Ishan Dyes and Chemicals Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

A CORPORATE INFORMATION:

The Company Ishan Dyes and Chemicals Limited was incorporated on 30th November, 1993 under the Companies Act, 1956 having CIN L24110GJ1993PLC020737 with its Registered Office at, "Plot No. 18,
GIDC Estate, Phase I, Vatva, Ahmedabad - 382445". The Company is listed on BSE Limited (Bombay Stock Exchange) and National Stock Exchange of India Limited (NSE) at present. The Company is engaged
into the business of manufacturing Copper Phthalocyanine Crude Blue (CPC Blue) and Pigment Blues. The manufacturing facility is located at Registered Office.

B SUMMARY OF BASIS OF COMPLIANCE, BASIS OF PREPARATION AND PRESENTATION, CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGMENTS AND SIGNIFICANT ACCOUNTING POLICIES:

B.1 BASIS OF COMPLIANCE

The Financial Statements of the Company have been prepared to comply with the Indian Accounting standards (‘Ind AS’), including the rules notified under the relevant provisions of the Companies Act,
2013, (as amended from time to time) and Presentation and disclosure requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS Compliant Schedule III) as amended from time to time.

B.2 BASIS OF PREPARATION AND PRESENTATION

The financial statements have been prepared under the historical cost convention using the accrual method of accounting basis, except for certain financial instruments that are measured at fair values at
the end of each reporting period as explained in the significant accounting polices below.

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 the Schedule III to the 2013 Act.

B.3 CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGMENTS

The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported balances of assets and liabilities and disclosures as at the date of
the financial statements and the reported amounts of income and expense for the periods presented.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates considering different
assumptions and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Impact on account of revisions to accounting estimates are recognised in the period in which the estimates are revised and future
periods are affected.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values of assets and liabilities within the next financial year are discussed below.

C.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Property, plant and equipment (PPE IND AS 16)

These tangible assets are held for use in production, supply of goods or services or for administrative purposes. Property, Plant and Equipment are stated at cost net of recoverable taxes, trade discount and
rebates less accumulated depreciation and accumulated impairment losses except for freehold land which is not depreciated. Cost includes purchase price alter deducting trade discount/rebate, import
duties, non-refundable taxes, Net of Cenvat and VAT credit/GST input credit wherever applicable, cost of replacing the component parts, borrowing costs and other directly attributable cost of bringing the
asset to its working condition in the manner intended by the management.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.

The cost of an item of PPE is recognised as an asset if, and only if, it is probable that the economic benefits associated with the item will flow to the Company in future periods and the cost of the item can be
measured reliably. Expenditure incurred after the PPE have been put into operations, such as repairs and maintenance expenses are charged to the Statement of Profit and Loss during the period in which
they are incurred.

Items such as spare parts, standby equipment and servicing equipment are recognised as PPE when it is held for use in the production or supply of goods or services, or for administrative purpose, and are
expected to be used for more than one year. Otherwise such items are classified as inventory.

The Company adjusts exchange differences arising on translation difference/settlement of long term foreign currency monetary items outstanding and pertaining to the acquisition of a depreciable asset to
the cost of asset and depreciates the same over the remaining life of the asset. The depreciation on such foreign exchange difference is recognised from first day of its financial year.

De-recognised upon disposal

An item of PPE is derecognised on disposal or when no future economic benefits are expected from use or disposal. Any gain or loss arising on derecognition of an item of property, plant and equipment is
determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss when asset is derecognised.

Treatment of Expenditure during Construction Period

Expenditure, net of income earned, during construction (including financing cost related to borrowed funds for construction or acquisition of qualifying PPE) period is included under capital work-in-progress,
and the same is allocated to the respective PPE on the completion of construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital
Advances under “Other Non-Current Assets”.

Depreciation

The depreciable amount of an asset is determined alter deducting its residual value. Where the residual value of an asset increases to an amount equal to or greater than the asset’s carrying amount, no
depreciation charge is recognized till the asset’s residual value decreases below the asset’s carrying amount. Depreciation of an asset begins when it is available for use, i.e., when it is in the location and
condition necessary for it to be capable of operating in the intended manner. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale in accordance with IND AS
105

and the date that the asset is derecognised.

The Company depreciates its property, plant and equipment (PPE) over the useful life in the manner prescribed in Schedule II to the Act. Management believes that useful life of assets are same as those
prescribed in Schedule II to the Act, except for plant and equipment wherein based on technical evaluation, useful life has been estimated to be different from that prescribed in Schedule II of the Act.

The identified component of fixed assets are depreciated over the useful lives and the remaining components are depreciated over the life of the principal assets.

Depreciation on fixed assets added/disposed off during the period is provided on pro-rata basis with reference to the date of addition/disposal.

(b) Investments

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently when there is an indication for impairment. If the recoverable amount is less than its carrying
amount, the impairment loss is accounted for.

(c) Borrowing cost (IND AS 23)

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

As per normal practicesthe cost of finished goods includes all direct cost and normal fixed overheads. However, it does not include selling and distribution cost. Value of stock of finished goods at the date of
Balance Sheet includes duties and taxes if any applicable.

(e) Impairment loss (IND AS 36)

At the end of each reporting period, the Company reviews the carrying amounts of its PPE and other intangible assets to determine whether there is any indication that these assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The resulting impairment loss is recognised in the Statement of Profit and Loss Recoverable amount is the
higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.

In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU 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 been recognised for the asset or CGU in prior years. A reversal of an impairment loss is recognised in the Statement of
Profit and Loss.

(f) . Employee benefits (IND AS 19)

Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the
employees render the services.

Post employment benefits

1) Defined Benefit Plan
GRATUITY

The Trustees of Ishan Dyes and Chemicals Limited Employees’ Gratuity Fund has a fund arrangement (cash accumulation policy) with Life Insurance Corporation of India (LIC) to administer its gratuity
benefit scheme. The contributions towards the said funds which are as determined by LIC are charged to revenue each year. Company ascertains the Liability towards Gratuity at the year-end and
provision for the differential amount between the liability determined on Actuarial Valuation and Fund balance is provided in the books of account.

2) Defined Contribution Plans
PROVIDENT FUND

The Company recognises contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability. If the contribution already paid exceeds the contribution
due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to a reduction in future payment or a cash refund.

(g) Cash and cash equivalents (IND AS 7)

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.

(h) Foreign currency translation

The functional currency of Ishan Dyes and Chemical Limited (i.e. the currency of the primary economic environment in which the Company operates) is Indian Rupee.

On initial recognition, all foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the date of the transaction. As at the reporting date, foreign currency
monetary assets and liabilities are translated at the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses are recognised in the Statement of Profit and Loss.

(i) Revenue recognition (IND AS 115)

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration entitled in exchange for those goods
or services. The Company is generally the principal as it typically controls the goods or services before transferring them to the customer. Generally, control is transferred upon shipment of goods to the
customer or when the goods is made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with
respect to the goods shipped.

Revenue from rendering of services is recognised over time by measuring the progress towards complete satisfaction of performance obligations at the reporting period.

Contract Balances
Trade Receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration or is due from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue
when the Company performs under the contract.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

Dividend income is recognised when the Company’s right to receive the payment has been established.

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Mar 31, 2024

C.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Property, plant and equipment (PPE IND AS 16)

These tangible assets are held for use in production, supply of goods or services or for administrative purposes. Properly, Plant and Equipment are stated at cost net of recoverable taxes, trade discount and rebates less accumulated depreciation and accumulated impairment losses except for freehold land which is not depreciated. Cost includes purchase price after deducting trade discount/rebate, import duties, non-refundable taxes, Net of Cenvat and VAT credit/GST input credit wherever applicable, cost of replacing the component parts, borrowing costs and other directly attributable cost of bringing the asset to its working condition in the manner intended by the management.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.

The cost of an item of PPE is recognised as an asset if, and only if, it is probable that the economic benefits associated with the item will flow to the Company in future periods and the cost of the item can be measured reliably. Expenditure incurred after the PPE have been put into operations, such as repairs and maintenance expenses are charged to the Statement of Profit and Loss during the period in which they are incurred.

Items such as spare parts, standby equipment and servicing equipment are recognised as PPE when it is held for use in the production or supply of goods or services, or for administrative purpose, and are expected to be used for more than one year. Otherwise such items are classified as inventory.

The Company adjusts exchange differences arising on translation difference/settlement of long term foreign currency monetary items outstanding and pertaining to the acquisition of a depreciable asset to the cost of asset and depreciates the same over the remaining life of the asset. The depreciation on such foreign exchange difference is recognised from first day of its financial year.

De-recognised upon disposal

An item of PPE is derecognised on disposal or when no future economic benefits are expected from use or disposal. Any gain or loss arising on derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss when asset is derecognised.

Treatment of Expenditure during Construction Period

Expenditure, net of income earned, during construction (including financing cost related to borrowed funds for construction or acquisition of qualifying PPE) period is included under capital work-in-progress, and the same is allocated to the respective PPE on the completion of construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under “Other Non-Current Assets”.

Depreciation

The depreciable amount of an asset is determined after deducting its residual value. Where the residual value of an asset increases to an amount equal to or greater than the asset’s carrying amount, no depreciation charge is recognized till the asset’s residual value decreases below the asset’s carrying amount. Depreciation of an asset begins when it is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the intended manner. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale in accordance with IND AS 105 and the date that the asset is derecognised.

The Company depreciates its property, plant and equipment (PPE) over the useful life in the manner prescribed in Schedule II to the Act. Management believes that useful life of assets are same as those prescribed in Schedule II to the Act, except for plant and equipment wherein based on technical evaluation, useful life has been estimated to be different from that prescribed in Schedule II of the Act.

The identified component of fixed assets are depreciated over the useful lives and the remaining components are depreciated over the life of the principal assets.

Depreciation on fixed assets added/disposed off during the period is provided on pro-rata basis with reference to the date of addition/disposal.

The assets residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

(b) Investments

Note 1 : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2024 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently when there is an indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

(c) Borrowing cost (IND AS 23)

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

As per normal pracTicesine costot Tinisnea gooas incluaes all airect cost ana normal Tixea overneaas. However, it aoes not incluae selling ana aistriDUTion cost. value ot stockot Tinisnea gooas at tne aate ot Balance Sneet incluaes auties and Taxes iT any applicable.

(e) Impairment loss (IND AS 36)

AT tne ena of eacn reporting perioa, tne Company reviews tne carrying amounts of its PPE ana otner intangible assets To aeTermine wDetner tnere is any inaicaTion TnaT tnese assets nave suTTerea an impairment loss. IT any sucn inaicaTion exists, tne recoverable amount of tne asset is esTimaTea in oraer To aeTermine tne extent of tne impairment loss. Wbere it is not possible To estimate tne recoverable amount of an inaiviaual asset, tne Company estimates tne recoverable amount of tne casn-generaTing unit (CGU) To wNcn tne asset belongs. WDen tne carrying amount of an asset or CGU exceeas its recoverable amount, tne asset is consiaerea impairea ana is written aown To its recoverable amount. Tne resulting impairment loss is recognisea in tne Statement of Profit ana Loss Recoverable amount is tne nigner of fair value less costs To sell ana value in use. In assessing value in use, tne esTimaTea future casn flows are aiscounTea To tneir present value using a pre-tax aiscount rate tnat reflects current market assessments of tne Time value of money ana tne risks specific To tne asset.

In aetermining fair value less costs of aisposal, recent market Transactions are Taken into account. IT no sucn Transactions can be iaentifiea, an appropriate valuation moael is usea.

Wnere an impairment loss subsequently reverses, tne carrying amount of tne asset or CGU is increasea To tne revisea estimate of its recoverable amount, but so tnat tne increasea carrying amount aoes not exceea tne carrying amount tnat woula nave been aeterminea naa no impairment loss been recognisea Tor tne asset or CGU in prior years. A reversal of an impairment loss is recognisea in tne Statement of Profit ana Loss.

(f) . Employee benefits (IND AS 19)

Short term employee benefits

Tne unaiscountea amount of snort Term employee benefits expectea To be paia in excnange Tor tne services renaerea by employees are recognisea as an expense auring tne perioa wPien tne employees renaer tne services.

Post employment benefits

1) Defined Benefit Plan GRATUITY

Tne Trustees of Isnan Dyes ana Cnemicals Limitea Employees’ Gratuity Funa nas a Tuna arrangement (casn accumulation policy) witn Life Insurance Corporation of Inaia (LIC) To aaminister its gratuity benefit scneme. Tne contributions Towaras tne saia Tunas wWcn are as aeterminea by LIC are cnargea To revenue eacn year. Company ascertains tne Liability Towaras Gratuity at tne year-ena ana provision Tor tne aifferential amount between tne liability aeterminea on Actuarial Valuation ana Funa balance is proviaea in tne books of account.

2) Defined Contribution Plans PROVIDENT FUND

Tne Company recognises contribution payable To tne proviaent Tuna scneme as an expense, wPien an employee renaers tne relatea service. IT tne contribution payable To tne scneme Tor service receivea before tne balance sneet aate exceeas tne contribution alreaay paia, tne aeficit payable To tne scneme is recognisea as a liability. IT tne contribution alreaay paia exceeas tne contribution aue Tor services receivea before tne balance sneet aate, tnen excess is recognisea as an asset To tne extent tnat tne pre-payment will leaa To a reauction in future payment or a casn refuna.

(g) Cash and cash equivalents (IND AS 7)

Tne Company consiaers all nignly liquia financial instruments, wnicn are reaaily convertible into Known amounts of casn tnat are subject To an insignificant risk of cnange in value ana naving original maturities of tnree montns or less from tne aate of purcnase, To be casn equivalents. Casn ana casn equivalents consist of balances witn banks wnicn are unrestrictea Tor witnarawal ana usage.

(h) Foreign currency translation

Tne functional currency of Isnan Dyes ana Cnemical Limitea (i.e. tne currency of tne primary economic environment in wnicn tne Company operates) is Inaian Rupee.

On initial recognition, all foreign currency Transactions are Translatea into tne functional currency using tne excnange rates prevailing on tne aate of tne Transaction. Asat tne reporting aate, foreign currency monetary assets ana liabilities are Translatea at tne excnange rate prevailing on tne Balance Sneet aate ana tne excnange gains or losses are recognisea in tne Statement of Profit ana Loss.

(i) Revenue recognition (IND AS 115)

Note 1 : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2024 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration entitled in exchange for those goods or services. The Company is generally the principal as it typically controls the goods or services before transferring them to the customer. Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped.

Revenue from rendering of services is recognised over time by measuring the progress towards complete satisfaction of performance obligations at the reporting period.

Contract Balances Trade Receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration or is due from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

Dividend income is recognised when the Company’s right to receive the payment has been established.

Export incentives are recognized in the financial statements when there is a reasonable assurance that the company will comply with the conditions attached to them and that the incentives will be received.

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Mar 31, 2023

C.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Property, plant and equipment (PPE IND AS 16)

"These tangible assets are held for use in production, supply of goods or services or for administrative purposes. Property, Plant and Equipment are stated at cost net of recoverable taxes, trade discount and rebates less accumulated depreciation and accumulated impairment losses except for freehold land which is not depreciated. Cost includes purchase price after deducting trade discount/rebate, import duties, non-refundable taxes, Net of Cenvat and VAT credit/GST input credit wherever applicable, cost of replacing the component parts, borrowing costs and other directly attributable cost of bringing the asset to its working condition in the manner intended by the management.""If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.""The cost of an item of PPE is recognised as an asset if, and only if, it is probable that the economic benefits associated with the item will flow to the Company in future periods and the cost of the item can be measured reliably. Expenditure incurred after the PPE have been put into operations, such as repairs and maintenance expenses are charged to the Statement of Profit and Loss during the period in which they are incurred.""Items such as spare parts, standby equipment and servicing equipment are recognised as PPE when it is held for use in the production or supply of goods or services, or for administrative purpose, and are expected to be used for more than one year. Otherwise such items are classified as inventory.""The Company adjusts exchange differences arising on translation difference/settlement of long term foreign currency monetary items outstanding and pertaining to the acquisition of a depreciable asset to the cost of asset and depreciates the same over the remaining life of the asset. The depreciation on such foreign exchange difference is recognised from first day of its financial year."

"De-recognised upon disposal"An item of PPE is derecognised on disposal or when no future economic benefits are expected from use or disposal. Any gain or loss arising on derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss when asset is derecognised.""Treatment of Expenditure during Construction Period"Expenditure, net of income earned, during construction (including financing cost related to borrowed funds for construction or acquisition of qualifying PPE) period

mis included under capital work-in-progress, and the same is allocated to the respective PPE on the completion of construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under "Other Non-Current Assets".""Depreciation"The depreciable amount of an asset is determined after deducting its residual value. Where the residual value of an asset increases to an amount equal to or greater than the asset''s carrying amount, no depreciation charge is recognized till the asset''s residual value decreases below the asset s carrying amount. Depreciation of an asset begins when it is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the intended manner. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale in accordance with IND AS 105"and the date that the asset is derecognised.""The Company depreciates its property, plant and equipment (PPE) over the useful life in the manner prescribed in Schedule II to the Act. Management believes that useful life of assets are same as those prescribed in Schedule II to the Act, except for plant and equipment wherein based on technical evaluation, useful life has been estimated to be different from that prescribed in Schedule II of the Act.""The identified component of fixed assets are depreciated over the useful lives and the remaining components are depreciated over the life of the principal assets.""Depreciation on fixed assets added/disposed off during the period is provided on pro-rata basis with reference to the date of addition/disposal.""The assets residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate."

(b) Investments

The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently when there is an indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

(c) Borrowing cost (IND AS 23)

"Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. ""All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred."

(d) Inventories (IND AS 2)

The inventory is valued as follows:

(i) Raw Materials At Cost First in First out.

(ii) Stores and Spare parts At Cost First in First out.

(iii) Finished Goods Valued at lower of cost or Net Realisable Value

(iv) Work in Process At cost by using absorption cost method.

As per normal practices the cost of finished goods includes all direct cost and normal fixed overheads. However, it does not include selling and distribution cost. Value of stock of finished goods at the date of Balance Sheet includes duties and taxes if any applicable.

(e) Impairment loss (IND AS 36)

"At the end of each reporting period, the Company reviews the carrying amounts of its PPE and other intangible assets to determine whether there is any indication that these assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The resulting impairment loss is recognised in the Statement of Profit and Loss Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.""In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used."Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU 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 been recognised for the asset or CGU in prior years. A reversal of an impairment loss is recognised in the Statement of Profit and Loss."

(f) . Employee benefits (IND AS 19)

Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

Post employment benefits

1) Defined Benefit Plan GRATUITY

The Trustees of Ishan Dyes and Chemicals Limited Employees'' Gratuity Fund has a fund arrangement (cash accumulation policy) with Life Insurance Corporation of India (LIC) to administer its gratuity benefit scheme. The contributions towards the said funds which are as determined by LIC are charged to revenue each year. Company ascertains the Liability towards Gratuity at the year-end and provision for the differential amount between the liability determined on Actuarial Valuation and Fund balance is provided in the books of account.

2) Defined Contribution Plans PROVIDENT FUND

The Company recognises contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to a reduction in future payment or a cash refund.

(g) Cash and cash equivalents (IND AS 7)

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.

(h) Foreign currency translation

"The functional currency of Ishan Dyes and Chemical Limited (i.e. the currency of the primary economic environment in which the Company operates) is Indian Rupee."On initial recognition, all foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the date of the transaction. As at the reporting date, foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses are recognised in the Statement of Profit and Loss."

(i) Revenue recognition (IND AS 18)

"Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration entitled in exchange for those goods or services. The Company is generally the principal as it typically controls the goods or services before transferring them to the customer. Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped.

Revenue from rendering of services is recognised over time by measuring the progress towards complete satisfaction of performance obligations at the reporting period.

Contract Balances Trade Receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration or is due from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.""Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.""Dividend income is recognised when the Company''s right to receive the payment has been established."

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Mar 31, 2018

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS A CORPORATE INFORMATION:

The Company Ishan Dyes and Chemicals Limited was incorporated on 30th November, 1993 under the Companies Act, 1956. The Company Is at present listed on BSE Limited [Bombay Stock Exchange). The Company is engaged into the business of manufacturing Copper Phthalocyanine Crude Blue (CPC Blue) and Pigment Blues. The products of the Company are well established in the international and domestic market

B SUMMARY OF BASIS OF COMPLIANCE, BASIS OF PREPARATION AND PRESENTATION, CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGMENTS AND SIGNIFICANT ACCOUNTING POLICIES:

B.l BASIS OF COMPLIANCE

The financial statements comply in all material aspects with Indian Accounting Standards (''Ind AS'') notified under Section 133 of the Companies Act, 2013 (“the 2013 Acf) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act

Until the adoption of Ind AS, for all periods up to and including the year ended 31 March, 2017, the Company prepared its financial statements in accordance with Section 133 of the 2013 Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAP⁷).

Reconciliation and description of the effects of the transition has been summarized in note 44.

B.2 BASIS OF PREPARATION AND PRESENTATION

The financial statements have been prepared under the historical cost convention using the accrual method of accounting basis, except for certain financial instruments that are measured at fair values at the end of each reporting period as explained in the significant accounting polices below.

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 the Schedule HI to the 2013 Act

B.3 CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGMENTS

The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported balances of assets and liabilities and disclosures as at the date of the financial statements and the reported amounts of income and expense for the periods presented

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant Actual results may differ from these estimates considering different assumptions and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Impact on account of revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values of assets and liabilities within the next financial year are discussed below.

C.l SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a] Property, plant and equipment

Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent costs are Included In the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Expenses incurred relating to project net of income earned during the project development stage prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in -Progress.

Depreciation on property, plant and equipment is provided using straight line method.

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 except, where useful life is different than those prescribed in Schedule II;

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized In the Statement of Profit and Loss when the asset is derecognized.

SIGNIFICANT ACCOUNTING POLIGES AND NOTES ON ACCOUNTS 0>) Investments

The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is an indication for impairment If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

(c) Borrowing cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for Its intended use.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

(d) Inventories

The inventory Is valued as follows:

(i) Raw Materials At Cost First in First out

(ii) Stores and Spare parts At Cost First in First out

(iii) Finished Goods Valued at lower of cost or Net Reliable Value

(iv) Work in Process At cost by using absorption cost method.

As per normal practices the cost of finished goods includes all direct cost and normal fixed overheads. However, it does not include selling and distribution cost Value of stock of finished goods at the date of Balance Sheet includes duties and taxes if any applicable.

(e) Impairment loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount Is the higher of an asset''s net selling price and its value in use. Value in use Is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposaL

(f). Employee benefit obligations Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services.

Post-employment benefits

1) Defined Benefit Plan GRATUITY

The Trustees of Ishan Dyes and Chemicals Limited Employees'' Gratuity Fund has a fund arrangement (cash accumulation policy] with Life Insurance Corporation of India (LIC) to administer its gratuity benefit scheme. The contributions towards the said funds which are as determined by LIC are charged to revenue each year. Company ascertains the Liability towards Gratuity at the year-end and provision for the differential amount between the liability determined on Actuarial Valuation and Fund balance is provided in the books of account

2) Defined Contribution Plans PROVIDENT FUND

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company''s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

(g) 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 halances with banks which are unrestricted for withdrawal and usage.

(h) Foreign currency translation

The functional currency of lshan Dyes and Chemical Limited (i.e. the currency of the primary economic environment in wbich the Company operates) is Indian Rupee.

On initial recognition, all foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the date of the transaction. As at the reporting date, foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses are recognized In the Statement of Profit and Loss.

(i) Revenue recognition

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations are net of excise duty, GST and adjusted for discounts (net).

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

Dividend income is recognized when the Company’s right to receive the payment has been established.

(j) Provision, contingent liabilities and contingent assets :

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can he made. Provisions are not discounted to their present value and are determined hased on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed In the financial statements.

(k) Income tax expense

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

Current tax assets and liabilities are measured at the amount expected to he recovered from or paid to the taxation authorities, hased on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(m) Impairment

Provision is made in the accounts in respect of debts/advances which in the opinion of the management are considered doubtful of recovery.

(n) Financial instruments

i) Financial Assets

A. Initial recognition and measurement

At Initial recognition, the Company measures a financial asset at Its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

B. Subsequent measurement

Subsequent measurement of deht Instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset There are three measurement categories into which the Company classifies its debt instruments:

a) Financial assets carried at amortized cost (AC]

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and Interest are measured at amortized cost A gain or loss on a debt investment that is subsequently measured at amortized cost and Is not part of a hedging relationship Is recognized In profit or loss when the asset Is derecognized or Impaired. Interest Income from these financial assets is included in finance income using the effective interest rate method.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and Interest are measured at fair value through other comprehensive Income (''FVTOCI''). Movements In the carrying amount are taken through OCI, except for the recognition of Impairment gains or losses. Interest revenue and foreign exchange gains or losses which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized as gains/ (losses) within other income or other expense. Interest income from these financial assets is included in other income using the effective interest rate method.

c) Financial assets at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortized cost or FVTOCI are measured at fair value through profit or loss. A gain or loss on a deht investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in profit or loss and presented net in the Statement of Profit and Loss as gains/(losses) within other income or other expense in the period in which it arises. Interest income from these financial assets is included in other income.

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

C. Investment in equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company''s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss. Dividends from such investments are recognized In the Statement of Profit and Loss as Other Income when the Company''s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognized as gains/[losses) within other income or other expense In the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity Investments measured at FVTOCI are not reported separately from other changes in fair value.

ii) Financial liabilities

A. Initial recognition and measurement

The Company''s financial liabilities comprise borrowings, trade payables and other liabilities. These are initially measured at fair value, net of transaction costs,

B. Subsequent measurement

Subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period

(o) Dividend

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.

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Mar 31, 2016

1 BACKGROUND:

Ishan Dyes and Chemicals Ltd. was incorporated On 26^th July 1993 under the Companies Act, 1956,The company is engaged into the business of manufacturing Copper Phthalocyanine Crude Blue [CPC Flue and Pigment Rules. The products of the company are also exported and well established in the domestic market.

A SIGNIFICANT ACCOUNTING POLICIES: BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared Lo comply With the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified tinder the relevant provisions of the Companies Act, 2013.

The inancial statements are prepared on accrual basis Lin tier the historical cost convention, except for certain Fixed Assets which arc carried at revalued amounts.

Current / Non-current classification

The Revised Schedule VI to the Act requires assets and Liabilities to be classified as either Current nr Non-Current.

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected Lo he realized in, or is intended for sale or consumption in, the normal operating cycle;

(b)it is held primarily for the purpose of being traded;

(c) it is expected to be realized within twelve months after the balance sheet date; or

(d) it is cash or a cash equivalent unless it is restricted from being exchanged in used to settle a liability for at least twelve months after the balance sheet date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

(a] it is expected to lie settled in the entity''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

© it is due to be sealed within twelve months the balance sheet date; or

(d) the Company does not have an unconditional right to defer settlement of the liability for at

Last twelve months alter the balance sheet date.

All other liabilities arc classified as noncurrent.

All assets and liabilities have been classified as current or nun-current as per the Company''s normal operating cycle and other criteria set out above which are in accordance with the revised Schedule VI to the Act.

ii. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent Inabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period- Difference between the actual results and estimates are recognized in the period in which the results are known/materialized. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable.

iii. TANGIBLE ASSETS

Fixed Assets are stated at test of acquisition / construction or book value and includes amounts added on revaluation less accumulated depreciation and Impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are disclosed under Capital Work- in - Progress,

iv. INTANGIBLE ASSETS

Intangible Assets are generally stated at cost of acquisition net of recoverable taxes less accumlated amortization/ depletion.

v. INVESTMENTS

Current Investments are carried at lower of cost and fair value. Long term investments are carried at cost. However, when Blare is a decline, other Lean temporary, the carrying amount is reduced to recognize the decline.

Vi, DEPRECIATION

Effective 1st April 2014, the Company depreciates its Fixed Assets over the useful life in the manner prescribed in Schedule 11 to the Companies Act, 2013, as against the earlier of depreciating at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(i) in case of pre-owned assets, the useful life is estimated on a case to case basis,

(ii) Depreciation on additions to the assets or on sale/discernment of assets, is calculated pro rata Iron the month of such addition or up to the month of such sale/discernment,

iii) Used upon the future projections, the Company has estimated the economic useful life of the assets and accordingly the assets have been depredated.

vii, INVENTORIES

The inventory is valued as follows:

(i) Raw Materials At Cost First in First out,

[ii) Stores and Spare parts At dost First in First Put.

(iii) finished Goods Valued at lower of cost or Net Receivable Value

(iv) Work in Process At cost by using absorption cost method.

As per normal the cost of finished goods includes all direct cost and normal overheads. However it does not include selling and distribution cost Value of stock of finished goods at the date if Balance Sheet includes duties and taxes if any applicable.

viii. RETIREMENT BENEFITS

Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. Post employment benefits

1) Defined under Plan GRATUITY

The Trustees of ashen Dyes and Chemicals Limited Employs’ Gratuity Fund has a fund arrangement (cash accumulation policy) with Life Insurance Corporation of India (Act) to administer gratuity benefit scheme. The contributions towards the said funds which are as determined by LlC are charged to revenue each year. Company ascertains the Liability towards Gratuity at. the year-end and provision for the differential amount between the liability determined on Actuarial Valuation and fund balance is provided in the books of account.

2) Do fined Contribution Plans PROVIDENT FUND

A defined contribution plan is a post-employment benefit plan under which the Company pays specified Contributions to a Separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company''s contribution is recognized ;-s an expense in the Profit and Loss Statement during the period in which the employee renders the related service,

ix. CENVAT CREDIT

CENVAT Credit is accounted on accrual basis on purchase of materials.

x. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference between the rate prevailing on the date of transaction and on. the date of settlement as also on translation of monetary tams at the end of the year is recognized as income or expense, as the case may be.

Any premium or discount arising at the inception of the forward exchange contract is recognized as in come or expense over the of the contract.

xi. REVENUE RECOGNITION

Revenue is recognized only when risks and rewards incidental to ownership are transferred to The customer, it can he reliably measured anti it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, excise duty and adjusted for discounts (net).

Interest income 55 recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable,

xii. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

Provision is recognized m the accounts when there is a present obligation as a result of past event(s} and it is probable that an outflow of resources will be required to settle the obligation anti a reliable estimate can be made. Provisions are discounted to their present value anti are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial statements.

xiii. BORROWING COSTS

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

xiv, TAXIS ON INCOME

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable lax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income and reversal of timing differences of earlier years/period. Deferred tax assets lire recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred Tax assets, in Case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date,

POUBTFUL DEBTS/Advances

Provision is made in the accounts in respect of debts/advances which in the opinion of the management are considered double full of recovery,

xvi. IMPAIRMENT LOSS

Impairment loss is provided to the extent the carrying amount of assets extrudes their recoverable amounts. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash expected to arise from the continuing use of the asset and front its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

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Mar 31, 2015

I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

"The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards notified in the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

Current / Non-current classification

The Revised Schedule VI to the Act requires assets and liabilities to be classified as either Current or Non-current.

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the entity's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within twelve months after the balance sheet date; or

(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the entity's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the balance sheet date; or

(d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.

All other liabilities are classified as non-current.

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 above which are in accordance with the revised Schedule VI to the Act."

ii. USE OF ESTIMATES

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

iii. TANGIBLE ASSETS

Fixed Assets are stated at cost of acquisition / construction or book value and includes amounts added on revaluation less accumulated depreciation and impairment loss, if any.

iv. INTANGIBLE ASSETS

Intangible Assets are generally stated at cost of acquisition net of recoverable taxes less accumlated amortisation/ depletion.

v. INVESTMENTS

Current Investments are carried at lower of cost and fair value. Long term investments are carried at cost. However, when there is a decline, other than temporary, the carrying amount is reduced to recognise the decline.

vi. DEPRECIATION

Effective 1st April 2014, the Company depreciates its Fixed Assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(i) In case of pre-owned assets, the useful life is estimated on a case to case basis.

(ii) Depreciation on additions to the assets or on sale/discardment of assets, is calculated prorata from the month of such addition or upto the month of such sale/discardment, as the case may be.

(iii) Based upon the future projections, the Company has estimated the economic useful life of the assets and accordingly the assets have been depreciated.

vii. INVENTORIES

The inventory is valued as follows:

(i) Raw Materials At Cost First in First out.

(ii) Stores and Spare parts At Cost First in First out.

(iii) Finished Goods Valued at lower of cost or Net Relisable Value

(iv) Work in Process At cost by using absorption cost method.

As per normal practices the cost of finished goods includes all direct cost and normal fixed overheads. However, it does not include selling and distribution cost. Value of stock of finished goods at the date of Balance Sheet includes duties and taxes if any applicable.

viii. RETIREMENT BENEFITS 1) GRATUITY

The Trustees of Ishan Dyes and Chemicals Limited Employees' Gratuity Fund has a fund arrangement (cash accumulation policy) with Life Insurance Corporation of India (LIC) to administer its gratuity benefit scheme. The contributions towards the said funds which are as determined by LIC are charged to revenue each year. Company ascertains the Liability towards Gratuity at the year-end and provision for the differential amount between the liability determined on Actuarial Valuation and Fund balance is provided in the books of account.

2) PROVIDENT FUND

Liability is determined on the basis of contribution as required under the statute/rules.

ix. CENVAT CREDIT

CENVAT Credit is accounted on accrual basis on purchase of materials.

x. FOREIGN CURRENCY TRANSACTIONS

"Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of monetary items at the end of the year is recognised as income or expense, as the case may be.

Any premium or discount arising at the inception of the forward exchange contract is recognized as income or expense over the life of the contract."

xi. REVENUE RECOGNITION

Revenue / Income is recognised when no significant uncertainty as to determination or realisation exists.

xii. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

Provision involving substantial degree of estimation in measurement is recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in notes, if any. Contingent Assets are neither recognised nor disclosed in the financial statement.

xiii. BORROWING COSTS

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

xiv. TAXES ON INCOME

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to/ recovered from the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/ period. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation and losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

xv. DOUBTFUL DEBTS/ADVANCES

Provision is made in the accounts in respect of debts/advances which in the opinion of the management are considered doubtful of recovery.

xvi. IMPAIRMENT LOSS

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

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Mar 31, 2014

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts have been prepared to comply in all material aspects with applicable accounting principles In India, the Accounting Standards notified in the Companies (Accounting Standards] Rules, 2006 and the relevant provisions of the Companies Act; 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of die Companies Act; 2013, Current / Non-current classification.

The Revised Schedule VI to the Act requires assets and liabilities to be classified as either Current or Non-current An asset is classified as current when it satisfies any of the following criteria:

[a) it is expected to be realized in, or is intended for sale or consumption in, the entity''s normal operating cycle;

[b} it Is held primarily for the purpose of being traded;

[c] it is expected to be realized within twelve months after the balance sheet date; or

id] it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the halance sheet date.

All other assets are classified as non-current

A liability is classified as current when it satisfies any of the following criteria:

[a) it is expected to be settled in the entity''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

[c] It Is due to be settled within twelve months after the balance sheet date; or

[d) die Company does not have an unconditional right to defer settlement of the liability for at least twelve months after die balance sheet date.

All other liabilities are classified as non-current

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 above which are in accordance with the revised Schedule VI to the Act.

b. USE OF ESTIMATES

The preparation of the financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the Financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised In the period in which the results are known / materialize.

c TANGIBLE ASSETS

Fused Assets are stated at costof acquisition /construction or book value and includes amounts added on revaluation less accumulated depreciation and impairment loss, if any.

d. INTANGIBLE ASSETS

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumlated amortisation/ depletion.

e. INVESTMENTS

Current Investments are carried at lower of cost and fair value. Long term investments are carried at cost However, when there Is a decline, other than temporary, the carrying amount is reduced to recognise the decline.

f. DEPRECIATION

Depreciation on fixed assets is provided on straight line /written down value basis in accordance with the Companies Act, 1956-

i) Depreciation is provided at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956

(ii) Depreciation for the year is provided on the revalued cost of Assets and Is charged to the Profit and Loss Account. [Hi] Depreciation for the year on Intangible assets is provided at 100% and charged to the Profit and Loss Account

g. INVENTORIES

The inventory is valued as follows:

[i) Raw Materials At Cost Hirst in First out

[ii) Stores and Sparc parts At Cost First in First out

{iii) Fi nished Goods Va Lued at lower of cost or Net Reusable Value

(iv) Work in Process At cost by using absorption cost method.

As per normal practices the cost of finished goods includes all direct cost and normal fined overheads. However, it does not include selling and distribution cost Value of stockof finished goods at the date of Balance Sheet includes duties and taxes if any applicable.

h. RETIREMENT BENEFITS 1] GRATUITY

The Trustees of Ishan Dyes and Chemicals Limited Employees'' Gratuity Fund has a fund arrangement [cash accumulation policy] with Life Insurance Corporation of India (LIC) to administer Its gratuity benefit scheme. The contributions towards the said funds which are as determined by LIC are charged to revenue each year. Company ascertains the Liability towards Gratuity at the year-end and provision for the differential amount between the liability determined on Actuarial Valuation and Fund balance is provided in the books of account

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Mar 31, 2013

1.1 Basis of Preparation of Financial Statements

The financial Statements are prepared under the historical cost convention on an accrual basis and are in conformity with the mandatory accounting standards and the provisions of the Companies Act, 1956 to the extent possible.

1.2 Use of Estimate

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Fixed Assets and Depreciation

1.3.1 Tangible Assets

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. The cost of fixed Assets included pre-operative expenses incurred up to the date of commencement of commercial production (netting off by income arising during said period) and is net of recoverable taxes.

1.3.2 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion. All costs, including financing costs till commencements of commercial production.

1.3.3 Depreciation

Depreciation on fixed assets is provided at the rate on Triple shift basis using straight line method in the manner specified in Schedule- XIV of the companies act, 1956 for the plant and machinery except plant of Beta Blue on which depreciation is provided on single shift basis. The Company provides pro-rata depreciation from the day the asset is ready for use and for any asset sold, till the date of sale.

1.4 Inventory: Valuation and Treatments of Costs:

1.4.1 The Inventory is valued as follows:

1) Raw Materials : At cost (FIFO method), net of Cenvat credit.

2) Stores & Spares : At cost (FIFO method)

3) Finished Goods : Valued at lower of cost or NRV

4) Work in Process : At cost by using absorption cost method.

1.4.2 As per normal practices the cost of finished goods includes all direct cost and normal fixed cost. However, it does not include selling and distribution cost. Values of stocks of finished goods at the date of Balance Sheet includes duties and taxes payable to comply with accounting standard of Income Tax Act. Provisions of such duty Its also made as duty and taxes payable in the accounts as on the date of Balance Sheet.

1.5 Revenue Recognition:

1.5.1 Sales: Sales are recognized at the time of dispatch of goods. All sales are shown net of excise duty, sales return, discount, and amount recovered towards VAT.

1.5.2 Other Income: Interest on deposits is accounted for an accrual basis. Dividend on shares is accounted on receipt basis. Export Incentives are recognized on accrual basis.

1.6 Provisions:

A provision is recognized when the company has a legal and constructive obligation as a result of past events, for which it is probable that cash outflows will be required and reliable estimates can be made of the amount of obligation.

1.7 Contingent Liabilities:

Contingent Liabilities are disclosed by the way of notes on accounts.

1.8 Capital Contribution:

Capital Contribution made towards Common Effluent Treatment Plant to Green Environment Service Co- Op. Society Ltd was shown under Long Term Loans & Advances as CETP was under construction in previous year. During the year under review as CETP construction was completed , it has been treated as Intangible Asset since the Company has ''right to use''.

1.9 Earning Per Share

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per shares, only potential equity shares that are dilutive and that increase loss per share are included.

1.10 Investments:

Investments are stated at cost of acquisition.

1.11 Retirement Benefits:

Contribution to Provident fund is charged to Profit and Loss accounts. Gratuity is charged to profit and loss accounts on the basis on actuarial valuation done. Leave encashment is charged to Profit & Loss accounts.

1.12 Accounting for Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets is recognized and carried forward only to the extent that there is a virtual certainty that the assets will be realized in future.

1.13 Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financials Statements.

1.14 Change in Accounting Policies:

No change in accounting policy during the period under review.

1.15 Foreign exchange transactions.

The exports sales transactions are recorded at the prevailing on the date of sale or that approximates the actual rate at the transaction. Imports are recorded at the rate prevailing on the date of actual payments made. The Loss/Gain on exchange fluctuation is charged/credited to Profit and loss Account.

1.16 Impairment of Assets :

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that carrying amount may not be recoverable. And impairment loss is then recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is higher of the asset''s net selling price and value in use.

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Mar 31, 2011

(A) General:

1. 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 and the provisions of the Companies Act, 1956.

2 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of .revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

B Fixed Assets and Depreciation:

1. Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. The cost of Fixed Assets includes pre-operative expenses incurred up to the date of commencement of commercial production (netting off by income arising during said period.) and is net of recoverable taxes.

2. Entangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/ depletion. - All costs, including financing costs till commencement of commercial production.

3. Depreciation:

Depreciation on fixed Assets is provided at the rate on Triple shift basis using straight line method in the manner specified in Schedule-XIV of the Companies Act, 1956 for the plant & machinery except plant of Beta Blue on which depreciation is provided on single shift basis.

C. Inventory: Valuation and Treatment of Costs:

1. The inventory is valued as follows:

1 Raw Materials : At cost (FIFO method), net of Cenvat credit.

2 Stores & Spares : At cost (FIFO method)

3 Finished Goods : Valued at lower of cost or NRV

4 Work in Process : At cost by using absorption cost method.

2. As per normal practice the cost of finished goods includes all direct cost and normal fixed cost. However it does not include selling and distribution cost. Value of stocks of finished goods at the date of Balance Sheet includes duties and taxes payable to comply with accounting standard of Income Tax Act. Provision of such duty is also made as duty and taxes payable in the accounts as on the date of Balance Sheet.

(D) Revenue Recognition:

ii. Sales: Sales are recognized at the time of dispatch of goods. All sales are shown net of excise duty, sales returns, discount, shortage and amounts recovered towards VAT.

iii. Other Income: Interest on deposit is accounted for on accrual basis. Dividend on shares is accounted on receipt basis.

E. Provisions:

A provision is recognized when the company has a legal and constructive obligation as a result of past event, for which it is probable that cash outflow will be required and reliable estimate can be made of the amount of obligation.

F. Contingent Liabilities:

Contingent Liabilities are disclosed by way of notes on accounts.

G. Capital Contribution:

Capital Contribution made towards Common Effluent Treatment Plant to Green Vatva Co- op. Society is treated as deferred revenue expenses and considering its utility, the expenses are to be written off over a period of 10 years.

H. Investments:

Investments are stated at cost of acquisition.

I. Retirement Benefits:

Contribution to Provident fund is charged to profit and loss account. Gratuity is charged to profit and loss account on the basis on actuarial valuation done.

J. Change in Accounting Policy:

The 31st March 2011, company was accounting for gratuity on actual payment basis by charging to profit and loss account. To comply with As - 15, the management has changed policy for gratuity and company has obtained certificate from approved actuarial valuer with reference to total liability on account of gratuity as on 31 March 2011. Accordingly, the company has created reserve of Rs.8.23 Lacs being gratuity reserve by charging the amount to profit and loss account. Because of the change in accounting policy, the profit of the year is lower as compared to earlier year by equal amount and the amount reserves and surplus is higher by the same amount.