Accounting Policies of TCM Ltd. Company

Mar 31, 2025

2. MATERIAL ACCOUNTING POLICIES

(i) Statement of Compliance

The standalone financial statements of the Company have been prepared in accordance with
Indian Accounting Standard (“Ind AS”) notified under the Companies (Indian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules,
2016 read with section 133 of the Companies Act, 2013.

The Company has consistently applied accounting policies to all years. Comparative Financial
information has been regrouped, wherever necessary, to correspond to the figures of the current
year.

(ii) Basis of preparation and presentation

The standalone financial statements have been prepared on accrual basis under the
historical cost convention except for the certain financial assets that are measured at fair values as
required by relevant Ind AS.

Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services. 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.

(iii) Use of estimates and judgement

The preparation of standalone financial statements in conformity with Ind AS, requires
management to make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amount of assets and liabilities, revenues and expenses and
disclosure of contingent liabilities. Such estimates and assumptions are based on management’s
evaluation of relevant facts and circumstances as on the date of financial statements. The actual
outcome may diverge from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised 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.

Useful lives of property, plant and equipment:

The Company reviews the useful life of property, plant and equipment at the end of each
reporting period. This re-assessment may result in change in depreciation expense in future
periods.

Fair value of financial assets, liabilities, and investments:

The Company measures certain financial assets and liabilities on fair value basis at each
balance sheet date or at the time, they are assessed for impairment. Fair value measurement that

are based on significant unobservable inputs (Level 3) requires estimates of operating margin,
discount rate, future growth rate, terminal values, etc. based on management’s best estimate
about future developments.

(iv) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency
of the primary economic environment in which the Company operates (i.e. the “functional
currency”). The standalone financial statements are presented in Indian Rupee, the national
currency of India.

(v) Revenue Recognition

Revenue is recognised upon satisfaction of performance obligations with respect to the goods
or services as per the contracts with customers in an amount that reflects the consideration the
Company expects to receive in exchange for those goods or services.

(a) Sale of goods: Revenue from the sale of products is recognised at the point in time when
control of products is transferred to the customer.

(b) Sale of services: Revenue from services is recognised at the point of time when the
performance obligations are fully satisfied.

Revenue is measured based on the transaction price, which is the consideration, net of
customer incentives, discounts, variable considerations, payments made to customers,
other similar charges, as specified in the contract with the customer. Additionally, revenue
excludes taxes collected from customers, which are subsequently remitted to governmental
authorities.

(c) Interest income: Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset of
that asset’s net carrying amount on initial recognition.

(vi) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease i.e., if the
contract conveys the right to control the use of an identified asset for a period in exchange of
consideration.

Company as a lessee

The Company’s lease asset classes consist of leases for buildings. The Company, at the
inception of a contract, assesses whether the contract is a lease or not lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for
a time in exchange for a consideration. This policy has been applied to contracts existing and
entered into on or after April 1, 2019.

The Company recognises a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount
of the lease liability adjusted for any lease payments made at or before the commencement
date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received. The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the Company’s incremental borrowing rate.
It is remeasured when there is a change in future lease payments arising from a change in an
index or rate, if there is a change in the Company’s estimate of the amount expected to be
payable under a residual value guarantee, or if the Company changes its assessment of

whether it will exercise a purchase, extension or termination option. When the lease liability is
remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset
has been reduced to zero. The Company has elected not to recognise right-of-use assets and
lease liabilities for short-term leases that have a lease term of 12 months or less and leases of
low-value assets. The Company recognises the lease payments associated with these leases as
an expense over the lease term.

Company as a lessor

In case of sub-leasing, where the Company, being the original lessee and intermediate lessor,
grants a right to use the underlying asset to a third party, the head lease is recognised as lease
liability and sub-lease is recognised as lease receivables in the Balance Sheet of the Company.
Interest expense is charged on the lease liability and interest income is recognised on lease
receivables in the statement of profit or loss.

(vii) Foreign currencies

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 date of the transaction. 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 that are measured in terms of historical cost in a foreign currency are not
retranslated.

Exchange differences on monetary items are recognised in the statement of profit and loss in
the period in which they arise except for exchange differences on transactions designated as fair
value hedge.

(viii) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period to get ready for their intended
use or sale, are added to the cost of those assets, until such time the assets are substantially ready
for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

(ix) Employee benefits

The Company participates in various employee benefit plans. Post-employment benefits
either are classified as defined contribution plans or defined benefit plans. Under a defined
contribution plan, the Company’s only obligation is to pay a fixed amount with no obligation to
pay further contributions if the fund does not hold sufficient assets to pay all employee benefits.
The related actuarial and investment risks fall on the employee. The expenditure for defined
contribution plans is recognized as expense during the period when the employee provides
service. Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits
to the employees. The related actuarial risks fall on the Company. The present value of the
defined benefit obligations is calculated using the projected unit credit method.

Short-term employee benefits

All short-term employee benefits such as salaries, wages, bonus, and other benefits, which fall
within 12 months of the period in which the employee renders related services which entitles
them to avail such benefits and non-accumulating compensated absences are recognised on an
undiscounted basis and charged to the statement of profit and loss.

A liability is recognised for benefits accruing to employees in respect of wages and salaries in
the period the related service is rendered at the undiscounted amount of the benefits expected to
be paid in exchange for that service.

Defined contribution plan

The Company’s contribution to provident fund and employee state insurance scheme are
considered as defined contribution plans and are charged as an expense based on the amount of
contribution required to be made and when services are rendered by the employees.

Defined benefit plan

In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum
payment to eligible employees, at retirement or termination of employment based on the last
drawn salary and years of employment with the Company. The gratuity fund is unfunded.
The Company’s obligation in respect of the gratuity plan, which is a defined benefit plan, is
provided for based on actuarial valuation using the projected unit credit method. Actuarial gains
or losses are recognized in other comprehensive income. Further, the profit or loss does not
include an expected return on plan assets. Instead net interest recognized in profit or loss is
calculated by applying the discount rate used to measure the defined benefit obligation to the
net defined benefit liability or asset. The actual return on the plan assets above or below the
discount rate is recognized as part of re-measurement of net defined liability or asset through other
comprehensive income.

Remeasurement, comprising actuarial gains and losses is reflected immediately in the balance
sheet with charge or credit recognised in other comprehensive income in the period in which
they occur. Remeasurement recognised in other comprehensive income is reflected in retained
earnings and is not reclassified to the statement of profit and loss.

(x) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

a) Current tax: Current tax is the amount of tax payable on the taxable income for the year as
determined in accordance with the applicable tax rates and the provisions of the Income
Tax Act, 1961 and other applicable tax laws.

b) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is considered
as an asset if there is convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly
probable that future economic benefit associated with it will flow to the Company.

c) Deferred tax: Deferred tax is recognized using the balance sheet approach. Deferred tax
assets and liabilities are recognised 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 recognised for all
taxable temporary differences.

Deferred tax assets are generally recognised 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 utilised.

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 utilised.

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 realised, 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.

(xi) Property, Plant and Equipment

Land and buildings held for use in the production or supply of goods or services, or for
administrative purposes, are stated at cost less accumulated depreciation and accumulated
impairment losses. Freehold land is not depreciated. Property, plant and equipment are carried
at cost less accumulated depreciation and impairment losses, if any. The cost of property, plant
and equipment comprises its purchase price/ acquisition cost, net of any trade discounts and
rebates, any import duties and other taxes (other than those subsequently recoverable from
the tax authorities), any directly attributable expenditure on making the asset ready for its
intended use, other incidental expenses and interest on borrowings attributable to acquisition of
qualifying property, plant and equipment up to the date the asset is ready for its intended use.

Subsequent expenditure on property, plant and equipment after its purchase / completion is
capitalised only if such expenditure results in an increase in the future benefits from such asset
beyond its previously assessed standard of performance.

Depreciation on Property, plant and equipment (other than freehold land) has been provided on
the straight-line method as per the useful life prescribed in Schedule II to the Companies Act,
2013 except in respect of Lab equipments, in whose case the life of the assets has been assessed
as under based on technical advice, taking into account the nature of the asset, the estimated
usage of the asset, the operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturers warranties and maintenance support, etc.

The estimated useful life of the tangible assets and the useful life are reviewed at the end of each
financial year and the depreciation period is revised to reflect the changed pattern, if any.

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying amount of the asset and is recognised in
the statement of profit and loss.

(xii) Intangible Assets

Intangible assets are stated at cost less accumulated amortisation and impairment. Intangible
assets are amortised over their respective estimated useful lives on a straight-line basis, from the
date that they are available for use. The estimated useful life of an identifiable intangible assets
is based on a number of factors including the effects of obsolescence, demand, competition and
other economic factors (such as the stability of the industry and known technological advances)
and the level of maintenance expenditures required to obtain the expected future cash flows
from the asset.

Estimated useful lives of the intangible assets is 3 years. The estimated useful life of the
intangible assets and the amortisation period are reviewed at the end of the each financial year
and the amortisation period is revised to reflect the changed pattern, if any.

(xiii) Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the

carrying amount of the asset is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss. When an impairment loss subsequently reverses, the
carrying amount of the asset is increased to the revised estimate of its recoverable amount, but
so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset in prior years. A reversal of an
impairment loss is recognised immediately in profit or loss.

Goodwill is tested for impairment on an annual basis and whenever there is an indication that
goodwill may be impaired, relying on a number of factors including operating results, business
plans and future cash flows.

(xiv) Inventories

Inventories are stated at the lower of cost and net realizable value. The cost of raw materials and
traded items is determined on first-in-first-out basis.

Cost comprises all costs of purchase including duties and taxes (other than those subsequently
recoverable by the Company), freight inwards and other expenditure directly attributable to
acquisition. Work-in-progress and finished goods include appropriate proportion of overheads
and, where applicable, excise duty. Net realisable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale.

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Mar 31, 2024

2. MATERIAL ACCOUNTING POLICIES

(i) Statement of Compliance

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standard (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 read with section 133 of the Companies Act, 2013.

The Company has consistently applied accounting policies to all years. Comparative Financial information has been regrouped, wherever necessary, to correspond to the figures of the current year.

(ii) Basis of preparation and presentation

The standalone financial statements have been prepared on accrual basis under the historical cost convention except for the certain financial assets that are measured at fair values as required by relevant Ind AS.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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.

(iii) Use of estimates and judgement

The preparation of standalone financial statements in conformity with Ind AS, requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management’s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised 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.

Useful lives of property, plant and equipment:

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This re-assessment may result in change in depreciation expense in future periods.

Fair value of financial assets, liabilities, and investments:

The Company measures certain financial assets and liabilities on fair value basis at each balance sheet date or at the time, they are assessed for impairment. Fair value measurement that

are based on significant unobservable inputs (Level 3) requires estimates of operating margin, discount rate, future growth rate, terminal values, etc. based on management’s best estimate

about future developments.

(iv) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (i.e. the “functional currency”). The standalone financial statements are presented in Indian Rupee, the national currency of India.

(v) Revenue Recognition

Revenue is recognised upon satisfaction of performance obligations with respect to the goods or services as per the contracts with customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.

(a) Sale of goods: Revenue from the sale of products is recognised at the point in time when control of products is transferred to the customer.

(b) Sale of services: Revenue from services is recognised at the point of time when the performance obligations are fully satisfied.

Revenue is measured based on the transaction price, which is the consideration, net of customer incentives, discounts, variable considerations, payments made to customers, other similar charges, as specified in the contract with the customer. Additionally, revenue excludes taxes collected from customers, which are subsequently remitted to governmental authorities.

(c) Interest income: Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset of that asset’s net carrying amount on initial recognition.

(vi) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease i.e., if the contract conveys the right to control the use of an identified asset for a period in exchange of consideration.

Company as a lessee

The Company’s lease asset classes consist of leases for buildings. The Company, at the inception of a contract, assesses whether the contract is a lease or not lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration. This policy has been applied to contracts existing and entered into on or after April 1, 2019.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company’s incremental borrowing rate. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in

this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these leases as an expense over the lease term.

Company as a lessor

In case of sub-leasing, where the Company, being the original lessee and intermediate lessor, grants a right to use the underlying asset to a third party, the head lease is recognised as lease liability and sub-lease is recognised as lease receivables in the Balance Sheet of the Company. Interest expense is charged on the lease liability and interest income is recognised on lease receivables in the statement of profit or loss.

(vii) Foreign currencies

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 date of the transaction. 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 that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in the statement of profit and loss in the period in which they arise except for exchange differences on transactions designated as fair value hedge.

(viii) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period to get ready for their intended use or sale, are added to the cost of those assets, until such time the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

(ix) Employee benefits

The Company participates in various employee benefit plans. Post-employment benefits either are classified as defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans is recognized as expense during the period when the employee provides service. Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits to the employees. The related actuarial risks fall on the Company. The present value of the defined benefit obligations is calculated using the projected unit credit method.

Short-term employee benefits

All short-term employee benefits such as salaries, wages, bonus, and other benefits, which fall within 12 months of the period in which the employee renders related services which entitles them to avail such benefits and non-accumulating compensated absences are recognised on an undiscounted basis and charged to the statement of profit and loss.

A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Defined contribution plan

The Company’s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plan

In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The gratuity fund is unfunded. The Company’s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method. Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include an expected return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognized as part of re-measurement of net defined liability or asset through other comprehensive income.

Remeasurement, comprising actuarial gains and losses is reflected immediately in the balance sheet with charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected in retained earnings and is not reclassified to the statement of profit and loss.

(x) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

a) Current tax: Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

b) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company.

c) Deferred tax: Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognised 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 recognised for all taxable temporary differences.

Deferred tax assets are generally recognised 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 utilised.

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 utilised.

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 realised, 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.

(xi) Property, Plant and Equipment

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated. Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of property, plant and equipment comprises its purchase price/ acquisition cost, net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying property, plant and equipment up to the date the asset is ready for its intended use.

Subsequent expenditure on property, plant and equipment after its purchase / completion is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Depreciation on Property, plant and equipment (other than freehold land) has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of Lab equipments, in whose case the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

The estimated useful life of the tangible assets and the useful life are reviewed at the end of each financial year and the depreciation period is revised to reflect the changed pattern, if any.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss.

(xii) Intangible Assets

Intangible assets are stated at cost less accumulated amortisation and impairment. Intangible assets are amortised over their respective estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible assets is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

Estimated useful lives of the intangible assets is 3 years. The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of the each financial year and the amortisation period is revised to reflect the changed pattern, if any.

(xiii) Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Goodwill is tested for impairment on an annual basis and whenever there is an indication that goodwill may be impaired, relying on a number of factors including operating results, business plans and future cash flows.

(xiv) Inventories

Inventories are stated at the lower of cost and net realizable value. The cost of raw materials and traded items is determined on first-in-first-out basis.

Cost comprises all costs of purchase including duties and taxes (other than those subsequently recoverable by the Company), freight inwards and other expenditure directly attributable to acquisition. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

(xv) Provisions and contingencies

Provisions: A provision is recognised when the Company has a present obligation because of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount in the present value of those cash flows (when the effect of time value of money is material).

Contingent liabilities: Contingent liabilities are not recognised but are disclosed in notes to accounts.

(xvi) Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially recognised at fair value. Transaction costs that are directly attributable to financial assets and liabilities [other than financial assets and liabilities measured at fair value through profit and loss (FVTPL)] are added to or deducted from the fair value of the financial assets or liabilities, as appropriate on initial recognition. Transaction costs directly attributable to acquisition of financial assets or liabilities measured at FVTPL are recognised immediately in the statement of profit and loss.

(a) Non-derivative Financial assets: All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

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Mar 31, 2016

I. Significant Accounting Policies

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting policies and principles in India and Accounting Standards prescribed U/s 133 of the Companies Act, 2013, r. w. r The Companies (Indian Accounting Standard) Rules 2015, till the standards of accounting and any addendum thereto as prescribed by Central Government in consultation and recommendation of National Financial Reporting Authority and the existing standards shall continue to apply.

All the assets and liabilities have been classified as current and non-current as per the company’s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013.Based on the nature of products and the time between the acquisition of assets for processing and realization in cash and cash equivalent, the company has ascertained its operating cycle to be 12 months for the purpose of current and non- current asset classification of assets and liabilities.

The following are the other disclosures regarding applicable accounting standards and accounting policies followed by the company,

1) AS — 1-Basis of Preparation and Presentation of Financial Statements

As per AS-1 the financial statements of the Company shall present true and fair views on the financial position, financial performance and cash flows of the entity. The company has not offset any of the assets and liabilities and income and expenses unless otherwise required by the AS. The management concluded that the company has complied with all the provisions of AS -1 like assessment of going concern concept, even though there are no production activities in the factories of the company and no income from revenue operations. The company is in negotiation with interested parties for revamping the facilities of the company for new project. The management further confirmed that the company abides by the provisions of AS — 1 like recognition of assets, liabilities, income and expenses based on accrual concept of accounting, and materiality concept.

2) Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known or materialized.

3) AS - 10 Fixed Assets

Fixed assets are stated at cost. The cost of fixed assets comprises purchase price and any attributable cost bringing the fixed assets to its working condition for its intended use. The company has accounted the fixed assets as per the provisions contained in Accounting Standard 10”Accounting for Fixed Assets”. The fixed asset shown in the financial statements of the company is net of depreciation as per Schedule II of the Companies Act, 2013. As per the Schedule II of the Companies Act, 2013 the assets whose useful life was totally expired should be adjusted in Retained earnings of the company after retaining 5% of the original cost and after setting of the corresponding accumulated depreciation.

4) AS — 6 Depreciation Accounting

Depreciation is charged as per the Schedule II of The Companies Act, 2013. There is a change in method of computing depreciation as compared to last year, because of introduction of Companies Act, 2013. The rate applicable for each asset cease to exist and the concept of useful life of asset comes in the place of rate of depreciation. As per the Schedule II the assets of the company depreciates over the useful life as mentioned in the schedule. As the initial year of application of Schedule II, the depreciable amount is the opening WDV less its residual value, which is 5% of the original cost, the depreciable amount is depreciated over remaining useful life of the asset. The depreciation of the assets purchased during the year is calculated on pro-rata basis.

5) AS-2 Inventories

Inventories includes raw materials, packing materials and finished goods, which are valued at lower of cost or realizable value as per Accounting Standard — 2 of Institute of Chartered Accountants of India. The costs of inventories comprise of all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. For assigning cost to each inventory item First In First Out method is used. Due allowance is estimated and made for defective and obsolete items based on past experience. Even though the production activities of the company were suspended for last two years the management confirmed that there exist inventories as shown in the balance sheet and are in saleable condition.

6) Contingent Liabilities

These are disclosed by way of notes in the Balance sheet. Provision is made in the accounts in respect of those contingencies which are likely to materialize in to liabilities after the year end, till the finalization of accounts and have material effect position stated in the Balance sheet.

7) Deferred Tax

The difference aroused between the taxable income and accounting income is permanent in nature which was due to difference depreciation as per Companies Act and Income Tax Rules and it will result in deferred tax asset, since there is no virtual certainty of taxable income in the near future of the Company, the Company has not provided in the books of account the effect of deferred tax as per the norms and provisions of Accounting Standard — 22 “ Taxes on Income” issued by the Institute of Chartered Accountants of India.

8) Investments

Investments are readily realizable and are held for not more than one year from the date on which such investments are made are classified as current investments. All other investments are classified as non -current investments. Current investments are carried at cost or fair value whichever is lower. Long term investments are carried at cost.

9) Impairment of Assets

The carrying amounts of assets are reviewed at Balance sheet date if there is any indication of impairment based on internal/ external factors. As per AS-28 Impairment of assets, an asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount. In the absent of realizable value of assets of the company, the decrease or increase in value of assets has not been quantified. Hence the impairment of assets has not been quantified and the impairment of assets could not be ascertained

10) Employee Benefits

The current service costs of employees are charged to statement of profit/ loss. The contribution of the company to the defined contribution schemes like EPF and ESIC are charged to statement of profit/loss. Since the production activity was suspended and all the employees in the roll are agreed for wages up to November 2011, no provision is made during the year under audit for wages.

11) Earnings Per Share

Earnings per share are calculated by dividing the net profit or loss for the period attributable to equity share holders by the number of equity shares outstanding during the period end. Since the company has only one category of shares the basic and diluted earnings per share is same.

12) Government Grants

The company follows the policy of treating the grants/subsidies received from various government agencies as “Capital Reserves” in the Financial Statements. The amount which was received in the earlier years comes to Rs.77, 67,508/- as subsidies of various assets. Since the introduction of Companies Act 2013, the useful life of the assets which stood against the subsidy received was totally expired and the company adjusted the value in accumulated profits after retaining 5% of the original cost of the assets as per the Schedule II of the Companies Act, 2013. Therefore the subsidy in the financial statement effectively does not representing any of the fixed asset from the financial year 2014-15.

13) Related Party Transactions

During the year under audit the company had taken an interest free temporary loan from a related party who holds substantial shareholding in the Company. The followings are the details of related party transactions as defined in AS 18 Related Party Disclosures.

II. Regarding the Assessment Year 2004-05 the appeal filed by the Company before the Income Tax Appellate Tribunal has been partly allowed, but the order giving effect to this order has not yet been passed by the department. The Company intends to take up the matter before the Honorable High Court of Kerala.

III. Out of the total extent of land measuring 99.92 acres purchased at Ulundurpet, 54 acres of land come under Urban Land Ceiling Act. The application for exemption from Land ceiling is pending before the Government the clearance for the land admeasuring 99.92 Acres has not been granted by Pollution Control Board because of the stretch of land falling within one kilometer from the banks of the river. In the light of the land ceiling act, the possibilities for disposal of lands possess difficult. In absence of reasonable marketable value, the increase or decrease in the value of the land is not ascertainable.

IV. The company filed application to BIFR as a sick industrial Company and stands registered as case No.101/2005 dt.28.03.2005.BIFR has appointed Bank of Baroda, as the Operating Agency. The Company has submitted a revival proposal to the Bank Baroda.

V Company does not possess full information as to, which of its suppliers are small scales industrial undertakings holding permanent registration certificate issued by the relevant authorities. Therefore the company did not categorize its suppliers as regulations under MSMED Act.

VI. The operations of the company relate only to one segment viz., manufacture and sale of chemicals. But the operations of the company were suspended since last two years. So there is no revenue from this segment.

VII. The balance under deposits made by the company with different authorities and various other parties were not confirmed as on 31st March 2016. The following are the details.

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

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Mar 31, 2015

Not available

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Mar 31, 2014

I. Fixed Assets are stated at their original cost including taxes, duties, freight and other incidental expenses related to acquisition, as reduced by Cenvat Credit.

II. Depreciation has been provided on Plant and Machinery on a straight line method on historical book cost and in respect of other fixed assets on Written Down Value method, as per schedule XIV of the Companies Act 1956

III. Valuation of Inventories as per AS-2 of ICAI:-

Raw Materials, Stores & spares are valued at cost, finished goods at cost or net realizable value whichever is less including excise duty'' payable and work —in-process at cost.

IV. Investments are valued at cost except those where permanent diminution has arisen for which due provision has been made. Dividends are accounted as and when declared and received.

V. Leave payments to employees are accounted as and when claimed and paid.

VI. The company had been following the system where Retirement Benefits were provided in the books of accounts and payments were made to Life Insurance Corporation of India on the basis of actuarial principles. However no provision has been made during the current year

VII. Excise Duty on the closing stock of finished goods at the factory is included in the valuation of stock-in-trade. This will have no effect on the working results of the company.

VIII. Foreign Exchange transactions (monetary items) remaining unsettled at the end of the period are converted at the rates prevailing on the last day of the period.

IX. The Subsidies of capital nature received or receivable are accounted as capital reserves.

The subsidies of revenue nature, if any, are taken as income.

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Mar 31, 2012

I. Fixed Assets are stated at their original cost including taxes, duties, freight and other incidental expenses related to acquisition, as reduced by Cenvat Credit.

II. Depreciation has been provided on Plant and Machinery on a straight line method on historical book cost and in respect of other fixed assets on Written Down Value method, as per schedule XIV of the Companies Act 1956

III. Valuation of Inventories as per AS-2 of ICAI:-

Raw Materials, Stores & spares are valued at cost, finished goods at cost or net realizable value whichever is less including excise duty payable and work -in- process at cost.

IV. Investments are valued at cost except those where permanent diminution has arisen for which due provision has been made. Dividends are accounted as and when declared and received.

V. Leave payments to employees are accounted as and when claimed and paid.

VI. The company had been following the system where Retirement Benefits were provided in the books of accounts and payments were made to Life Insurance Corporation of India on the basis of actuarial principles. However no provision has been made during the current year

VII. Excise Duty on the closing stock of finished goods at the factory is included in the valuation of stock-in-trade. This will have no effect on the working results of the company.

VIII. Foreign Exchange transactions (monetary items) remaining unsettled at the end of the period are converted at the rates prevailing on the last day of the period.

iX. The Subsidies of capital nature received or receivable are accounted as capital reserves. The subsidies of revenue nature, if any, are taken as income.

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Mar 31, 2010

I. Fixed Assets are stated at their original cost including taxes, duties, freight and other incidental expenses related to acquisition, as reduced by Cenvat Credit.

II. Depreciation has normally been provided on Plant and Machinery on a straight line method on historical book cost and in respect of other fixed assets on Written Down Value method, as per schedule XIV of the Companies Act 1956

III. Valuation of Inventories as per AS-2 of ICAI:-

Raw Materials, Stores & spares are valued at cost, finished goods at cost or net realizable v:,ue whichever is less including excise duty payable and work -in- process at cost.

IV. Investments are valued at cost except those where permanent diminution has arisen for which due provision has been made. Dividends are accounted as and when declared and received.

V Leave payments to employees are accounted as and when claimed and paid.

VI. The company had been following the system where Retirement Benefits were provided in the books of accounts and payments were made to Life Insurance Corporation of India on the basis of actuarial principles. However no provision has been made during the current year

VII. Excise Duty on the closing stock of finished goods at the factory is included in the valuation of stock-in-trade. This will have no effect on the working results of the company.

VIII. Foreign Exchange transactions (monetary items) remaining unsettled at the end of the period are converted at the rates prevailing on the last day of the period.

IX. The Subsidies of capital nature received or receivable are accounted as capital reserves. The subsidies of revenue nature, if any, are taken as income.