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Accounting Policies of Indo Amines Ltd. Company

Mar 31, 2023

NOTE 1 - CORPORATE INFORMATION

Indo Amines Limited ( the Company) is public limited Company domiciled and incorporated in India under the Indian Companies Act,1956. The registered office of the Company is located at, W-44, Phase II, MIDC, Dombivali (E), Dist. Thane - 421204.

The Company is engaged in the Business of manufacturing, selling and distribution of Specialty Chemical with diversified end-user into Agrochemicals, Pharmaceuticals, High performance Polymers, Paints, Pigments, Printing Inks, Rubber Chemicals etc.

The Company''s shares are listed on recognized stock exchanges of India.

The Standalone financial statements for the year ended 31st March 2023 are authorized and approved for the issue by the Board of Directors.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIESA. Basis of Accounting:

These Financial statements are the separate financial statements of the Company ( also called standalone financial statements) prepared in accordance with Indian Accounting standards ( Ind AS), notified under Section 133 of the Companies Act, 2013, read together with the Companies ( Indian Accounting Standard) Rules, 2015.

The financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except certain financial assets and financial liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies set out below. The accounting policies have been applied consistently over all the periods presented in these financial statements.

Defined benefit plans assets are measured at fair value.

Functional and Presentation Currency

The financial statements are presented in Indian Rupees (''INR'') which is the functional currency for company.

Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to nearest lakhs ( INR 00,000) except otherwise stated.

B. Use of Estimates:

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

C. Current/Non Current Classification:

The assets and liabilities in the balance sheet are presented based on current / non- current classification.

An asset is current when it is:

â¢ Expected to be realized or intended to be sold or consumed in normal operating cycle or

â¢ Held primarily for the purpose of trading or

â¢ Expected to be realised within twelve months after reporting period, or

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

All other assets are classified as non-current.

An liability is current when it is:

â¢ Expected to be settled in normal operating cycle or

â¢ Held primarily for the purpose of trading or

â¢ Due to be settled within twelve months after reporting period, or

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

Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.

All assets and liabilities have been classified as current or non-current as per 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 time between acquisition of asset for processing and their realization 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. Inventories (IND AS-2)

Inventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows:

Raw Materials, Packing Material & fuel :- Valued on FIFO basis.

Work In Progress :- At Raw Material Cost plus appropriate allocation of overheads

Finished Goods :- At Raw Material Cost plus appropriate allocation of overheads or net realisable value whicherver is lower Traded Finished Goods :- At lower of Cost or net realizable value.

E. Depreciation (IND AS 16)

Depreciation on Property , Plant & Equipment is provided on Straight Line method considering the useful life of assets as specified in Scheduled II to the Companies Act ,2013.

F. Property, Plant and Equipment: ( Ind AS 16)

Items of Property, plant and equipment are carried at historical value less accumulated depreciation and amortisation. Cost of acquisition is net off recoverable taxes but is inclusive of all expenditure attributable to bringing the asset to its working condition.

Freehold land is carried at cost of acquisition.

Leasehold land is amortised over the period of lease.

Property, plant and equipment acquired in a business combination are recognised at fair value at the acquisition date.

G. Intangible Assets:Measurement at recognition:

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets arising on acquisition of business combination are measured at fair value as at date of acquisition. Internally generated intangibles including research cost are not capitalized and the related expenditure is recognized in the Statement of Profit and Loss in the period in which the expenditure is incurred. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any.

The Company had elected to consider the carrying value of all its intangible assets appearing in the Financial Statements prepared in accordance with Accounting Standards notified under the section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 and used the same as deemed cost in the opening Ind AS Balance Sheet prepared on 1st April, 2015.

Amortization: Intangible Assets with finite lives are amortized on a Straight Line basis over the estimated useful economic life. The amortization expense on intangible assets with finite lives is recognized in the Statement of Profit and Loss. The estimated useful life of intangible assets is mentioned below:

Particulars	Years
Computer & computer Software	3
Licenses	5

The amortization period and the amortization method for an intangible asset with finite useful life is reviewed at the end of each financial year. If any of these expectations differ from previous estimates, such change is accounted for as a change in an accounting estimate.

Derecognition: The carrying amount of an intangible asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the Derecognition of an intangible asset is measured as the difference between the net disposal proceeds and the carrying amount of the intangible asset and is recognized in the Statement of Profit and Loss when the asset is derecognized.

Goodwill

Goodwill is initially recognised based on the accounting policy for business combinations and is tested for impairment annually. Goodwill is tested for impairment at the end of each reporting period and whenever there is an indication that the recoverable amount of cash generating unit (CGU) is less than its carrying amount based on a number of factors including operating results, business plans, future cash flows and economic conditions, provision for such shortfall is made. The recoverable amount of CGU is determined based on higher of value-in-use and fair value less cost to sell. In addition to that Goodwill is amortised over a period of 5 years as per policy consistently followed by Company.

H. Revenue recognition (IND AS 115)

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.

Sale of goods

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding recoverability of the consideration that revenue from the sale of goods is recognised.

Other Income

Interest income is considered as income on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

Dividend income is considered as income from investments in shares on establishment of the Company''s right to receive.

I. Foreign exchange transactions (IND AS 21)

I. The functional currency and presentation currency of the company is Indian Rupees.

II. Transactions in currencies other than the company''s functional currency are recorded on initial recognition using the exchange rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported using the closing rate. Non- monetary items that are measured in terms of historical cost in foreign currency are not translated. Exchange Differences that arise in settlement of monetary items or on reporting of monetary item at each Balance Sheet date at the closing spot rate are recognized in profit or loss in the period in which they arise.

J. Government Grants and Subsidies (IND AS 20)

i. Government grants and subsidies are recognized when there is reasonable assurance that the conditions attached to them will be complied and grant/subsidy will be received.

ii. Where the Government grant/subsidies relates to revenue, it is recognized as income on a systematic basis in the statement of profit & loss of the period in which the right to receive such grant/ subsidy is established. Government grants and subsidies receivable against an expense are deducted from such expense. The governemnt grants have been accounted on accrual basis every year and is forming a part of other income.

K. Investments : (IND AS 109)

Long term Investments are carried at cost including related expenses, Provision for diminution being made, if necessary, to recognize a decline, other than temporary, in the value thereof.

Current investments are valued at lower of cost or fair value.

L. Employee benefits -(Ind As 19)Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

Post-Employment Benefits:

I. Defined contribution plans:

Defined contribution plans are employee state insurance scheme and Government administered pension fund scheme for all applicable employees.

Contribution to Defined contribution plan namely employer''s contribution to Provident fund & Pension Plan is charged to Profit and Loss Account

II. Defined benefit plans:

The Employees gratuity fund scheme managed by Life Insurance Corporation of India is defined benefit plan. The present value of obligation is determined on the basis of Actuarial Valuation & it is fully provided for.

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognized representing the present value of available refunds and reductions in future contributions to the plan. All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability (asset) are recognized in

the Statement of Profit and Loss. Remeasurements of the net defined benefit liability (asset) comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability / asset), are recognized in Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and Loss in the subsequent periods. The Company presents the above liability/ (asset) as current and non-current in the Balance Sheet as per actuarial valuation by the independent actuary;

The Company presents the above liability/ (asset) as current and non-current in the Balance Sheet as per actuarial valuation by the independent actuary;

Actuarial Gain / (Loss) : The remeasurement gain /(loss) on net defined benefit plan is recognised in Other Comprehensive Income.

M. Borrowing Costs (IND AS 23)

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

All other borrowing costs are recognized in Statement of Profit & Loss in the period in which they are incurred.

N. Earning Per Share(IND AS 33)

Basic and diluted earning per share are computed in accordance with Ind AS 33.

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share is calculated as follows:-

The net profit attributable to equity shareholders and the weighted average of number of shares outstanding are adjusted for the effect of all dilutive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which would be issued on the conversion of all the dilutive potential equity shares into equity shares.

O. Research and Development

Research and Development expenditure on revenue account is charged to profit & loss account under the relevant heads of account in the year in which it is incurred.

P. Provisions, Contingent Liabilities and Contingent Asset:- (IND AS 37)Provisions

A provision is recognized, when the company has a present obligation ( legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reasonable estimate can be made of the amount of the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent Liabilities

A Contigent Asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurance or non occurance of one or more uncertain future events not wholly within the control of the entity.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

Contingent Assets

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

Q. Segment Reporting (IND AS 108)

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 is responsible for allocating resources and assessing performance of the operating segment of the Company.

R. Investment in Subsidiary Companies(IND AS 27)

The Company has elected to recognize its investment in subsidiary companies at historical cost in accordance with the option available in Ind As 27, ''Separate Financial statement''.

S. Income Taxes (IND AS 12)

"Income tax expense for the year comprises of net of current tax expenses and deferred tax expenses/income. Current and deferred

taxes are recognized in Statement of Profit & Loss., except when they relate to items that are recognized in other Comprehensive Income or Directly in equity , in which case , the current and deferred tax are also recognized in Other Comprehensive Income or directly in equity respectively.

Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income tax Act,1961.

Deferred Tax

Deferred tax is recognized using the Balance sheet approach on timing differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred Tax adjustments are recognised in the statement of Profit & loss for the year.

T. Risk Analysis :Commodity Price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the on going purchase or continuous supply of raw commodities. Therefore the company monitors its purchases closely to optimize the price.

Management of Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations. Trade Receivables

All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTP L), transaction costs that are attributable to the acquisition of the financial asset.However, trade receivables that do not contain a significant financing component are measured at transaction price.

Interest rate risk

The company has very minimum exposure to interest rate risk due to its Fixed interest rate of Major borrowings.

Liquidity risk

Liquidity risk is the risk that the company will not be able to meet is financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the company''s reputation.

Foreign Exchange risk

The Company''s foreign exchange risk arises from its foreign operations, foreign currency revenue and expenses. The company uses forward contract to mitigate the risk of fluctuation in foreign exchange rates in respect of highly probable forecasted transactions and are recognized as assets and liabilities.

U. Expected Credit Loss (ECL) (IND AS 109)

The Company has a Policy of calculating the provisions using its own historical trends and the nature of its receivables & do impairment testing every year for those receivable which are due for a substantial period . Considering the historical trends and market information, the Company estimates that the provision amount computed on its trade receiveables is not materially different from the amount to be computed using Expected Credit Loss (ECL) method presribed under Ind As 109.

V. Financial Assets

The Company recognize a financial assets in its Balance sheet when it becomes the party to the contractual provisions of the instrument.

W. Impairment (IND AS 16)

Impairment Assets that have an indefinite useful life, for example goodwill, are not subject to amortization and are tested for impairment annually and whenever there is an indication that the asset may be impaired.

Assets that are subject to depreciation and amortization and assets representing investments in subsidiary and associate companies are reviewed for impairment, whenever events or changes in circumstances indicate that carrying amount may not be recoverable. Such circumstances include, though are not limited to, significant or sustained decline in revenues or earnings and material adverse changes in the economic environment.

An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit (CGU) exceeds its recoverable amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in use. To calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market rates and the risk specific to the asset. For an asset that does not generate largely independent cash inflows, the

recoverable amount is determined for the CGU to which the asset belongs. Fair value less cost to sell is the best estimate of the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.

Impairment losses, if any, are recognized in the Statement of Profit and Loss and included in depreciation and amortization expense. Impairment losses, on assets other than goodwill are reversed in the Statement of Profit and Loss only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had previously been recognized

X. Business Combination

Business combinations are accounted for using the acquisition method. At the acquisition date, identifiable assets acquired and liabilities assumed are measured at fair value. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition date fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable. The consideration transferred is measured at fair value at acquisition date and includes the fair value of any contingent consideration. However, deferred tax asset or liability and any liability or asset relating to employee benefit arrangements arising from a business combination are measured and recognized in accordance with the requirements of Ind AS 12, Income Taxes and Ind AS 19, Employee Benefits, respectively. Where the consideration transferred exceeds the fair value of the net identifiable assets acquired and liabilities assumed, the excess is recorded as goodwill. Alternatively, in case of a bargain purchase wherein the consideration transferred is lower than the fair value of the net identifiable assets acquired and liabilities assumed, the Company after assessing fair value of all identified assets and liabilities, record the difference as a gain in other comprehensive income and accumulate the gain in equity as capital reserve. The costs of acquisition excluding those relating to issue of equity or debt securities are charged to the Statement of Profit and Loss in the period in which they are incurred.

Mar 31, 2018

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Accounting:

For all periods up to and including the year ended 31st March 2017, the Company had prepared its financial statements in accordance with Accounting Standards notified under the Section 133 of the Companies Act,2013 read together with Rules 7 of the Companies ( Accounts) Rule, 2014 (âPrevious GAAPâ). Detailed explanation on how the transition from previous GAAP to Ind As effected in the Companyâs Balance sheet, financial performance and cash flow is given under note.

Defined benefit plans assets measured at fair value.

Functional and Presentation Currency

The financial statements are presented in Indian Rupees (âINRâ) which is the functional currency for company.

Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to nearest lakh ( INR 00,000) except otherwise stated.

B. Use of Estimates:

C. Current/Non Current Classification:

The assets and liabilities in the balance sheet are presented based on current / non- current classification

An asset is current when it is:

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

- Held primarily for the purpose of trading or

- Expected to be realised within twelve months after reporting period, or

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

All other assets are classified as non-current.

An liability is current when it is:

- Expected to be settled in normal operating cycle or

- Held primarily for the purpose of trading or

- Due to be settled within twelve months after reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are treated as non -current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.

All assets and liabilities have been classified as current or non-current as per Companyâs normal operating cycle and other criteria set out in schedule III to the Companies Act., 2013. Based on the nature of products and time between acquisition of asset for processing and their realization 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. Inventories

Inventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows:

Raw Materials, Packing Material & fuel : Valued on FIFO basis.

Semi Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

Traded Finished Goods : At lower of Cost or net realizable value.

E. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method considering the useful life of assets as specified in Scheduled II to the Companies Act ,2013.

F. Property, plant and equipment: ( Ind AS 16)

Items of Property, plant and equipment are carried at historical cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition less accumulated depreciation and amortization.

Freehold land is carried at cost of acquisition.

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 1 April 2016,( transition date) measured as per IGAAP as deemed cost of property, plant and equipment.

G. Revenue recognition

Revenue is measured as the fair value of consideration received or receivable, including excise though excluding sales taxes, GST, rebates and various discounts.

Sale of goods

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods.

Other Income

Interest income is considered as income on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

Dividend income is considered as income from investments in shares on establishment of the Companyâs right to receive.

H. Foreign exchange transactions

I. The functional currency and presentation currency of the company is Indian Rupees.

II. Transactions in currencies other than the companyâs functional currency are recorded on initial recognition using the exchange rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported using the closing rate. Non- monetary items that are measured in terms of historical cost in foreign currency are not retranslated. Exchange Differences that arise in settlement of monetary items or on reporting of monetary item at each Balance Sheet date at the closing spot rate are recognized in profit or loss in the period in which they arise.

I. Government Grants and Subsidies

i. Government grants and subsidies are recognized when there is reasonable assurance that the conditions attached to them will be complied and grant/subsidy will be received.

ii. Where the Government grant/subsidies relates to revenue, it is recognized as income on a systematic basis in the statement of profit & loss over the period necessary to match them with the related costs, which they are intended to compensate. Government grants and subsidies receivable against an expense are deducted from such expense.

J. Investments :

Long term Investments are carried at cost including related expenses, provision for diminution being made, if necessary, to recognize a decline, other than temporary, in the value thereof.

Current investments are valued at lower of cost or fair value.

K. Employee benefits - Ind As 19

a) Defined Contribution Plan - Contribution to Defined contribution plan namely employerâs contribution to Provident fund & Pension Plan is charged to Profit and Loss Account.

b) Defined Benefit Plan - The employees gratuity fund scheme managed by Life Insurance Corporation of India is defined benefit plan. The present value of obligation is determined by LIC of India on Actuarial Valuation & it is fully provided for.

(i) Acturial Gain / (Loss) : Under the Previous GAAP the acturial gain / loss of defined benefit palns had been recognised in statement of Profit and Loss as an exceptional item. Under Ind AS, the remeasurement gain /(loss) on net defined palns is recognised in Other Comprehensive Income net of tax.

(ii) Net interest cost on defined benefit plans- Under the Previous GAAP the interest cost on defined benefit liability and expected return on plan assets was recognised as employee benefit expenses in the Statement of Profit and Loss. Under Ind AS, the Company has recognised the net interest cost on defined benefits plans as finance cost.

(for detail disclosure refer Note no 43)

L. Borrowing Costs

All other borrowing costs are recognized in Statement of Profit & Loss in the period in which they are incurred.

M. Earning Per Share

Basic and diluted earning per share are computed in accordance with Ind AS 33.

Diluted earnings per share is calculated as follows:-

N. Research and Development

Research and Development expenditure is charged to revenue under the relevant heads of account in the year in which it is incurred. Research and Development expenditure on property, plant and equipment is treated in the same way as expenditure on other property, plant and equipment.

O. Provisions, Contingent Liabilities and Contingent Asset:-

Provisions and Contingent Liabilities Provisions

Contingent Liabilities

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by occurrence or non- occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases, where there is a liability that can not be recognized because it can not measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements unless the probability of resources is remote.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

P. Segment Reporting

Q. Goodwill

Goodwill is tested for impairment at the end of each reporting period and whenever there is an indication that the recoverable amount of cash generating unit (CGU) is less than its carrying amount based on a number of factors including operating results, business plans, future cash flows and economic conditions. The recoverable amount of CGU is determined based on higher of value-in-use and fair value less cost to sell.

It was concluded that fair value less cost of disposal and value in use were both significantly higher than the carrying value of business of CGU and any reasonably possible change would not cause the CGUâs carrying value to exceed its recoverable amount. Considering this, the Company has not recognized any charge for impairment of Goodwill

R. Investment in Subsidiary and Associate Companies

The Company has elected to recognize its investment in subsidiary and associate companies at cost in accordance with the option available in Ind As 27, âSeparate Financial statementâ.

S. Income Taxes

Income tax expense comprises of current tax expenses and deferred tax expenses. Current and deferred taxes are recognized in Statement of Profit and Loss, except when they relate to items that are recognized in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognized in Other Comprehensive Income or directly in equity respectively.

Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income tax Act of the respective jurisdiction.

Deferred Tax

Deferred tax is recognized using the Balance sheet approach on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred Tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or through Other Comprehensive Income.

T. Notes to Ind AS 101 First time Adoption of Indian Accounting Standards :

As per Ind AS -12- Income Taxes, deferred tax asset can be recognized if it is probable that current losses will be recovered with the future profits, accordingly deferred tax asset of RS. 143.11 lakh in respect of carried forward losses of RS.413.53/- lakh under Income Tax Act, 1961, on account of business acquisition under business combination of Sigma Solvent Pvt. Ltd. has been recognized. The said deferred tax effect is included in the accounting for the business combination arising from initial accounting for a business combination.

Critical accounting judgments, estimates and assumptions

The Preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and disclosure of contingent liabilities, at the end of reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that requires a material adjustment to the carrying amount of the asset or liability in future periods.

Business Combination

In accordance with Ind AS 101 provision related to first time adoption, the company has elected to apply accounting for business combinations from transition date, i.e. 1 April 2016,. As such Indian GAAP balances relating to business combinations entered into before that date, including goodwill have been carried forward.

Business Combinations are accounted for using Ind AS 103 Business Combination. Acquisitions of businesses are accounted for using acquisition method unless transaction is between entities under common control. Acquisition related costs are recognized in the statement of profit and loss as incurred.

The acquireeâs identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition are recognized at their fair value at the acquisition date.Purchase consideration in excess of companyâs interest in the acquireeâs net fair value of identifiable assets, liabilities and contingent liabilities is recognized is goodwill.

Business Combinations arising from transfer of interests in entities that are under common control are accounted using pooling of interest method, wherein assets and liabilities of combining entities are reflected at their carrying value, no adjustments are made to reflect fair values, or recognize any new assets or liabilities.

Pursuant to scheme of amalgamation, approved by Honâable NCLT Mumbai on 29th Nov 2017 Between Indo Amines Ltd. [ the parent company] and Classic Oil Ltd. and Sigma Solvent Pvt. Ltd. , the latter companies were amalgamated with the company from the appointed date/ acquisition date 01.01.2017.

Both the acquireeâs companies are engaged in the similar / related business. Through consolidation, the synergies that exist among the entities in terms similar business processes and resources can be put to the best advantage of the stakeholders.

The Fair value of identifiable assets and liabilities of Sigma Solvent Pvt. Ltd. as at the date of acquisition were:

Goodwill arising from business combination is tested for impairment

Business Combinations arising from transfer of Classic Oil Ltd. being an unlisted entity under common control are accounted using pooling of interest method. wherein assets and liabilities of combining entities are reflected at their carrying value, no adjustments are made to reflect fair values, or recognize any new assets or liabilities

Proposed Dividend

Under the Previous GAAP dividends proposed by the Board of Directors after the Balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly the liability for proposed dividend including the dividend distribution tax included under the provisions has been reversed with the corresponding adjustment to retained earnings. Consequently the total equity has been increased by the same Amount.

Excise Duty

Under the previous GAAP revenue from sale of goods was recognized exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss for the year ended 31St March 2017 and for the period upto 30Th June 2017 respectively . Thus, Sale of goods under Ind AS has increased with a corresponding increase in expenses.

Other Comprehensive Income

Under Ind AS, all items of income and expenses recognized in a period should be included in the profit and loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit and loss but are shown in the statement of profit and loss as âOther Comprehensive Incomeâ did not exist under the previous GAAP

U. Risk Analysis : Commodity Price risk

The Company is effected by the price volatility of certain commodities. Its operating activities require the on going purchase or continuous supply of raw commodities. Therefore the company monitors its purchases closely to optimize the price.

Management of Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations. Trade Receivables

Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large, diverse and across sectors. All trade receivables are reviewed and assessed for default on a quarterly basis.

Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.

Interest rate risk

The company have bear minimum exposure to interest rate risk due to its Fixed interest rate of Major borrowings.

Liquidity risk

Foreign Exchange risk

The Companyâs foreign exchange risk arises from its foreign operations, foreign currency revenue and expenses (primarily in US dollars). The company uses forward contract to mitigate the risk of fluctuation in foreign exchange rates in respect of highly probable forecasted transactions and are recognized as assets and liabilities. Derivativeâs are initially recognised at fair value on the date on which derivative contracts are entered into and are subsequently remeasured at their fair value at the end of each reporting period.

V. Expected Credit Loss (ECL)

The Company has a Policy of calculating the provisions using its own historical trends and the nature of its receivables & do impairment testing every year for those receivable which are due for more than 3 years. Considering the historical trends and market information, the Company estimates that the provision amount computed on its trade receivables is not materially different from the amount to be computed using Expected Credit Loss (ECL) method prescribed under Ind As 109.

W. Financial Instruments

The Company recognize a financial assets in its Balance sheet when it becomes the party to the contractual provisions of the instrument. All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction cost that are attributable to the acquisition of the financial assets.

Where the fair value of financial assets at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of profit and loss at initial recognition. Such financial assets are subsequently measured at amortized cost using the effective interest method.

Mar 31, 2016

The financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (''Indian GAAP'') and comply with the Accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013 (''the Act'') read with rule 7 of the Companies (Accounts) Rules, 2014.

B. Use of Estimates:

C. Fixed Assets :

i) Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies other than recoverables and any directly attributable cost of bringing the assets to its working condition for the intended use.

ii) The cost of major civil works required for plant and machinery support is considered as plant and machinery.

D. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method considering the useful life of assets as specified in Scheduled II to the Companies Act ,2013.

E. Inventories

Inventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows:

Raw Materials, Packing Material & fuel:- Valued on FIFO basis.

Semi Finished Goods :- At Raw Material Cost, Labour plus estimated overheads.

Finished Goods :- At Raw Material Cost, Labour plus estimated overheads.

Traded Finished Goods :- At lower of Cost or net realizable value.

F. Revenue Recognition:

i) Sale of products is recognized when the products are dispatched from the factory/stock points to the customers. Sales include excise duty & exclude VAT & CST.

ii) Dividend income is recognized when the right to receive payment is established.

iii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

G. Excise Duty on Finished Goods:

Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respect of finished goods lying in the factory premises as at year-end.

H. Foreign exchange transactions:

(a) Initial recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and loss of the year.

(b) Measurement of foreign currency items at the Balance Sheet date

Foreign currency monetary items are restated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are recognized in the Statement of Profit and Loss of the year.

The Group enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Group does not enter into any derivative instruments for trading or speculative purposes.

The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit and Loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expense for the period.

(d) Translation of financial statements of foreign entities

In case of foreign subsidiaries, being Non-Integral Foreign Operations, income and expense items are consolidated at the average rate prevailing during the year. All assets and liabilities are converted at the rate prevailing at the end of the year. The resultant translation gains and losses are disclosed as ''Foreign Currency Translation''.

I. Employee benefits:

a) Defined Contribution Plan - Contribution to Defined contribution plan namely employer''s contribution to Provident fund & Pension Plan is charged to Profit and Loss Account.

J. Accounting for Taxes on Income:

i) Provision for current tax is made based on estimated taxable income for current financial year.

ii) In accordance with Accounting Standard 22 - ''Accounting for Taxes on Income'', the Company has recognized deferred tax asset arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measured using substantially enacted tax rates.

K. Investments :

i) Trade Investments are valued at Cost.

ii) Other Investments are valued at Cost or Market Value, whichever is less.

L. Borrowing Costs :

Borrowing costs are attributable to acquisition and / or construction of qualifying asset / are capitalized as a part of capital asset.

M. Provisions, Contingent Liabilities and Contingent Asset:-

The Company recognizes a provision when there is a present obligation as a result of 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 as outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Mar 31, 2015

A. Basis of Accounting:

The financial statements are prepared under historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013.

B. Use of Estimates:

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

C. Fixed Assets :

i) The cost of major civil works required for plant and machinery support is considered as plant and machinery.

ii) Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies other than recoverable and any directly attributable cost of bringing the assets to its working condition for the intended use.

D. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method considering the useful life of assets as specified in Scheduled II to the Companies Act ,2013.

E. Inventories

Inventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows:

Semi Finished Goods : - At Raw Material Cost, Labour plus estimated overheads.

Finished Goods : - At Raw Material Cost, Labour plus estimated overheads.

Traded Finished Goods : - At lower of Cost or net realizable value.

F. Revenue Recognition:

Sale of products is recognized when the products are despatched from the factory / stock points to the customers. Sales include excise duty & sales tax. Revenue in respect of interest, commission, etc. is recognized only when it is reasonably certain that ultimate collection will be made.

G. Excise Duty on Finished Goods:

Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respect of finished goods lying in the factory premises as at year-end.

H. Foreign exchange transactions (AS-11):

Foreign exchange transactions are recorded on following basis :-

i) In case of Import, on the basis of rate mentioned on Bill of Entry of Import.

ii) In case of Export, on the basis of rates declared by Customs Department.

iii) In case of Expenses, on the basis of rates prevailing on date of transaction.

Exchange differences arising on settlement of items of Income/Expenditure are accounted for as exchange gain/loss as the case may be. The current assets/liabilities in foreign currency on the date of the balance sheet are translated at the prevailing rate on the balance sheet date and the exchange gain/loss arising from such translation is recognized in the Profit & Loss account.

I. Employee benefits (AS-15):

a) Defined Contribution Plan Â Contribution to Defined contribution plan namely employer's contribution to Provident fund & Pension Plan is charged to Profit and Loss Account.

b) Defined Benefit Plan - The employees gratuity fund scheme managed by Life Insurance Corporation of India is defined benefit plan. The present value of obligation is determined by LIC of India on Actuarial Valuation.

J. Accounting for Taxes on Income(AS-22) :

i) Provision for current tax is made based on estimated taxable income for current financial year.

ii) In accordance with Accounting Standard 22 Â 'Accounting for Taxes on Income', the Company has recognized deferred tax asset arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measured using substantially enacted tax rates.

K. Investments :

i) Trade Investments are valued at Cost.

ii) Other Investments are valued at Cost or Market Value, whichever is less.

L. Borrowing Costs :

Borrowing costs are attributable to acquisition and / or construction of qualifying asset / are capitalised as a part of capital asset.

M. Provisions, Contingent Liabilities and Contingent Asset:-

The Company recognises a provision when there is a present obligation as a result of 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 as outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognised nor disclosed in the financial statement

N. Earning Per Share

Basic and diluted earning per share are computed in accordance with Accounting Standard - 20.

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period Diluted earnings per share is calculated as follows:- The net profit attributable to equity shareholders and the weighted average of number of shares outstanding are adjusted for the effect of all dilutive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which would be issued on the conversion of all the diliutive potential equity shares into equity shares

Mar 31, 2014

A. Basis of Accounting:

The financial statements are prepared under historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

B. Use ofEstimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period inwhich the reasons are known/ materialized.

C. Fixed Assets :

i) The cost of majorcivilworks requiredfor plant and machinerysupport is consideredas plant and machinery.

ii) Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

D. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In case of plant & machinery depreciation is charged on the basis of triple shift rate as per ScheduleXIV of theCompaniesAct, 1956.

E. Inventories

Inventories are stated at lower of cost and net realizablevalue. Thecost ofinventories are arrivedat as follows:

Raw Materials, Packing Material & fuel:- Valued on FIFO basis.

Semi Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

Traded Finished Goods : At lower of Cost or net realizable value.

F. Revenue Recognition:

Sale of products is recognized when the products are despatched from the factory / stock points to the customers. Salesinclude exciseduty & salestax. Revenuein respect of interest, commission, etc. is recognizedonly when it is reasonably certain that ultimatecollection will be made.

G. ExciseDuty on Finished Goods:

Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respectof finished goodslying in the factory premises as at year-end.

H. Foreign exchange transactions (AS-11):

Foreignexchange transactions are recorded onfollowing basis:- i) In case of Import, on the basisof rate mentioned on Bill of Entry of Import. ii) Incaseof Export, on the basisof rates declaredby Customs Department. iii) In case ofExpenses, on thebasis ofrates prevailing ondate oftransaction. Exchange differences arising on settlement of items of Income/Expenditure are accounted for as exchange gain/loss as the case may be. The current assets/liabilities in foreign currency on the date of the balance sheet are translated at the prevailing rate onthe balance sheet date and the exchange gain/loss arising from such translation is recognized inthe Profit & Loss account.

I. Employee benefits(AS-15):

a) Defined Contribution Plan Â Contribution to Defined contribution plan namely employer''s contribution to Provident fund & Pension Plan is charged to Profit and Loss Account.

b) Defined Benefit Plan - The employees gratuity fund scheme managed by Life Insurance Corporation of India is defined benefit plan. The present value of obligation is determined by LIC of India on Actuarial Valuation.

J. Accounting for Taxes on Income(AS-22):

i) Provision for current tax ismade based onestimated taxable income for current financial year.

ii) In accordance with Accounting Standard 22 Â ''Accounting for Taxes on Income'', the Company has recognized deferred tax arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measure during relevant enacted tax rates.

K. Investments:

i) TradeInvestments are valued at Cost.

ii) Other Investments are valued at Cost or Market Value,whichever is less.

L. Borrowing Costs :

Borrowing costs are attributable to acquisition and / or construction of qualifying assets are capitalised as a part of capital assets

M. Provisions, ContingentLiabilites and Contingent Asset :-

The Company recognises a provision when there is a present obligation as a result of 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 as outflow of resources. Where there is a possible obligation or a present obligation that the likelihood ofoutflowof resources isremote, no provsion or disclosure is made.

Contingent Assets are neither recognised nor disclosed in the financial statement

N.Earning PerShare

Basicand diluted earning per share are computedin accordance with Accounting Standard-20.

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number ofequityshares outstandingduringthe period

Diluted earnings per share,the net profit attributable to equity shareholders and the weighted average of number of shares outstanding are adjusted for the effect of all dilutive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which would be issued on the conversion of all the diliutive potential equity shares into equity shares

Mar 31, 2013

A. Basis of Accounting: The financial statements are prepared under historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

B. Use of Estimates:

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

C Fixed Assets:

i) The cost of major civil works required for plant and machinery support is considered as plant and machinery. ii) Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

D. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In case of plant & machinery depreciation is charged on the basis of triple shift rate as per Schedule XIV of the Companies Act, 1956.

E. lnventories:lnventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows:Raw Materials, Packing

Material & fuel : Valued on FIFO basis.

Semi Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

F. Revenue Recognition:Sale of products is recognized when the products are shipped from the factory / stock points to the customers. Sales include excise duty & sales tax. Revenue in respect of interest, commission, etc. is recognized only when it is reasonably certain that ultimate collection will be made.

G Excise Duty on Finished Goods:Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respect of finished goods lying in the factory premises as at year-end.

H. Foreign exchange transactions (AS-11):

Foreign exchange transactions are recorded on following basis :-

i) In case of Import, on the basis of rate mentioned on Bill of Entry of Import.

ii) In case of Export, on the basis of rates declared by Customs Department.

iii) In case of Expenses, on the basis of rates prevailing on date of transaction.

Exchange differences arising on settlement of items of Income/Expenditure are accounted for as exchange gain/loss as the case may be. The current assets/liabilities in foreign currency on the date of the balance sheet are translated at the prevailing rate on the balance sheet date and the exchange gain/loss arising from such translation is recognized in the Profit & Loss account.

L Employee benefits (AS-15):

a) Defined Contribution Plan - Contribution to Defined contribution plan namely employer''s contribution to Provident fund & Pension Plan is charged to Profit and Loss Account Rs.20.09 lacs ( Prev Year Rs. 17.23 lacs).

b) Defined Benefit Plan - The employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is defined benefit Plan. The present value of obligation is determined by Life Insurance Corporation of India on actuarial valuation. The contribution of Rs.4.68 Lacs ( Prev year Rs. 3.96 lacs ) paid to Life Insurance Corporation of India is charged to Profit and Loss Account.

J. Accounting for Taxes on Income :i) Provision for current tax is made based on estimated taxable income for current financial year.

ii) In accordance with Accounting Standard 22 - ''Accounting for Taxes on Income'', the Company has recognized deferred tax arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measured using relevant enacted tax rates.

K. Investments:

i) Trade Investments are valued at Cost.

ii) Other Investments are valued at Cost or Market Value, whichever is less.

Mar 31, 2010

A. Basis of Accounting:

The financial statements are prepared under historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

B. Use of Estimates:

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

C. Capital Expenditure:

i) The cost of major civil works required for plant and machinery support is considered as plant and machinery.

ii) Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

D. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In case of plant & machinery rate of depreciation charged on the basis of triple shift rate as per Schedule XIV of the Companies Act, 1956.

E. Inventories:

Inventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows:

Raw Materials, Packing

Material & fuel : Valued on FIFO basis.

Work-in-process : At Raw Material Cost.

Finished Goods : At Raw Material Cost plus estimated overheads.

F. Revenue Recognition:

Sale of products is recognized when the products are shipped from the factory / stock points to the customers. Sales include excise duty & sales tax. Revenue in respect of interest, commission, etc. is recognized only when it is reasonably certain that ultimate collection will be made.

G. Excise Duty on Finished Goods:

Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respect of finished goods lying in the factory premises as at year-end.

H. Foreign exchange transactions (AS-11):

Foreign exchange transactions are recorded at a predetermined rate. Exchange differences arising on settlement of export sales are accounted for as exchange gain/loss as the case may be. The current assets/liabilities in foreign currency on the date of the balance sheet are translated at the prevailing rate on the balance sheet date and the exchange gain/loss arising from such translation is recognized in the Profit & Loss account

I. Employee benefits (AS-15):

A) Defined Contribution Plan Ã Contribution to Defined contribution plan namely employers contribution to Provident fund & Pension Plan is charged to Profit and Loss Account Rs. 10.71 lacs/- ( PF, FPF AND EDLI)

B) Defined Benefit Plan - The employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is defined benefit Plan. The present value of obligation is determined by Life Insurance Corporation of India on actuarial valuation. The contribution of Rs. 8.24 lacs paid to Life Insurance Corporation of India is charged to Profit and Loss Account.

C) Leave Encashment - Employees are entitled to accumulate unavailed leave for a maximum period of 3 months. Unavailed leave of Rs. 4.99 lacs is encashed & charged to Profit & Loss Account.

J. Accounting for Taxes on Income :

In accordance with Accounting Standard 22 Ã ÃAccounting for Taxes on Income, the Company has recognized deferred tax arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measured using relevant enacted tax rates.

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