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Accounting Policies of Astec Lifesciences Ltd. Company

Mar 31, 2017

Note 1 : Significant accounting policies General Information

Astec Life Sciences Ltd. ("the Company") is a public limited company, which is domiciled and incorporated in the Republic of India with its registered office situated at "Godrej One", 3rd Floor, Pirojshanagar, Eastern Express Highway, Vikhroli (East), Mumbai- 400 079, Maharashtra.(*) The Company was incorporated under the Companies Act, 1956 on January 25, 1994. The Company manufactures a wide range of Agrochemical active ingredients and pharmaceutical intermediates.

Significant accounting policies

(a) Basis of preparation

(i) Compliance with Ind AS

The standalone 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 up to year ended March 31, 2016 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.

These financial statements are the first financial statements of the Company under Ind AS. Refer note 42 for an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

- certain financial assets and liabilities (including derivative instruments) that is measured at fair value.

defined benefit plans - plan assets measured at fair value; and

- share-based payments

(b) Key estimates and assumptions

In preparing these financial statements in accordance with Ind AS, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts in the balance sheet and statement of profit and loss. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Judgement, estimates and assumptions are required in particular for:

(i) Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations. - Refer Note 18

(ii) Recognition and measurement of other provisions

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore, vary from the amount included in other provisions. - Refer Note 18

(iii) Fair valuation of employee share options

The fair valuation of the employee share options is based on the Black-Scholes model used for valuation of options. Key assumptions made with respect to expected volatility includes share price, expected dividends and discount rate, under this option pricing model. - Refer Note 41

(iv) Fair value of financial instruments

Derivatives are carried at fair value. Derivatives includes foreign currency forward contracts. Fair value of foreign currency forward contracts are determined using the fair value reports provided by respective bankers. - Refer Note 12 and 21.

(c) Foreign currency translation 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 entity operates (''the functional currency'') The Indian Rupee (?) is the functional and presentation currency of the company.

Transactions and balances

Foreign currency transactions are translated into the respective functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized in profit or loss.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the statement of profit and loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit and loss on a net basis within Loss on Exchange Rates & Forward Exchange Contracts. on-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

(d) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable including export incentives. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates, and amounts collected on behalf of third parties.

When the Company acts in the capacity of an agent rather than as the principal in a transaction, the revenue recognized is the net amount as a processing income earned by the company.

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and when significant risks and rewards of ownership in the goods are transferred to the buyer.

(e) Income tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in India. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

(f) Financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

those to be measured subsequently at fair value (either through other comprehensive income, or through statement of profit and loss), and

- those measured at amortized cost.

(ii) Initial recognition & measurement

At initial recognition, the Company measures a financial asset at fair value plus, in the case of a financial asset not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

(iii) Equity investments (other than investments in associates and joint venture)

All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as FVOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

(iv) Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company''s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party ; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset

When the Company has transferred its rights to receive cash flows from an asset , it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

(v) Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

- Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, deposits, and bank balance.

- Trade receivables - The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the sanctioned credit limits, security like letters of credit, security deposit collected etc. and expectations about future cash flows.

(g) Financial liabilities

(i) Classification

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

The Company classifies all financial liabilities as subsequently measured at amortized cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.

(ii) Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable and incremental transaction cost.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

(iii) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

(h) Leases

Determining whether an arrangement contains a lease:

At inception of an arrangement, it is determined whether the arrangement is or contains a lease.

At inception or on reassessment of the arrangement that contains a lease, the payments and other consideration required by such an arrangement are separated into those for the lease and those for other elements on the basis of their relative fair value. If the arrangement is concluded as a finance lease, then present it as a finance lease in their balance sheets and present them as a receivable at an amount equal to the net investment in the lease. The asset is reduced as payments are received and finance income is recognized based on a pattern reflecting a constant periodic rate of return on the less or’s net investment in the finance lease.

As a less or

Finance leases are capitalized at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease receivable. The corresponding income, are included in other financial assets as appropriate. Each installment of lease receivable is allocated between the financial asset and interest income on finance lease. The finance income is recognized to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the asset for each period.

As a lessee

Payments made under operating leases are recognized in profit or loss on a straight line basis over the term of the lease unless such payments are structured to increase in line with expected general inflation to compensate for the less or’s expected inflationary cost increase.

(i) Impairment of assets

Intangible 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 which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

(j) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and Chief Operating Officer of the Company. The Company has identified only one segment i.e. Agrochemicals as reporting segment based on the information reviewed by CODM.

(k) Inventories

Raw materials and stores, work in progress, traded and finished goods

Raw materials and stores, work in progress, traded and finished goods are stated at the lower of cost and net realizable value. Cost of raw materials and traded goods comprises cost of purchases. Cost of work-in progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Cost includes the reclassification from equity of any gains or losses on qualifying cash flow hedges relating to purchases of raw material but excludes borrowing costs. Costs are assigned to individual items of inventory on the basis of weighted average price. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(l) Derivatives and hedging activities

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated.

The Company documents at the inception of the hedging transaction the economic relationship between hedging instruments and hedged items including whether the hedging instrument is expected to offset changes in cash flows of hedged items. The Company documents its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge relationship.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.

(i) Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the other comprehensive income in cash flow hedging reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, with in other income.

When forward contracts are used to hedge forecast transactions, the Company may designate the full change in fair value of the forward contract (including forward points) as the hedging instrument. In such cases, the gains and losses relating to the effective portion of the change in fair value of the entire forward contract are recognized in the cash flow hedging reserve within equity.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss .

When the hedged forecast transaction results in the recognition of a non-financial asset, the amounts accumulated in equity are transferred to profit or loss as follows:

With respect to gain or loss relating to the effective portion of the spot component of forward contracts, both the deferred hedging gains and losses and the deferred aligned forward points are included within the initial cost of the asset. The deferred amounts are ultimately recognized in profit or loss as the hedged item affects profit or loss.

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast transaction occurs. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss within other gains/(losses).

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in profit or loss at the time of the hedge relationship rebalancing.

(ii) Derivatives that are not designated as hedges

The Company enters into certain derivative contracts to hedge risks which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss.

(m) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

(n) Property, plant and equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or 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 a 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.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognized as at April 1, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives specified in schedule II to the Companies Act, 2013 except for the following:

(a) Plant and Machinery:

Based on the condition of the plants, regular maintenance schedule, material of construction, external and internal assessment and past experience, the Company has considered useful life of Plant and Machinery as 20 years.

(b) Computer Hardware:

Depreciated over its estimated useful life of 4 years.

(c) Leasehold Land:

Amortized over the primary lease period.

(d) Leasehold improvements and equipments:

Amortized over the Primary lease period or 16 years whichever is less

Assets costing less than '' 5,000 are fully depreciated in the year of purchase/acquisition. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

An asset''s carrying amount is written down immediately 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 or loss within other gains/(losses).

(o) Intangible assets

(i) Computer software

Recognition and measurement

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the asset can be measured reliably.

Intangible assets viz. Computer software and product registration, which are acquired by the Company and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

The cost of intangible assets at April 1, 2015, the Company''s date of transition to Ind AS, was determined with reference to its carrying value at that date.

Amortization

Amortization is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognized in profit or loss.

The intangible assets are amortized over the estimated useful lives as given below:

- Computer software : 6 years

- Product Registration : 5 years

(ii) Research and development

Revenue expenditure on research & development is charged to the Statement of Profit and Loss of the year in which it is incurred.

Capital expenditure incurred during the period on research & development is accounted for as an addition to property, plant & equipment.

(p) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Other borrowing costs are expensed in the period in which they are incurred.

(q) Provisions

Provisions for legal claims, volume discounts and returns are recognized 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 reliably estimated. Provisions are not recognized for future operating losses

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably not, require an outflow of resources. When there is a possible obligation of a present obligation in respect of which the likelihood of outflow of resources is remote, no provision disclosure is made.

A contingent asset is not recognized but disclosed in the financial statements where an inflow of economic benefit is probable.

(r) Employee benefits

(i) Short-term obligations

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. The Company has a scheme of Performance Linked Variable Remuneration (PLVR) which rewards its employees based on either Economic Value Added (EVA) or Profit before tax (PBT). The PLVR amount is related to actual improvement made in either EVA or PBT over the previous year when compared with expected improvements.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity, and

(b) defined contribution plans such as provident fund.

Gratuity obligations

The following post - employment benefit plans are covered under the defined benefit plans: Gratuity :

The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the

Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due.

(iv) Share-based payments

Share-based compensation benefits are provided to employees via the Astec Life Sciences Limited Employee Stock Option Plan.

Employee options

The fair value of options granted under the Astec Life Sciences Limited Employee Stock Option Plan is recognized as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:

- including any market performance conditions (e.g., the entity''s share price)

- excluding the impact of any service and non-market performance vesting conditions (e.g. profitability, sales growth targets and remaining an employee of the entity over a specified time period), and

including the impact of any non-vesting conditions (e.g. the requirement for employees to save or holdings shares for a specific period of time).

The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

(v) Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

(s) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

(t) Cash and cash equivalents

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

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

(u) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(v) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakh as per the requirement of Schedule III, unless otherwise stated.

Property, plant and equipment pledged as security

Refer to Note 17 and 19 for information on property, plant and equipment and other intangible assets pledged as security by the company.

Significant Estimates: Useful life of Product registration / Software

The company estimates the useful life of the product registration to be 5 years based on the validity/life of the product registered. As at March 31, 2017, the net carrying amount of the Product Registration is '' 98.72 Lakh (March 31, 2016 : Rs, 155.13 Lakh)

The company estimates the useful life of the software to be 6 years as per the companyRs,s accounting policy. The company has recently capitalized the SAP software in the current year. As at March 31, 2017, the net carrying amount of the Computer Software is Rs, 252.19 Lakh (March 31, 2016 : Rs, 8.80 Lakh)

Nature and purpose of reserves:

(i) Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares.The reserve is utilised in accordance with the provisions of the act.

(ii) Shares options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under Employee stock option scheme.

(iii) Capital redemption reserve

Capital redemption reserve was created for buy back of shares. The company may issue fully paid-up bonus shares out of the capital redemption reserve.

(iv) Cash flow hedging reserve

The company uses hedging instruments as part of its management of foreign currency risk associated with its foreign currency borrowings. For hedging foreign currency risk, the company uses foreign currency forward contracts which are designated as cash flow hedges. To the extent these hedges are effective, the change in fair value of the hedging instrument is recognized in the cash flow hedging reserve. Amounts recognized in the cash flow hedging reserve is reclassified to profit or loss when the hedged item affects profit or loss.

Details of security:

a) Term Loans and foreign currency loan from banks are secured by way of first mortage/charge over entire movable and immovable fixed assets (present and future) of the company and second pari-passu charge over current assets of the company.

b) Vehicle loans are secured by first charge on the vehicle specifically financed out of loan.

(A) Other Provisions

(i) Information about individual provisions and significant estimates Provision for sales return

Provision is made for estimated Sales return in respect of products sold which are sold in the current reporting period. When a customer has a right to return the product within a given period, the company recognises a provision for returns. This is measured on a net basis at the margin on the sale. Revenue is adjusted for the expected value of the returns and cost of sales are adjusted for the value of corresponding goods to be returned.

(B) Provision for employee benefit obligation

The Company contributes to the following post-employment plans in India.

Defined Contribution Plans:

The Company pays provident fund contributions to publicly administered provident funds as per local regulations and are recognized as expense in the Statement of Profit and Loss during the period in which the employee renders the related service. There are no further obligations other than the contributions payable to the appropriate authorities.

The Company recognized Rs, 56.67 Lakh for the year ended March 31, 2017 (March 31, 2016 Rs, 35.52 Lakh) towards provident fund contribution.

Defined Benefit Plan:

The Company''s gratuity and leave encashment/long-term compensated absences schemes are defined benefit plans. The Company''s liability for the defined benefit schemes is actuarially determined based on the projected unit credit method. The Company''s net obligations in respect of such plans is calculated by estimating the amount of future benefit that the employees have earned in return for their services and the current and prior periods that benefit is discounted to determine its present value and the fair value of the plan asset is deducted. Actuarial gains and losses are recognized in Other Comprehensive Income.

In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan which provides for gratuity payments. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. Trustees administer the contributions made by the Company to the gratuity scheme.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme was carried out as at March 31, 2017. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

v. Expected future cash flows

The expected future cash flows in respect of gratuity as at March 31, 2017 were as follows Expected contribution

The expected contributions for defined benefit plan for the next financial year will be in line with the contribution for the year ended March 31, 2017, i.e. Rs, 13.81 Lakh.

Other long-term employee benefits:

Provision for compensated absences

Compensated absences are payable to employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement. The charge towards compensated absences for the year ended March 31, 2017 based on actuarial valuation using the projected accrued benefit method is Rs, 11.17 Lakh.

Compensated absences (Leave encashment) is payable to eligible employees who have earned leaves, during the employment and/ or on separation as per the Group''s policy.

Terminal Benefits: All terminal benefits including voluntary retirement compensation are fully written off to the Statement of Profit

& Loss

Incentive Plans: The Company has a scheme of Performance Linked Variable Remuneration (PLVR) which is fully written off to the Statement of Profit & Loss. The Scheme rewards its employees based on Economic Value Addition (EVA), which is related to actual improvement made in EVA over the previous period when compared with expected improvements.

Details of security:

All the current borrowings (Note 19 above) are secured by way of First Pari passu Charge on the Current Assets of the Company, including inventory and receivables both present & future and second charge on Fixed Assets of the company present & future (including Equitable Mortgage/Hypothecation of Factory Land & Bldg/Plant & Machinery).

There is no outstanding amount overdue as on March 31, 2017 to Micro, small and medium enterprises on account of principal or interest (March 31, 2016 : Nil, April 1, 2015 : Nil)

There was no Unpaid / Unclaimed Dividend amount required to be transferred to Investor Education and Protection Fund (IEPF) during the Financial Year 2016-17 as per the provisions of Section 124 and 125 of the Companies Act, 2013.

Critical estimates - Sales return provision

The company has recognized revenue on sale to customers during the above period. The customers have the right to return the goods if they are not satisfied. The company believes that the dissatisfaction rate will not exceed 1%. The company has, therefore, recognized revenue on this transaction with a corresponding provision is reflected in Note 18 against revenue for estimated returns. If the estimate changes by 1%, revenue will reduce by Rs, 158.27 Lakh.

Information concerning the classification of securities

Options granted to employees under the Astec LifeSciences Limited Employee stock option plan/scheme are considered to be potential equity shares. They have been included in the determination of diluted earnings per share to the extent to which they are dilutive. The options have not been included in the determination of basic earnings per share. Details relating to the options are set out in Note 41.


Mar 31, 2016

b) Details of security for Secured Borrowings

(a) Term Loans from banks are secured by way of first mortgage/charge over entire movable and immovable Fixed Assets (Present and Future) of the Company and second pari-passu charge over Current Assets of the Company.

(b) Loans repayable on demand from Banks (Working Capital Loans) are secured by first pari-passu charge on the entire Current Assets of the Company both present and future and further secured by second pari-passu charge on entire Fixed Assets (Present and Future) of the Company.

(c) Vehicle Loans - The loan is secured by first charge on the vehicle specifically financed out of loan.

c) Terms of repayment of term Loans

Term Loans (Foreign Currency) of Rs.6,02,59,723/- from IDBI Bank Limited (Previous Year Rs.11,34,64,445/-) having Interest rate of 6 months LIBOR Plus 3.50% and service fees @ 3% p.a. are repayable in 8 semiannual Installments. Last Installment will be due on 1st January, 2017. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Term Loan of Rs.4,44,44,440/- (Previous Year Rs.6,11,11,108/- ) from IDBI Bank Limited having Interest rate of BBR Plus 3% which is 13% (Previous Year - 13.25%) are repayable in 18 Quarterly Installments of Rs.55,55,556/- each. Last Installment will be due on 31st December, 2018. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Term Loans (FCNR) of Rs.6,50,00,000/- from ICICI Bank Limited (Previous Year Rs.2,54,83,154/-) having Interest rate of 12.55% are repayable in 16 equal Quarterly Installments starting from the April 2016. The Loan is fully hedged. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.60,20,338/- from BMW Financials Services (Previous year Nil) was taken during the Financial Year 2015-16 and having interest @ 9.5 % p.a. The Loan is repayable in 60 monthly installments along with interest starting from December 2015. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.32,70,831/- from Daimier Financial Services India Private Limited (Previous Year Rs.39,90,000/-) was taken during the Financial Year 2014-15 and having interest @ 11.01 % p.a. The Loan is repayable in 60 monthly installments along with interest starting from April 2015. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.6,53,977/- from ICICI Bank Limited (Previous year Rs.8,19,522/-) was taken during the Financial Year 2014-15 and having interest @ 10.74 % p.a. The Loan is repayable in 60 monthly installments along with interest starting from November 2014. Installments falling due in respect of the loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.4,60,932/- from Kotak Mahindra Prime Limited (Previous year Rs.7,08,219/-) was taken during the Financial Year 2015-16 and having interest @ 10.76 % p.a. The Loan is repayable in 35 monthly installments along with interest starting from January 2015. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.1,40,461/- from Axis Bank Limited (Previous year Rs.2,65,942/-) was taken during the Financial Year 2012-13 and having interest @ 11.33 % p.a. The Loan is repayable in 60 monthly installments along with interest starting from May 2012. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Loans repayable on demand consists Cash Credit, Working Capital Demand Loan, Packing Credit, Buyers Credit & Overdraft Facilities, having Interest rate of 9.5% to 17% for Facilities other than Buyers Credit and for Buyers Credit having interest rate @ 3 months LIBOR plus 100 BPS to LIBOR plus 115 BPS.

Loan from Related Parties (Unsecured) - Loan from Related Parties amounting Rs. 30,00,00,000/from Cream line Dairy Products Limited was taken during the Financial Year 2015-16 and is repayable on demand having interest rate of 10%.


Mar 31, 2015

The accounting policies set out below have been applied consistently to the periods presented in these financial statements.

a) Basis of preparation of financial statements

The accompanying financial statements have been prepared in compliance with the requirements under Section 133 of the Companies Act, 2013 (to the extent notified) ('the Act'), read with Rule 7 of the Companies (Accounts) Rules, 2014, and other generally accepted accounting principles (GAAP) in India, to the extent applicable, under the historical cost convention, on the accrual basis of accounting. GAAP comprises mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006.

b) Use of estimates

The preparation of financial statements in conformity with GAAP in India requires management to make estimates and assumptions that affect the reported amounts of income, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and expenses during the period reported. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements, actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Current/ Non-current classification

The Schedule III to the Act requires all assets and liabilities to be classified as either current or non- current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realised in, or is intended for sale or consumption in, the entity's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within twelve months after the balance sheet date;

(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(a)it is expected to be settled in, the entity's normal operating cycle;

(b)it is held primarily for the purpose of being traded;

(c)it is due to be settled within twelve months after the balance sheet date; or

(d)the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.

All other liabilities are classified as non-current.

Operating cycle

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out above which are in accordance with the revised Schedule III to the Act.

Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non-current classification of assets and liabilities

d) Fixed assets and capital work-in-progress

Tangible assets

Fixed assets, both tangible and intangible, are stated at cost of acquisition/construction or at revalue amount less accumulated depreciation and impairment, if any. Cost includes purchase price, taxes, duties, freight and other directly attributable expenses of bringing the assets to its working condition for the intended use. Borrowing costs and exchange gain/loss on long term foreign currency loans attributable to acquisition, construction of qualifying asset (i.e. assets requiring substantial period of time to get ready for intended use) are capitalised. Other pre-operative expenses for major projects are also capitalised, where appropriate.

Capital Work-in-Progress comprises outstanding advances paid to acquire Fixed assets and cost of Fixed Assets that are not yet installed.

Intangible assets

Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment loss. Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates.

Depreciation and amortisation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation on tangible fixed assets 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 the following categories of assets, wherein 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:

Leasehold land is amortised over the duration of the lease.

Pursuant to the Act, being effective from 1 April 2014, the Company has revised the depreciation rates on fixed assets as per the useful life specified in Part 'C of Schedule II of the Act. Consequently, depreciation charge for the period from 1 April 2014 to 31 March 2015 is lower by Rs 48.91 Millions due to change in the estimated useful life of certain assets wherein the opening carrying value as at 1 April 2014 is depreciated over the remaining useful life. Written down value of the assets with balance useful life Nil of Rs 0.85 Million has been charged off to Profit & Loss Account.

e) Impairment of assets

In accordance with AS 28 'Impairment of Assets', the carrying amounts of the Company's assets are reviewed at each Balance Sheet date to determine whether there is any impairment. Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Impairment loss is recognised in the statement of profit and loss or against revaluation surplus, where applicable. If at the balance sheet date there is an indication that previously assessed impairment loss no longer exists the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to maximum of depreciated historical cost.

f) Investments

Long term investments are carried at cost. Provision for diminution, is made to recognise a decline, other than temporary in the value of long term investments and is determined separately for each individual investment. The fair value of a long term investment is ascertained with reference to its market value. Current investments are carried at lower of cost and fair value, computed separately in respect of each category of investment. Any gain or loss on disposal of an investment is recognised in the statement of profit and loss.

g) Inventories

Raw material, packing material, stores, spares and consumables are valued 'at cost'. Work-in-progress and finished goods are valued at lower of cost and net realisable value. Cost Comprises all the cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

h) Sales

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer, and is stated net of trade discount and exclusive of sales tax but inclusive of excise duty. Interest income is recognised on time proportion basis.

i) Foreign currency transactions

Initial recognition

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange difference, if any, arising out of transactions settled during the year are recognized in the Profit and Loss account.

Monetary Assets and Liabilities denominated in foreign currencies as at the Balance Sheet date are translated at closing exchange rate on that date. The exchange differences if any, are recognized in the Profit and Loss account and related Assets and Liabilities are accordingly restated in the Balance Sheet.

j) Retirement Benefits

Provision for Gratuity and Leave Encashment are made and provided on actuarial valuation basis. Other retirement benefits are accounted as per Company's policy.

k) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments/deposit with a original maturity of three months or less.

I) Proposed Dividend

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General meeting.

m) Provisions and contingencies

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

Provision reviews at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent liabilities are disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent Liabilities are not recognised but are disclosed in the notes.

n) Earnings per share (EPS)

Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted EPS is calculated using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year except where the result would be anti dilutive.

o) Excise Duty and Custom Duty

Excise Duty/ Custom Duty has been accounted on the basis of payments made in respect of goods cleared. Centavos raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

p) Segment Reporting

In accordance with the requirements of Accounting Standard -17, Segment Reporting issued by The Institute of Chartered Accountants of India, The Company's Business Segment is "Manufacturing of Agrochemicals" and hence it has no other reportable segment.


Mar 31, 2014

1. Basis of preparation of Financial statement

(a) These Financial statement has been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the accounting principles in India, the applicable accounting standards notified under 211 (3C) and the other relevant provisions of the Companies Act, 1956.

(b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Use of Estimates

The preparation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial the reported amounts of revenues and expenses during the reporting period. Differences between actual results are recognized in the period in which the results are known/materialized.

3. Fixed Assets & Capital Work-In-Progress

(a) Fixed Assets are accounted at cost of acquisition or construction less depreciation. The company capitalized all direct and indirect costs relating to the acquisition and installation of fixed assets, interest on borrowed funds, if any used to finance acquisition / construction of fixed assets are ready for commercial use.

(b) Capital Work-In-Progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet installed.

4. Depreciation and Amortization

a) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

b) Leasehold land is amortized over the period of lease.

5. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

6. Inventories

Inventories of Raw Materials, Packing Material, Stores and Spares are valued ''At Cost''. Finished Goods and work in Progress are stated ''at Cost or Net Realisable Value'' whichever is lower''. Cost Comprise all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. Investments

Investments are classified into current and long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost.

8. Impairment of Fixed Assets

At each Balance Sheet date, the company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

9. Excise Duty and Customs Duty

Excise duty / Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

10. Segment Reporting

In accordance with the requirement of Accounting Standard - 17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Company''s Business Segment is "Manufacturing of Agro and Pharma Chemicals" and hence it has no other reportable segment.

11. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences, if any, are recognized in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet.

12. Retirement Benefits

Provision for Gratuity is made and provided on actuarial valuation basis. Other retirement benefits are accounted as per company''s policy.


Mar 31, 2013

1. Basis of preparation of Financial statement

(a) These Financial statement has been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under 211 (3C) and the other relevant provisions of the Companies Act, 1956.

(b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial the reported amounts of revenues and expenses during the reporting period. Differences between actual results are recognized in the period in which the results are known/ materialized.

3. Fixed Assets & Capital Work-In-Progress

(a) Fixed Assets are accounted at cost of acquisition or construction less depreciation. The Company capitalized all direct and indirect costs relating to the acquisition and installation of fixed assets, Interest on borrowed funds, if any used to finance acquisition / construction of fixed assets are capitalized till the date of Commercial production.

(b) Capital Work-In-Progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet installed.

4. Depreciation and Amortization

a) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

b) Leasehold land is amortized over the period of lease.

5. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

6. Inventories

Inventories of Raw Materials, Packing Material, Stores and Spares are valued ''At Cost''. Finished Goods and work in Progress are stated ''at Cost or Net Realisable Value'' whichever is lower''. Cost Comprise all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. Investments

Investments are classified into current and long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost.

8. Impairment of Fixed Assets

At each Balance Sheet date, the Company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

9. Excise Duty and Customs Duty

Excise duty / Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

10. Segment Reporting

In accordance with the requirement of Accounting Standard – 17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Company''s Business Segment is "Manufacturing of Agro and Pharma Chemicals" and hence it has no other reportable segment.

11. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences, if any, are recognized in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet.

12. Retirement Benefits

Provision for Gratuity & Leave encashment are made and provided on actuarial valuation basis. Other retirement benefits are accounted as per Company''s policy.

13. Earning per share (EPS)

The numerator and denominator used to calculate Basic and Diluted Earning per Share:


Mar 31, 2012

I. Basis of preparation of financial statements

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under 211 (30 and the other relevant provisions of the Companies Act, 1956.

The company generally fallows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

II. Use of Estimates

The preparation or financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial the reported amounts of revenues and expenses during the reporting period. Differences between actual results and are recognised in the period in which the results are known/materialised.

III. Fixed Assets and Capital Work in Progress

a) Fixed assets as accounted at cost of acquisition or construction less depreciation. The company capitalised all direct and indirect costs relating to the acquisition and installation of fixed assets. Interest on borrowed funds, if any used to finance acquisition/construction of fixed assets are capitalised till date of commercial production.

b) Capital work in progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet intalled.

IV. Depreciation and Amortisation

a) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use,

b) Leasehold land is amortised over the period of lease.

V. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are staled at net of trade discount and rebates granted during the ordinary course of business.

VI. Inventories

Inventories of Raw Materials, Packing Material, Stores and Spares are valued 'at cost'. Finished Goods and Work in Progress are stated 'at cost or net realisable value, whichever is lower. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

VII. Investments

Investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost.

VIII. Impairment of Fixed Assets

At each Balance Sheet date, the company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for Impairment of fixed assets has been made.

IX. Excise Duty and Custom Duty

Excise duty/Customs duty has been accounted on the basis of payments made in respect of goods Cleared, Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively,

X. Segment Reporting

In accordance with the requirement of Accounting Standard -17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Company's Business Segment is "Manufacturing of Agro and Pharma Chemicals" and hence it has no other reportable segment.

Thus the segment wise revenue, Segment wise result, total carrying amount of Segment wise assets and Segment wise liability, total cost incurred to acquire Segment wise assets, total amount of charge for deprecation during the year, is as reflected in the Financial Statement as of and for the year ended March 31, 2012.

XI. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences if any, are recognised in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet

XII. Retirement Benefits

Provision for Gratuity & Leave encashment are made and provided on actuarial valuation basis. Other retirement benefits are accounted as per company's policy.

XIII. In absence of information with the company, the nature of suppliers who are registered as micro. Small or medium enterprises under the Micro, Small and Medium Enterprises Development Act 2006, as at 31st March 2012 have not been given.


Mar 31, 2011

1. Basis of preparation of Financial statement

(a) The Financial statement has been prepared under the historical cost convention in accordance with the generally accepted accounting principles and applicable mandatory. Accounting Standards issued by the Institute of Chartered Accountants of India.

(b) The company generally follows mercantile system of accounting and recognizes significant items of i ncome and expenditure on accrual basis.

2. Fixed Assets & Capital Work-in-Progress

(a) Fixed Assets are accounted at cost of acquisition or construction less depreciation. The company capitalized all direct and indirect costs relating to the acquisition and installation of fixed assets, i nterest on borrowed funds, if any used to finance acquisition / construction of fixed assets are ready for commercial use.

(b) Capital Work-in-Progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet i nstal led.

3. Depreciation and Amortization

a) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XlVto the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

b) Leasehold land is amortized over the period of lease.

4. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

5. Inventories

The inventories are valued at lower of cost and net realizable value. The basis of determining cost of various categories of inventories are as fo I lows:

i. Raw Materials and Stores : At cost

ii. Finished Goods : At cost or market value, whichever is lower.

iii. Work-in-Progress : Atcostor net releasable value, whichever is lower. Cost includes

material cost, proportionate share of labour & other man ufacturi ng overheads.

6. Miscel I aneous Expend itu re

Deferred revenue expenditure is being written off over a period of five years.

7. Investments

Long Term Investments are carried at cost of acquisition. Current Investment are stated at lower of cost and fair market value.

8. Impairment of Fixed Assets

At each Balance Sheet date, the company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

9. Excise Duty and Customs Duty

Excise duty/Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

10. Segment Reporting

In accordance with the requirement of Accounting Standard -17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Company's Business Segment is "Manufacturing of Agrochemicals and Pharma Intermediates" and hence it has no other reportable segment.

Thus the segment wise revenue, Segment wise result, total carrying amount of Segment wise assets and Segment wise liability, total cost incurred to acquire Segment wise assets, total amount of charge for deprecation during the year, isas reflected inthe Financial Statement as of and for the year ended March 31,2011.

11. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences, if any, are recognized in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet.


Mar 31, 2010

1. Basis of preparation of Financial statement

a. The Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).

b. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Fixed Assets & Capital Work-in-Progress

a. Fixed Assets are accounted at cost of acquisition or construction less depreciation. The Company capitalises all direct and indirect costs relating to the acquisition and installation of fixed assets, interest on borrowed funds, if any used to finance acquisition/construction of fixed assets are ready for commercial use.

b. Capital Work-in-Progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet installed.

3. Depreciation and Amortization

a. Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

b. Leasehold land is amortized over the period of lease.

4. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

5. Inventories

The inventories are valued at lower of cost and net realizable value. The basis of determining cost of various categories of inventories is as follows:

i. Raw Materials and Stores : At Cost

ii. Finished Goods : Atcost or market value, whicheveris lower.

iii. Work-in-Progress : At cost or net releasable value, whichever is lower. Cost includes

material cost, proportionate share of labour & other manufacturing overheads.

6. Miscellaneous Expenditure

Deferred revenue expenditure is being written off over a period of five years.

7. Investments

Long Term Investments are carried at cost of acquisition. Current Investment are stated at lower of cost and fair market value.

8. Impairment of Fixed Assets

At each Balance Sheet date, the Company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the assets net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

9. Excise Duty and Customs Duty

Excise duty/Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

10. Segment Reporting

In accordance with the requirement of Accounting Standard-17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Companys Business Segment is "Manufacturing of Agrochemicals and Pharma Intermediates" and hence it has no other reportable segment.

Thus the segment wise revenue, Segment wise result, total carrying amount of Segment wise assets and Segment wise IiabiIity, total cost incurred to acquire Segment wise assets, total amount of charge for deprecation during the year, is as reflected in the Financial Statement as of and for the year ended March 31,2010.

11. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences, if any, are recognized in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet.

12. Retirement Benefits

Provision for Gratuity is made and provided on actuarial valuation basis. Other retirement benefits are accounted as per Companys policy.

13. In the absence of information available with the Company, the nature of suppliers who are registered as Micro, Small or medium enterprises under the Micro, Small and Medium Enterprises Development Act 2006, as at 31st March 2010, have not been given.


Mar 31, 2009

(a) The Financial statement has been prepared under the historical cost convention in accordance with the generally accepted accounting principles and applicable mandatory. Accounting Standards issued by the Institute of Chartered Accountants of India.

(h) The Company generally follows mercantile system of accounting and recognizes-significant items of income and expenditure on accrual basis.

2. Fixed Assets & Depreciation

(a) Fixed Assets are accounted at cost of acquisition or construction less depreciation. The company capitalized all direct and indirect costs relating to the acquisition and installation of fixed assets, interest an borrowed funds, if any used to finance acquisition / construction of fixed assets are ready for commercial use.

(b) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

(c) Leasehold land is amortized over the period of lease.

3. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon. Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

4. Inventories

The inventories are valued at lower of cost and net realizable value. The basis of determining cost of various categories of inventories is as follows:

i. Raw Materials and Stores : At Cost

ii. Finished Goods : At cost or market value, whichever is lower.

iii. Work-in-Progress : At cost or net releasable value, whichever is lower. Cost

includes material cost, proportionate share of labour & other manufacturing overheads.

Miscellaneous Expenditure

Deferred revenue expenditure is being written off over a period of five years.

6. Investments

Long Term Investments are carried at cost of acquisition. Current Investment are stated at lower of cost and fair market value.

7. Impairment of Fixed Assets

At each Balance Sheet date, the company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the assets net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

8. Excise Duty and Customs Duty

Excise duty / Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

9. Segment Reporting

In accordance with the requirement of Accounting Standard - 17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Companys Business Segment is "Manufacturing of Agro and Pharma Chemicals" and hence it has no other reportable segment.

Thus the segment wise revenue. Segment wise result, total carrying amount of Segment wise assets and Segment wise liability, total cost incurred to acquire Segment wise assets, total amount of charge for deprecation during the year, is as reflected in the Financial Statement as of and for the year ended March 31, 2009.

10. Foreign Currency Transaction

Purchase end sale in foreign currency are accounted at equivalent Rupee value incurred/ earned at the rate prevailing at the time of transaction date or at forward exchange contract rate, wherever applicable. Any difference in the exchange rate afterwards is separately accounted in difference in foreign exchange account.

11.Retirement Benefits

Provision for Gratuity" is made and provided on actuarial valuation basis. Other retirement benefits are accounted as per companys policy

12.In absence of information with the company, the nature of suppliers who are registered as micro. Small or medium enterprises under the Micor, Small and Medium Enterprises Development Act 2006, as at 31st March 2009 have not been given

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