Sicagen India Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2018

1. Significant Accounting Policies

1.1 Brief description of the Company

Sicagen (the Company) is a public limited company, incorporated and domiciled in India whose shares are publicly traded. The registered office is located at SPIC House, Guindy, Chennai - 600032, Tamil Nadu, India. The Company together with its subsidiaries and associates (collectively referred to as the “Group”) operate in a diversified operating segments such as trading of Building materials, Sales & Servicing Power & controls systems, manufacturing of MS barrels and manufacture of water treatment chemicals. The subsidiary Companies are into manufacture of Cables, precision steel fabrication and property development.

1.2 Statement of compliance

The company’s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules,

2015 issued by Ministry of Corporate Affairs in respect of section 133, read with sub-section (1) of Section 210A of the Companies Act, 2013. In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory promulgations require a different treatment. The financials for the year ended March 31, 2018 of the company are the first financial statements prepared in compliance with Ind AS. The date of transition to Ind AS is April 1, 2016. The financial statements upto the year ended March 31, 2017, were prepared in accordance with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (“I-GAAP”) and other relevant provisions of the Act. The figures for the year ended March 31, 2017 have now been restated as per Ind AS to provide comparability. These financials statements have been approved for issue by the Board of Directors at their meeting held on 15^th May 2018.

1.3 First Time Adoption Of Ind AS

The financial statements for the year ended 31^st Mar 2018 are the first financial statements prepared in accordance with Ind AS. The Reconciliation and description of the effect of transition from previous GAAP to Ind AS on Equity, Statement of Profit and Loss are provided in Note 38. The Balance sheet as on the date of transition has been prepared in accordance with Ind AS 101 - First time adoption of Indian Accounting Standards. All applicable Ind AS were applied consistently and retrospectively in preparation of the first Ind AS Financial Statements with certain mandatory exceptions and voluntary exemptions for the specific cases as provided under Ind AS 101.

The exemptions availed by the company under Ind AS 101 are as follows:

(i) The company has adopted the carrying value determined in accordance with I-GAAP for all of its property plant & equipment as deemed cost of such assets at the transition date.

(ii) The estimates as at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with I-GAAP

In accordance with Ind AS 101 on First time adoption of Ind AS, the Company has prepared its first Ind AS financial statements which include:

(i) Three Balance sheets namely, the opening Balance sheet as at April 1, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising assets or liabilities which are not permitted by Ind AS, by reclassifying assets and liabilities from previous GAAP as required by Ind AS, and applying Ind AS in measurement of recognised assets and liabilities; and Balance sheets as at March 31, 2018 and 2017; and

(ii) Two statements each of profit and loss; cash flows and changes in equity for the years ended March 31, 2018 and 2017 together with related notes.

The same accounting policies have been applied for all the periods presented except when the Company has made use of certain exceptions and/ or exemptions.

1.4 Basis of accounting

The Company maintains accounts on accrual basis following the historical cost convention, except for certain financial instruments that are measured at fair value in accordance with Ind AS and certain items of property, plant and equipment that were revalued in earlier years in accordance with the I-GAAP principles. The carrying value of all the items of property, plant and equipment and investment property as on date of transition is considered as the deemed cost.

FAIR VALUE MEASUREMENT

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumptions that the market participants would use when pricing the asset or liability, assuming that the market participants act in the economic best interest.

All assets and liabilities for which fair value is measured and disclosed in the financial statements are categorised within fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as below:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level inputs that are significant to the fair value measurement are unobservable.

For assets and liabilities that are recognised in the Balance sheet on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period (i.e) based on the lowest level input that is significant to the fair value measurement as a whole.

For the purpose of fair value disclosures, the company has determined the classes of assets and liabilities based on the nature, characteristics and risks of the assets or liabilities and the level of the fair value hierarchy as explained above.

Investments

The fair value of investments in equity is determined by reference to their quoted prices at the reporting date. In the absence of the quoted price, the fair value of the equity is measured using valuation techniques.

Trade Receivables

The fair value of trade and other receivables is estimated as the present value of the future cash flows, discounted at the market rate of interest at the reporting date. However, the fair value generally approximates the carrying amount due to the short term nature of such assets and for others difference of carrying amount and fair value is not material for disclosure.

1.5 Use of estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. The management believes that these estimates and assumptions are reasonable and prudent. However, actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future period. This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in the relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

Significant Estimates and judgments

The areas involving critical estimates or judgments are:

i) Defined benefit obligation - (Refer Note 34)

ii) Estimation of useful life of Property, Plant and Equipment - Refer Note 1.10

iii) Estimation and evaluation of provisions and contingencies relating to tax litigations - (Refer Note 36)

1.6 Presentation of financial statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The statement of cash flows has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash flows”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Amounts in the financial statements are presented in Indian Rupees in Lakhs rounded off to two decimal places as permitted by Schedule III to the Companies Act, 2013. Per share data are presented in Indian Rupees to two decimals places.

1.7 Current and non-current classification

Operating cycle for the business activities of the company covers the duration of the specific project/contract/product line/service including the defect liability period wherever applicable and extends up to the realisation of receivables (including retention monies) within the agreed credit period normally applicable to the respective lines of business.

1.8 Revenue recognition

Revenue is recognised based on nature of activity when consideration can be reasonably measured and recovered with reasonable certainty. Revenue is measured at the fair value of the consideration received or receivable and is reduced for estimated customer returns, rebates and other similar allowances.

Revenue from operations

Revenue includes excise duty and adjustments made towards liquidated damages and price variation wherever applicable. Escalation and other claims, which are not ascertainable/acknowledged by customers are not taken into account.

1.8.1 Sale of goods

Revenue from the sale of manufactured and traded goods is recognised when the goods are delivered and titles have been passed, provided all the following conditions are satisfied:

1. Significant risks and rewards of ownership of the goods are transferred to the buyer;

2. The amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the company; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.8.2 Rendering of services

Revenue from rendering of services is recognised when the outcome of a transaction can be estimated reliably. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

1. the amount of revenue can be measured reliably;

2. it is probable that the economic benefits associated with the transaction will flow to the company;

3. the stage of completion of the transaction at the end of the reporting period can be measured reliably; and

4. the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.8.3 Other operational revenue

This represents income earned from the activities incidental to the business and is recognised when the right to receive the income is established as per the terms of the contract.

1.8.4 Other income

i). Interest income is accrued on a time basis by reference to the principal outstanding and recognised using the effective interest rate method.

ii). Dividend income is accounted in the period in which the right to receive the same is established.

iii). Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably.

1.9 Exceptional items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the company is treated as an exceptional item and the same is disclosed in the notes to accounts.

1.10 Property, plant and equipment (PPE)

1.10.1 Tangible Assets

PPE is recognised when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and cumulative impairment, if any.

For transition to Ind AS, the company has elected to adopt as deemed cost, the carrying value of PPE measured as per I-GAAP less accumulated depreciation and cumulative impairment on the transition date of April 1, 2016. In respect of the revalued assets, the value is determined by valuers reduced by accumulated depreciation and cumulative impairment is taken as cost on transition date.

PPE not ready for the intended use on the date of the Balance Sheet is disclosed as “capital work-in-progress”. (Also refer to policies on leases, borrowing costs, impairment of assets and foreign currency transactions).

1.10.2 Depreciation and amortization

Depreciation is recognised using straight line method so as to write off the cost of the assets (other than freehold land and properties under construction) less their residual values over their useful lives specified in Schedule II to the Companies Act, 2013, or in the case of assets where the useful life was determined by technical evaluation, over the useful life so determined.

Depreciation method is reviewed at end of each financial year to reflect the expected pattern of consumption of the future economic benefits embodied in the asset.

The estimated useful life and residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful life/residual value is accounted on prospective basis.

Freehold land is not depreciated.

1.10.3 Intangible assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost, less accumulated amortisation and cumulative impairment.

1.10.4 Research and development expenditure on new products:

Expenditure on research is expensed under respective heads of account in the period in which it is incurred. Intangible assets are amortised on straight line basis over the estimated useful life. The method of amortisation and useful life are reviewed at the end of each accounting year with the effect of any changes in the estimate being accounted for on a prospective basis.

1.10.5 Impairment of assets

As at the end of each accounting year, the company reviews the carrying amounts of its PPE, intangible assets and investments in subsidiary, associate and joint venture companies to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the said assets are tested for impairment so as to determine the impairment loss, if any. Goodwill and the intangible assets with indefinite life are tested for impairment each year.

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

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

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

The amount of value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life. For this purpose, the discount rate (pre-tax) is determined based on the weighted average cost of capital of the company suitably adjusted for risks specified to the estimated cash flows of the asset).

For this purpose, a cash generating unit is ascertained as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount.

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

1.11 Employee Benefits

1.11.1 Short term employee benefits:

Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in the period in which the employee renders the related service.

1.11.2 Post-employment benefits:

i) Defined contribution plans: The state governed provident fund scheme, employee state insurance scheme and the company’s superannuation scheme are defined contribution plans. The contribution paid/payable under the schemes is recognised during the period in which the employee renders the related service.

ii) Defined benefit plans: The employees’ gratuity fund scheme managed by board of trustees established by the company represents the defined benefit plan. The present value of the obligation under defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method. The obligation is measured at the present value of the estimated future cash flows using a discount rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit obligations at the Balance Sheet date.

Defined benefit employee costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is recognised in the Statement of Profit and Loss under finance cost.

Gains or losses on settlement of any defined benefit plan are recognised in profit or loss when such settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the company recognises related restructuring costs or termination benefits

1.12 Leases

The determination of whether an agreement is, or contains, a lease is based on the substance of the agreement at the date of inception.

Operating leases: The leases which are not classified as finance lease are operating leases.

Lease rentals on assets under operating lease are charged to the Statement of Profit and Loss on a straight line basis over the term of the relevant lease.

1.13 Financial instruments

Financial assets and/or financial liabilities are recognised when the company becomes party to a contract embodying the related financial instruments. All financial assets and financial liabilities are initially measured at transaction values and where such values are different from the fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from as the case may be, the fair value of such assets or liabilities, on initial recognition. In case of interest free or concession loans given to subsidiary companies, the excess of the actual amount of the loan over initial measure at fair value is accounted as an equity investment.

The financial assets and financial liabilities are offset and presented on net basis in the Balance Sheet when there is a current legally enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the liability simultaneously.

1.13.1 Financial assets:

All recognised financial assets are subsequently measured in their entirety at amortised cost or at fair value depending on the classification of the financial assets as follows:

1. Investments in debt instruments - at amortised cost, subject to following conditions:

i) The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

ii) The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

2 Investment in equity instruments issued by subsidiary, associates and joint ventures are measured at cost less impairment.

3 Investment in preference shares of associate companies are treated as equity instruments if the same are convertible into equity shares or are redeemable out of the proceeds of equity instruments issued for the purpose of redemption of such investments. Investment in preference shares not meeting the aforesaid conditions are classified as debt instruments at FVTPL.

4 Investments in equity instruments are classified at FVTPL, unless the related instruments are not held for trading and the company irrevocably elects on initial recognition to present subsequent changes in fair value in Other Comprehensive Income. The Company has chosen the option to measure the fair value changes in the equity Instruments through FVTOCI on initial recognition and all subsequent measurement.

5 For financial assets that are measured at FVTOCI, income by way of interest, dividend and exchange difference (on debt instrument) are recognised in profit or loss and changes in fair value (other than on account of such income) are recognised in Other Comprehensive Income and accumulated in other equity. On disposal of debt instruments measured at FVTOCI, the cumulative gain or loss previously accumulated in other equity are reclassified to profit or loss. In case of equity instruments measured at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on disposal of investments

Use of deemed cost for investments in subsidiaries, joint ventures and associates

Para 31 of Ind AS 101 states, If an entity uses a deemed cost in its opening Ind AS Balance Sheet for an investment in a subsidiary, joint venture or associate in its separate financial statement, the entity''s first Ind AS separate financial statements shall disclose:

(a) the aggregate deemed cost of those investments for which deemed cost is their previous GAAP carrying amount;

(b) the aggregate deemed cost of those investments for which deemed cost is fair value; and

(c) the aggregate adjustment to the carrying amounts reported under previous GAAP.

The Company has elected to value its investments in subsidiaries and associate at previous GAAP carrying values on transition to Ind AS. Investment in overseas subsidiary is valued at Net assets basis method and the revaluation amount is adjusted in the Other Comprehensive Reserve as on transition date.

Derecognition:

A financial asset is primarily derecognised when:

1. the right to receive cash flows from the asset has expired, or

2. the company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and

(a) the company has transferred substantially all the risks and rewards of the asset, or

(b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount measured at the date of derecognition and the consideration received is recognised in profit or loss.

Impairment of financial assets:

The company recognises impairment loss on trade receivables using expected credit loss model, which involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted under Ind AS 109.

1.13.2 Financial liabilities:

i) Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL are subsequently measured at fair value. Financial guarantee contracts are subsequently measured at the amount of impairment loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher.

All other financial liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate (EIR) method.

ii) A financial liability is derecognised when the related obligation expires or is discharged or cancelled.

iii) The company designates certain hedging instruments, such as derivatives, embedded derivatives and in respect of foreign currency risk, certain non-derivatives, as either fair value hedges or cash flow hedges or hedges of net investments in foreign operations. Hedges of foreign exchange risk on firm commitments are accounted as cash flow hedges.

A. Fair value hedges: Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date.

B. Cash flow hedges: In case of transaction related hedges, the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in equity as ‘hedging reserve''. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

Amounts previously recognised in other comprehensive income and accumulated in equity relating to the effective portion, are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same head as the hedged item. The effective portion of the hedge is determined at the lower of the cumulative gain or loss on the hedging instrument from inception of the hedge and the cumulative change in the fair value of the hedged item from the inception of the hedge and the remaining gain or loss on the hedging instrument is treated as ineffective portion.

In case of time period related hedges, the forward element and the spot element of a forward contract is separated and only the change in the value of the spot element of the forward contract is designated as the hedging instrument. Similarly, wherever applicable, the foreign currency basis spread is separated from the financial instrument and is excluded from the designation of that financial instrument as the hedging instrument in case of time period related hedges. The changes in the fair value of the forward element of the forward contract or the foreign currency basis spread of the financial instrument is accumulated in a separate component of equity as ‘cost of hedging''. The changes in the fair value of such forward element or foreign currency basis spread are reclassified to profit or loss as a reclassification adjustment on a straight line basis over the period of the forward contract or the financial instrument.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised immediately in profit or loss.

1.14 Inventories

Inventories are valued after providing for obsolescence, as under:

a) Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net realisable value. However, these items are considered to be realisable at cost if the finished products in which they will be used, are expected to be sold at or above cost.

b) Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. In the case of qualifying assets, cost also includes applicable borrowing costs as per Ind AS 16 relating to borrowing costs.

c) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net realisable value. Cost includes related overheads and excise duty paid/payable on such goods.

Assessment of net realisable value is made in each subsequent period and when the circumstances that previously caused inventories to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value because of changed economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original amount written-down so that the resultant carrying amount is the lower of the cost and the revised net realisable value.

1.15 Cash and bank balances

Cash and bank balances also include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which have restrictions on repatriation. Short term and liquid investments being subject to insignificant risk of change in value, are not included as part of cash and cash equivalents.

1.16 Borrowing Costs

Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of assets acquired on finance lease and exchange differences arising on foreign currency borrowings to the extent they are regarded as an adjustment to interest costs.

Borrowing costs net of any investment income from the temporary investment of related borrowings, that are attributable to the acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. Borrowings are initially recognised at fair value, net of transaction cost incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction cost) and the redemption amount is recognised in profit or loss over the period of the borrowings, using the effective interest method. Fees paid on the established loan facilities are recognised as transaction cost of the loan, to the extent that it is probable that some or all the facility will be drawn down. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

1.17 Foreign currencies

(i) The functional currency and presentation currency of the company is Indian Rupee.

(ii) Transactions in currencies other than the company’s functional currency are recorded on initial recognition using the exchange rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported using the closing rate.

Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing spot rate are recognised in profit or loss in the period in which they arise except for:

a). exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings; and

b). exchange differences on transactions entered into in order to hedge certain foreign currency risks.

1.18 Proposed Dividend

Under previous GAAP, the Company had recognised for proposed dividends relating to year ended 31^st March 2016 and 31^st March 2017 in that respective year, though the approval of that dividend took place after the reporting date. As per Ind AS 10, proposed dividends do not meet the definition of liability until they have been approved by shareholders at the Annual General Meeting. Therefore, the Company has not recognised a liability for dividend that has been proposed but not be approved until after the reporting date.

Dividend distribution tax on proposed dividend has not been recognised at the end of the reporting period.

1.19 Accounting and reporting of information for Operating Segments

Operating segments are those components of the business whose operating results are regularly reviewed by the Chief operating decision making body in the Company to make decisions for performance assessment and resource allocation.

The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments.

Segment accounting policies are in line with the accounting policies of the company. In addition, the following specific accounting policies have been followed for segment reporting:

i) Segment revenue includes sales and other operational revenue directly identifiable with/ allocable to the segment including inter segment revenue.

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

iii) Most of the centrally incurred costs are allocated to segments mainly on the basis of their respective expected segment revenue estimated at the beginning of the reported period.

iv) Income which relates to the company as a whole and not allocable to segments is included in “unallocable corporate income”.

v) Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of the company.

vi) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the company as a whole.

vii) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is accounted as employee compensation cost and is allocated to the segment.

viii) Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer prices which are either determined to yield a desired margin or agreed on a negotiated basis.

1.20 Taxes on income

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income tax Act 1961, and based on the expected outcome of assessments/ appeals.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the company''s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets relating to unabsorbed depreciation/ business losses/losses under the head “capital gains” are recognised and carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.

1.21 Provisions, contingent liabilities and contingent assets

Provisions are recognised only when:

a) the company has a present obligation (legal or constructive) as a result of a past event;

b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

c) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of expenditure, required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

Contingent liability is disclosed in case of:

a) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

b) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.22 Commitments

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a) estimated amount of contracts remaining to be executed on capital account and not provided for;

b) uncalled liability on shares and other investments partly paid;

c) funding related commitment to subsidiary, associate and joint venture companies; and

d) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive details.

1.23 Non-current assets held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly probable and is expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs to sell.

1.24 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the net profit for the effects of:

i. changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

ii. non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and undistributed profits of associates; and

iii. all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.

1.25 Key sources of estimation

The preparation of financial statements in conformity with Ind AS requires that the management of the company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment, Intangible assets, allowance for doubtful debts/ advances, future obligations in respect of retirement benefit plans, expected cost of completion of contracts, provision for rectification costs, fair value measurement etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

1.26 Related Party Transaction

Terms and conditions of transactions with the related parties:

(1) Transactions with the related parties are made on normal commercial terms and conditions and at market rates.

(2) The Company is seconding its personnel to Subsidiary Companies as per the terms and conditions agreed between the Companies. The cost incurred by the group towards superannuation and employee benefits are recovered from these Companies.

(3) Outstanding balances (other than loan) of Subsidiaries and Associate at the year-end, are unsecured and interest free.

(4) For the year ended 31^st March 2018 and 31^st March 2017, the Company has not recorded any impairment of receivables relating to amounts payable by related parties.

This assessment is undertaken in each financial year through examining the financial position of the related party and the market in which the related party operates.

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Mar 31, 2017

1. Basis of Preparation

The financial statements of the company have been prepared in accordance with the Generally accepted accounting Principles in India ( GAAP) under the historical cost convention on accrual basis and to complying with applicable Mandatory Accounting Standards as prescribed under Section 133 of the companies act 2013 read with Rule 7 of the companies (accounts) Rules 2014, till the Standards of Accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 (the ''Act'') shall continue to apply. Consequently, these financial statements are prepared to comply in all material aspects with the Accounting Standards notified under sub-section (3C) of Section 211 of the Act [Companies (Accounting Standards) Rules, 2006] and the other relevant provisions of the Companies Act, 2013.

Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that are considered in the reported amounts of assets and Liabilities ( including contingent liabilities) on the date of financial statements and reported amounts of revenues and expenses for the year. Estimates are based on historical experience, where applicable and other assumption that management believes are reasonable under the circumstances. Actual results may vary from these estimates and any such differences are dealt in the period in which they are known/ materialize.

Current/Non Current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/ non-current classification of assets and liabilities.

2. Fixed Assets and Depreciation

Fixed Assets are stated at cost less accumulated depreciation. Leasehold Land is capitalized and the amount is not amortized. Intangible assets are capitalized and the amount is amortized.

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 and useful life of the assets on the following methods.

a) Assets of all divisions are calculated at straight Line method.

b) Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

c) Improvements on leasehold premises are depreciated over the tenure of the lease.

d) Any asset purchased during the year with a value less than Rs.5000 is charged off as revenue expenditure.

Acquired intangible assets

Intangible assets including software licenses of enduring nature and contractual rights acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

3. Impairment of Assets

Assessment is carried out at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired. The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Impairment loss is provided to the extent the carrying amount of assets exceed their recoverable value.

4. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

5. Investments

Long Term Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes acquisition charges and the interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6. Inventories

a) Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services division.

b) Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost is determined on materials consumed valued on first in first out basis and direct and indirect overheads for Beta, Specialty Chemicals divisions and Moving Weighted Average Cost for Goodwill Governor Services division.

c) Work-in-process on ship building contracts reflects proportionate value of input and expenses yet to be billed.

d) Loose tools are valued after writing off a certain percentage on cost only in Goodwill Engineering Works division.

7. Excise Duty

a) Cenvat credit on materials purchased for production is taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable is taken into account as and when the assets are installed, to the credit of respective purchase and asset account. The cenvat credit so taken is utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b) Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

8. Revenue Recognition

Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

a) Sale of goods

Revenues from sale of products are accounted net of returns, discount and sales tax and are recognized at the point of dispatch .

b) Sales of Service

i. Revenue from services is recognized when billed on completion of services.

ii. Revenue in Goodwill Engineering works division is recognized as and when the Boat is ready for delivery.

c) Other operating Income

Other operating income comprises income from activities incidental to the operations of the company and is recognized as and when the right to receive the income is established.

d) Other Income

Interest income is accounted on accrual basis. Dividend income is accounted as and when the right to receive the dividend is established.

9. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at the exchange rates prevailing on the date of transaction.

Foreign currency monetary assets and liabilities wherever receivable or payable are translated at exchange rates prevailing on the Balance Sheet date and the exchange differences arising on settlement or translation of monetary items are adjusted in the statement of Profit and Loss account in the period it arises.

10. Post-employment and long term employee Benefits

Defined contribution plans

a) Company''s contribution to the Employees Provident Fund/Superannuation Fund, the Employee State Insurance and other funds are determined under the relevant scheme / or any other applicable and charged to the statement of profit and Loss account in the period of incurrence when the services are rendered by the employees.

b) Company employees are covered under superannuation schemes, State governed provident funds scheme, employees state insurance scheme and group medical and personal accident insurance.

c) Retirement benefits in the form of Provident Fund/ Superannuation Fund are defined contribution schemes and the contributions are charged to the statement of Profit and Loss account in the year in which the contributions to the respective funds are due.

d) Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

e) Company''s liability toward gratuity and other retirement benefits are actuarially determined at each balance sheet date The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

f) Actuarial gains/losses are charged to statement of Profit and Loss immediately in each year.

11. Provision for Current Tax and Deferred Tax

Provision for Current Tax liability is estimated after taking into consideration benefits admissible at the current rate of tax under the provisions of the Income Tax Act 1961.

Deferred tax is recognized for all timing differences between the taxable income and accounting income subject to prudence in respect of deferred tax assets. Deferred tax is measured using the tax rates and tax laws that are enacted or substantively enacted as on the balance sheet date.

12. Provisions & Contingent Liabilities

The company recognizes provision when there is a present obligation for a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made and all known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions. And Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure is made.

13. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17. The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company. The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Further, inter-segment revenue has been accounted for based on the transaction price, which is market based. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities for the segment. Revenue and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable basis, have been included under “Unallocated Corporate Income net of Unallocated Corporate expenditure”.

14. Cash Flow Statement

Cash flow statements are made using the indirect method whereby profit / (loss ) before extra ordinary items / exceptional items and tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments The cash flows from operating , investing and financing activities of the company are segregated based on available information including taxes paid relating to these activities.

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Mar 31, 2015

1. Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Change in Accounting Policies

During the current year, the method of calculating depreciation has been changed to straight line method uniformly for all divisions other than Agri division. However there is no material impact for the mentioned divisions.

3. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized. Intangible assets are capitalized and the amount is amortized.

4. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

5. Depreciation

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 and useful life of the assets on the following methods.

a) Assets of All divisions are calculated at straight Line method.

b) Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost..

c) Improvements on leasehold premises are depreciated over the tenure of the lease.

d) Assets whose cost does not exceed Rs.5000 are fully depreciated.

6. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

7. Inventories

a) Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services; based on customers' preferences for Commercial Vehicles Division.

b) Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads for Beta, Specialty Chemicals and Moving Weighted Average Cost for Goodwill Governor Services.

c) Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d) Loose tools are valued after writing off a certain percentage on cost only in Goodwill Engineering Works.

8. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

9. Excise Duty

a) Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b) Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

10. Revenue Recognition

a) Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b) Sales are net of discount and sales tax and are recognized at the point of dispatch of goods.

c) Service Income

(i) Income is recognized when billed on completion of services.

(ii) Income from boat building is recognized as and when it is ready for delivery.

11. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

12. Retirement Benefits

a) Retirement benefits in the form of Provident Fund/ Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b) Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c) Actuarial gains/losses are charged to Profit and Loss Account.

13. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

14. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

15. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961.Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.

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Mar 31, 2014

1. Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Change in Accounting Policies

During the current year, the method of valuation of inventory has been changed from first in first out to Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services. However there is no material impact for the mentioned divisions.

3. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized. Intangible assets are capitalized and the amount is amortized.

4. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

5. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a) Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals at written down value method

b) Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c) Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d) Improvements on leasehold premises are depreciated over the tenure of the lease.

e) Assets whose cost does not exceed Rs.5000 are fully depreciated.

6. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

7. Inventories

a) Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services; based on customers'' preferences for Commercial Vehicles Division.

b) Finished goods and work in progress are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads for Beta, Specialty Chemicals and Moving Weighted Average Cost for Goodwill Governor Services.

c) Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d) Loose tools are valued after writing off a certain percentage on cost only in Goodwill Engineering Works.

8. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets'' recoverable value with its carrying amount in the books. In case carrying amounts exceeds recoverable value, impairment losses are provided for.

9. Excise Duty

a) Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b) Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

10. Revenue Recognition

a. Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b. Sales are net of discount and sales tax and are recognized at the point of dispatch of goods.

c. Service Income

1) Income is recognized when billed on completion of services.

2) Income from boat building is recognized as and when it is ready for delivery.

11. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

12. Retirement Benefits

a) Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b) Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c) Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d) Actuarial gains/losses are charged to Profit and Loss Account.

13. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

14. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard - 17.

15. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.

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Mar 31, 2013

1. Basis of Preparation

The Financial Statements relate to Sicagen India Limited. These Financial Statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a). Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals at written down value method.

b). Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c). Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d). Improvements on leasehold premises are depreciated over the tenure of the lease.

e). Assets whose cost does not exceed Rs.5000 are fully depreciated.

5. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6. Inventories

a). Trading Stock, Stores and Spares, Raw materials, Packing Materials are valued at cost, computed on first-in- first-out basis. ''

b). Finished Goods and Work in Process are valued at the lower of cost and estimated Net Realizable Value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads.

c). Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d). Loose tools are valued after writing off a certain percentage on cost.

7. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. In case carrying amounts exceeds recoverable value, impairment losses are provided for.

8. Excise Duty

a). CENVAT Credit on materials purchased for production are taken into account at the time of purchase and CENVAT Credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The CENVAT Credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized CENVAT Credit is carried forward in the books.

b). Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9. Revenue Recognition

a). Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b). Sales are net of discount and sales tax and is recognized at the point of dispatch of goods.

c). Service Income

1) Income is recognized when billed on completion of services.

2) Income from boat building is recognized as and when it is ready for delivery.

10. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss Account.

11. Retirement Benefits

a). Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss Account in the year in which the contributions to the respective funds are due.

b). Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c). Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d). Actuarial gains/losses are charged to Profit and Loss Account.

12. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

13. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

14. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.

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Mar 31, 2012

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act. 1956 on the following methods.

a Assets of Building Materials Division , Governor Services, Engineering Division, Speciality Chemicals at written down value method, b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease, e Assets whose cost does not exceed Rs 5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads, c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed, d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat Credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The Cenvat Credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized Cenvat credit is carried forward in the books, b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods, c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year, c Obligation for Leave Encashment is recognized in the same manner as Gratuity, d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard-17.

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard-24.

15 Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961 Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.

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Mar 31, 2011

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a Assets of Building Materials Division , Governor Services, Engineering Division, Speciality Chemicals at written down value method.

b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease. e Assets whose cost does not exceed Rs.5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads.

c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods. c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard -24

15 Provision for Current Tax and Deferred Tax

Provision for Current Ta x is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961.Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.

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Mar 31, 2010

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies-Act. 1956 on the following methods.

a Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals, Travels

Division at written down value method. b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method. c Depreciation on certain premises is provided on composite c^t where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease.

e Assets whose cost does not exceed Rs.5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock. Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads. c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed. d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods. c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

3 Expenditure incurred on incomplete contracts is included under "Advances Recoverable".

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the profit and loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprises future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard -24.

15 Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.