The financial statements of Amco India Limited (The Company) have been prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP's comprises of accounting standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the provisions of the Act (to the extent notified).The financial statements have been prepared in the format prescribed by Schedule III to the Companies Act, 2013

B) USE OF ESTIMATES:

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

C) INVENTORIES:

Basis of valuation of inventories followed is given below:

i) Raw materials are valued at FIFO basis net of excise duty at the lower the cost or their net realizable value.

ii) Work- in- Process is valued at their estimated absorption cost.

iii) Finished goods are valued at cost of production inclusive of excise duty.

iv) Consumable Stores & Packing Materials are valued at cost or net realizable value whichever is lower.

v) Damaged, unserviceable and inert stock is suitably depreciated.

D) DEPRECIATION:

Depreciation on Fixed Assets is provided on Straight Line Method on the basis of useful lives given in Schedule-II to the Companies Act, 2013. Depreciation on additions / deletions to assets during the year is provided on pro-rata basis.

E) REVENUE RECOGNITION:

SALES / OTHER INCOME:

i) Sales are recognized at the point of dispatch of finished goods to the customers. Sales are inclusive of excise duty but exclusive of sales tax. The amount of Excise duty paid on sales is reduced from Gross turnover. Sale of waste is accounted for on dispatch basis.

ii) Processing income is recognized upon rendering of the services.

iii) Income from dividend on mutual fund is taken on receipt basis.

iv) Interest income is recognized on the basis of accrual but subject to realization.

F) FIXED ASSETS:

Fixed Assets are recorded in the books at cost of acquisition, which comprises purchase price (net of rebate, discount and Cenvat credit) freight and other incidental expenses including interest relating to acquisition and expenditure on their installation or construction. Capital work in progress comprises the cost of the assets purchased but which are not yet ready for intended use at the date of Balance Sheet.

G) FOREIGN CURRENCY TRANSACTIONS:

i) INITIAL RECOGNITION:

Foreign Currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii) CONVERSION:

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

iii) EXCHANGE DIFFERENCES:

Exchange differences arising on the settlement of monetary items or on reporting company's monetary items at rates

H) EXCISE DUTY:

i) Purchases are shown net of Cenvat. Credit availed of Excise duty / Service Tax availed on inputs/input services. Duty is reduced from the cost of material / services and is carried forward in Current Assets, Loans and Advances pending utilization.

I) INVESTMENT:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Current investments are carried at lower of cost and fair value. Long term investments are carried at cost. However, provision for diminution in value is made to recognize other than temporary, if any, in the value of the investments.

J) EMPLOYEE BENEFITS:

Liability in respect of employee benefit is provided for and/or charged to Profit & Loss Account as follows:

i) PROVIDENT FUND:

The Company's provident fund is in the form of defined contribution plan where contribution is made to funds. The Contribution is accounted on accrual basis. Employers Contributions charged to the Profit and Loss Account of the year in which the employees render the related service.

ii) LEAVE ENCASHMENT:

The leave encashment liability of the employees of the Company is covered by a Master Policy taken out with the Life Insurance Corporation of India and the premium paid on the said Master Policy is treated as expenditure and charged to Profit and Loss Account.

iii) GRATUITY:

The Gratuity liability in respect of the employees of the Company is covered by a Master Policy taken out with the Life Insurance Corporation of India under the Group Gratuity Scheme. The company has opted for the normal gratuity cover and the premium paid on the said Master Policy is treated as expenditure.

K) BORROWING COST:

The cost of borrowing is capitalized to the extent term loan was utilized for the purpose of capital expenditure before the period up to which the assets were put to use for commercial production. Borrowing cost incurred post commencement of commercial production is charged to Profit & Loss Account.

L) SEGMENT REPORTING:

Segment revenue, results, assets and liabilities have been identified to represent segments on the basis of their relationship to the operating activities of the segment.

M) EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the company's Earning per Share ('EPS') comprises the net profit after tax. The number of shares used in computing the basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

N) TAX EXPENSE:

CURRENT TAX :

Tax on income for the current year is determined as per the provisions of the Income Tax Act, 1961.

DEFERREDTAX

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax Assets are recognized and carried forward to the extent that there is a reasonable certainty of realization, however in Case of unabsorbed tax losses and tax Deprecation are recognized only when there is a virtual certainty of their realization.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

O) IMPAIRMENT OF ASSETS:

Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets' carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the assets' fair value less costs to sell and value in use.

P) PROVISIONS AND CONTINGENT LIABILITIES:

Provisions are recognized when the company has a present obligation as a result of past events, for which it is probable that an outflow of resources embodying economics benefits will be required to settle the obligation, and a reliable estimate can be made. When the company expects a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when reimbursement is virtually certain.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably will not, require an outflow of resources. When there is a possible or a present obligation the likelihood of outflow of resources is remote, no provision or disclosure is made.