Krishana Phoschem Ltd. कंपली की लेखा नीति

Mar 31, 2025

2.3. MATERIAL ACCOUNTING POLICIES:

A. Current and non-current classification

Any asset or liability is classified as current or non¬
current based on company''s normal- operating
cycle and other criteria as set out in the Division II of
schedule III to the Companies Act, 2013.

Asset/ Liability is classified as current, if it satisfies
any of the following conditions:

• the asset/liability is expected to be realized/
settled in the Company''s normal operating cycle;

• the asset is intended for sale or consumption;

• the asset/liability is held primarily for the
purpose of trading;

• the asset/liability is expected to be realized/
settled within twelve months after the
reporting period;

• the asset 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;

• In the case of a liability, the Company does not
have an unconditional right to defer settlement
of the liability for at least twelve months after the
reporting date.

All other assets/ liabilities are classified as non current.

For the purpose of current/non-current classification
of assets and liabilities, the Company has ascertained
its normal operating cycle as twelve months. This is
based on the nature of product and the time between
the acquisition of assets or inventories for processing
and their realization in cash and cash equivalents.

B. Property, plant and equipment (PPE)

An item of property, plant and equipment is
recognised as an asset if it is probable that the future
economic benefits associated with the item will flow to
the Company and its cost can be measured reliably.
Items of Property, plant and equipment acquired/
constructed are initially recognised at actual cost.
The cost of an item of property, plant and equipment
comprises of its purchase price including import
duties and other non-refundable purchase taxes or
levies, directly attributable cost of bringing the asset
to its working condition for its intended use and the
initial estimate of decommissioning, restoration
and similar liabilities, if any. Any trade discount or
rebate is deducted in arriving at the purchase price.
Cost includes cost of replacing a part of a plant and
equipment if the recognition criteria are met.

Following initial recognition, freehold land is stated
at actual cost. All other items of Property, plant and
equipment are stated at actual cost less accumulated
depreciation and impairment loss.

Items such as spare parts, stand-by equipment
and servicing equipment that meet the definition of
property, plant and equipment are capitalized at cost
and depreciated over their useful life. Costs in nature
of repairs and maintenance are recognized in the
statement of profit and loss as and when incurred.

All other repair and maintenance costs, including
regular servicing, are recognised in the statement
of profit and loss as incurred. When a replacement
occurs, the carrying value of the replaced part is
de-recognised. Where an item of property, plant
and equipment comprises major components
having different useful lives, these components are
accounted for as separate items.

Capital work-in-progress includes cost of property,
plant and equipment not ready for the intended use
as at the balance sheet date. Advances paid towards

the acquisition of property, plant and equipment
outstanding at each Balance Sheet date is classified
as ''capital advances'' under other non-current assets.

The cost and related accumulated depreciation are
eliminated from the Financial Statements upon sale
or retirement of the property, plant and equipment
and the resultant gains or losses are recognised
in the statement of profit and loss. Property, plant
and equipment to be disposed of are reported at
the lower of the carrying value or the fair value less
cost of disposal.

The Company had elected to continue with the
carrying value of all of its property, plant and
equipment appearing in the financial statements
prepared as per accounting standards notified under
section 133 of the Companies Act, 2013 read with
Rule 7 of the Companies (Accounts) Rules, 2014
(Generally Accepted Accounting Standards "Previous
GAAP") as the deemed cost of the property, plant and
equipment in the opening balance sheet under Ind AS
effective 1st April, 2018.

C. Depreciation and amortization

Depreciation method, estimated useful lives
and residual values are determined based on
technical parameters / assessment, taking into
account the nature of the asset, the estimated
usage of the asset, the operating conditions of
the asset, past history of replacement, anticipated
technological changes, manufacturers warranties and
maintenance support, etc.

The estimated useful life of Property, Plant &
Equipment are as follows:

The management believes that these estimated useful
lives are realistic and reflect fair approximation of the
period over which the Property, Plant and Equipment
are likely to be used.

Depreciation on property, plant and equipment
is provided on pro rata basis using the straight¬
line method based on useful life of the assets as
prescribed in Schedule II to the Companies Act,
2013 in consideration with useful life of the assets as
estimated by the management.

Depreciation on an item of property, plant and
equipment sold, discarded, demolished or scrapped,
is provided up to the date on which such item of
property, plant and equipment is sold, discarded,
demolished or scrapped.

The estimated useful lives, residual values and
methods of depreciation of property, plant & equipment
are reviewed at the end of each financial year. If any
of these expectations differ from previous estimates,
such change is accounted for as a change in an
accounting estimate and adjusted prospectively, if any.

D. Impairment of assets

As at the end of each accounting year, the Company
reviews the carrying amounts of its Property, Plant and
Equipment (PPE) and intangible assets to determine
whether there is any indication that those assets
have suffered an impairment loss. If such indication
exists, the said assets are tested for impairment
so as to determine the impairment loss, if any. The
intangible assets with indefinite life are tested for
impairment each year.

Impairment loss is recognized when the carrying
amount of an asset exceeds its recoverable amount.
Recoverable amount is determined:

a) In the case of an individual asset, at the higher
of the net selling price and the value in use; and

b) In the case of a cash generating unit (a group
of assets that generates identified, independent
cash flows), at the higher of the cash generating
unit’s net selling price and the value in use.

The amount of value in use is determined as the
present value of estimated future cash flows from the
continuing use of an asset and from its disposal at the
end of its useful life.

For this purpose, a cash generating unit is ascertained
as the smallest identifiable group of assets that
generates cash inflows that are largely independent of
the cash inflows from other assets or groups of assets.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or cash generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount
does not exceed the carrying amount that would have

been determined had no impairment loss is recognized
for the asset (or cash generating unit) in prior years.
A reversal of an impairment loss is recognized
immediately in the Statement of Profit and Loss.

E. Leases:

As a Lessee

The Company implemented a single accounting
model as per Ind AS 116, requiring lessees to
recognize assets and liabilities for all leases excluding
exceptions listed in the standard. The Company
elected to apply exemptions to short term leases or for
leases for which the underlying asset is of low value.

Based on the accounting policy applied the Company
recognizes a right-of-use asset and a lease liability at
the commencement date of the contract for all leases
conveying the right to control the use of an identified
assets for a period of time. The commencement date
is the date on which a lessor makes an underlying
asset available for use by a lessee.

The right-of-use assets are initially measured at cost,
which comprises:

- The amount of the initial measurement of the
lease liability,

- Any lease payments made at or before the
commencement date, less any lease incentives,

- Any initial direct costs incurred by the lessee,

- An estimate of costs to be incurred by the lessee
in dismantling and removing the underlying
assets or restoring the site on which the
assets are located.

After the commencement date the right-of-use
assets are measured at cost less any accumulated
depreciation and any accumulated impairment losses
and adjusted for any re-measurement of the lease
liability. Depreciation is calculated using the straight¬
line method over the shorter of lease term or useful of
underlying assets.

The lease liability is initially measured at the present
value of the lease payments that are not paid at that
date. These include:

- fixed payments, less any lease
incentives receivable;

- Variable leased payments that depend on an
index or a rate, initially measured using the
index or rate as at the commencement date;

- Amounts expected to be payable by the lessee
under residual value guarantees;

- The exercise price of a purchase option if
the lessee is reasonably certain to exercise
that option and;

- Payments of penalties for terminating the lease,
if the lease term reflects the lessee exercising
an option to terminate the lease.

The lease payments exclude variable elements which
are dependent on external factors. Variable lease
payments not included in the initial measurement of
the lease liability are recognized directly in the profit
and loss. The lease payments are discounted using
the Company’s incremental borrowing rate or the rate
implicit in the lease contract.

F. 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.

i) Financial assets

The Company recognizes financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial
assets and liabilities are recognized at fair value on
initial recognition and adjusted for transaction costs
that are attributable to the acquisition or issues
of financial assets and financial liabilities in case
of financial assets or financial liabilities not at fair
value through profit or loss account.

Where the fair value of financial assets and
financial liabilities at initial recognition is
different from its transaction price, the difference
between the fair value and transaction price is
recognised in the statement of profit and loss.
However, trade receivables that do not contain
a significant financing component are initially
measured at transaction price.

Financial assets are subsequently classified
as measured at:

• amortized cost

• fair value through profit and loss (FVTPL)

• fair value through other comprehensive
income (FVTOCI)

Financial assets measured at amortised cost

A financial asset is subsequently measured
at amortised cost if both of the following
conditions are met:

• If is held within a business model whose
objective is to hold the asset in order to
collect contractual cash flows, and

• The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

This category applies to trade receivables,
loans and other financial assets of the Company
measured using the Effective Interest Rate
(EIR) method less impairment, if any, and
the amortisation of EIR and loss arising from
impairment, if any is recognised in the statement
of profit and loss.

Financial assets measured at fair value

A financial asset is measured at fair value
through other comprehensive income if both of
the following conditions are met:

• If it is held within a business model whose
objective is to hold these assets in order
to collect contractual cash flows and to sell
these financial assets, and

• The contractual terms of the financial
assets give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

Fair value movements are recognised in the
other comprehensive income.

A financial asset not classified as either
amortised cost or at fair value through other
comprehensive income is carried at fair value
through the statement of profit and loss.

De-recognition of Financial Assets

A financial asset is de-recognised only when

• The contractual rights to cash flows from
the financial asset expire;

• The Company has transferred the
contractual rights to receive cash flows
from the financial asset or;

• Retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the entity has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial
asset is de-recognised. Where the entity has not

transferred substantially all risks and rewards
of ownership of the financial asset, the financial
asset is not de-recognised.

Where the entity has neither transferred a
financial asset nor retained substantially all
risks and rewards of ownership of the financial
asset, the financial asset is de-recognised if the
Company has not retained control of the financial
asset. Where the Company retains control
of the financial asset, the asset is continued
to be recognised to the extent of continuing
involvement in the financial asset.

Impairment of financial assets

The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through a
loss allowance. In determining the allowances for
doubtful trade receivables, the Company has used
a practical expedient by computing the expected
credit loss allowance for trade receivables based
on a provision matrix. The provision matrix takes
into account historical credit loss experience and
is adjusted for forward looking information. For all
other financial assets, expected credit losses are
measured at an amount equal to the 12-months
expected credit losses or at an amount equal to
the life time expected credit losses if the credit risk
on the financial asset has increased significantly
since initial recognition.

ECL Impairment Loss allowance (or reversal)
recognised during the period is recognised
as income/ expense in the Statement of
Profit and Loss.

ii) Financial liabilities

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

Financial liabilities are recognised when the
Company becomes a party to the contractual
provisions of the instrument. Financial liabilities
are initially measured at the amortised cost
unless at initial recognition, they are classified
as fair value through profit and loss.

Classification as debt or equity

Debt and equity instruments issued by a
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 Instrument

An equity instrument is any contract that
evidences a residual interest in the assets of
the entity after deducting all of its liabilities.
Equity instruments issued by the Company are
recognized at the proceeds received, net of
direct issue costs.

Financial Liability

Trade and other payables are initially measured
at fair value, net of transaction costs and are
subsequently measured at amortised cost using
the effective interest rate method. Financial
liabilities carried at fair value through profit or
loss are measured at fair value with all changes
in fair value recognised in the statement of
profit and loss.

Interest bearing loans and overdrafts are initially
measured at fair value, and are subsequently
measured at amortised cost using effective
interest rate method. Any difference between
proceeds (net of transaction cost) and the
settlement amount of borrowing is recognised
over the terms of the borrowings in the statement
of profit and loss.

De-recognition of Financial liabilities

A financial liability is de-recognised when the
obligation specified in the contract is discharged,
cancelled or has expired.

iii) 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. The
legally enforceable right must not be contingent
on future events and must be enforceable in
the normal course of business and in the event
of default, insolvency or bankruptcy of the
Company or the counterparty.

G. Fair Value Measurement

The Company measures financial instruments at
fair value in accordance with the accounting policies
mentioned above.

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 asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability
and the Company has access to the principal or
the most advantageous market.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant’s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

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: -

• Level 1 - quoted (unadjusted) market prices in
active markets for identical assets or liabilities

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

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

For assets and liabilities that are recognized in the
financial statements at fair value on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting
period and discloses the same.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on
the basis of the nature, characteristics and the risks
of the asset or liability and the level of the fair value

hierarchy as explained above. This note summarises
accounting policy for fair value. Other fair value
related disclosures are given in the relevant notes.

H. Borrowing costs

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

All other borrowing costs are recognised in
statement of profit and loss in the period in which
they are incurred.

Borrowing cost includes interest, amortization
of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences
arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest cost.

I. Income tax

Income tax expense for the year comprises current
tax and deferred tax.

Current tax

Current tax is the amount of income tax payable in
respect of taxable profit for the year. Taxable profit
differs from ‘profit before tax’ as reported in the
statement of profit and loss because of items of income
or expense that are taxable or deductible in other
years and items that are never taxable or deductible.

Current tax is determined on the basis of taxable
income and tax credits computed for Company, in
accordance with the Income-tax Act, 1961 enacted
in India and tax laws prevailing in the respective tax
jurisdiction where the Company operates. The tax
rates and tax laws used to compute the amount are
those that are enacted at the reporting date.

Deferred tax

Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax base
used in the computation of taxable profit under the IT Act.

Deferred tax liabilities are generally recognized
for all taxable temporary differences. However, in
case of temporary differences that arise from initial
recognition of assets or liabilities in a transaction
(other than business combination) that affects neither
the taxable profit nor the accounting profit, deferred
tax liabilities are not recognized.

Deferred tax assets (including unused tax credits
such as MAT credit) are generally recognized for all
deductible temporary differences to the extent that it is
probable that taxable profits will be available against
which those deductible temporary differences can be
utilized. However, in case of temporary differences
that arise from initial recognition of assets or liabilities
in a transaction (other than business combination)
that affect neither the taxable profit nor the accounting
profit, deferred tax assets are not recognized. The
carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be recovered.

Deferred tax is calculated at the tax rates that are
expected to apply in the period when the liability
is settled or the asset is realised based on the tax
rates and tax laws in force. The measurement of
deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner
in which the Company expects, at the end of the
reporting period, to cover or settle the carrying value
of its assets and liabilities.

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

Deferred tax assets include Minimum Alternate Tax
(MAT) paid in accordance with the tax laws in India,
which is likely to give future economic benefits in the
form of availability of set off against future income
tax liability. Accordingly, MAT credit is recognized
as deferred tax asset in the balance sheet when the
asset can be measured reliably and it is probable that
the future economic benefit associated with the asset
will be realized. Minimum Alternative Tax (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.

Current and deferred tax are recognized in statement
of profit and loss, except when they relate to items
that are recognized in other comprehensive income or
directly in equity, in which case, the current and deferred
tax are also recognized in other comprehensive
income or directly in equity respectively.

J. Inventories

Raw Materials, Packing Materials, Consumable
Stores and Spares including Fuel, Stock in trade and
Finished goods are valued at the lower of cost or net
realizable value as under:

The cost of purchase comprises of the purchase
price including duties and taxes (other than those
subsequently recoverable by the Company from the
taxing authorities), freight inward and other costs
incurred in bringing the inventories to their present
location and condition but net of trade discount,
rebates, and other similar items.

The cost of Inventories of finished goods and work
in progress comprises the cost of direct materials
and labour and a proportion of manufacturing
overheads based on the normal operating capacity,
but excluding borrowing costs. Cost is determined on
Standard Cost Method.

Net realisable value is the estimated selling price in
the ordinary course of business, less estimated costs
of completion and estimated cost to make sale.

K. Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant
risk of change in value and having original maturities
of three months or less from the date of purchase,
to be cash equivalents. Cash and cash equivalents
consist of balances with banks which are unrestricted
for withdrawal and usage.

L. Foreign currency translation

The functional currency and presentation currency of
the Company is Indian Rupee.

Transactions denominated in foreign currencies
entered into by the Company are recorded in the
functional currency (i.e. Indian Rupees), by applying
the exchange rate prevailing on the date of transaction.

Monetary items denominated in foreign currency at
the year-end are translated at the functional currency
spot rate of exchange at the reporting date. Any

income or expense on account of exchange difference
between the date of transaction and on settlement or
on translation is recognised in the Statement of Profit
and Loss as income or expense.

Non-monetary items are recorded at exchange rate
prevailing on the date of transaction. Non-monetary
items that are measured at fair value in a foreign
currency are translated using the exchange rates at
the date when the fair value is measured.

The forward exchange contracts are marked to market
and gain/loss on such contracts are recognised in
the statement of profit and loss at the end of each
reporting period.

M. Employee benefits

i) Short-term benefits:

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

ii) Post-Employment Benefits:

a) Defined benefit plan

Gratuity liability is a defined benefit
obligation and is provided for on the basis
of actuarial valuation on Project Unit
Credit Method made at the end of each
financial year. The scheme is maintained
and administered by Life Insurance
Corporation of India to which the Company
makes periodical contributions through a
Employees Gratuity Trust.

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

b) Defined contribution plan

A Defined Contribution Plan is plan under
which the Company makes contribution to
Employee’s Provident Fund administrated
by the Central Government. The
Company’s contribution is charged to the
statement of profit and loss.

iii) Other Long Term Employee Benefits -
Leave Salary

The liability towards leave salary which is
not expected to be settled wholly within 12
months after the end of the period in which
the employees render the related services is
recognized based on actuarial valuation carried
out using the Projected Unit Credit Method.

Termination benefits are recognised as an
expense in the period in which they are incurred.

---

Mar 31, 2024

2. irrjNFICANT ACCOUNTING POLICIES;

A. Current and nort-curront cfassiHcatian

Any assets liability is cJassrfi^ct as a™ nr non-c^nt based on company''s normal- operate ^tvdp ffnd Othe r rntwla as sst out in thfc P-visic n 11 of vetted ule III Lo the Comfftrtie, Act. 2013

^Asse xi LFai klrt _v is da ss tfed a 5 correm. If it sa tiffei any of the fo II c on d it ions;

¦ the awe''ll*bilifv kcNpected to be re*ifzwi/seitiled In the Company''s normal operatui_K cycle;

* tht asset >S Jn tended for iJlet or consumption;

¦ the jsser/li''ahii''ity It hel d prlnian ly for *fee purposaof trading

* the isseVila b il ity ^:s «pected to be railfjed/jettla d with in twe\_m mtmtfi, after th a reoo nine period;

'' Ihe asset is ensh or tish equivalent unless it is restricted from being changed or used to. settle a I tabl lit v For at least twelve mo nths aft fcr the report :ng date; "¦>¦

f^/^rr\ Y-

¦ tn The rase or" a liability, the company dost not have an qiHorttJftlchil r''ip.l''it tu dtfer i-e-ttIc;mt; 111 of the liability for at least twelve months aftai the eporLir-jg date.

Alt other a^ ets/ I iatii li r -e i a re t tjss i'' !ud as none u rre nl.

For the purpa.se of curnerit/normorreflE classification of assets and liabilities, the Company has ascertained Its normal operating cycle as Twelve months, l''his 15 based On the ridture of product and the time between the acquisition of assets ar inventories for processing aod their legislation in tjih and ljsEi equ va ents.

&. Prop erty, plant arid equ ipment \ P PE \

An item ot property, plant and equipment iS re-LO^n sod as an asset ii it is probable That the future economk benefits associated with the item will flow to the Company and its cost ran he measured reliably. Tfih recog liriop principle It j.p''-plitd Lo the casts incurred ioit a |y to aetju re ju hem of prOpmiy, plant and equipment and also to the costs Incurred Subsmiuent''y to add To. replace parr oF, nr service it. All other repriii and m p-11 tu 1 id nee costs, induing -cgLLlar servicing, ire ecOgmiod in the statement uf profit and lass as incurred. YYtlEfl a reptaceitn_-iH Olluis. the C:Li iyir g value oi the replaced part is cte-recognls*d Where ifl UOrn ol property, plant and equipment comprises major components having different useful lives, tnese components ac accounted for as separate items.

All tithe 1 items tif property, plant and equipment are slated at acquisition coKt rel tif accuiriLdated depreL :ation arid accumulated impairment looses, if any Thu cost of an item ot property, plant and equipment comprises of its purchase price including Import duties and Other namiefundable piirrhasF? raves or levies, directly atTri&urablG cast of bringing the asset to its working condition for Its Intended use arid the initial estimate of riecommissiOH''iifi, reStum! cu and similar Eiahilities., if any. Anv t-ade discount Or re bate ii deducted in arrivmg at the Obrcuaie p: tt. Cast includes cosl at replacing a parlr of a plant and equipmect if th£ reto^niticn criteria are met.

Items such i''S sppiO Duds, sTcir-.c ay equipment and JSrvitlng equipment tba: meet Hie ctcfii itiun uf property, plant and equipment are can r.ri-?ed ar cost and depreciated ovvi their tisvlul life Casts in nature oF repairs and maiott-njoct am recognized m the statement af pratit and loss as a''in when incurred.

C-a3»t^! work-in-progress includes cost uf property, plant and equipment not ready for the inter’ded use its at the balance sheet date. Advances paid tOWSrrH the acqtnsrtloo qf property. phi 111 and equipment outstanding ;[ eosl¹ fialanfetf bfieet dale :s c assified as capital advances'' under other nn 11 -current assets.

The cast and related accumulated depreciation are ell mulcted from the ftmnciaE Statements upnn sale or retirement of tne property, plant and equipment ar.d the resultant gams or losses Are recognised in the statement of profit and lost. U''upEirty, plant and equipmenr to be disposed oFare repo rted at the ciwer ot The ca frying va lue 0 r the fa lr va lu e less to St Of d is posa I. fne Company had elected tu continue witti the ca rrying value at a I of hs jjnoperW, plain a no equipment appearing in the finannai statements prspared us per accounting Udiidjics not died under section 1ZZ uf t-he Companies Act, 2013 read with R11 e 7 of The Companies, (Accounts} rtules, 2014 (Generally Accepted Accounting Standards ''Previous GAAP") as the deemed cost of ihr p to party, plant a 1 id -.-g u iprn e nl ii 1 the u pa n ing balance sh? e1 und e r I nd As e Ff r-; p.v ^ '' st Ap r I l> 1M

C. Depredation and amortization

Depmoution method. ciLiinmud uiEiu: lives and resldusl vafues are Jatemnilned bdiCd mi technical parameters/ assessment, taking into JCCQuill the nature of the asset, the estimated u«£C of the OSyjL, the unarming rondit.cns nf (he asset, par.r h story "''p^CCmerit, anticipated techntilopica¹

chen^es, namj^tturers warranties Jnd maSrtenante support, etr.

The estimated useful life of Property. Plant &. Equrpmenl are as follows:

The manage merit believes that thesp estimated useful lives ate resllrtlfi one retie Lt fiii approiijm^tion (?i the ueiiod over which the Property, Plant and £-q u?p orient arre iikely to be used-Depteciation on property. plant and equipment is provided on pro rata basis using tfifr ttreightiline method based on nsefi.il lifc of Ihoossots JS p-uicrrbed in Sdiedotp II to the Companies rtet, 201.T in considETation w it h use tul life o1 the a ssecs as eSfim ateo by t :ie mar iagei i ¦ eiit Do [If oration on all item Of property, pijhl and equpmenE sold, discarded, denarjliihet: or scrapped, is provided up$q the date on which StKb item of property, plant Olid equipment ii sold, diSLOfried, demolished or stepped.

MlO estimated uSOfuf lives. ffisWual values and methods uf depreciation if property, plant & equipment are reviewed at the end of each financial year. If any of these expectations differ from previous estimates, such change is accounted tnr as a change n an accounting estimate and adjusted prospectively, if any

li. Empairsment of assets

As at The End r?F each accounting year, the Company reviews the carrying amounts of its property, plant and equipment (PPL) and Intangibly assets to determine whether there is any indication rhat Chose assets have suffered an impairment loss. It such Indication exists, the savl assets are rested tor impairment so a* to deLerrnino ihe impairment loss, if oily The Intangible ossvtcwir''i indefinite hfe o^e tested for Impairment each ypar.

Impairment luis ii recugrl iiufl wtrnn the Lurrying amount of On iSSO-t LKCteds its recoverable amount. Recoverable a mount is determined-

af In the rase of an individual asset,'' at the higher of the net selling price and the value in use;

and

b) In The case of 5 cash tJtnei-=Tihr urit (3 £rdup of assets fhet generates dettfrfted, independent cash flows), at the highrif ojp the t**h genefat rig unit''s net sefl ug price and the value iimse.

rnp amount of value in use is ^rrttlrwd as the aresent valve of estimate:! future c&sh flows fTom the Wntinuing use 0 f art asset and f ram its tJisposaf at the end pf its useful life.

For tills purpose, a cash generate unit is ascertained as the smallest identifiable group of assets that generates rash nflows that are largely Independent of the rnsh inflows from other assets p.^r groups of astuis.

When an riYitnt bis subsequently reverses, the carrying amount of the asset (or cash

generating unit) is increased to the revised estimate Of iLs reerrverah^ amount, but su that the ¦ncreased carrying amount does not exceed the catryine amount that won d have been dcLcr-nined Pad no impairment loss is recognized for the asset jar cash aeneratlhg unit) in prior years. A. reversal of an impairment loss Is recogmietd Immediately .11 th* Slatemsnt Of profiftnd Loss.

E- Leases:

As a Lessee

The Company implemented a single accounting model as ner Jnd AS lib. reouirmg lessees To recofiniie assets and labilities for ail leases excluding ewcepthms nsied in this standard rh<-Company elected to apply esrurnptmns ic short term leases or rar pesos to- wlm , me underlyii® asset Is of Jol-v value.

UOSt''d on the accounting policy applied the Company recognizes a ri^ht-ot''-use asttt jnd a lease liability at the Corn men cement date dflht contract tor all leases conveying the right to control the use of 3h Identified asset! far a period of time. The commencement dote is the data on which a lessor makes an underlying asset available for use -by a lessee.

The rjght’flf-uie assets are -nitially measured dt cost, which comprises:

Th? amount of the initial me asurMtf^ of :hp I pa sc lability,

-Any lease payments made at or before Lliu commencement date, less any bass ncenthfcs,

- Any initial direct costs incu-Fed by the le^e-e.

- An estimate of costs To oe incurred fay the lessee in 0 mi id n L ling and removing trie underlying assets 01 nestoring the site a n wh ich t he- as.se t! sr e beat ec

Alter the commencement flats the righ1-of-usp assets are measured at cost fe» eny a: unm lilted depreciation Arid any aCcumulaterJ mpaffment losses nnu adjusted for .my re-measur l-t Sht qt me base liability. Appreciation is calculated using the straight-lane methud over the shorter of (ease term or usefut of underlying assets.

The lease llob.ky IS Initially measured at the presem value o: tbs tea.se payments that are not paid Jt that date. These include: fixed payments, less liny lease incentives receivable;

- variable base payments: that depend cm an index or a rate, irnllalfy measured usinp rhj> index ur rate S5 3t the COm men cement date;

- Ainu uzits expected to be pa yable by [ he ?HiJSR? under resirf U a I Vet: U£ gua rant ee s_r

-The exitrtiSu price ot a purchase option f the lessee is reasonably certain to exercise that option, and

- Payments of pencities ftu terminating the lease, it the loose- Le-mi reflects the lesape exercising an option (a terminate the lease.

Tile feaw payment!exclude variable erEmenls Which arc- dependent on external factors. V.v able baie payments not included in the Initial measurement of thfl lees? liability flre ''ccugnizucf directly ill the prdfil and Joss. Ttm lease payments art discounted using the Company''s mere mental burrowing r^te or The rare implicit in (lit base contract.

F. ^i''I.qnfi:.iI FnstrumeritS

A fiiian cial instlun^nl is any cont ra ct Tz,el ve S i iSe Iti a Firla 11 r,al atse t of 0 no ei -ttty a nd : ti nanc Ja i Utility tr Equity instriimenr of another unlity.

'') Financial 3SMti

The Company recognlies financial assets and fu uncial liabilities when i£ hecgmeS a party TO the contractual provisions of the Instrumi&t. AM financial assets and Fiah litffcj ore reragniie^ at Fair value on initial rE-cagnitior, and adjusted for transaction ct?sb tFiat. are alTrihntihie to the acqn sition issues of fuuncial assets and tiiidiiCrjl liatiirilies .ncasp of financial assets ur Hn»iKlal Mall: If ties not at fair value through profit or Ides account.

Where thft fa ir val ue at f i na ncttjj * S»t! j nd fina o s.al , ia I) I it ies at mil la. recoin :r ioi'' is d if f e rent

from hs transaction price, the difference betttwn the Fair ya(ue notf Uaiitacr on price s

recognised ill the statement of profit and loss.

However, trad? receivable! Lhai du hot contain 3 Sign ffcant linanrinR component die initially measured it transaction price.

Financial assets are Subsequently classified £5 measured at:

¦ amprtired cost

* ''d Ir va I Lie Ih rough p red if a nd lost (FVTP L |

* fa ir va lue til rough o the r com preFie ''isi y e Income {FVTQC)

i. Financial assets measured at a mo rinsed cost

A flririritial asset is StlCiwquenUy measured at amortised cost if both of the fcliawrng conditions ire met:

* If is hesd within a business model whose objective is (o hnlrt The asset m order to col net contractual cash flows, and

* Tho ismlractual terms of the financial asset give rfse cm specified -fates to cash Hows that

li Sole|y payments of pone ;pal a nd i nte re£t on 1 Fi e p i. 11 rjpil a ¦ i .ourit o u ts La ndi i ip This category applies to trade receivables, loans Jnd other Finance assets of the Company measured using the Effective mteresL Rate |Elrt) method less Impairment, it any, and the amortisation of ElR and loss arising from impairment, if any is recognised In the statement of profit and Joes.

li. Financiat assets measured at fair value

A h i id nr id I asset is measured at fair value Through uLFiet eomprehenslue income If bo’.Fi ol tFie fallowing conditions are met* II it is held within a business model whose ahfective s to hold these assets in order to collett contrartuaS cash FFuws and to tell thet-p Financial assets, and

* The contractual terms uf the financial assets give rise on specified dates to cash flows that err in lely p a y me nts 0 F pri nc loa I d nd inc ere st :i n t he priori pal amount QUtltand ing

PairIue it¹ ryveoients ara letognired in 1 he offier coinjjp ehcnuve income,

A financial asset rot classified PS either arnurtfsEd cajt or at fair value thru ugh other corn psehen Sisre income- is ca rried a t fa ir up lue throug ll t lie> std ten i EnL of profit a n d loss.

De-recognitinn of Financial Assets

A ^:-1i-jiici j I ass-tt is de-recpjjnisettpfily when

¦ The rrmtrgctual riRhts to ca^h flOwi 1rorn the ftntnr.nl ssspt expire;

* rhp Company has transferred 1he contractual rights Co receive cash flows from lhe financial a-iset or;

* ftatalftS the contractual rights to receive the cash flows of the financial asset, but assumes 5 contractual oblige Liun to pay the cash flows to one ur mot recipients.

Where the aiitily has irEnsferrpci an asset, the Company evaluates whether it has trrrtsfflrfed substantially all risks Ohd rewards of ownership of the flnandfel asset. In such cases, the financial asset Is de-f&CQ&nised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset., the financial asset is not de-recognised.

Where the polity lias neither transferred a financial asset HOF rulairiud substantially all risks and rewinds ul invne-rstup nf The financial asset, the F. ns n:is I asset is de-reoogrysud if Hie Company lias not retained control uf the Financial ass^T Where the Company retains rontio of tne financial asset, the assel is continued to be recognised to The extent of continuing involvement m the financial asset.

Impairment of financial Assets

Tile Company rOCOgnires loss allowances if any usmj. exp&CtOd credit less [EQJ mode for the financial assets which are not fair valued through the statement of profit and loss.

Loss allowance tnr trad? receivables with no significant finanriFig component 15 measured Al an .3mount equal to lifetime ECl.

li} Financial f|abilities.

Air financial liabiliries are subsequently measured at amortized cost using the effective interest method,

Classification as debt or equity

Debt and equity instruments issued by 1 Company art classifred as either rinancinl 1 aEiilities 01 a equity in atccohdanaf with the substance of the contractual nfriirtf emertts afld the cm-nr ions u‘ ri financial Jiobduy and an equity instrument.

Equity instrument

An equity ipsirument is my contract that evidences a residual interest in the assets of tne entity after deducting all nt its liabdTties. Equity instrument issued by the Cumpauy ere Tecagri zed at the proceeds received, net of direct issue costs

Financial Liab-''lity

Trade and other payables are initially measured at fa r value, net of transaction Custs and are suhiequanUy measured at amortised cdei using the effective interest rate rtietliod,-fllⁱS&P£43!

Itotrilttles tarried ar falrvalus through profit or l&Ss are measured at fair value with ill changes in fairvatue recoinIscd in the srateme i n of pro fit iind loss.

interest bearing tosm and overdrafts .are initially measured .it fair varus, and arc Subsequent^-measured at amortised cost using effect hre interest rats mcLhod. Any difference between proceeds (net of transacTion cost) Jnd Lnc settlantenc arnuuut of booms-ni£ is recognised <&?er [ho torffl-f of the borrowings in [fie statement o? profit and loss

De-recognitior. oF Financial liabilities

A financial liability is de-recognised when ths obligation speedied in the contract is discharged, cancel edor hasesqired

iiif Offietlinn financial instruments

Financial assets and Mati.l ties are offset and the net amouol is reported in the ftal-dnCe Sheet where there rS a kgally enforceable right to offset the retugn sed amounts and there is no Intention :u settle OH a PCI basis or realise the asset and settle the liabi-ity simultaneously. The legally enforeeabJe ri£htmw5t not be comment on fulute evenly jnd limit be enforceable in the oc-rmal course of business and m the event of default,, insolvency cr bankruptcy of the Com pa ny or the COtm terpa rty

G. Fat* Vedue Measurement

The Company measured financial instruments at fair value Ifi accordance with the accounting polk es luenticneU a hove,

Fair value if 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 llieaiuremenl date. The fair vakte meaSLireniLMU is based on the presumption fetal the transaction to sen the asset or transfer the liah lity take! place either:

¦ I n t he prl nd pa 111 id r kef 1 n r asset or liabil ily, c r

* In ifie absence of a piintppal market, in the most advantageous marfcutt for the asset Oi li a Li ii itv a nd 11 ie Company has occ ess To the pri nripa I or tog m&st adva n tageouS rna r k<$.

The fair value Of an asset nr ?. Nobility s measured ii^irg |ln? asaymptiorrs that market p,:it:. |..in|-. would use when pr.drtg tFie asset or liability assuming that market panicipants ad in ih-ihr economic belt imcrest.

A fair value measurement of a mn-tinartcill asset takes into account a market participant''s ability to generate economic benefits by using tke asset in Its highest and tied use Or by selling it to another market pamcipinL Chat would use the dSset in its h-ghed and best use.

I lie Company uses v^t Or; techniques Chat are appropriate in ihe drcuillSiaftCSs and for which sufficient data are agitable trsmeasure Fan value, maxim smg die us-e at relevant obie rva hlfii inpjrs and minimi sing the use of unobservable inputs

Ali assets and utilities lor wh^:rh fair yjluers measured or disclosed fit the- Financial statements are categorized wtt-.in (lit Fuirvurue hieranchv lha[ categorises into three levols. described as follows ¦

* Ltyyr 1 - quoted [unadjusted| market pricej in jctrve markets for identical assets cr liabilities

¦ level 1 - inputs otliei than tluotud prices included within LGvcl 1 tt^at are nhseruablo Fm th0 asset Or ha L iiity, either :l redly O¹ indirectly

¦ LaveI 3 - inputs thJt are ur:observable for the mint oj liahility

i ; CL s. \

For assets and I''ablUtFes that are reccignued in the finartria! state menu -it fair vilue on a recurring ba$is_h Company determines whether transfers have occurred between leve:S in Lhe hierarchy by re-assessing cutcgcrizarion at thb end of each reporting period and ciscloses the safflfc ¦°^r trie purpose Of fair value disclosures, the Company has determined crises of asaets arid I labilities Oil the basis of the nature, characteristics and the risfci of thiB asser or Eldb-lity aotf the lerrrl or the fftirva.UO hierarchy explained above This note summarises accounting polity for fair val uC. t> the r f ajt va lue rc lilted d isd n su res ire give n i n t he relt/va n t nofo^

H. Borrowing fusts

Borrowing costs directly attributable to llie acquisition, const: jctinn nr pnotfLihcm ot qoattfyir^, assets, which are assets that necessarily take a sohsrantEat period of time to get ready for then Intended use Or sale, are added to the cast of the assals, mil. I such time as the assets are Substantially ready -or Lnoir in ten dart use or sale.

Another borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

Borrowing cost Includes interest, Oillortijafion of ancillary DffrtS incurred in connection with the 0 ririgu ¦ en. elf borrowing* and exchange differences arising rrom foreign currency horrowngi Cu the extent they are regarded Os fan adjustment to lhe interest cost

I- Income taji

income tax Expense fnr the year comprises Current Can ard cipfe- cd tax.

Current tax

Current Uf. is 1he amount of Income rax payable n respeef of taxable profil foi trie year Taira tile piodt differs from ''profit oetnre tax'' us Reported in the statement or profit and loss because of items of income or expense that are taxable or deductible In other years and items that are never taxable or deductible.

Current fan is determined cm the basis- of Edible income and ta* credits computed for Company, in accordance with [JIS Intome-tax AC t, 1% 1 SndctMf | n Ifldfe and tax laws pr«ft iling in Ihe respectivc 13* juriid ebon where tho Cumpany ope idles. The tax rates and tax laws used to compute the arno Unt u.- e t hose thal a re ert Jciert a 11 he re port mg date Deferred TflJi

Deferred rex 15 recoglined cn temporary differences hetweeo Lflu carryir.g amounts of assets and liabilities ill the limmciFil statements and the corresponding tax base used m the computation ₀f lasable profit under tr»e IT Act.

Deferred tax liahi i1i?s see generally rRccignlrecI for dll tasalrie temporary differences However, in cate oF temporary uifterentes that arise fram imtj&! recognition of assets or Ii*bili1ies Irt i transaction (other than business rambination) that affects neither the Taxable profit nor the accounting urnfiT.. deferred tax liabilities are not rttogm rud.

Deferred tax assets (including unused m credits such as MAT credit) are jeneroJly recognized for all deductible tempoiary differences to ton c*Lcut that it it premie ih-at ta*af :- pm tits will be available against which those deductible tempor&ry differences Can be utilized MOwOvti. m Late oF temporary differences that arse from Initial recognition of assets Or labilities in a transaction jotrie-r than business combination) tnat affect neither Lhe taxable profit nor llie accounting profit, deferred tax asset* *re not recognized. The rn Trying amount Of deferred tax assets -^:S reviewed nt lhe end of each reporting period and reduced to the ext-PiH (hj[ n is no longer probablt that sufficient taxable profits will be available to allow all or pan of the asset to be recovered

¦

fl .

Deterred taxis calculated al the tax rates (hot are Expected tp apply ;n the period wher The |iahilliy k jMW or thE asset Is realised bused on the tax rates and tax laws in force. The measurement of deferred tax liabilities jsiiJ d ss a1 k reflects the T,lx consequences tnaf would lullow [rom the manner in which the Company expects, .''t [tie end of the reporting yenpd. tu cover or sen e the unynj value of its assets and liabilities,

Deferred tax assets and 5|-a Li''kies are offset when there is j legally enforceable right to utlset current tan assets ant; Ifabi irks and when the deferred lax halance-s retort to the same taxation dutfiurity. Current fax assets und (ax liabilities are effect where the entity ll&a legafjft enforceable 3^ht IP offset and intends either to Settle cm a oet baS''S. or to realise the esse I and setII" the fiabilitv simultaneously

Deferred ta*. assets Include Minimum Alternate Tax jMATf paid in accordance with the tan laws in India, which is Fikely to give future economic benefits n ihe form oF ava .lability of set ? fra gainst future income tax liability. Accordingly, MAT credit is recognized as deferred tax asset in the balance sheet when Mioass^f can ha measured ruhab!y end ;1 is probable that the- Futn-e •"conom(t bonefit assncFaied with the asset tojll be realized Minimum Alternative lax |M-T| credit is rerogouec¹ iS ao asset only when and to ihe extent Ihien? ie convincing evidence tkv l ie C&mpaoy Will pay normal income fax during the Specified period.

Current and deterred to/ Oft raeoglined in statement of pmfiL and loss, excepf when they relate to items thuL art recognized in other comprehensive incn.Tie or di-ellly in equity, in which case. Che CUrffint and deferred tan ore ilsu recognized in other cam-ptehjHnSiue income or direetty i-. e-ipi ly respective ly

J. inventories

Raw Materials, Packing Materials, Consumable Stores and Spares including Fuel and Finished goods 3 re Vd lued at T he lower of cost or flat realizah ie vafue a5 under

The oast of purchase Comprises of Lhy purchase price irtdudft# duties and I axes jcuf nr than n oie subsequently recovtfrjble by the Company horn the Lds ng authorities!, freight 1 wSftf unt; ulhL" expenditure cirectfy attributable to the acquisition hut ner o^ trade discount.-re oaks, and other similar Hems.

Tho cast of inventories of finished gouds tijrhprises the cost of purchases, the cast of conversion Olid ifitf lost of parking materials,

The cost Of conversion comprise* of depreciation arid repairs anrf mainreoaoce of pfarrl und marh neries, power and fuel, Factory management and ad-ministraTlon expenses and ounsumalne stores jnd spares.

Met reusable value is the estimated selling price in The ordinary course of business, lets estimated costs u f cp m oletion ends- dim arm cost to mq id la.

The company hut swiLChcd tram ERPTalEy Prime to &AP $4 HAW A for accounting & hook Keeping Inventory valuation lias been dork through moving weighted averse by W. writer ic was FIFO basis Impart nf such ch ange ie insignificant at>d considered in hmnncials. f '' ''

• YvVs

K. Cash andcas-h equivalents

T^e com pan; considers an highly liquid financial instrumEnts, which im rearlity convertible into known amounts &f taih thit are SuhjC''tL (O jCi uis-ignifictint Fi-sk o1 change in value ane having original maturity af three months or less From The (tale purchase, to tie cash equivalents. Cash and cash equivalents consist Of ha la neat with banks which are unrestricted for withdrawal and usage.

L. Foreign cu none y tra nslati-oji

rnt! functional currency and preienlation currency of the? Company s Ind-^an Hupee.

1 rangsifcTion^ denominated h foreign curranriis entered into by the Company are recorded in tnn functional currency (i.ei. Indian-. Rupees), by applying ti e etchan^c raLe prevailing on the dole ol Transaction

Foreign currency denominated monetary items is restated al the closing exchange i N&n-moneiary iteiT>s are recorded at exchange rite prewilirtg on the dare nr transaction, Nonmonetary Items that are measured at fair value In a foreign Currency are translated using the esc-hange rates aL [Ile CtiLe whcpi the fair value is rr-Edsurerl.

Exchange rtitfererres arising nut o Thaw translations are recogn\>etf in the Statement ot profit and loss.

The Forward exchange contracts are marked to maritst and gain/lost on such contracts are re COg I''M sed ir1 th e dtateme i n u f pr [if it and I u ss a 11 ne e nd o1 e 3 c h reporting period.

M. Employee benefits

I) Short-term benefits;

fill employee benefits payable wholly within twelve months ol rendpung the Trice are classified as short-term employee benefits and they ire recognised n the period i" wh ch the employee leudeis the i elated s-urvice. The Company recogidses ttie- u idlscourttm antou it uF short-term employee benefits expected tn be paid in exchange for icivicts icildoiod a^ a liability [accrued expense} after deducting any amount already paid.

Si) hasI-Eemployment benefits:

i. Defined benefit plan

Cratu''ty linhility is a defined hepefit obligation and i^r- provided for on the b&s-s of actuarial valualinn on Project Lin it Credit Method made at The end of each financial year. The SC homo li maintained and administered by Life Insurance Corporation of Indie to which the Company makes periodical cnnfributmns through its trustees

Remsaiunamenl actuarial gains and losses arising tre-rn experience aejustments and changer, in actuarial assumptions &^re recofclllttd in t ic period ii which they cccur directly in oth er corr.preh e ns ice i ncom e They a re indud ed in -eta Ined earnmgs in t ho it a tc me nt if chungeS ip equity end irt It''c balance sheet.

ii. Defined contribution plan

A Defined Contribution plan .''S plan under which the Company malre^ cnritiibution to Employee¹! PrcwJdtnt Fund ndmiriislreTQd by H i.¹ Cimiral ^Svernnienit i n Coinflfiany''s Opntrihntion is charged to the statement ot profit nn:l loss.

iii) Other Long Ttrm Employee ben*;fits - leave Salary

The lidhilily towards eavd idldry which is not expected to he seTtlocl wholly within 12 months after the end of the period in which Ibe employees render the related serwes is recognized based on act UJ rid I valuation tarried OUT using the Projected Unit Credit Method.

The Cnde on Social Security, 2020 fTode'') re Idling lo employee benefits dm fug. einn nyment jmcJ post-employment benefits received Prt:. denbai assent m SopH''inber 202li The rode fids beer punished in Ehe Gazette of End in. However, the date on which the Code will tome Into erfett hjs nnt been notified. The Company will assess the impact of the Codt when it comes rnto effect and will record any related ''hipjct in the period the Code becomes effective

---

Mar 31, 2023

CORPORATE INFORMATION:

Krishana Phoschem Limited ("the Company") is a public limited company, incorporated and domiciled in India having its registered office at 5-O-20, Basement, R.C. Vyas Colony, Bhilwara (Rajasthan) 311001. The equity shares of the Company are listed on NSE Limited. The company is engaged in the manufacturing of fertilizers & chemicals having manufacturing facility located at A.K.V.N. Industrial Area, Meghnagar Dist. Jhabua (M.P.)

The financial statements of the Company for the year ended 31^st March, 2023 are approved for issue by the Company''s Board of Directors on 21^th April, 2023.

1. SIGNIFICANT ACCOUNTING POLICIES & KEY ACCOUNITNG ESTIMATES & JUDGEMENTS 1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

A. Statement of compliance:

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 ("the Act") [Companies (Indian Accounting Standards) Rules, 2015] Companies (Indian Accounting Standards) Amendment Rules, 2016.fh

The Financial Statements have been prepared on accrual and going concern basis. The accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

These Ind AS had been adopted w.e.f. 1^st April, 2018 as notified by Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015.

The Financial Statements includes Balance Sheet as at 31^st March, 2023, the Statement of Profit & Loss including Other Comprehensive Income, Cash Flows Statement, and Statement of Change in Equity for the year ended 31^st March, 2023 and significant accounting policy and other explanatory information.

B. Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Company''s functional currency. All financial information presented in INR has been rounded off to the nearest Lakhs, except as stated otherwise.

C. Basis of measurement

The financial statements have been prepared under the historical cost convention on accrual basis. The following items are measured on each reporting date as under:

• Defined benefit plans - plan assets at fair value

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

Fair value is the price that would be received to sell as asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

D. Use of estimates and judgements

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.

The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note no. 1.2.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the standalone financial statements.

1.2 Use of Critical Judgments, Estimates and Assumptions

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures, and the disclosure of contingent liabilities.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial years are described below. The Company based its assumptions and estimates or parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

A. Useful lives of property, plant and equipment and Intangible Assets

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life.

The useful life and residual values of Company''s assets are determined by management at the time the asset is acquired. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

B. Employee benefits

Defined benefit plans and other long-term benefits are evaluated with reference to uncertain events and based upon actuarial assumptions including among others discount rates, expected rates of return on plan assets, expected rates of salary increases, estimated retirement dates, mortality rates. The significant assumptions used to account for Employee benefits are described in Note no M.

C. Revenue Recognition

The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. Judgement is also required to determine the transaction price for the contract. The Company allocates the elements of variable considerations to all the performance obligations of the contract unless there is observable evidence that they pertain to one or more distinct performance obligations. The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time.

D. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

E. Taxes

Deferred tax assets are recognized for unused tax credits to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

F. Contingencies

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies and obligations. Obligations relating to Project Executions is largely depends upon performance of services by respective contractors. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognised until the contingency has been resolved and amounts are received or receivable.

2. SIGNIFICANT ACCOUNTING POLICIES:

A. Current and non-current classification

Any asset or liability is classified as current or non-current based on company''s normal- operating cycle and other criteria as set out in the Division II of schedule III to the Companies Act, 2013.

Asset/ Liability is classified as current, if it satisfies any of the following conditions:

• the asset/liability is expected to be realized/settled in the Company''s normal operating cycle;

• the asset is intended for sale or consumption;

• the asset/liability is held primarily for the purpose of trading;

• the asset/liability is expected to be realized/settled within twelve months after the reporting period;

• the asset 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;

• In the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

All other assets/ liabilities are classified as noncurrent.

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as twelve months. This is based on the nature of product and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

B. Property, plant and equipment (PPE)

An item of property, plant and equipment is recognised as an asset if it is probable that the future economic benefits associated with the item will flow to the Company and its cost can be measured reliably. This recognition principle is applied to the costs incurred initially to acquire an item of property, plant and equipment and also to the costs incurred subsequently to add to, replace part of, or service it. All other repair and maintenance costs, including regular servicing, are recognised in the statement of profit and loss as incurred. When a replacement occurs, the carrying value of the replaced part is de-recognised. Where an item of property, plant and equipment comprises major components having different useful lives, these components are accounted for as separate items.

All other items of property, plant and equipment are stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises of its purchase price including import duties and other non-refundable purchase taxes or levies, directly attributable cost of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning, restoration and similar liabilities, if any. Any trade discount or rebate is deducted in arriving at the purchase price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met.

Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of property, plant and equipment are capitalized at cost and depreciated over their useful life. Costs in nature of repairs and maintenance are recognized in the statement of profit and loss as and when incurred.

Capital work-in-progress includes cost of property, plant and equipment not ready for the intended use as at the balance sheet date. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as ''capital advances'' under other non-current assets.

The cost and related accumulated depreciation are eliminated from the Financial Statements upon sale or retirement of the property, plant and equipment and the resultant gains or losses are recognised in the statement of profit and loss. Property, plant and equipment to be disposed of are reported at the lower of the carrying value or the fair value less cost of disposal.

The Company had elected to continue with the carrying value of all of its property, plant and equipment appearing in the financial statements prepared as per accounting standards notified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (Generally Accepted Accounting Standards "Previous GAAP") as the deemed cost of the property, plant and equipment in the opening balance sheet under Ind As effective 1st April, 2018.

C. Depreciation and amortization

Depreciation method, estimated useful lives and residual values are determined based on technical parameters / assessment, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

The estimated useful life of Property, Plant & Equipment are as follows:

Assets	Useful life (Years)
Buildings	30 -60
Plant and Machinery	8 -20
Office Equipment	5
Furniture & Fixtures	10
Vehicles	8 -10
Computers	3
Energy Saving Equipment	15
Pollution Control Equipment	15
Electric Installations	10

The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the Property, Plant and Equipment are likely to be used. Depreciation on property, plant and equipment is provided on pro rata basis using the straight line method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 in consideration with useful life of the assets as estimated by the management.

Depreciation on an item of property, plant and equipment sold, discarded, demolished or scrapped, is provided up to the date on which such item of property, plant and equipment is sold, discarded, demolished or scrapped.

The estimated useful lives, residual values and methods of depreciation of property, plant & equipment are reviewed at the end of each financial year. If any of these expectations differ from previous estimates, such change is accounted for as a change in an accounting estimate and adjusted prospectively, if any.

D. Impairment of assets

As at the end of each accounting year, the Company reviews the carrying amounts of its property, plant and equipment (PPE) and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the said assets are tested for impairment so as to determine the impairment loss, if any. The intangible assets with indefinite life are tested for impairment each year.

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:

a) In the case of an individual asset, at the higher of the net selling price and the value in use; and

b) In the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit''s net selling price and the value in use.

The amount of value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life.

For this purpose, a cash generating unit is ascertained as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss is recognized for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognized immediately in the Statement of Profit and Loss.

E. Leases:

As a Lessee

The Company implemented a single accounting model as per Ind AS 116, requiring lessees to recognize assets and liabilities for all leases excluding exceptions listed in the standard. The Company elected to apply exemptions to short term leases or for leases for which the underlying asset is of low value.

Based on the accounting policy applied the Company recognizes a right-of-use asset and a lease liability at the commencement date of the contract for all leases conveying the right to control the use of an identified assets for a period of time. The commencement date is the date on which a lessor makes an underlying asset available for use by a lessee.

The right-of-use assets are initially measured at cost, which comprises:

- The amount of the initial measurement of the lease liability,

- Any lease payments made at or before the commencement date, less any lease incentives,

- Any initial direct costs incurred by the lessee,

- An estimate of costs to be incurred by the lessee in dismantling and removing the underlying assets or restoring the site on which the assets are located.

After the commencement date the right-of-use assets are measured at cost less any accumulated depreciation and any accumulated impairment losses and adjusted for any re-measurement of the lease liability. Depreciation is calculated using the straight-line method over the shorter of lease term or useful of underlying assets.

The lease liability is initially measured at the present value of the lease payments that are not paid at that date. These include:

- fixed payments, less any lease incentives receivable;

- Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

- Amounts expected to be payable by the lessee under residual value guarantees;

- The exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and

- Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

The lease payments exclude variable elements which are dependent on external factors. Variable lease payments not included in the initial measurement of the lease liability are recognized directly in the profit and loss. The lease payments are discounted using the Company''s incremental borrowing rate or the rate implicit in the lease contract.

F. 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.

i) Financial assets

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition and adjusted for transaction costs that are attributable to the acquisition or issues of financial assets and financial liabilities in case of financial assets or financial liabilities not at fair value through profit or loss account.

Where the fair value of financial assets and financial liabilities at initial recognition is different from its transaction price, the difference between the fair value and transaction price is recognised in the statement of profit and loss.

However, trade receivables that do not contain a significant financing component are initially measured at transaction price.

Financial assets are subsequently classified as measured at:

• amortized cost

• fair value through profit and loss (FVTPL)

• fair value through other comprehensive income (FVTOCI)

i. Financial assets measured at amortised cost

A financial asset is subsequently measured at amortised cost if both of the following conditions are met:

• If is held within a business model whose objective is to hold the asset in order to collect contractual cash flows, and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

This category applies to trade receivables, loans and other financial assets of the Company measured using the Effective Interest Rate (EIR) method less impairment, if any, and the amortisation of EIR and loss arising from impairment, if any is recognised in the statement of profit and loss.

ii. Financial assets measured at fair value

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

• If it is held within a business model whose objective is to hold these assets in order to collect contractual cash flows and to sell these financial assets, and

• The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Fair value movements are recognised in the other comprehensive income.

A financial asset not classified as either amortised cost or at fair value through other comprehensive income is carried at fair value through the statement of profit and loss.

De-recognition of Financial Assets

A financial asset is de-recognised only when

• The contractual rights to cash flows from the financial asset expire;

• The Company has transferred the contractual rights to receive cash flows from the financial asset or;

• Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de-recognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognised.

Where the entity has neither transferred a financial asset nor retained substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Impairment of financial assets

The Company recognizes loss allowances if any using the expected credit loss (ECL) model for the financial assets which are not fair valued through the statement of profit and loss.

Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL.

ii) Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest method.

Classification as debt or equity

Debt and equity instruments issued by a 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 Instrument

An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Financial Liability

Trade and other payables are initially measured at fair value, net of transaction costs and are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the statement of profit and loss.

Interest bearing loans and overdrafts are initially measured at fair value, and are subsequently measured at amortised cost using effective interest rate method. Any difference between proceeds (net of transaction cost) and the settlement amount of borrowing is recognised over the terms of the borrowings in the statement of profit and loss.

De-recognition of Financial liabilities

A financial liability is de-recognised when the obligation specified in the contract is discharged, cancelled or has expired.

iii) 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. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

G. Fair Value Measurement

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above.

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 asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability and the Company has access to the principal or the most advantageous market.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

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:-

• Level 1 - quoted (unadjusted) market prices in active markets for identical assets or liabilities

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

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

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period and discloses the same.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above. This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

H. Borrowing costs

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

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

I. Income tax

Income tax expense for the year comprises current tax and deferred tax.

Current tax

Current tax is the amount of income tax payable in respect of taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Current tax is determined on the basis of taxable income and tax credits computed for Company, in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted at the reporting date.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax base used in the computation of taxable profit under the IT Act.

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affects neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized.

Deferred tax assets (including unused tax credits such as MAT credit) are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on the tax rates and tax laws in force. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to cover or settle the carrying value of its assets and liabilities.

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

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT credit is recognized as deferred tax asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realized. Minimum Alternative Tax (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.

Current and deferred tax are recognized in statement of profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

J. Inventories

Raw Materials, Packing Materials, Consumable Stores and Spares including Fuel and Finished goods are valued at the lower of cost or net realizable value as under:

( i )	Raw materials, Packing materials, Stores and Spares including Fuel	At Cost on FIFO basis
( ii )	Stock in trade and Finished Goods	At Cost plus appropriate overheads

The cost of purchase comprises of the purchase price including duties and taxes (other than those subsequently recoverable by the Company from the taxing authorities), freight inward and other expenditure directly attributable to the acquisition but net of trade discount, rebates, and other similar items.

The cost of Inventories of finished goods comprises the cost of purchases, the cost of conversion and the cost of packing materials.

The cost of conversion comprises of depreciation and repairs and maintenance of plant and machineries, power and fuel, factory management and administration expenses and consumable stores and spares.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated cost to make sale.

K. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

L. Foreign currency translation

The functional currency and presentation currency of the Company is Indian Rupee.

Transactions denominated in foreign currencies entered into by the Company are recorded in the functional currency (i.e. Indian Rupees), by applying the exchange rate prevailing on the date of transaction.

Foreign currency denominated monetary items is restated at the closing exchange rates. Non-monetary items are recorded at exchange rate prevailing on the date of transaction. Nonmonetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is measured.

Exchange differences arising out of these translations are recognized in the statement of profit and loss.

The forward exchange contracts are marked to market and gain/loss on such contracts are recognised in the statement of profit and loss at the end of each reporting period.

M. Employee benefits

i) Short-term benefits:

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

ii) Post-Employment Benefits:

i. Defined benefit plan

Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on Project Unit Credit Method made at the end of each financial year. The scheme is maintained and administered by Life Insurance Corporation of India to which the Company makes periodical contributions through its trustees.

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

ii. Defined contribution plan

A Defined Contribution Plan is plan under which the Company makes contribution to Employee''s Provident Fund administrated by the Central Government. The Company''s contribution is charged to the statement of profit and loss.

iii) Other Long Term Employee Benefits - Leave Salary

The liability towards leave salary which is not expected to be settled wholly within 12 months after the end of the period in which the employees render the related services is recognized based on actuarial valuation carried out using the Projected Unit Credit Method.

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

N. Provision and contingent liabilities

The Company sets up a provision when there is a present legal or constructive obligation as a result of a past event and it will probably requires an outflow of resources to settle the obligation and a reliable estimate can be made. 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. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

A disclosure for a contingent liability is made where there is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or where reliable estimate of the obligation cannot be made. Contingent liabilities are disclosed on the basis of judgment of the management/ independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

O. Revenue recognition:

Revenue from contracts with customer is recognized when the Company satisfies a performance obligation by transferring the promised goods or services to a customer at a transaction price. The transaction price is the amount of consideration to which the company expects to be entitled in exchange for transferring promised goods or services to a customer as per contract, excluding amount of taxes collected on behalf of the government. The transaction price is adjusted of trade discount, cash discount, volume rebate and other variable considerations as per the terms of contract.

A. Sale of Goods

Revenue from sale of products is recognised at a point in time when the control on the goods have been transferred to a customer i.e. when material is delivered to the customer or as per shipping terms , as may be specified in the contract.

B. Government Subsidy

Subsidy has been recognized by the company on the basis of the notification received from the ministry of Chemicals and fertilizers from time to time.

C. Other Operating revenue

i. Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the applicable interest rates.

ii. Claim lodged with insurance companies is recognized as income on acceptance by the insurance Companies.

iii. Rental income is recognised in the statement of profit and loss on straight line basis.

P. Government Grant & Government Assistance

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grant if relates to an expense item are recognised in the statement of profit and loss on a systematic basis over the periods in which the Company recognise as expenses the related costs for which the grants are intended to compensate.

Post amendment in Ind AS 20, the government grant related to assets, including non-monetary grant shall be presented at fair value in balance sheet either by setting up the grant as deferred income or by grant by adjusting in the carrying amount of the asset.

Q. Segment Accounting

The Managing Directors monitor the operating results of the business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.

The Operating segments have been identified on the basis of the nature of products.

i. Segment revenue includes sales and other income directly identifiable with/ allocable to the Segment.

ii. Expenses that are directly identifiable with / allocable to segments are considered for determining the segment result.

iii. Expenses which relate to the Company as a whole and not allocable to segments are included under unallocable expenditure.

iv. Income which relates to the Company as a whole and not allocable to segments is included in unallowable income.

v. Segment result represent the profit before interest and tax earned by each segment without allocation of central administrative costs.

vi. 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.

The company has disclosed Business Segments as its primary segments. Reporting segments have been identified as Fertilizers and Chemicals, taking into accounts the nature of product, the different risk and returns, the organizational structure and the internal reporting system.

The company caters mainly to the need of domestic market. The direct export turnover is Nil during the year. As such there are no reportable geographical segments.

Inter-Segment transfer pricing

Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a negotiated basis and are on an arm''s length basis in a manner similar to transactions with third parties.

These transfers are eliminated in consolidation.

R. Earnings per share

Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

S. Statement of Cash Flow

Cash flows are reported using the indirect method prescribed in Ind AS 7 ''Statement of Cash Flows'', whereby profit for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

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Mar 31, 2018

1. ACCOUNTING POLICIES BASIS OF ACCOUNTING:

The Financial Statements of the Company have been prepared in accordance with the requirements of the Companies Act, 2013, including the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India, as per the historical cost convention, going concern concept and on the accrual system of accounting.

FIXED ASSETS:

The Fixed Assets are stated at revalued (2010-11) figures based on registered valuers report. The land and plant & machinery stated at further revalued (2013-14) value done during the year as per registered valuers report.The basis of valuation/revaluation as mentioned into the report of external valuer is market rate in the case of land and Plant & Machinery. In respect of major projects involving construction / fabrication, related pre-operational expenses from part of the value of the assets, which are allocated on the respective assets in the year of commencement of the project. An expenses capitalized also includes applicable borrowing cost.

No amortization is provided in the accounts in respect of leasehold land in view of long-term tenure, which is akin to ownership.

INVENTORIES:

Inventories are valued as:

a) Raw Material: At lower of cost or net realizable value

b) Finished goods At lower of cost or net realizable value

c) Stores & spares parts At cost price

Cost of inventories comprise of all cost of purchase. Cost of conversion and other cost incurred in bringing them to their respective present location and condition.

BORROWING COST:

Borrowing cost that is attributable to the acquisition of qualifying assets is capitalized as a part of cost of such assets. All other borrowing costs are charged to revenue.

DEPRECIATION:

a) Depreciation for the year on fixed assets has been provided on straight line method as per useful life and in the manner specified in Schedule II of the Companies Act, 2013.

b) Useful life of assets used for double shift / triple shift has been reviewed and readjusted on each Balance Sheet date on the basis of shift used / depreciation charged.

c) Scrap value of the assets are determined at the rate of 5% of original cost.

INCOME RECOGNITION:

Revenue in respect of purchases/sale of product and scraps in recognized at the point of receipt/dispatch from parties at/from factory.

Income and expenditures are recognized on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of discount receivable/payable from/to parties, the same continue to be accounted for as and when received/settled.

PRICE CONCESSION FROM GOVERMENT:

The price concession from Government on sale of single super phosphate & granular single super phosphate is recognized at the point of sale at the prevailing rates announced by the Government of India. Any shortfall in actual receipt or deduction made by the Government is written off as an expense in the year in which the same is determined. The Company treats the price concession as part of the sale proceeds.

BENEFITS TO WORKMEN:

Contributions to employee benefits plan in the form of Provident Fund and Gratuity are charged to the profit & Loss Account of the year when the contributions are due, as per the provisions of the respective statutes.

The company has taken group gratuity policy with Life Insurance Corporation of India (LIC) for future payment of gratuity. The gratuity liability is determined on the basis of an actuarial valuation performed by LIC.

TAXES ON INCOME:

Provision for current tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expenses or benefits are recognized for timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the balance sheet date.

CONTINGENT LIABILITIES:

In the opinion of Board of Directors of the Company no any contingent Liabilities held as on 31st March 2018.

---

Mar 31, 2016

Notes to the Financial Statements for the year ended 31** March, 2016.

1. ACCOUNTING POLICIES BASIS OF ACCOUNTING:

The Financial Statements of the Company have been prepared in accordance with the requirements of the Companies Act, 2013, including the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India, as per the historical cost convention, going concern concept and on the accrual system of accounting.

FIXED ASSETS:

The Fixed Assets are stated at revalued (2010-11) figures based on registered valuers report. The land and plant & machinery stated at further revalued (2013-14) value done during the year as per registered valuers report.The basis of valuation/revaluation as mentioned into the report of external valuer is market rate in the case of land and Plant & Machinery. In respect of major projects involving construction / fabrication, related pre-operational expenses from part of the value of the assets, which are allocated on the respective assets in the year of commencement of the project. An expenses capitalized also includes applicable borrowing cost.

No amortization is provided in the accounts in respect of leasehold land in view of long-term tenure, which is akin to ownership.

INVENTORIES:

Inventories are valued as:

a) Raw Material : At lower of cost or net realizable value

b) Finished goods At lower of cost or net realizable value

c) Stores & spares parts At cost price

Cost of inventories comprise of all cost of purchase. Cost of conversion and other cost incurred in bringing them to their respective present location and condition.

BORROWING COST:

Borrowing cost that is attributable to the acquisition of qualifying assets is capitalized as a part of cost of such assets. All other borrowing costs are charged to revenue.

DEPRECIATION:

a) Depreciation for the year on fixed assets has been provided on straight line method as per useful life and in the manner specified in Schedule II of the Companies Act, 2013.

b) Useful life of assets used for double shift / triple shift has been reviewed and readjusted on each Balance Sheet date on the basis of shift used / depreciation charged.

c) Scrap value of the assets are determined at the rate of 5% of original cost.

INCOME RECOGNITATION:

Revenue in respect of purchases/sale of product and scraps in recognized at the point of receipt/dispatch from parties at/ from factory.

Income and expenditures are recognized on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of discount receivable/payable from/to parties, the same continue to be accounted for as and when received/settled.

PRICE CONCESSION FROM GOVERNMENT:

The price concession from Government on sale of single super phosphate & granular single super phosphate is recognized at the point of sale at the prevailing rates announced by the Government of India. Any shortfall in actual receipt or deduction made by the Government is written off as an expense in the year in which the same is determined. The Company treats the price concession as part of the sale proceeds.

BENEFITS TO WORKMEN:

Contributions to employee benefits plan in the form of Provident Fund and Gratuity are charged to the profit & Loss Account of the year when the contributions are due, as per the provisions of the respective statutes.

The company has taken group gratuity policy with Life Insurance Corporation of India (LIC) for future payment of gratuity. The gratuity liability is determined on the basis of an actuarial valuation performed by LIC.

TAXES CN INCOME:

Provision for current tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expenses or benefits are recognized for timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the balance sheet date. ~

CONTINGENT LIABILITIES:

In the opinion of Board of Directors of the Company following are the contingent Liabilities as on 31^st March 2016.

a. Bank Guarantee of Rs. 36.12 lacs pledged with Excise authority (Previous year FDR of Rs. 38.73 lacs pledged with Excise authority)

iii) The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held.

iv) 60,00,000 Equity Shares has been issued as bonus share in the ratio of 1:1 in the year 2011-12.

v) Disclosure pursuant to Note no. 6(A)(i) of part-l of schedule III to the Companies Act, 2013

i) Nature of Security - The term loans from HDFC are secured by way of equitable mortgage of land, factory building, plant and machinery, furniture & fixtures (existing & future) of the company.

ii) Terms of repayment - Term ions from HDFC are repayable in monthly installments and having floating net interest rates ranging from 10.85% to 10.30%.

iii) Guarantors - Secured loan is guaranteed by personal guarantee of Managing Director Praveen Ostwal & Mahendra Kumar Ostwal, Pankaj Ostwal and Ekta Jain.

5. DEFERRED TAX LIABILITIES/ ASSETS

i) The company has recognized a provision for deferred tax liability of Rs. 69.37 Lac (P.Y. deferred tax liability Rs. 74.23 Lac) in P&L account determined on account of timing differences in accordance with Accounting Standard-22 “Accounting for Taxes on Income” as under :-

ii) Differed tax assets and differed tax liabilities have been offset as they relate to the same governing taxation laws.

i) Nature of Security - The bank loan for working capital is secured against hypothecation of company’s entire current assets including raw material, stock in process, finished goods, store & spares, book debts, receivables including goods in transit along with document proof title to goods such as MTRs/RRs/bills of lading etc. The same is also secured by second charge over fixed assets (present & future) of the company.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 10.30% as on 31/03/2016

iii) The bank loan for working capital! is guaranteed by personal guarantee of Managing Director Praveen Ostwal & Mahendra Kumar Ostwal, Pankaj Ostwal and Ekta Jain.

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31^s1 March, 2016. This information as required to be disclosed under the Micro-small and medium enterprises development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

---

Mar 31, 2015

Notes to the Financial Statements for the year ended 31st March, 2016

1. ACCOUNTING POLICIES

BASIS OF ACCOUNTING

The Financial statements of the company have been prepared in according with the requirements of the companies of the Act 2013 including the mandatory Accounting Standards issued by the institute of chartered Accountants of India as per the historical cost convention going concern concept and on the accrual system of accounting.

FIXED ASSETS

The Fixed Assets are stated at revalue (2010-11) figures based on registered values report the land and plant & machinery stated at further devalued done during the year as per registered value’s report the basis of valuation revaluation as mentioned into the report of external valour is market rate in the case of land and plant & March assets which are allocated on the respective assets in the year of commencement of the project An expenses capitalized also includes applicable borrowing cost.

No amortization is provided in the amounts in respect of leasehold land in view of long-term tenure, which ,s akin to ownership.

INVENTORIES:

Inventories are valued as:

a) Raw Material : At lower of cost or net realizable value

b) Finished goods At lower of cost or net realizable value

c) Stores & spares parts At cost price ,

Cost of inventories comprise of all cost of purchase. Cost of conversion and other cost incurred ,n bringing them to their respective present location and condition.

Borrowing cost thesis attributable to the acquisition of qualifying assets is capitalized as a pad of cos, of such assets. All other borrowing costs are charged to revenue.

DEPRECIATION’

a) Depreciation for the year on fixed assets has been provided on straight line method as per useful life and in the manner specified in Schedule II of the Companies Act, 2013.

b) Useful life of assets used for double shift I triple shift has been reviewed and readjusted on each Balance Sheet date on the basis of shift used / depreciation charged.

c) Scrap value of the assets are determined at the rate of 5% of original cost.

INCOME RECOGNATION

Revenue in respect purchases/sale of product and scraps in recognized at the point of receipt/dispatch from parties at/ accounted for as and when received/settled.

Income and expenditures are recognized on accrual basis However since it is not possible to ascertain with reasonable accuracy the quantum of accrual in respect of discount receivable/payable from/to parties the same continue to be accounted for as and when received/settled.

PRICE CONCESSION FROM GOVERNMENT:

The price concession from Government on sale of single super phosphate & granular single super phosphate is recognized at the point of sale at the prevailing rates announced by the Government of India Any price concession as part of the sale proceeds.benefits plan in the form of Provident Fund and Gratuity are charged to the profit & Loss Account The gratuity liability is determined on the basis of an actuarial valuation performed by LIC.

TAXES ON INCOME:

Provision for current tax is determined in accordance with the provisions of the Income Tax Act 1961 Deferred tax expenses or benefits are recognized for timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the balance sheet date.

CONTINGENT LIABILITIES:

^{In the opinion of Board} of Dircetors of the Company following are the contingent Liabilities as on 31^st March 2015.

^{a. FDR of Rs, 38.73 lacs pledged with} Excise authority (Previous year FDR of Rs. 17.03 lacs & bank guarantee of Rs 37.35 lacs pledged with Excise authority)

b. Corporate guarantee of Rs. 2035.00 lacs given to HDFC Bank Ltd. for granting loan to group company.

iii) ^The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held.

n Nature of Security - The bank loan for working capital is secured against hypothecation or assets inducing raw material, stock in process, finished goods, store & spares, book debts, receivables including goods in transit along with document proof title to goods such as MTRs/RRs/bills of lading etc. The same is also secured by second charge over fixed assets (present & future) of the company.

II) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 11% as on 31/03/2015

Mi) The bank loan for working capital is guaranteed by personal guarantee of Managing Director Praveen Ostwal & Ekta Jain and corporate guarantee of Seasons Agro Chem India Pvt. Ltd.

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for we than 45 days as at 31^st March, 2015. This information as required to be disclosed under the Micro-smart and medium enterprises development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

10. FIXED ASSETS

i) The Company has provided depreciation on fixed assets on useful life of assets on triple shift basis on SSP & GSSP plant and single shift basis on BRP plant in accordance with the provisions of Section 123 read with the Part C of Schedule II to the Companies Act, 2013. Depreciation on the additions to fixed assets during the year has been provided on pro-rata basis from the date when put to use.

ii) Gross block and Net Block of fixed assets includes Rs. 4024.79 Lac (P.Y. Rs. 4024.79 Lac) and Rs. 3353.61 Lac (PY. Rs. 3585.39 Lac) respectively on account of revaluation of fixed assets carried out in the year 2010-11 by the company. Depreciation of Rs. 231.75 Lac (P.Y. Rs. 146.47 Lac) has been charged to profit & loss A/c.

iii Disposal from Gross Block represents sale of fixed assets.

---

Mar 31, 2014

1. ACCOUNTING POLICIES BASIS OF ACCOUNTING:

The Financial Statements of the Company have been prepared in accordance with the requirements of the Companies Act, 1956, including the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India, as per the historical cost convention, going concern concept and on the accrual system of accounting.

FIXED ASSETS:

The Fixed Assets are stated at revalue (2010-11) figures based on registered values report. The land and plant & machinery stated at further revalue (2013-14) value done during the year as per registered values report. The basis of valuation/revaluation as mentioned into the report of external valour is market rate in the case of land and Plant & Machinery. In respect of major projects involving construction / fabrication, related pre-operational! expenses from part of the value of the assets, which are allocated on the respective assets in the year of commencement of the project. An expenses capitalized also includes applicable borrowing cost.

No amortization is provided in the accounts in respect of leasehold land in view of long-term tenure, which is akin to ownership.

INVENTORIES:

Inventories are valued as:

a) Raw Material : At lower of cost or net realizable value

b) Finished goods At lower of cost or net realizable value

c) Stores & spares parts At cost price

Cost of inventories comprise of all cost of purchase. Cost of conversion and other cost incurred in bringing them to their respective present location and condition.

BORROWING COST:

Borrowing cost that is attributable to the acquisition of qualifying assets is capitalized as a part of cost of such assets. All other borrowing costs are charged to revenue.

DEPRECIATION:

Depreciation on fixed assets is provided on Straight-Line Method under triple shift basis in accordance with the Schedule XIV to the Companies Act, 1956. In respect of additions to fixed assets, depreciation is provided on pro-rata basis from the date the assets have been put to use.

INCOME RECOGNITION:

Revenue in respect of purchases/sale of product and scraps in recognized at the point of receipt/dispatch from parties at/ from factory.

Income and expenditures are recognized on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of discount receivable/payable from/to parties, the same continue to be accounted for as and when received/settled.

Company has imported Rock phosphate under "high sea sales agreement" which will finally settle after Balance Sheet date based on forgiven exchange currency rate, on Balance sheet date the same gain or loss is not certain and amount could not be estimated.

PRICE CONCESSION FROM GOVERNMENT;

The price concession from Government on sale of single super phosphate & granular single super phosphate is recognized at the point of sale at the prevailing rates announced by the Government of India. Any shortfall in actual receipt or deduction made by the Government is written off as an expense in the year in which the same is determined. The Company treats the price concession as part of the sale proceeds.

BENEFITS TO WORKMEN:

Contributions to employee benefits plan in the form of Provident Fund and Gratuity are charged to the profit & Loss Account of the year when the contributions are due, as per the provisions of the respective statutes.

The company has taken group gratuity policy with Life Insurance Corporation of India (LIC) for future payment of gratuity. The gratuity liability is determined on the basis of an actuarial valuation performed by LIC.

TAXES ON INCOME:

Provision for current tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expenses or benefits are recognized for timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the balance sheet date.

CONTINGENT LIABILITIES:

In the opinion of Board of Directors of the Company there is no contingent Liabilities as on 31** March 2014.

iii) The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held.

iv) 60,00,000 Equity Shares has been issued as bonus share in the ratio of 1:1 in the year 2011-12.

I) Nature of Security - The term loans from MPFC are secured by way of equitable mortgage of land, factory building, plant and machinery, furniture & fixtures (existing & future) of the company.

ii) Terms of repayment - Term loans from MPFC are repayable in quarterly instalments and having floating net interest rates ranging from 12.50% to 13.00% and remaining amount is payable in next 6 Years.

iii) Secured loans are guaranteed by personal guarantee of Managing Director.

---

Mar 31, 2013

Notes to the Financial Statements for the year ended 31*'' March 2013

1. ACCOUNTING POLICIES BASIS OF ACCOUNTING:

The Financial Statements of the Company have been prepared in accordance with the requirements of the Companies Act, 1956, including the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India, as per the historical cost convention, going concern concept and on the accrual system of accounting.

FIXED ASSETS:

The Fixed Assets are stated at revalue figures based on registered values report. In respect of major projects involving construction / fabrication, related pre-operational expenses from part of the value of the assets, which are allocated on the respective assets in the year of commencement of the project. An expenses capitalized also includes applicable borrowing cost.

No amortization is provided in the accounts in respect of leasehold land in view of long-term tenure, which is akin to ownership.

INVENTORIES:

Inventories are valued as:

a) Raw Material : At lower of cost or net realizable value

b) Finished goods At lower of cost or net realizable value

c) Stores & spares parts At cost price

Cost of inventories comprise of all cost of purchase. Cost of conversion and other cost incurred in bringing them to their respective present location and condition.

BORROWING COST:

Borrowing cost that is attributable to the acquisition of qualifying assets is capitalized as a part of cost of such assets. All other borrowing costs are charged to revenue.

DEPRECIATION:

Depreciation on fixed assets is provided on Straight-Line Method under triple shift basis in accordance with the Schedule XIV to the Companies Act, 1956. In respect of additions to fixed assets, depreciation is provided on pro-rata basis from the date the assets have been put to use.

INCOME RECOGNITION:

Revenue in respect of purchases/sale of product and scraps is recognized at the point of receipt/dispatch from parties at/ from factory.

Income and expenditures are recognized on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of discount receivable/payable from/to parties, the same continue to be accounted for as and when received/settled.

Company has imported Rock phosphate under "high sea sales agreement" which will finally settle after Balance Sheet date based on forgiven exchange currency rate, on Balance sheet date the same gain or loss is not certain and amount could not be estimated.

PRICE CONCESSION FROM GOVERNMENT:

The price concession from Government on sale of single super phosphate is recognized at the point of sale at the prevailing rates announced by the Government of India. Any shortfall in actual receipt or deduction made by the Government is written off as an expense in the year in which the same is determined. The Company treats the price concession as part of the sale proceeds.

BENEFITS TO WORKMEN:

Contributions to employee benefits plan in the form of Provident Fund and Gratuity are charged to the Profit & Loss Account of the year when the contributions are due, as per the provisions of the respective statutes.

The company has taken group gratuity policy with Life Insurance Corporation of India (LIC) for future payment of gratuity. The gratuity liability is determined on the basis of an actuarial valuation performed by LIC.

TAXES ON INCOME:

Provision for current tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expenses or benefits are recognized for timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the balance sheet date.

---

Mar 31, 2012

Notes to Financial Statements for the year ended 31^st March 2012

1. ACCOUNTING POLICES BASIS OF ACCOUNTING:

The Financial Statements of the Company have been prepared in accordance with the requirements of the Companies Act, 1956, including the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India, as per the historical cost convention, going concern concept and on the accrual system of accounting.

FIXED ASSETS:

The Fixed Assets are stated at revalue figures based on registered values report. In respect of major projects involving construction / fabrication, related pre-operational expenses form part of the value of the assets, which are allocated on the respective assets in the year of commencement of the project. An expense capitalized also includes applicable borrowing cost.

No amortization is provided in the accounts in respect of leasehold land in view of long-term tenure, which is akin to ownership.

INVENTORIES:

Inventories are valued as:

a) Raw Materials : at lower of cost or net realizable value

b) Finished Goods : at lower of cost or net realizable value

c) Stores & spares part : at cost price

Cost of inventories comprise of all cost of purchase. Cost of conversion and other cost incurred in bringing them to their respective present location and condition.

BORROWING COST:

Borrowing cost that is attributable to the acquisition of qualifying assets is capitalized as a part of cost of such assets. All other borrowing costs are charged to revenue.

DEPRECIATION:

Depreciation on fixed assets is provided on Straight-Line Method under triple shift basis in accordance with the Schedule XIV to the Companies Act, 1956. In respect of additions to fixed assets, depreciation is provided on pro-rata basis from the date the assets have been put to use.

INCOME RECOGNITION:

Revenue in respect of purchases /sale of product and scraps is recognized at the point of receipt /dispatch from parties at/from factory.

Income and expenditures are recognized on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of discount receivable/payable from/to parties, the same continue to be accounted for as and when received/settled.

BENEFITS TO WORKMEN:

Contributions to employee benefits plan in the form of Provident Fund and Gratuity are charged to the profit & Loss Account of the year when the contributions are due, as per the provisions of the respective statutes.

The company has taken group gratuity policy with Life Insurance Corporation of India (LIC) for future payment of gratuity. The gratuity liability is determined on the basis of an actuarial valuation performed by LIC.

TAXES ON INCOME:

Provision for current tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expenses or benefits are recognized for timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the balance sheet date.

AMORTIZATION:

Preliminary & Pre-operative expenditure is amortized over a period of five years.

CONTINGENT LIABILITIES:

In the opinion of Board of Directors of the Company there is no contingent Liabilities as on 31st March 2012.

iii) During the year company has issued 6000000 equity shares fully paid up by way of bonus shares to its share holders.

iv) The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held.

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 to their shareholding.

i) Nature of Security - The term loans from MPFC are secured by way of equitable mortgage of land, factory building, plant and machinery, furniture & fixtures (existing & future) of the company.

ii) Terms of repayment - Term loans from MPFC are repayable in quarterly installments and having floating interest rates ranging from 12% to 13.5% and having maturity period up to 8yrs.

iii) Secured loans are guaranteed by personal guarantee of Managing Director.

5. DEFERRED TAX LIABILITIES

i) The company has recognized a provision for deferred tax assets of Rs. 30.30 Lac {P.Y. Rs. (-)1.05 Lac i.e. deferred tax limb.} determined on account of timing differences in accordance with Accounting Standard-22 "Accounting for Taxes on Income” as under:- _

i) Nature of Security - The bank loan for working capital is secured against hypothecation of company''s entire current assets including raw material, stock in process, finished goods, store & spares, book debts, receivables including goods in transit along with document proof title to goods such as MTRs/RRs/bills of lading etc. The same is also secured by second charge over fixed assets (present & future) of the company.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 14.50% as on 31/03/2012.

iii) The bank loan for working capital is guaranteed by personal guarantee of Managing Director.

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro-small and medium enterprises development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

i) The Company has provided depreciation on fixed assets on straight line Method on Triple Shift Basis in accordance with the provisions of Section 205 read with the Schedule XIV to the Companies Act, 1956. Depreciation on the additions to fixed assets during the year has been provided on pro-rata basis from the date when put to use.

ii) Gross block and Net Block of fixed assets includes Rs. 1813.60 Lac (P.Y. Rs. 1813.60 Lac) and Rs. 1667.13 Lac (P.Y. Rs. 1813.60 Lac) respectively on account of revaluation of fixed assets carried out in past by the company. Depreciation of Rs. 146.47 Lac (P.Y. Rs. 0.00 Lac) has been charged to revaluation reserve.

iii) Disposal from Gross Block represents sale of fixed assets.

iv) Deduction in depreciation is on account of sale of fixed assets.

\/) No provision is required for impairment of assets according to AS-28 ''Impairment of Assets" as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

The major component of inventory in the case of Raw Material & Finish Gpods is rock phosphate only.