Accounting Policies of Seya Industries Ltd. Company

Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

2.1. Statement of Compliance

The Standalone Financial Statements have been prepared in
accordance with Ind AS, as prescribed under Section 133 of
the Companies Act, 2013 (''the Act''), the Companies (Indian
Accounting Standards) Rules, 2015 and other relevant provisions
of the Act.

2.2. Basis of Preparation and Presentation

The financial statements have been prepared on the historical
cost basis, except for the following assets and liabilities which
have been measured at fair value or revalued amount:

• Certain financial assets/liabilities that are measured at fair
values at the end of each reporting period;

• Defined benefit plans - plan assets that are measured at
fair values at the end of each reporting period, as explained
in the accounting policies below.

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

Whenever the Company changes the presentation or
classification of items in its financial statements materially,
the company reclassifies comparative amounts, unless
impracticable. Non-Convertible Redeemable Preference Shares
which under IGAAP was classified in Share Capital now as per
Ind AS forms part of the Non-Current Liabilities under Long
Term Borrowings from Related Parties.

2.3. Classification of Current/Non-Current Assets and Liabilities

All the assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and
other criteria set out in the Schedule III to the Companies Act,
2013 and Ind AS 1 "Presentation of financial statements".

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 Companies 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
reporting date; or

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

Liabilities:

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

a. it is expected to be settled in the companies 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
reporting date; or

d. the Company does not have an unconditional right to defer
settlement of the liability for at least twelve months after
the reporting date. Terms of a liability that could, at the
option of the counterparty, result in its settlement by the
issue of equity instruments do not affect its classification.
All other assets/

liabilities are classified as non-current.

Operating Cycle:

Based on the nature of activities of the Company and the normal
time between acquisition of assets and their realisation in cash
or cash equivalents, the Company has determined its operating
cycle as twelve months for the purpose of classifications of its
assets and liabilities as current and non-current

2.4. Critical accounting estimates, assumptions and judgements:

The preparation of financial statements requires management
to make estimates, assumptions and judgements that affect
the reported balances of assets and liabilities and disclosures
as at the date of the financial statements and the reported
amounts of income and expenditure for the periods presented.
Actual results may differ from the estimates considering
different assumptions and conditions. Estimates and underlying
assumptions are reviewed on an ongoing basis. Impact on
account of revisions to accounting estimates are recognized in
the period in which the estimates are revised, and future periods
are affected.

2.5. Measurement of fair values: The Company''s accounting
policies and disclosures require the measurement of fair values,
for both financial assets and liabilities.

Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of
whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of
an asset or a liability, the Company takes into account the
characteristics of the asset or liability if market participants
would take those characteristics into account when pricing the
asset or liability at the measurement date.

All assets and liabilities, for which fair value is measured or
disclosed in the financial statements, are categorised within the
fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as a
whole:

i. Level 1 - inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity can
access at the measurement date;

ii. Level 2 -inputs other than quoted prices included within
level 1, that are observable for the asset or liability, either
directly or indirectly; and

iii. Level 3 - inputs that are unobservable for the asset or
liability

2.6. Operating Segment

Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision
maker. The chief operating decision maker of the Company is
responsible for allocating resources and assessing performance
of the operating segments and accordingly is identified as the
chief operating decision maker.

The Chief Operational Decision Maker monitors the operating
results of its business segments separately for the purpose of
making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on profit
and loss and is measured consistently with profit and loss in
the financial statements. The Operating segments have been
identified on the basis of the nature of products/services.

a) Segment revenue includes sales and other income directly
identifiable with the segment including intersegment
revenue.

b) Expenses that are directly identifiable with the segments
are considered for determining the segment results.
Expenses which relate to the Company as a whole and
not allocable to segments are included under unallocable
expenditure.

c) Income which relates to the Company as a whole and not
allocable to segments is included in unallocable income.

d) Segment result includes margins on inter-segment and
sales which are reduced in arriving at the profit before tax
of the Company.

Segment assets and liabilities include those directly identifiable
with the respective segments. Unallocable assets and liabilities
represent the assets and liabilities that relate to the Company as
a whole and not allocable to any segment.

Secondary segment have been identified with reference to
geographical location of external customers. Composition of

secondary segment is as follows:

(i) India and

(ii) Outside India

2.7. Functional and Presentation Currency

These financial statements are presented in Indian Rupees (?)
which is the functional currency of the Company

2.8. Property, plant and equipment (PPEs)

Items of property, plant and equipment are stated in balance
sheet at cost less accumulated depreciation and accumulated
impairment losses, if any except for land which is been
carried as per revaluation of model. Under revaluation model,
after recognition as an asset, an item of property, plant and
equipment whose fair value can be measured reliably shall
be carried at a revalued amount, being its fair value at the
date of the revaluation less any subsequent accumulated
depreciation and subsequent accumulated impairment losses.
The frequency of revaluations depends upon the changes in
fair values of the items of property, plant and equipment being
revalued. Company estimates to revalue its land every 3 years.
When parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate items
(major components) of property, plant and equipment. Items
of property, plant and equipment acquired through exchange
of non-monetary assets are measured at fair value, unless the
exchange transaction lacks commercial substance or the fair
value of either the asset received, or asset given up is not reliably

measurable, in which case the acquired asset is measured at the
carrying amount of the asset given up.

De-recognition

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

Depreciation

Depreciation is recognised so as to write off the cost of assets
(other than freehold land and Capital work-in-progress) less
their residual values on straight-line method over their useful
lives as indicated in Part C of Schedule II of the Companies Act,
2013. Depreciation methods, useful lives and residual values are
reviewed at the end of each reporting period, with the effect of
any changes in estimate accounted for on a prospective basis.

The estimated useful lives are as follows:

Asset Useful life

Leasehold Land 99 years

Building 1 - 25 years

Plant and Machinery 3 - 20 years

Furniture & Fixtures 3 - 12 years

Vehicles 3 - 10 years

For transition to Ind AS, the Company has elected to continue
with the carrying value of all of its PPE recognised as of April
01, 2016 i.e. transition date, measured as per the previous
GAAP and use that carrying value as its deemed cost as of the
transition date.

2.9. Intangible Assets

Intangible assets that are acquired by the Company and that
have finite useful lives are measured at cost less accumulated
amortisation and accumulated impairment losses, if any.
Subsequent expenditures are capitalised only when they
increase the future economic benefits embodied in the specific
asset to which they relate. Amortisation is recognised on a
straight-line basis over the estimated useful lives of intangible
assets. Intangible assets that are not available for use are
amortised from the date they are available for use.

De-recognition of intangible assets

Intangible assets are de-recognised either on their disposal
or where no future economic benefits are expected from their
use. Gain or loss arising on such de-recognition is recognised
in profit or loss and are measured as the difference between
the net disposal proceeds, if any, and the carrying amount of
respective intangible assets as on the date of de-recognition.

2.10. Impairment of Non-Financial Assets

The carrying amounts of the Company''s PPE and intangible
assets are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication
exists, then the asset''s recoverable amount is estimated in
order to determine the extent of the impairment loss, if any.
The recoverable amount of an asset or cash-generating unit is
the greater of its value in use and its fair value less costs to
sell. An impairment loss is recognised in the profit or loss if the
estimated recoverable amount of an asset or its cash generating

unit is lower than its carrying amount. Impairment losses
recognised in respect of cash-generating units are allocated to
reduce the carrying amount of the other assets in the unit on
a pro-rata basis. In respect of other asset, impairment losses
recognised in prior periods are assessed at each reporting
date for any indications that the loss has decreased or no
longer exists. An impairment loss is reversed if there has been
a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent
that the asset''s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.

2.11. Financial Instruments

A financial instrument is any contract that gives rise to a financial
asset of one entity and a financial liability or equity instrument
of another entity.

Financial Assets

Initial Recognition and measurements

All financial assets are recognised initially at fair value plus, in
the case of financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Financial assets are classified,
at initial recognition, as financial assets measured at fair value or
as financial assets measured at amortized cost.

Subsequent measurements

For purposes of subsequent measurement, financial assets are
classified in Three categories:

i. Financial assets measured at amortised cost

ii. Financial assets measured at Fair Value Through Other
Comprehensive Income (FVTOCI)

iii. Financial assets measured at Fair Value Through Profit or
Loss (FVTPL)

i. A financial asset that meets the following two conditions is
measured at amortized cost.

• Business Model test: The asset is held within a
business model whose objective is to hold assets for
collecting contractual cash flows, and

• Cash flow characteristics test: Contractual terms of the
asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI) on
the principal amount outstanding.

ii. A financial asset that meets the following two conditions is
measured at fair value through OCI:-

• Business Model test: The objective of the business
model is achieved both by collecting contractual cash
flows and selling the financial assets, and

• Cash flow characteristics test: The contractual terms
of the instrument give rise on specified dates to cash flows
that are SPPI on the principal amount outstanding.

iii. All other financial assets are measured at fair value through
profit and loss.

Classification as Debt and Equity

Debt and Equity instruments issued by the company are
classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument

Equity Instruments

All equity instruments 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 may
make an irrevocable election to present subsequent changes
in the fair value in OCI. 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 at FVTOCI, then all fair value
changes on the instrument, including foreign exchange gain or
loss and excluding dividends, are recognised in the OCI. There
is no recycling of the amounts from OCI to profit or 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 recognised in the profit or loss.

Derecognition-

A financial asset is primarily derecognised (i.e. removed from
the Company''s balance sheet) when:

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

• The Company has transferred substantially all the risks
and rewards of the asset, or the Company has neither
transferred nor retained substantially all the risks and
rewards of the asset but has transferred control of the
asset.

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

Impairment of financial assets-

In accordance with Ind AS 109, The company assesses
impairment based on expected credit losses (ECL) model at an
amount equal to: -

• 12 months expected credit losses, or

• Lifetime expected credit losses

depending upon whether there has been a significant increase
in credit risk since initial recognition.

The Company follows ''simplified approach'' for recognition
of impairment loss allowance on trade receivables or any
contractual right to receive cash or another financial asset.
The application of simplified approach does not require the
Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

2.12. Financial Liabilities

Initial recognition and measurement

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

Effective interest method

The effective interest method is a method of calculating the
amortised cost of a debt instrument and of allocating interest
income over the relevant period. The effective interest rate is

the rate that exactly discounts estimated future cash receipts
through the expected life of the debt instrument, or, where
appropriate, a shorter period, to the net carrying amount on
initial recognition.

Subsequent measurement

All financial liabilities are subsequently measured at amortised
cost using the effective interest method or at FVTPL.

Financial liabilities at Fair Value Through Profit or Loss

Financial liabilities are classified as at FVTPL when the financial
liability is held for trading or is designated upon initial
recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred
principally for the purpose of repurchasing in the near term
or on initial recognition it is part of a portfolio of identified
financial instruments that the Company manages together and
has a recent actual pattern of short-term profit-taking. This
category also includes derivative entered into by the Company
that are not designated and effective as hedging instruments in
hedge relationships as defined by Ind AS 109. Gains or losses on
liabilities held for trading are recognised in the profit or loss.

Derecognition

A financial liability is derecognised when the obligation under the
liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification
is treated as the derecognition of the original liability and
the recognition of a new liability. The difference between the
carrying amount of the financial liability derecognised and the
consideration paid and payable is recognised in profit or loss.

Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such
as forward currency contracts, full currency swap, options
and interest rate swaps to hedge its foreign currency risks
and interest rate risks respectively. Such derivative financial
instruments are initially recognised at fair value on the date on
which a derivative contract is entered into and are subsequently
re-measured at fair value at the end of each reporting period.
Derivatives are carried as financial assets when the fair value
is positive and as financial liabilities when the fair value is
negative. Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss

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 recognised amounts and there
is an intention to settle on a net basis or realise the asset and
settle the liability simultaneously.

Compound financial instruments

The component parts of compound financial instruments issued
by the company are classified separately as financial liabilities
and equity in accordance with the substance of the contractual
arrangements and the definition of financial liability and an
equity instrument.

2.13. Leases

A lease that transfers substantially all the risks and rewards
incidental to ownership to the lessee is classified as a finance
lease. All other leases are classified as operating leases.

Company as a lessee-

Finance leases are capitalised at the commencement of the
lease at the inception date fair value of the leased property or,
if lower, at the present value of the minimum lease payments.
The corresponding liability to the lessor is included in the
balance sheet as a finance lease obligation. Lease payments
are apportioned between finance charges and reduction of
the lease liability so as to achieve a constant rate of interest
on the remaining balance of the liability. Finance charges are
recognised in profit or loss as finance costs, unless they are
directly attributable to qualifying assets, in which case they are
capitalised in accordance with the Company''s general policy
on the borrowing costs. Contingent rentals are recognised as
expenses in the periods in which they are incurred.

Operating lease payments are generally recognised as an
expense in the profit or loss on a straight-line basis over the
lease term. Where the rentals are structured solely to increase
in line with expected general inflation to compensate for the
lessor''s expected inflationary cost increases, such increases are
recognised in the year in which such benefits accrue. Contingent
rentals arising under operating leases are also recognised as
expenses in the periods in which they are incurred.

Company as a lessor-

Rental income from operating lease is generally recognised on
a straight-line basis over the term of the relevant lease. Where
the rentals are structured solely to increase in line with expected
general inflation to compensate for the Company''s expected
inflationary cost increases, such increases are recognised in the
year in which such benefits accrue. Initial direct costs incurred
in negotiating and arranging an operating lease are added to
the carrying amount of the leased asset and recognised over
the lease term on the same basis as rental income. Contingent
rents are recognised as revenue in the period in which they are
earned.

Amounts due from lessees under finance leases are recorded
as receivables at the Company''s net investment in the leases.
Finance lease income is allocated to accounting periods so as to
reflect a constant periodic rate of return on the Company''s net
investment outstanding in respect of the leases.

2.14. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at
banks and on hand and Fixed deposits. For the purpose of the
statement of cash flows, cash and cash equivalents consist of
cash and fixed deposits, as defined above, net of outstanding
bank overdrafts as they are considered an integral part of the
Company''s cash management.

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Mar 31, 2018

1. CORPORATE INFORMATION

Seya Industries Ltd (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are traded on BSE Limited. The Company is engaged in manufacturing of Speciality Chemicals intermediates.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis for Preparation of Financial Statements

The principal accounting policies applied in the preparation of these Financial Statements are set out below. These policies have been consistently applied to all the financial years presented, unless otherwise stated. Refer Notes for the details of first-time adoption exemptions availed by the Company.

The Company has adopted all the applicable Indian Accounting Standards (''Ind AS'') in accordance with Ind AS 101 - First Time Adoption of Indian Accounting Standards. The Company has transited from its previous GAAP as defined in Ind AS 101 with the necessary disclosures relating to reconciliation of Shareholders equity under Previous GAAP and Ind AS and of the net profit as Previous GAAP and Total Comprehensive Income under Ind AS.

2.2. Statement of Compliance

In accordance with the notification dated February

16, 2015, issued by the Ministry of Corporate Affairs, the Company has adopted Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1, 2016.

The Standalone Financial Statements have been prepared in accordance with Ind AS, as prescribed under Section 133 of the Companies Act, 2013 (''the Act''), the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

The Financial Statements up to year ended March 31, 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 and other relevant provisions of the Act (''Previous GAAP'').

The Financial Statements for the year ended March 31, 2018 are the first Financial Statements of the Company which have been prepared in accordance with Ind AS. Previous period numbers for the year ended March 31, 2017 in the Financial Statements have been restated to confirm to Ind AS. Accordingly the date of transition to Ind AS is April 1, 2016.

2.3. Basis of Preparation and Presentation

The financial statements have been prepared on the historical cost basis, except for the following assets and liabilities which have been measured at fair value or revalued amount:

- Certain financial assets/liabilities that are measured at fair values at the end of each reporting period;

- Defined benefit plans - plan assets that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

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

Whenever the Company changes the presentation or classification of items in its financial statements materially, the company reclassifies comparative amounts, unless impracticable. Non-Convertible Redeemable Preference Shares which under IGAAP was classified in Share Capital now as per Ind AS forms part of the Non-Current Liabilities under Long Term Borrowings from Related Parties.

2.4. Operating Cycle

Based on the nature of activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of classifications of its assets and liabilities as current and non-current.

2.5. Use of Estimates:

The preparation of financial statements requires management to make estimates assumptions and judgements that affect the reported balances of assets and liabilities and disclosures as at the date of the financial statements and the reported amounts of income and expenditure for the periods presented. Actual results may differ from the estimates considering different assumptions and conditions. Estimates and underlying assumptions are reviewed on an ongoing basis. Impact on account of revisions to accounting estimates are recognized in the period in which the estimates are revised, and future periods are affected.

2.6. Measurement of fair values:

The Company''s accounting policies and disclosures require the measurement of fair values, for both financial assets and liabilities.

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the assets or liability

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. the fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and lowest priority to unobservable inputs (Level 3 inputs).

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

The Company has consistently applied the following accounting policies to all periods presented in these financial statements.

2.7. Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the chief operating decision maker.

The Chief Operational Decision Maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss and is measured consistently with profit and loss in the financial statements. The Operating segments have been identified on the basis of the nature of products/ services.

a) Segment revenue includes sales and other income directly identifiable with the segment including intersegment revenue.

b) Expenses that are directly identifiable with the segments are considered for determining the segment results. Expenses which relate to the Group as a whole and not allocable to segments are included under unallocable expenditure.

c) Income which relates to the Group as a whole and not allocable to segments is included in unallocable income.

d) Segment result includes margins on inter-segment and sales which are reduced in arriving at the profit before tax of the Group.

Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities represent the assets and liabilities that relate to the Group as a whole and not allocable to any segment.

2.8. Property, plant and equipment (PPEs)

Items of property, plant and equipment are stated in balance sheet at cost less accumulated depreciation and accumulated impairment losses, if any except for land which is been carried as per revaluation of model. Under revaluation model, after recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The frequency of revaluations depends upon the changes in fair values of the items of property, plant and equipment being revalued. Company estimates to revalue its land every 3 years. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Items of property, plant and equipment acquired through exchange of nonmonetary assets are measured at fair value, unless the exchange transaction lacks commercial substance or the fair value of either the asset received, or asset given up is not reliably measurable, in which case the acquired asset is measured at the carrying amount of the asset given ^up.

De-recognition

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

Depreciation

Depreciation is recognised so as to write off the cost of assets (other than freehold land and Capital work-in-progress) less their residual values on straight-line method over their useful lives as indicated in Part C of Schedule II of the Companies Act, 2013. Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

The estimated useful lives are as follows:

Asset Useful life

Leasehold Land 99 years

Building 1 - 25 years

Plant and Machinery 3 - 20 years

Furniture & Fixtures 3 - 12 years

Vehicles 3 - 10 years

For transition to Ind AS, the Company has elected to continue with the carrying value of all of its PPE recognised as of April 01, 2016 i.e. transition date, measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

2.9. Intangible Assets

Intangible assets that are acquired by the Company and that have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses, if any. Subsequent expenditures are capitalised only when they increase the future economic benefits embodied in the specific asset to which they relate. Amortisation is recognised on a straight-line basis over the estimated useful lives of intangible assets. Intangible assets that are not available for use are amortised from the date they are available for use.

De-recognition of intangible assets

Intangible assets are de-recognised either on their disposal or where no future economic benefits are expected from their use. Gain or loss arising on such de-recognition is recognised in profit or loss and are measured as the difference between the net disposal proceeds, if any, and the carrying amount of respective intangible assets as on the date of de-recognition.

2.10. Impairment of Non-Financial Assets

The carrying amounts of the Company''s PPE and intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated in order to determine the extent of the impairment loss, if any. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. An impairment loss is recognised in the profit or loss if the estimated recoverable amount of an asset or its cash generating unit is lower than its carrying amount. Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the other assets in the unit on a pro-rata basis. In respect of other asset, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

2.11. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Assets

Initial Recognition and measurements

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial assets measured at amortized cost.

Subsequent measurements

For purposes of subsequent measurement, financial assets are classified in Three categories:

i. Financial assets measured at amortised cost

ii. Financial assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)

iii. Financial assets measured at Fair Value Through Profit or Loss (FVTPL)

i. A financial asset that meets the following two conditions is measured at amortized cost.

- Business Model test:

The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

- Cash flow characteristics test:

Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

ii. A financial asset that meets the following two conditions is measured at fair value through OCI:-

- Business Model test:

The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

- Cash flow characteristics test:

The contractual terms of the instrument give rise on specified dates to cash flows that are SPPI on the principal amount outstanding.

iii. All other financial assets are measured at fair value through profit and loss.

Equity Instruments

All equity instruments 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 may make an irrevocable election to present subsequent changes in the fair value in OCI. 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 at FVTOCI, then all fair value changes on the instrument, including foreign exchange gain or loss and excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to profit or 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 recognised in the profit or loss.

Derecognition-

A financial asset is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

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

- The Company has transferred substantially all the risks and rewards of the asset, or the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

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

Impairment of financial assets-

In accordance with Ind AS 109, The company assesses impairment based on expected credit losses (ECL) model at an amount equal to: -

- 12 months expected credit losses, or

- Lifetime expected credit losses depending upon whether there has been a significant increase in credit risk since initial recognition.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables or any contractual right to receive cash or another financial asset. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

2.12. Financial Liabilities

Initial recognition and measurement

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

Subsequent measurement

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

Financial liabilities at Fair Value Through Profit or Loss

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or is designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred principally for the purpose of repurchasing in the near term or on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking. This category also includes derivative entered into by the Company that are not designated and effective as hedging instruments in hedge relationships as defined by Ind AS 109. Gains or losses on liabilities held for trading are recognised in the profit or loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as forward currency contracts, full currency swap, options and interest rate swaps to hedge its foreign currency risks and interest rate risks respectively. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value at the end of each reporting period. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss

Compound financial instruments

The component parts of compound financial instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definition of financial liability and an equity instrument.

2.13. Leases

A lease that transfers substantially all the risks and rewards incidental to ownership to the lessee is classified as a finance lease. All other leases are classified as operating leases.

Company as a lessee-

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in profit or loss as finance costs, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company''s general policy on the borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are generally recognised as an expense in the profit or loss on a straight-line basis over the lease term. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are also recognised as expenses in the periods in which they are incurred.

Company as a lessor-

Rental income from operating lease is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the Company''s expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company''s net investment outstanding in respect of the leases.

2.14. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and Fixed deposits. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and fixed deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

2.15. Provisions, contingent liabilities and contingent assets

Provisions are recognised 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 reliable estimate can be made of the amount of obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent Assets are not recognised in the financial statements.

2.16. Borrowing Cost

Borrowing cost that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended use or sale.

Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing cost are recognized as expense in the period in which they are incurred.

2.17. Inventories

- Raw materials, Work in progress, manufactured goods and Stores & Spares are valued at lower of Cost (FIFO) or estimated net realisable value after providing for obsolescence and other losses, where considered necessary.

- By-products, self-generated scrap and non-reusable waste are valued at estimated net realisable value.

- Cost includes all charges in bringing the goods to their present location and condition, including other levies, transit insurance and receiving charges.

- Work in progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

- Estimated net realisable value is the estimated selling price in the ordinary course of business, reduced by estimated costs of completion and estimated costs necessary to make the sale.

2.18. Revenue Recognition

Sale of Goods

Revenue from sales are recognized, when risks and rewards of ownership of products are passed on to the customers, which is generally on dispatch/delivery of goods and there is no significant uncertainty regarding amount of consideration that will be derived. Revenue from sale of goods are recognized at the fair value of the consideration received or receivable, net of returns including estimated returns where applicable, and trade discounts, rebates, sales tax and value added tax/GST. Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured, and it is reasonable to expect ultimate collection.

Other Income

Interest Income

Interest income is recognized using effective interest rate method and on time proportion basis taking into account the amount outstanding and the interest rate applicable.

Dividend

Dividend income is recognised when the Company''s right to receive the payment is established, which is generally when shareholders approve the dividend.

2.19. Employee Benefits

Defined benefit plans

The liability in respect of defined benefit plans is calculated using the projected unit credit method with actuarial valuations being carried out at the end of each annual reporting period. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds. The currency and term of the government bonds shall be consistent with the currency and estimated term of the post-employment benefit obligations. The current service cost of the defined benefit plan, recognised in the profit or loss as employee benefits expense, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit changes, curtailments and settlements. Past service costs are recognised in profit or loss in the period of a plan amendment. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in profit or loss. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to OCI in the period in which they arise and is reflected immediately in retained earnings and is not reclassified to profit or loss.

Short-term and Other long-term employee benefits

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

The Company''s net obligation in respect of other longterm employee benefits is the amount of future benefit that employees have earned in return for their service in the current and previous periods. That benefit is discounted to determine its present value.

Defined contribution plans

The Company''s contributions to defined contribution plans are recognised as an expense as and when the services are received from the employees entitling them to the contributions.

2.20. Income Tax

Current Income Tax

Income tax expense consists of current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it relates to items recognised in OCI or directly in equity, in which case it is recognised in OCI or directly in equity respectively. Current tax is the expected tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous years. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Withholding tax arising out of payment of dividends to shareholders under the Indian Income tax regulations is not considered as tax expense for the Company and all such taxes are recognised in the statement of changes in equity as part of the associated dividend payment.

Minimum Alternate Tax (''MAT'') credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each Balance Sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

2.21. Earnings per share

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

2.22. Foreign Currency

Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of entities within the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the exchange rate at that date. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognized in the consolidated income statement in the period in which they arise. When several exchange rates are available, the rate used is that at which the future cash flows represented by the transaction or balance could have been settled if those cash flows had occurred at the measurement date.

2.23. Research and development

Expenditures on research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in the consolidated income statement when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditures are capitalized only if:

- development costs can be measured reliably;

- the product or process is technically and commercially feasible;

- future economic benefits are probable; and

- the Company intends to and has sufficient resources to complete development and to use or sell the asset.

The expenditures to be capitalized include the cost of materials and other costs directly attributable to preparing the asset for its intended use. Other development expenditures are recognized in the consolidated income statement as incurred.

3. RECENT ACCOUNTING PRONOUNCEMENTS

Standards issued but not yet effective

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company''s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

Ind AS 115 Revenue from Contracts with Customers

On March 28, 2018, Ministry of Corporate Affairs has notified the Ind AS115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition:

- Step 1: Identify the contract(s) with a customer

- Step 2: Identify the performance obligation in contract

- Step 3: Determine the transaction price

- Step 4: Allocate the transaction price to the performance obligations in the contract

- Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ''control'' of the goods or services underlying the particular performance obligation is transferred to the customer. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers. The standard permits two possible methods of transition:

- Retrospective approach

Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8-Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach). The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.

The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On March 28, 2018, MCA has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. This amendment will come into force from April 1, 2018. The Company expects the impact of this on the financial statements to be insignificant.

Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. These amendments are effective for annual periods beginning on or after 1 April 2018. These amendments are expected to have insignificant impact on the Company.

Transfers of Investment Property - Amendments to Ind AS 40

The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management''s intentions for the use of a property does not provide evidence of a change in use. The amendments are effective for annual periods beginning on or after 1 April 2018. The Company will apply amendments when they become effective. However, since Company''s current practice is in line with the clarifications issued, the Company does not expect any effect on its financial statements.

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Mar 31, 2017

1.1. Basis for Preparation of Financial Statements

1.1.1. The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (“Indian GAAP”), the Accounting Standards (“AS”) as specified under Section 133 of the Companies Act, 2013 (“the Act”) read with Rule 7 of the Companies’ (Accounts) Rules 2014. The financial statements are prepared on the basis of going concern under the historical cost convention using the accrual method of accounting. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year. 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 in Schedule III to the 2013 Act.

1.1.2. The financial statements have been prepared on accrual basis under the historical cost convention except for those with significant uncertainties. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

1.1.3. 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 in the revised Schedule III to the Act. Based on the nature of business and its activities, the Company has ascertained its operating cycle as twelve months for the purpose of Current & Non-Current classification of Assets & Liabilities.

1.2. Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3. Inventories:

i. Raw materials, Stores & Spares are valued at lower of Cost or Market value whichever is less.

ii. Work in progress and Manufactured Goods, are valued at lower of Cost or Market value whichever is less.

iii. By-products, self-generated Scrap and non-reusable waste are valued at net realisable value.

iv. Cost includes all charges in bringing the goods to the point of sale, including Octroi and other levies, transit insurance and receiving charges. Work-in-progress and Manufactured goods include appropriate proportion of overheads and where applicable, excise duty.

1.4. Fixed Assets (Tangible) and Depreciation

Fixed assets are stated at their original cost, less accumulated depreciation / amortization and impairment losses, if any. The Original Cost of fixed assets includes its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the assets ready for its intended use, interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses related to acquisition, installation and other pre-operative expenses incurred up to that date which generally coincides with the commissioning date of such assets.

Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets subsequent expenditure, if any, on fixed assets after its purchase / completion is capitalized only if such expenditure results in an increase in future benefits from such assets beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project.

Capital Work in Progress

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable borrowing cost.

Depreciation and Amortization

Depreciation has been provided as per Section 123 of the 2013 Act on a straight line method basis (“SLM”) over the estimated useful lives. Management believes based on a technical evaluation that the revised useful lives of the assets reflect the periods over which these assets are expected to be used, which are as follows:

1.5. Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

1.6. Revenue Recognition

Sales of Goods: Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude central sales tax and value added tax.

Other Income

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

1.7. Insurance Claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect the ultimate collection.

1.8. Foreign Currency Transactions

Initial Recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement at the Balance Sheet date

Foreign currency monetary items of the Company outstanding at the Balance Sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

Exchange differences arising on settlement / restatement of Long term foreign currency monetary are capitalised as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortised on settlement / over the maturity period of such items

1.9. Employee benefits

Employee benefits include Gratuity fund, Compensated absences, Long service awards.

Defined benefit plans

For defined benefit plans in the form of gratuity fund the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under:

I. in case of accumulated compensated absences, when employees render the services that increases their entitlement of future compensated absences; and

II. in case of non-accumulating compensated absences, when the absences occur.

Long-term Employee Benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

1.10. Finance Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the statement of Profit and Loss. Borrowing costs include interest; amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan.

1.11. Segment Reporting

The Company has disclosed business segment as primary segment. The Company operates in four segments: Specialty Chemicals Intermediates, Inorganic Chemical Intermediates and Agrochemical Intermediates, Pharmaceutical Intermediates.

The Company has classified its business segments based on the respective end use of its products which does not have any financial impact and for which necessary Segment wise statement has been shown as per Accounting Standard - 17 (AS - 17)

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities”.

Secondary segment have been identified with reference to geographical location of external customers. Composition of secondary segment is as follows

i. India

ii. Outside India

1.12. Earnings per share

Basic earnings per share are computed by dividing the net profit for the year by the weighted average number of Ordinary equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit for the year by the weighted average number of Ordinary equity shares outstanding during the year plus the weighted average no of Ordinary equity shares that would be issued on conversion of all the dilutive potential ordinary equity shares in Ordinary equity shares.

1.13. Taxes on Income

Tax on income for the current period is determined on the basis of taxable income after considering the various deductions available under the Income Tax Act, 1961. Income Tax comprises both current and deferred tax.

Provision for Current tax is measured at the amount computed under the Income Tax Act, 1961, or Book Profit computed under section 115JB, whichever is higher, and correspondingly set-off available under section 115JAA is credited to the Statement of Profit & Loss of the financial year.

MAT credit is recognised as an asset only when, and to the extent, there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent that there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisation. Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss

1.14. Research and Development Expenses

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Expenditure pertaining to Development of products is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

1.15. Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of re-valued assets.

1.16. Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

1.17. Cash and Cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.18. Cash Flow Statement

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

1.19. Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

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Mar 31, 2016

1. CORPORATE INFORMATION

Seya Industries Ltd (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are traded on BSE Limited. The Company is engaged in manufacturing of Specialty chemicals, Pharmaceutical Intermediates, Agrochemical Intermediates, Organic Chemical Intermediates and Inorganic Chemical Intermediates.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis for Preparation of Financial Statements

2.1.1. The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India ("Indian GAAP"), the Accounting Standards ("AS") as specified under Section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of the Companies'' (Accounts) Rules 2014. The financial statements are prepared on the basis of going concern under the historical cost convention using the accrual method of accounting. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year. 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 in Schedule III to the 2013 Act.

2.1.2. The financial statements have been prepared on accrual basis under the historical cost convention except for those with significant uncertainties. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

2.1.3. 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 in the revised Schedule III to the Act. Based on the nature of business and its activities, the Company has ascertained its operating cycle as twelve months for the purpose of Current & Non-Current classification of Assets & Liabilities

2.2. Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3. Inventories:

i. Raw materials, Stores & Spares are valued at lower of Cost or Market Value whichever is less.

ii. Work in progress and Manufactured Goods, are valued at lower of Cost or Market Value whichever is less.

iii. By-products, self-generated Scrap and non-reusable waste are valued at net realizable value.

iv. Cost includes all charges in bringing the goods to the point of sale, including Octroi and other levies, transit insurance and receiving charges. Work-in-progress and Manufactured goods include appropriate proportion of overheads and254 where applicable, excise duty.

2.4. Fixed Assets (Tangible)and Depreciation

Fixed assets are stated at their original cost, less accumulated depreciation / amortization and impairment losses, if any. The Original Cost of fixed assets includes its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the assets ready for its intended use, interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses related to acquisition, installation and other pre-operative expenses incurred up to that date which generally coincides with the commissioning date of such assets.

Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets subsequent expenditure, if any, on fixed assets after its purchase / completion is capitalized only if such expenditure results in an increase in future benefits from such assets beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose are capitalized and depreciation thereon is included in the project cost till commissioning of the project.

Capital Work in Progress

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable borrowing cost.

Depreciation and Amortization

Depreciation has been provided as per Section 123 of the Companies Act, 2013 on a straight line method basis ("SLM") over the estimated useful lives. Management believes based on a technical evaluation that the revised useful lives of the assets refects the periods over which these assets are expected to be used, which are as follows:

Asset Useful life based on SLM adopted

Leasehold Land 99 years

Building 1 - 25 years

Plant and Machinery 3 - 20 years

Furniture & Fixtures 3 - 12 years

Vehicles 3 - 10 years

2.5. Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the less or are recognized as operating leases. Lease rentals under operating leases are recognized in the Statement of Profit and Loss on a straight-line basis.

2.6. Revenue Recognition

Sales of Goods: Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude central sales tax and value added tax.

Other Income

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

2.7. Insurance Claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect the ultimate collection.

2.8. Foreign Currency Transactions Initial Recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement at the Balance Sheet date

Foreign currency monetary items of the Company outstanding at the Balance Sheet date are restated at the year-end rates. Nonmonetary items of the Company are carried at historical cost.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short term foreign currency monetary assets and liabilities of the Company are recognized as income or expense in the Statement of Profit and Loss.

Exchange differences arising on settlement / restatement of Long term foreign currency monetary are capitalized as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortized on settlement / over the maturity period of such items

2.9. Employee benefits

Employee benefits include Gratuity fund, Compensated absences, Long service awards.

Defined benefit plans

For defined benefit plans in the form of gratuity fund the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortized on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under:

I. in case of accumulated compensated absences, when employees render the services that increases their entitlement of future compensated absences; and

II. in case of non-accumulating compensated absences, when the absences occur.

Long-term Employee Benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognized as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognized as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

2.10. Finance Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the statement of Profit and Loss. Borrowing costs include interest; amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan.

2.11. Segment Reporting

The Company has disclosed business segment as primary segment. The Company operates in five segments: Specialty Chemicals Intermediates, Organic Chemical Intermediates, Inorganic Chemical Intermediates and Agrochemical Intermediates and Pharmaceutical Intermediates.

The Company has classified its business segments based on the respective end use of its products which does not have any financial impact and for which necessary Segment wise statement has been shown as per Accounting Standard - 17 (AS - 17)

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

Secondary segment have been identified with reference to geographical location of external customers. Composition of secondary segment is as follows

i. India

ii. Outside India

2.12. Earnings per share

Basic earnings per share are computed by dividing the net profit for the year by the weighted average number of Ordinary equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit for the year by the weighted average number of Ordinary equity shares outstanding during the year plus the weighted average number of Ordinary equity shares that would be issued on conversion of all the dilutive potential ordinary equity shares in Ordinary equity shares.

2.13. Taxes on Income

Tax on income for the current period is determined on the basis of taxable income after considering the various deductions available under the Income Tax Act, 1961. Income Tax comprises both current and deferred tax.

Provision for Current tax is measured at the amount computed under the Income Tax Act, 1961, or Book Profit computed under section 115JB, whichever is higher, and correspondingly set-off available under section 115JAA is credited to the Statement of Profit & Loss of the financial year.

MAT credit is recognized as an asset only when, and to the extent, there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent that there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realization. Current and deferred tax relating to items directly recognized in equity are recognized in equity and not in the Statement of Profit and Loss

2.14. Research and Development Expenses

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Expenditure pertaining to Development of products is capitalized. The amount capitalized comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilized for research and development are capitalized and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

2.15. Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of re-valued assets.

2.16. Provisions and Contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

2.17. Cash and Cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.18. Cash Flow Statement

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

2.19. Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilizing the credits.

3.5. Rights, preferences and restrictions attached to shares

The Company has only one class of Equity Shares having a par value of ''10/- per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of Shareholders, except in case of interim dividend. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

3.6. The Company has not allotted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back during the period of five years immediately preceding the Balance Sheet date.

3.7. During the period under review the Company has allotted 151,261,714 Non-Convertible Redeemable Preference Shares of ''10/each.

5.1. Rupee Term Loan from banks comprises of loan taken for expansion project of Rs,8,971.36 Lakhs and Car loan of Rs,9.22 Lakhs.

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Mar 31, 2015

2.1. Basis for Preparation of Financial Statements:

2.1.1. These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other generally accepted accounting principles in India (Indian GAAP), to the extent applicable..

2.1.2. The financial statements have been prepared on accrual basis under the historical cost convention except for those with significant uncertainties. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

2.1.3. 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 in the revised Schedule III to the Act. Based on the nature of business and its activities, the Company has ascertained its operating cycle as twelve months for the purpose of Current & Non-Current classification of Assets & Liabilities.

2.2. Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3. Inventories:

i. Raw materials, Stores & Spares are valued at lower of Cost or Market Value whichever is less.

ii. Work in process and Manufactured Goods, are valued at lower of Cost or Market Value whichever is less.

iii. By-products, self-generated Scrap and non-reusable waste are valued at net realisable value.

iv. Cost includes all charges in bringing the goods to the point of sale, including Octroi and other levies, transit insurance and receiving charges. Work-in-progress and Manufactured goods include appropriate proportion of overheads and, where applicable, excise duty.

2.4. Cash and Cash equivalents (for purposes of Cash Flow Statement):

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.5. Cash Flow Statement:

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

2.6. Fixed Assets (Tangible) and Depreciation:

Fixed assets are stated at their original cost, less accumulated depreciation / amortization and impairment losses, if any. The Original Cost of fixed assets includes its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the assets ready for its intended use, interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses related to acquisition, installation and other pre-operative expenses incurred up to that date which generally coincides with the commissioning date of such assets.

Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets subsequent expenditure, if any, on fixed assets after its purchase / completion is capitalized only if such expenditure results in an increase in future benefits from such assets beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project.

Capital Work in Progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable borrowing cost.

Depreciation has been provided as per Section 123 of the 2013 Act on a straight line method basis ("SLM") over the estimated useful lives. Management believes based on a technical evaluation that the revised useful lives of the assets reflect the periods over which these assets are expected to be used, which are as follows:

Asset Useful life based on SLM adopted

Leasehold Land 99 years

Building 1 - 25 years

Plant and Machinery 3 - 20 years

Furniture & Fixtures 3 - 12 years

Vehicles 3 - 10 years

2.7. Leases:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

2.8. Revenue Recognition:

Sales of Goods: Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude central sales tax and value added tax.

Other Income:

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

2.9. Foreign Currency Transactions:

Initial Recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement at the Balance Sheet date

Foreign currency monetary items of the Company outstanding at the Balance Sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

Exchange differences arising on settlement / restatement of Long term foreign currency monetary are capitalised as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortised on settlement / over the maturity period of such items

2.10. Employee benefits:

Employee benefits include gratuity fund, compensated absences, long service awards.

Defined benefit plans

For defined benefit plans in the form of gratuity fund the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced

by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under:

I. in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

II. in case of non-accumulating compensated absences, when the absences occur.

Long-term Employee Benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

2.11. Finance Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the statement of Profit and Loss. Borrowing costs include interest; amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan.

2.12. Segment Reporting:

The Company has disclosed business segment as primary segment. The Company operates in five segments: Fine & Specialty Chemicals Intermediates, Organic Chemical Intermediates, Inorganic Chemical Intermediates and Agrochemical Intermediates, and Pharmaceutical Intermediates.

The Company has classified its business segments based on the respective end use of its products which does not have any financial impact and for which necessary Segment wise statement has been shown as per Accounting Standard - 17 (AS -

17)

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

Secondary segment have been identified with reference to geographical location of external customers. Composition of secondary segment is as follows

i. India

ii. Outside India

2.13. Earnings per share

Basic earnings per share are computed by dividing the net profit for the year by the weighted average number of Ordinary equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit for the year by the weighted average number of Ordinary equity shares outstanding during the year plus the weighted average no of Ordinary equity shares that would be issued on conversion of all the dilutive potential ordinary equity shares in Ordinary equity shares.

2.14. Taxes on Income

Tax on income for the current period is determined on the basis of taxable income after considering the various deductions available under the Income Tax Act, 1961. Income Tax comprises both current and deferred tax.

Provision for Current tax is measured at the amount computed under the Income Tax Act, 1961, or Book Profit computed under section 115JB, whichever is higher, and correspondingly set-off available under section 115JAA is credited to the Statement of Profit & Loss of the financial year.

MAT credit is recognised as an asset only when, and to the extent, there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent that there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisation. Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss

2.15. Research and Development Expenses

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Expenditure pertaining to Development of products is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

2.16. Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of re-valued assets.

2.17. Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

2.18. Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

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Mar 31, 2014

1.1.1. Basis for preparation of Financial Statements:

i. The Financial Statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 ("the 1956 Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate affairs and the relevant provisions of the 1956 Act/ 2013 Act, as applicable.

ii. The financial statements have been prepared on accrual basis under the historical cost convention except for those with significant uncertainties.

iii. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

iv. 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 in the revised schedule VI to the 1956 Act. Based on the nature of business and its activities, the Company has ascertained its operating cycle as twelve months for the purpose of Current & Non-Current classification of Assets & Liabilities.

v. Captive Consumption is considered and valued under sales, as per provisions of Central Excise Act.

1.2.2. Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.2.3. Inventories:

i. Raw materials, stores & Spares are valued at lower of Cost or Market Value whichever is less.

ii. Work in process and Manufactured Goods, are valued at lower of Cost or Market Value whichever is less.

iii. By-products, self-generated Scrap and non-reusable waste are valued at net realisable value.

iv. Cost includes all charges in bringing the goods to the point of sale, including Octroi and other levies,

transit insurance and receiving charges. Work-in-progress and Manufactured goods include appropriate proportion of overheads and, where applicable, excise duty.

1.2.4. Cash and cash equivalents (for purposes of Cash Flow Statement):

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.2.5. Cash Flow Statement:

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

1.2.6. Fixed Assets (Tangible)and Depreciation:

Fixed assets are stated at their original cost, less accumulated depreciation / amortization and impairment losses,

if any. The Original Cost of fixed assets includes its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the assets ready for its intended use, interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses related to acquisition, installation and other pre-operative expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets Subsequent expenditure, if any, on fixed assets after its purchase / completion is capitalized only if such expenditure results in an increase in future benefits from such assets beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project.

Capital Work in Progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

Depreciation on Tangible Fixed Assets is provided on Original cost of Fixed Assets on straight line method under Section 205(2) (b) of the 1956 Act, at the rates and in the manner prescribed in Schedule XIV to the 1956 Act.

1.2.7. Leases:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

1.2.8. Revenue Recognition:

Sales of Goods: Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude central sales tax and value added tax.

1.2.9. other Income:

Interest income is accounted on accrual basis.

1.2.10. Foreign Currency Transactions:

Initial Recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement at the Balance Sheet date

Foreign currency monetary items of the Company outstanding at the Balance Sheet date are restated at the year- end rates. Non-monetary items of the Company are carried at historical cost.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

Exchange differences arising on settlement / restatement of Long term foreign currency monetary are capitalised as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortised on settlement / over the maturity period of such items.

1.2.11. Employee benefits:

Employee benefits include gratuity fund, compensated absences, long service awards.

Defined benefit plans

For defined benefit plans in the form of gratuity fund the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service

cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under:

I. in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

II. in case of non-accumulating compensated absences, when the absences occur.

Long-term Employee Benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long Service Awards are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

1.2.12. Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the statement of Profit and Loss. Borrowing costs include interest; amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan.

1.2.13. Segment Reporting:

The Company has disclosed business segment as primary segment. The Company operates in five segments: Inorganic Intermediates, Organic Intermediates, Pharmaceutical Intermediates, Fine & Specialty Chemicals and Others.

The Company has classified its business segments based on the respective end use of its products which does not have any financial impact and for which necessary Segment wise statement has been shown as per Accounting Standard - 17 (AS - 17)

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

Secondary segment have been identified with reference to geographical location of external customers. Composition of secondary segment is as follows.

i. India

ii. Outside India

1.2.14. Earnings per share:

Basic earning per share is computed by dividing the net profit for the year by the weighted average number of Ordinary equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net

profit for the year by the weighted average number of Ordinary equity shares outstanding during the year plus the weighted average no of Ordinary equity shares that would be issued on conversion of all the dilutive potential ordinary equity shares in Ordinary equity shares.

1.2.15. Taxes on Income:

Income taxes are accounted for in accordance with Accounting Standards (AS-22) - accounting taxes on Income, notified under the Companies (Accounting Standards) Rules, 2006. Income Tax comprises both current and deferred tax.

Provision for Current tax is measured at the amount computed under the Income Tax Act, 1961, or Book Profit computed under section 115JB, whichever is higher, and correspondingly set-off available under section 115JAA is credited to the Statement of Profit & Loss of the financial year.

MAT credit is recognised as an asset only when, and to the extent, there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent that there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisation. Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss

1.2.16. Research and Development Expenses:

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Expenditure pertaining to Development of products is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

1.2.17. Impairment of Assets:

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of re-valued assets.

1.2.18. Provisions and Contingencies:

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

1.2.19. Service tax input credit:

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

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Mar 31, 2013

A. Basis of preparation of financial statements:

i. The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards notified under Provisions of the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

ii. The Company follows mercantile system of accounting and recognizes income and expenditure on an accrual basis except those with significant uncertainties.

iii. The accounting policies applied by the Company are consistent with those used in the previous year, and

iv. Captive Consumption is considered and valued under sales, as per provisions of Central Excise Act.

b. Use of Estimates:

Estimates and assumptions used in the preparation of the financial statements are based on management''s evaluation of the relevant facts and circumstances as of date of the Financial Statements, which may differ from the actual results at a subsequent date.

c. Fixed Assets:

Fixed assets are stated at original cost less accumulated depreciation. Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use. Cenvat / other credits availed have been deducted from the cost of respective assets.

d. Depreciation and Amortization:

Depreciation provided on straight-line method in the manner and at the rates specified in Schedule-XIV to the Companies Act, 1956.

e. Investments

Investments are recorded on readily realizable and intended to be held for not more than a year by classifying as Current Investments. All other investments are classified as Long Term Investments.

i. Current Investments are carried at lower of cost and fair value determined on an individual investment basis; and

ii. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of investments.

f. Inventories:

i. Raw Materials, Stores & Spares are valued at lower of Cost or Market Value whichever is less.

ii. Work in process and finished goods, are valued at lower of Cost or Market Value whichever is less.

iii. By-products, Self Generated Scrap and non-reusable waste are valued at net realizable value.

g. Revenue Recognition:

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customers. Sales are stated net of discounts, rebates and returns.

h. Borrowing Costs:

Borrowing costs are charged to Profit and Loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of a qualifying asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.

i. Excise Duty:

Excise Duty in respect of goods manufactured by the Company is accounted on accrual basis.

j. Employee Benefits:

The Company has not framed its'' policies of employees benefits with regard to gratuity and leave liabilities.

k. Research & Development Expenses

Revenue expenditure on the Research & Development is charged off as expense in the year in which it incurred. Capital expenditure is grouped with Fixed Assets under appropriate heads and Depreciation is provided as per the rates applicable.

l. Taxes on Income

i. Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year. The tax effect is calculated on the accumulated timing differences at the end of the year accounting period based on prevailing enacted or subsequently enacted regulations.

ii. Provision for current tax is made on the basis of the income computed for the current accounting period in accordance with Income Tax Act, 1961.

h. EARNINGS PER SHARE

Equity of the Company is employed partly in pre-commercial production activity and partly in commercial production activity, which cannot be ascertained in exact sums. In the circumstances, EPS cannot be comparable.

i. Disclosure as required under clause 32 of listing agreement have not been given as the company do not have any subsidiary.

j. Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

m. The company has started its commercial production or additional two products having application in the field of Specialty chemicals and Pharmaceuticals as on October 1, 2012 and January 1, 2013 respectively and certain products still remained under construction and development. In the circumstances, statement of Profit and Loss for the current year pertains to business activities of the products whose commercial production already commenced.

n. During the year, Deferred Tax Assets / Liability is not provided as the management of the Company are not certain about reasonable time in which the timing difference would reverse. However, the amount of Deferred Tax Assets comes to ` 390.96 Lacs (Prev. Year ` 460.35 Lacs).

o. The Company has also reclassified the previous year''s figures in accordance with the requirements applicable in the current year. In view of this reclassification, certain figures of current year are not strictly comparable with those of the previous year.

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Mar 31, 2011

1.1 Basis of preparation of financial statements

a) The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards notified under Provisions of the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b) The Company follows mercantile system of accounting and recognises income and expenditure on an accrual basis except those with significant uncertainties.

c) The accounting policies applied by the Company are consistent with those used in the previous year, and

d) Captive Consumption are considered and valued under sales as per provisions of Central Excise Act.

1.2 Use of Estimates:-

Estimates and assumptions used in the preparation of the financial statements are based on management's evaluation of the relevant facts and circumstances as of date of the Financial Statements, which may differ from the actual results at a subsequent date.

1.3 Fixed Assets:-

Fixed assets are stated at original cost less accumulated depreciation. Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use. Cenvat / other credits availed have been deducted from the cost of respective assets.

1.4 Depreciation and Amortisation:-

Depreciation provided on straight line method in the manner and at the rates specified in Schedule-XIV to the CompaniesAct, 1956.

1.5 Investments:-

Investments are recorded on readily realizable and intended to be held for not more than a year by classifying as Current Investments. All other investments are classified as Long Term Investments.

a) Current Investments are carried at lower of cost and fair value determined on an individual investment basis; and

b) Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of investments

1.6 Inventories:-

a) Raw Materials, Stores & Spares are valued at lower of Cost or Market Value whichever is less.

b) Work in process and finished goods, are valued at lower of Cost or Market Value whichever is less.

c) By-products, Self Generated Scrap and non reusable waste are valued at net realizable value.

1.7 Revenue Recognition:-

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customers. Sales are stated net of discounts, rebates and returns.

1.8 Borrowing Costs:-

Borrowing costs are charged to Profit and Loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of a qualifying asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.

1.9 Excise Duty:-

Excise Duty in respect of goods manufactured by the Company is accounted on accrual basis.

1.10 Employee Benefits

The Company has not framed its'policies of employees benefits with regard to gratuity and leave liabilities.

1.11 Research & Development Expenses

Revenue expenditure on the Research & Development is charged off as expense in the year in which it incurred. Capital expenditure is grouped with Fixed Assets under appropriate heads and Depreciation is provided as per the rates applicable.

1.12 Taxes on Income

(a) Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year. The tax effect is calculated on the accumulated timing differences at the end of the year accounting period based on prevailing enacted or subsequently enacted regulations.

(b) Provision for current tax is made on the basis of the income computed for the current accounting period in accordance with Income Tax Act, 1961.

(c ) During the year, Deferred Tax Assets / Liability is not provided as the management of the Company are not certain about reasonable time in which the timing difference would reverse.

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Mar 31, 2010

1.1 Basis of preparation of financial statements

a) The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards notified under Provisions of the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b) The Company follows mercantile system of accounting and recognises income and expenditure on an accrual basis except those with significant uncertainties.

c) The accounting policies applied by the Company are consistent with those used in the previous year.

1.2 Use of Estimates :-

Estimates and assumptions used in the preparation of the financial statements are based on managements evaluation of the relevant facts and circumstances as of date of the financial statements, which may differ from the actual results at a subsequent date.

1.3 Fixed Assets:-

Fixed assets are stated at original cost less accumulated depreciation. Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use. Cenvat / other credits availed will be deducted from the cost of respective assets.

1.4 Depreciation and A mortisation:-

a) Depreciation on the fixed assets is provided on straight line method over the remaining useful life of the asset.

b) In respect of plant and machineries, depreciation is provided on straight line method over the remaining useful life of the asset.

c) On all other fixed assets, depreciation is provided on straight line method in the manner and at the rates specified in Schedule- XIV to the Companies Act, 1956.

1.5 Investments:-

tnvestments will be recorded on readily realizable and intended to be held for not more than a year by classifying as Current Investments. All other investments will be classified as Long Term Investments.

a) Current Investments are carried at lower of cost and fair value determined on an individual investment basis; and

b) Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of investments

1.6 Inventories:-

a) Raw Materials, Stores & Spares are valued at lower of Cost or Market Value whichever is less.

b) Work in process and finished goods, are valued at lower of Cost or Market Value whichever is less. Cost is arrived at by absorption cost method.

c) By-products, Self Generated Scrap and non reusable waste are valued at net realizable value.

1.7 Revenue Recognition:-

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customers. Sales are stated net of discounts, rebates and returns.

1.8 Borrowing Costs:-

Borrowing costs are charged to Profit and Loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of a qualifying asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.

1.9 Excise Duty:-

Excise Duty in respect of goods manufactured by the Company is accounted on accrual basis.

1.10 Employee Benefits

The Company has not framed itspolicies of employees benefits with regard to gratuity and leave liabilities.

1.11 Research & Development Expenses

Revenue expenditure on the Research & Development is charged off as expense in the year in which it incurred. Capital expenditure is grouped with Fixed Assets under appropriate heads and Depreciation is provided as per the rates applicable.

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Mar 31, 1998

1. Significant Accounting Policies

i) Basis of Accounting : The accounts have been prepared in conformity with the generally accepted accounting principles as enunciated by the relevant authorities and are based on the accrual basis of accounting.

ii) Depreciation :

(i) Leasehold land is not depreciated.

(ii) Other Fixed Assets are depreciated on the Straight Line Method at the rate of depreciation as prescribed in schedule XIV to the Companies Act, 1956.

iii) Amortisation :

The preliminary expenses are amortised over a period of 10 years in equal installments.

iv) Inventories :

Inventories are valued at lower of cost or net realisable value except stores and loose tools which are valued at cost.

v) Retirement Benefits :

The Employees State Insurance Scheme is not applicable to the Company. Provision is made for gratuity for those employees who have completed period of service prescribed under the Payment of Gratuity Act, 1972.

No provision has been made for leave liability in respect of employees (amount unascertained) and the same as per consistent practice is accounted on cash basis.

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Mar 31, 1997

1. Basis of Accounting : The accounts have been prepared in conformity with the generally accepted accounting principles as enunciated by the relevant authorities and are based on the accrual basis of accounting.

2. Depreciation :

(i) Leasehold land is not depreciated. (ii) Other Fixed Assets are depreciated on the Straight Line Method at the rate of depreciation as prescribed in schedule XIV to the Companies Act, 1956.

3. Amortisation : The preliminary expenses are amortised over a period of 10 years in equal installments.

4. Inventories : Inventories are valued at lower of cost or net realisable value except stores and loose tools which are valued at cost.

5.Retirement Benefits : The Employees State Insurance Scheme is not applicable to the Company. No provision is made for gratuity as there were no employees who have completed qualifying period of service prescribed under the Payment of Gratuity Act, 1972.

6. A Diesel Generating Set of Rs. 56,57,700/- is acquired on finance lease. The obligation for future lease rentals aggregate to Rs. 33,56,850/-. Lease rentals amounting to Rs. 23,97,750/- for the current year together with three instalments paid in advance are charged to revenue account.

7. No provision has been made for leave liability in respect of employees (amount unascertained) and the same as per consistent practice is accounted on cash basis.

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Mar 31, 1996

I) Basis of Accounting: The accounts have been prepared in conformity with the generally accepted accounting principles as enunciated by the relevant authorities and are based on the accrual basis of accounting.

ii) Depreciation:

(i) Leasehold land is not depreciated.

(ii) Other Fixed Assets are depreciated on the Straight Line Method. The rate of depreciation is as prescribed in schedule XIV to the Companies Act, 1956.

iii) Amortisation:

The preliminary expenses are amortised over a period of 10 years in equal installments..

iv) Inventories:

Inventories are valued at lower of cost or net realisable value except stores and loose tools which are valued at cost.

v) Retirement Benefits:

There is no liability under the Employees Provident Fund Scheme, Employees State Insurance Scheme & the Payment of Gratuity Act 1972, as they are not applicable to the company.

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Mar 31, 1995

Basis of Accounting: The accounts have been prepared in conformity with the generally accepted accounting principles as enunciated by the relevant authorities and are based on the accrual basis of accounting.

ii) Depreciation:

Leasehold land is not depreciated.

Other Fixed Assets are depreciated on the Straight Line Method. The rate of depreciation is as prescribed in schedule XIV to the Companies Act, 1956.

iii) Amortisation:

The preliminary expenses are amortised over a period of 10 years in equal installments.

iv) Inventories:

Inventories are valued at lower of cost or net realisable value except stores and loose tools which are valued at cost.

v) Retirement Benefits:

There is no liability under the Employees Provident Fund Scheme, Employees State Insurance Scheme & the Payment of Gratuity Act. 1972, as they are not applicable to the company.

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Mar 31, 1994

A) Basis of Accounting: The Accounts have been prepared in conformity to the generally accepted accounting principles as enunciated by the relevant authorities and are based on the accrual basis of accounting.

b) Depreciation:

i) Leasehold Land is not depreciated.

ii) Other Fixed Assets are depreciated on the Straight Line method. The rate of depreciation is as prescribed in Schedule XIV to the Companies Act, 1956.

c) Amortisation:

The preliminary expenses are amortised over a period of 10 years in equal installments.

d) Inventories:

Inventories are valued at lower of Cost or Net Realisable Value except stores and loose tools which are valued at cost.

e) Retirement Benefits:

Contribution to provident funds are made monthly at the prescribe rates as per rules applicable and debited to profit & loss account on accrual basis.

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Mar 31, 1993

Not Available