1. CORPORATE INFORMATION

The company is currently engaged in manufacturing and trading of chemicals.

Registered Office.

S* Floor, Malak Complex,

B/h Old High Court.

Ahmedabad 330009

2. SIGNIFICANT ACCOUNTING POLICIES

a, (r) Basis of preparation of financial statements

The Financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India. The applicable mandatory Accounting standards prescribed under section 133 of the companies Act, 2013 (“Acf) read with Rule 7 of the companies (Accounts) Rules, 2014, as amended and other relevant provisions of the Ac! have been followed in preparation of these financial statements,

(ii) Use of Estimates

The Preparation of financial statements requires the management to make estimates and assumptions that affeci the reported amount of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period Management believes that these estimates snd assumptions are reasonable and prudent, However, actual result could differ from estimates, Differences between the actual result and the estimates are recognized in the period in which the same are knownfm a legalized

{ill) All assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in schedule III to the companies Act, 2013, The company has ascertained its operating cycle as 12 months for the purpose of current or noncurrent classification of assets and liabilities.

h. PROPERTY. PLANT 5 EQUtPMENTi

i) The Gross Block of Property, Plant & Equipment is stated at cost Net of GST, Cost comprises of purchase price and other attributable expenses u) The carrying amount of cash generating assets is reviewed at balance sheet dale to determine whether there is any indication of impairment, if any such indication exists, the recoverable amount is estimated as the higher of nel selling price and

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value in use Impair men! loss is recognised wherever carrying a mo uni exceeds

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recoverable amount

lii) Depreciation amount for assets is Ihe cost of an asset, or other amount substituted for cost, less its estimated residual value.

iv) Depreciation on tangible assets is provided on the Straight Line Method as per Ihe useful life prescribed in Schedule 1J to the Companies Act, 2013.

c. INVENTORIES

Inventories are valued at tower of cost or net realizable value Cost rs determined on FIFO or specialized basis, if applicable. The raw material cos! includes purchase cost and other cost to bring the material at factory. The work in progress and fmished goods cost includes raw material cost, variable cost and manufacturing overheads

d. SALES:

Sales value is net off GST as applicable and other rebate & claims if any Sales are accounted for on dispatch of goods to the customers and are net of sales return.

e. TREATMENT OF RETIREMENT OF BENEFITS:

{i) Short-Term Employee Benefits

Liabilities for salaries and wages, Including non-monetary benefits and accumulating leave balance in respect of employees' services up to the end of the reporting period, are recognized as expensed when the liabilities are settled

The company also recognizes a liability and records an expense for bonuses (including performance-linked bonuses) where contractually obliged or where there is a past practice that has created a constructive obligation

(it) Defined Benefit Obligation

Gratuity

The Company has a defined benefit gratuity plan The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act. employee who has comptetod five years of service is entitled to specific benefit The level of benefits provided depends on the member's length of service and last drawn salary

f. FOREIGN CURRENCY TRANSACTIONS:

i } Monetary items denominated in foreign currency are translated a! Ihe exchange rale prevailing on the fas! day of the accounting year Foreign currency transactions are accounted at the prevailing on the dare of transaction ji) Non-monetary items which are carried m terms of historical cosl denominated in a foreign currency are reported using the exchange rale at the date of transaction iii.J Gain or toss arising out of Iranslationfconversation is taken credit for or charged to ihe profit and loss statement

g. BORROWING COSTS:

Borrowing costs relating to acquisition of qualifying assets is capitalized till the date of commercial use of such assets A qualifying asset is one that necessarily fakes substantial period of time to get ready for intended use Other borrowing costs are charged to profit and loss account

h. PROVISION FOR INCOME TAX

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

Deferred tax resulting from "timing difference'¹ between book and taxable profit is accounted for using lax rates and laws thai have been enacted or subsequently enacted as on the balance sheet dale The Deferred rax asset is recognized and earned forward only to the extent that there is a reasonable certainty that the asset will be realized in future, however where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets supported by convincing evidence that there will be sufficient Future taxable income available to realize the assets

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PROVISIONS, CONTINGENT UABLITIES AND CONTINGENT ASSETS

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of (he amount of the obligation A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may Bui probably will not, require an outflow of resources Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made Contingent assets are neither recognized nor disclosed