Accounting Policies of Indian Emulsifiers Ltd. Company

Mar 31, 2025

1 CORPORATE INFORMATION

The Company is engaged in the business of
manufacturing of chemical.

2 BASIS OF PREPARATION AND PRESENTATION
OF FINANCIAL STATEMENTS

a) The Financial statements have been
prepared under the historical convention
and on the accounting principles of going
concern. Accounting policies not specifically
referred to otherwise are in accordance with
the generally accepted accounting principles
and materially comply with the mandatory
Ind AS issued by the Institute of Chartered
Accountants of India.

b) The preparation of financial statements
requires the management of the Company
to make estimates and assumptions that
affect the reported balances of assets
and liabilities and disclosures relating
to contingent liabilities as at the date of
financial statements and reported amount
of income and expenses during the year. The
management believes that the estimates used
in the preparation of financial statements are
prudent and reasonable. Future results could
differ from these estimates.

The Company follows mercantile system of

c) accounting and recognises significant items
of income and expenditure on accrual basis.

The company is complying with the Indian

d) Accounting-Standards (Ind-AS) issued by
the ICAI, as per the requirements of the
Companies Act, 2013.

First Time Adoption of Ind AS

In accordance with the Companies (Indian
Accounting Standards), Rules 2015 of the
Companies Act 2013, read with Section 133 of
the Companies Act 2013, the Company adopted
the Indian Accoutng Standards (Ind AS) for
preparation of its financial statements with effect
from 1st April 2024

I PROPERTY PLANT AND EQUIPMENT

a) Expenditure of capital nature are capitalized
at cost comprising of purchase price (net
of GST, rebates and discounts) and any
other cost which is directly attributable to
bring the assets to its working condition
for the intended use. All Property, plant &
Equipments

are carried at cost less depreciation. But when an
asset is scraped or otherwise disposed off, the
cost and related depreciation are written off from
the books of accounts and resultant profit or loss,
if any is reflected in profit and loss account. The
Company capitalized Inward Freight of Capital
Asset at the end of month.

II DEPRECIATION

The charge in respect of depreciation is
derived after estimating the asset''s expected
useful life and the expected residual value
at the end of its life. The depreciation
method, useful lives and residual values of
the Company''s assets are estimated by the
management at the time the asset is acquired
and reviewed at financial year end.

Depreciation has been provided on the method
and at the rates in the manner prescribed
in schedule II to the Companies Act. 2013,

III FOREIGN EXCHANGE TRANSACTIONS

a) All the Monetary assets and liabilities in
foreign currencies are translated in Indian
rupees at the exchange rates prevailing at the
Balance Sheet date as notified. The resultant
gain / loss are accounted for in the Profit &
Loss account.

b) The outstanding foreign exchange
transactions are stated at the prevailing
exchange rate as on the date of balance
sheet.

c) Items of Income and expenditure relating to
foreign exchange transactions are recorded
at exchange rates prevailing on the date of
the transactions.

IV INVENTORY VALUATION

Stock of raw materials, stores & spares are

a) valued at lower of purchase cost or net
realizable value.

b) Finished goods are valued at cost of
production or net realisable value whichever is
less. Cost for the purpose of valuation includes
raw material consumption, manufacturing
expenses and other appropriate overheads
there on in accordance with IND AS-2 issued
by ICAI

V REVENUE RECOGNITION

a) Sales

Revenue on Sale of is recognized on the basis
of dispatches from factory gates.

b) Interest Income

Interest income is recognized as it accrues
on a time proportion basis taking in to
account the amount of investment and rate
applicable.

VI GST

Liabilities for GST occur and accounted
for as when the materials get dispatched.

VII IMPAIRMENT OF ASSETS

At the end of each year, the company
determines whether a provision should be
made for impairment loss on fixed assets by
considering the indications that impairment
loss may have occurred and where the
recoverable amount of any fixed asset is lower
than the carrying amount, a provision for
impairment loss on fixed assets is made for the
difference. Recoverable amount is generally
measured using discounted estimated
cash flows. Post impairment, depreciation
is provided on the revised carrying value
of asset over its remaining useful life.
Management is of the view that no such
assets exists in the Company.

VIII TAXATION

Current tax is determined as the amount of
tax payable in respect of taxable income for
the year. Deferred tax for timing difference
between the book profits and tax profits is
recognized using the tax rates and laws that
have been enacted or substantially enacted
as of the Balance Sheet date. Deferred tax
assets arising from the timing differences are
recognized to the extent there is reasonable
certainty that sufficient future taxable
income will be available against which such
deferred tax assets can be realized.

IX EARNING PER SHARE

Basic EPS is calculated by dividing the net
profit for the year attributable to Equity
Shareholders by the weighted average
number of equity shares outstanding during
the year. The weighted average number
of equity shares outstanding the year is
adjusted for events of bonus issue and share
split.

For the purpose of calculating Diluted
Earnings per Share, the Net Profit for the year
attributable to Equity Shareholders and the
weighted average number of equity shares
outstanding during the year are adjusted
for the effect of all dilutive potential equity
shares. The Company does not have any
diluted equity shares at the year end.

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Mar 31, 2024

1 CORPORATE INFORMATION

The Company is engaged in the business of manufacturing of chemical

2 BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

a) The Financial statements have been prepared under the historical convention and on the accounting principles of going concern. Accounting policies not specifically referred to otherwise are in accordance with the generally accepted accounting principles and materially comply with the mandatory Ind AS issued by the Institute of Chartered Accountants of India.

^b) The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amount of income and expenses during the year. The management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

c) The Company follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

d) The company is complying with the Indian Accounting-Standards (Ind-AS) issued by the ICAI, as per the requirements of the Companies Act, 2013.

First Time Adoption of Ind AS

The Company has prepared the opening balance sheet as per Ind AS as of 1st April 2022 ("the transition date”) by recognising all

assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not

permitted by Ind AS, by reclassifying items from Previous GAAP to Ind AS as required under Ind AS and applying Ind AS in

restating its previous year GAAP financial statements

I PROPERTY PLANT AND EQUIPMENT

a) Expenditure of capital nature are capitalized at cost comprising of purchase price (net of GST, rebates and

discounts) and any other cost which is directly attributable to bring the assets to its working condition for the intended use. All Property, plant & Equipments are carried at cost less depreciation. But when an asset is scraped or otherwise disposed off, the cost and related depreciation are written off from the books of accounts and resultant profit or loss, if any is reflected in profit and loss account. The Company capitalized Inward Freight of Capital Asset at the end of month.

II DEPRECIATION

The charge in respect of depreciation is derived after estimating the asset''s expected useful life and the expected residual value at the end of its life. The depreciation method, useful lives and residual values of the Company''s assets are estimated by the management at the time the asset is acquired and reviewed at financial year end.

Depreciation has been provided on the method and at the rates in the manner prescribed in schedule II to the Companies Act. 2013,

III FOREIGN EXCHANGE TRANSACTIONS

^a) All the Monetary assets and liabilities in foreign currencies are translated in Indian rupees at the exchange rates prevailing at the Balance Sheet date as notified. The resultant gain / loss are accounted for in the Profit & Loss account.

b) The outstanding foreign exchange transactions are stated at the prevailing exchange rate as on the date of balance sheet.

c) Items of Income and expenditure relating to foreign exchange transactions are recorded at exchange rates prevailing on the date of the transactions.

IV INVENTORY VALUATION

^a) Stock of raw materials, stores & spares are valued at lower of purchase cost or net realizable value.

b) Finished goods are valued at cost of production or net realisable value whichever is less. Cost for the purpose of valuation includes raw material consumption, manufacturing expenses and other appropriate overheads there on in accordance with IND AS-2 issued by ICAI

V REVENUE RECOGNITION

a) Sales

Revenue on Sale of is recognized on the basis of dispatches from factory gates.

b) Interest Income

Interest income is recognized as it accrues on a time proportion basis taking in to account the amount of investment and rate applicable.

VI GST

Liabilities for GST occur and accounted for as when the materials get dispatched.

VII IMPAIRMENT OF ASSETS

At the end of each year, the company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that impairment loss may have occurred and where the recoverable amount of any fixed asset is lower than the carrying amount, a provision for impairment loss on fixed assets is made for the difference. Recoverable amount is generally measured using discounted estimated cash flows. Post impairment, depreciation is provided on the revised carrying value of asset over its remaining useful life. Management

is of the view that no such assets exists in the Company.

VIII TAXATION

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax for timing difference between the book profits and tax profits is recognized using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred tax assets arising from the timing differences are recognized to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

IX EARNING PER SHARE

Basic EPS is calculated by dividing the net profit for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding the year is adjusted for events of bonus issue and share split.

For the purpose of calculating Diluted Earnings per Share, the Net Profit for the year attributable to Equity Shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares. The Company does not have any diluted equity shares at the year end.

X PROVISION AND CONTIGENCIES

A Provision is recognized when the company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (including retirement benefits) are not discounted to its present value and are determined based on 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 estimate. Contingent liabilities are not recognized in profit & loss account but are disclosed in Notes to the Accounts.

XI BORROWING COST

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A Qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

^X" RETIREMENT AND OTHER EMPLOYEE BENEFITS XIII CASH FLOW STATEMENT

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