NOTE -1 SIGNIFICANT ACCOUNTING POLICIES

a) METHOD OF ACCOUNTING

The accounts have been brpared under the historical cost convention on an accrual basis in accordance with applicable accounting standards notified under the relevant provisions of the Companies Act, 2013.

b) FIXED ASSETS

Fixed assets are stated at cost along with cost directly attributable to bring the assets to their working condition.

c) DEbrCIATION

Debrciation is provided on all assets at Pithampur (straight line method ) and at head office (written-down-value method) with reference to the useful life of the respective assets specified in and in the manner brscribed in Schedule II of the Companies Act, 2013.

d) INVESTMENTS

Current investments are stated at lower of cost or market value. Non-current Investments are stated at cost except where dimunition in value, if any, is other than temporary in nature.

e) INVENTORIES

i) Stores and spares, packing material and fuel are valued at Cost.

ii) Raw materials are valued at cost or in case where the resultant finished goods are expected to be sold at less than cost, at net realisable value.

iii) Work in progress is valued at estimated cost.

iv) Finished goods are valued at cost or net realisable value whichever is lower.

f) FOREIGN CURRENCY TRANSACTIONS.

All foreign currency transactions are accounted at the rate brvailing at the time of transaction.

g) SALES

Sales is inclusive of excise duty but net of rate difference payable, sales return and Central Sales Tax/ value added tax.

h) EMPLOYEES BENEFITS  

Defined Contribution Benefits

Company's contributions paid/payable during the year to Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are recognized in Profit & Loss Account.

Defined Benefit Plan

i. The payments to Life Insurance Corporation of India for all the employees covered under 'Employees Group Gratuity cum Life Assurance Scheme' are based on amount of brmium determined by them. Premiums so paid/payable for the year adjusted for efect of acturial valuation at year end are recognized in the Profit & Loss Account.

ii. Annual Leave Encashment is accounted on accrual basis.

i) CONTINGENT LIABILITY

Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

j) DEFERRED TAXATION

Deferred Tax resulting from timing diferences between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that timing diferences are expected to crystallize.

k) SEGMENT REPORTING

Manufacturing and selling of chemicals is considered a single reportable segment within the meaning of AS-

NOTE - 2

OTHER DISCLOSURES & NOTES

1 Brief Information on shares bought back during the year

Pursuant to the resolution passed by the Board of Directors of the Company and in accordance with the applicable provisions of the Companies Act, 1956, the Companies Act, 2013 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998, as amended, the Company made a Public Annoucement on 3rd March, 2014, to buy back the Equity Shares of Face Value of Rs. 10/- each of the Company from open market through Stock Exchange route at a price not exceeding Rs. 145/- per shares, aggregating to Rs. 4,35,00,000/-, if the entire shares bought at maximum price.

The Company has bought back & extinguished 2,72,000 Equity Shares as at 31st March, 2015 at an average price of Rs. 125.99 per share, utilising a sum of Rs. 3,42,67,998/-in terms of the applicable Provisions of the Section 77A of the Companies Act, 1956, Section 68 of the Companies Act, 2013 and SEBI ( Buy-back of Securities) Regulations, 1998, as amended.

Previous year, the Company has bought back 1,69,627 Equity Shares as at 31st March, 2014 at an average price of Rs. 128.56 per share, utilising a sum of Rs. 2,18,06,836/-. These shares have been extinguished on 7th April 2014 in terms of the applicable Provisions of the Section 77A of the Companies Act, 1956, Section 68 of the Companies Act, 2013 and SEBI ( Buy-back of Securities) Regulations, 1998, as amended. The said amount of Rs. 2,18,06,836/- has been shown by way of deduction from shareholders fund.

2 Contingent Liabilities & Commitments not provided for guarantees given by the bank of the company Rs. 1,65,000/-.( Previous Year Rs. 1,65,000/-)

3 Previous year figures have been rearranged/regrouped, wherever necessary, to make them comparable with current year figures.

6 The Balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation & reconciliation, if any. In the opinion of the management, adjustment, if any, arising out of reconciliation are not expected to be significant.

7 In the opinion of the Board of Directors, the assets (other than fixed assets and non-current investments) have value on realisation in the ordinary course of business at least equal to the amount at which they are stated

8 No Provision for diminution in value of long term investments in quoted shares aggregating to ` 67,78,004/- (Previous year :` 72,95,418/-) has been made in accounts as the diminution is of temporary nature.

9 The company has not entered in any derivative transactions by way of currency and/or interest rate swap or forward exchange contract.

10 a) None of the supplier of the company has informed that it is a SSI unit. Therefore, outstanding to SSI units is considered to be NIL.

b) In the absence of any intimation received from vendors regardimg the status of their registration under the " Micro, Small and Medium Enterprises Development Act, 2006 " the company is unable to comply with the disclosure required to be made relating thereto.

11 Details of CSR Spend during the financial year.

Total amount to be spend for the financial year ` 28,28,732/-, amount spend for the financial year ` 81,578/- & unspent amount for the year is ` 27,47,154/-.

12. The company has taken Group Gratuity Policy from LIC and the brmiums determined by LIC and payable for the financial year adjusted for effect of acturial valuation at year end is charged to Profit & Loss Account.