the impairment loss
allowance is determined and updated and the same is deducted from Trade Receivables with corresponding charge/
credit to Profit and Loss.

Hi) A financial asset is derecognized only when the Company has transferred the rights to receive cash flows from the
financial asset, or when it has transferred substantially all the risks and rewards of the asset, or when it has
transferred the control of the asset.

7. FINANCIAL LIABILITIES:

i) Borrowings are initially recognized and subsequently measured at amortized cost, net of transaction costs incurred.
The transaction costs is amortized over the period of borrowings using the effective interest method in Capital Work
in Progress upto the commencement of related Plant, Property and Equipment and subsequently under finance
costs in profit and loss account.

ii) Borrowings are removed from balance sheet when the obligation specified in the contract is discharged, cancelled
or expired.

iii) Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period.

iv) Trade Payables represent liabilities for goods and services provided to the Company upto to the end of the financial
year. The amounts are unsecured and are usually paid as per the terms of payment agreed with the vendors. The
amounts are presented as current liabilities unless payment is not due within 12 months after the reporting period.
They are recognised initially and subsequently measured at amortized cost.

v) Financial assets and Financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis,
to realize the assets and settle the liabilities simultaneously.

8. FAIR VALUE MEASUREMENT:

i) 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 in the principal market for the asset or liability,
or in 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.

ii) The fair value of an asset or 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.

Hi) A fair value measurement of a non- financial asset takes into account a market participant''s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.

iv) The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable
inputs.

9. FOREIGN CURRENCY TRANSACTIONS:

i) The Company''s financial statements are presented in Indian Rupees (‘INR''), which is also the Company''s functional
currency.

ii) Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate
at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing
exchange rate. 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.

ii) 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 rate at the date when the fair value is determined.

10. BORROWING COSTS:

i) Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings
to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing
of funds.

ii) General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying
assets are capitalized as part of the cost of such assets during the period of time that is required to complete and
prepare the asset for its intended use. A qualifying asset is one that takes necessarily substantial period of time to
get ready for its intended use.

ii) All other borrowing costs are expensed in the period in which they are incurred.

11. ACCOUNTING FOR TAXES ON INCOME:

i) Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.

ii) Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same
period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the
tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated
that a liability due to disallowances or other matters is probable.

Hi) Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting
date. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised
for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses.
Deferred tax assets are recognized to the extent that it is probable that taxable profits against which the deductible
temporary differences, and the carry forward unused tax credits and unused tax losses can be utilized.

iv) The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be
utilized. Un recognized deferred tax asset s are reassessed at each reporting date and are recognized to the extent
that it is 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 realized
or the liability is settled, based on the tax rates and tax laws that have been enacted or substantively enacted at the
reporting date.

v) Deferred tax is recognized in the statement of profit and loss, except to the extent that it relates to items recognized
in other comprehensive income. As such, deferred tax is also recognized in other comprehensive income.

vi) Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes
on income levied by same governing taxation laws.

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Mar 31, 2014

Company Overview: The Unit of the company is located at Plot No.3 & 4, Block ''H'' at Kandla Port, Kandla, Kutch District in the state of Gujarat. The Location of the unit is very Ideal as Kandla Port is Site Recognized by the Government authorities for Export. The Company has Developed Petroleum And Edible Oil storage tanks with Connecting Pipelines with Port jetty for directly Loading & Unloading ship. These Storage tanks are rented and the rental Income contributes to the Income of the Company. The company has in all fourteen Storage Tanks.

Company was involved in the business of Silver. However, the company continues to carry on the Business of renting of storage tank.

1. Significant Accounting Policies: The financial statements have been prepared in accordance with applicable accounting standards. A summary of the important accounting policies is set out below:-

(A) Basis of Accounting : The financial statements are prepared on accrual basis and are in accordance with the historical cost convention.

(B) Revenue Recognition : Sales are accounted for on dispatch of goods to the customers and are net of sales and returns.

Other income is accounted for on Accrual Basis.

(C) Fixed Assets : Fixed Assets are carried at cost less depreciation. The cost of assets includes original cost plus other incidental expenses incurred up to the date of installation / acquisition.

(D) Depreciation : Depreciation is provided under Straight line method at the rates specified under schedule- XIV to the Companies Act-1956 on single shift basis working as certified by Director. Depreciation on additions / deletions to / from fixed assets made during the year is provided on pro-rata basis from/upto the date of such addition / deletion as the case may be.

(E) Inventories : The Company does not hold any physical inventory as on 31st March, 2014.

(F) Treatment of Miscellaneous Expenditure : Preliminary Expenses are being written off over a period of 5 Years.

(G) Taxation : The current Income tax charged is determined in accordance with the relevant tax regulations applicable to the Company. Deferred tax charged or credit are recognized for the future tax consequences attributable to timing difference that result between the profit offered for Income taxes and the profit as per financial statements. The deferred tax charged or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such asset. Deferred tax asset are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized.

The Company off-sets, on a year to year basis, the current tax assets and liabilities, where it has legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

(H) Employees'' Benefit

Gratuity: Gratuity is a defined benefit scheme and is accrued based on actuarial valuation at the Balance Sheet date carried out by independent actuary. The Company has an employee gratuity fund. Actual gains and losses are charged to Profit and Loss account.

Provident Fund: As the Strength of the employees doesn''t exceed the prescribed limit under the Provident fund, company has not deducted and paid any provident fund amount.

Leave Encashment: The Company is not having any policy for payment of Leave Encashment so no provision for the same has been made.

(I) Investment : Long term Investments are valued at cost of acquisition and related expenses. Provision is made for diminution, if any, in the value of such investment.

(J) Earning Per Share : In determining earning per share, the company considers the net profit after tax and includes the post - tax effect of any extra -ordinary items. The number of equity shares used in computing basis earnings per share is the weighted average number of equity shares outstanding during the year. The number of equity shares used in computing diluted earnings per share comprises weighted average number of equity share considered for deriving basic earning per share and also weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity share.

(K) Lease : Asset which is subject to operating lease is shown under fixed assets in the balance sheet. Lease income from operating leases is recognized in the statement of profit and loss on a straight line basis over lease term. Costs including depreciation, incurred in earning the lease income are recognized as expense. Initial direct costs incurred specifically to earn revenues from an operating lease are expensed during the period.

(L) Other Accounting Policies : These are consistent with generally accepted accounting practices.

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Mar 31, 2012

(A) Basis of Accounting : The financial statements are prepared on accrual basis and are in accordance with the historical cost convention.

(B) Revenue Recognition : Sales are accounted for on dispatch of goods to the customers and arc net of sahRs.s and returns. Other income is accounted for on Accrual Basis.

(C) Fixed Assets : Fixed Assets are tarried at cost less depreciation. The cost of assets includes original cost plus other incidental expenses incurred up to the date of installation / acquisition,

(D) Depreciation : Depreciation, is provided under Straight line inethod at the rates specified under schedule- XIV to the Companies Act-l9b6 Dn single shift basis working as certified by Director, Depreciation on additions / deletions tD / from fixed assets made during the year is provided on pro-rata basis From/upta the date of such addition / deletion as the case may be.

(E) Inventories : The Company does not hoLd any physical inventory as on 31* March, 2012.

(F) Treatment of Miscellaneous Expenditure : Preliminary Expenses are being written off over a period of 5 Years.

(G) Taxation : The current Income tax charged is determined in accordance with the relevant tax regulations applicable to the Company. Deterred tax charged or credit are recognized for the future tax consequences attributable to timing difference that result between the profit offered For Income taxes and the profit as per financial statements. The deferred tax charged or credit and tie co:respcnding deferred tax liabilities or assets are recognized using the tax rates thai have been enacted ot substantively enacted by the Balance Sheet date. Defened tax assets are recogni7ed only to the extent there is reasonable certainty that the assets can be realized in the future; however when there is a brought Forward Loss or unabsorbed depreciation under taxation iaws, deferred tax assets are recognized only if theie is virtual icrtainty of realization of such asset. Deferred tax asset are reviewed as at each Balance Sheet date and written down or written up Lo reflect the amount that is reasonably/ virtu ally certain to be reaLized.

The Company off-sets, on a year to year basis, the current tax assets and Liabilities, where it has legally enforceable right and where it intends to settle such assets and liabilities Dn a net basis.

(II) Employees' Benefit

Gratuity: Gratuity is a defined benefit scheme and is accrued based on actuarial valuation at the Balance Sheet date :arried out by independent actuary, [he Company has an employee gratuity fund. Actual gains and losses are charged to Profit and Loss account.

Provident Fund: As the Strength ol the employees doesn't exceed the prescribed limit under the Provident fund, company has not deducted and paid any provident fund amount.

Leave Encashment: The Company is not having any policy for payment of Leave Encashment so no provision for the same has been made.

(I) Investment : Long term Investments are valued at cost of acquisition and related expenses. Provision is made for diminution, if any, in the vaLue oF such investment.

(J) Earning Per Share : In determining earning per share, the company considers the net profit after tax and includes the post - tax effect of any extra -ordinary items, the number Df equity shares used in computing hasis earnings per share is the weighted average number of equity shares outstanding during the year, ihe number of equity shares used in computing diluted earnings per share comprises weighted average number of equity share considered for deriving basic earning per share and also weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity share.

(K) Lease : Asset which is subject to operating lease is shown under fixed assets in the balance sheet. Lease income from operating leases is recognized in the statement of profit and loss on a straight Line basis over lease term. Costs including depreciation, incurred in earning the lease income are recognized as expense. Initial direct costs incurred specifically to earn revenues from an operating leave are expensed during the period- ic

L) Other Accounting Policies : These are consistent with generally accepted accounting practices.

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Mar 31, 2010

The financial statements have been prepared in accordance with applicable accountingstandards. A summary of the important accounting policies is set out below:-

(A) Basis Of Accounting

The financial statements are prepared on accrual basis and are in accordance with the historical cost convention.

(B) Revenue Recognition

Sales are accounted for on dispatch of goods to the customers and are net of sales and returns. Other income is accounted for on Accrual Basis.

{C) Fixed Assets

Fixed Assets are carried at cost less depreciation. The cost of assets includes original cost plus other incidental expenses incurred up to the date of installation / acquisition.

(D) Depreciation

Depreciation is provided under Straight line method at the rates specified under schedule- XIV to the Companies Act-1956 on single shift basis working as certified by Director. Depreciation on additions / deletions to / from fixed assets made during the year is provided on pro-rata basis from/upto the date of such addition / deletion as the case may be.

(E) Inventories

The Company does not hold any physical inventory as on 31s1 March, 2010.

(F) Treatment Of Miscellaneous Expenditure

Preliminary Expenses are being written off over a period of 5 Years.

(G) Taxation

The current Income tax charged is determined in accordance with the relevant tax regulations applicable to the Company, Deferred tax charged or credit are recognized for the future tax consequences attrihutable to timing difference that result between the profit offered for Income taxes and the profit as per financial statements. The deferred tax charged or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such asset. Deferred tax asset are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized. The Company off-sets, on a year to year basis, the current tax assets and liabilities, where it has legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

(H) Employees Benefit

Gratuity: Gratuity is a defined benefit scheme and is accrued based on actuarial valuation at the Balance Sheet date carried out by independent actuary. The Company has an employee gratuity fund. Actual gains and losses are charged to Profit and Loss account.

Provident Fund: As the Strength of the employees doesnt exceed the prescribed limit under the Provident fund, company has not deducted and paid any provident fund amount.

Leave Encashment: The Company is not having any policy for payment of Leave Encashment so no provision for the same has been made.

(I) Investment

Long term Investments are valued at cost of acquisition and related expenses. Provision is made for diminution, if any, in trie value of such investment.

Current Investments are valued at cost or market value whichever is lower.

(J) Earning Per Share

In determining earning per share, the company considers the net profit after tax and includes the post - tax effect of any extra-ordinary items. The number of equity shares used in computing basis earnings per share is the weighted average number of equity shares outstanding during the year. The number of equity shares used in computing diluted earnings per share comprises weighted average numher of equity share considered for deriving basic earning per share and also weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity share.

(K) Other Accounting Policies

Asset which is subject to operating lease is shown under fixed assets in the balance sheet. Lease income from operating leases is recognized in the statement of profit and loss on a straight line basis over lease term. Costs including depreciation, incurred in earning the lease income are recognized as expense. Initial direct costs incurred specifically to earn revenues from an operating lease are expensed during the period.