NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Accounting:

The financial statements have been brpared and brsented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted in India ('Indian GAAP') and comply with the Accounting standards brscribed in the Companies (Accounting Standards) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013 ('the Act') read with rule 7 of the Companies (Accounts) Rules, 2014.

B. Use of Estimates:

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

C. Fixed Assets :

i) Fixed Assets are stated at cost less accumulated debrciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies other than recoverables and any directly attributable cost of bringing the assets to its working condition for the intended use.

ii) The cost of major civil works required for plant and machinery support is considered as plant and machinery.

D. Debrciation:

Debrciation on Fixed Assets is provided on Written Down Value method considering the useful life of assets as specified in Scheduled II to the Companies Act ,2013.

E. Inventories

Inventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows: Raw Materials, Packing Material & fuel:- Valued on FIFO basis.

Semi Finished Goods :- At Raw Material Cost, Labour plus estimated overheads.

Finished Goods :- At Raw Material Cost, Labour plus estimated overheads.

Traded Finished Goods :- At lower of Cost or net realizable value.

F. Revenue Recognition:

i) Sale of products is recognised when the products are dispatched from the factory/stock points to the customers. Sales include excise duty & exclude VAT & CST.

ii) Dividend income is recognised when the right to receive payment is established.

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

G. Excise Duty on Finished Goods:

Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respect of finished goods lying in the factory brmises as at year-end.

H. Foreign exchange transactions:

(a) Initial recognition

Transactions in foreign currency are recorded at the exchange rate brvailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the Statement of Profit and loss of the year.

(b) Measurement of foreign currency items at the Balance Sheet date

Foreign currency monetary items are restated at the closing exchange rates. Non-monetary items are recorded at the exchange rate brvailing on the date of the transaction. Exchange differences arising out of these translations are recognised in the Statement of Profit and Loss of the year.

(c) Forward exchange contracts

The Group enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Group does not enter into any derivative instruments for trading or speculative purposes.

The brmium or discount arising at the inception of forward exchange contract is amortized and recognised as an expense/income over the life of the contract. Exchange differences on such contracts are recognised in the Statement of Profit and Loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognised as income or expense for the period.

(d) Translation of financial statements of foreign entities

In case of foreign subsidiaries, being Non-Integral Foreign Operations, income and expense items are consolidated at the average rate brvailing during the year. All assets and liabilities are converted at the rate brvailing at the end of the year. The resultant translation gains and losses are disclosed as 'Foreign Currency Translation'.

I. Employee benefits:

a) Defined Contribution Plan - Contribution to Defined contribution plan namely employer's contribution to Provident fund & Pension Plan is charged to Profit and Loss Account.

b) Defined Benefit Plan - The employees gratuity fund scheme managed by Life Insurance Corporation of India is defined benefit plan. The brsent value of obligation is determined by LIC of India on Actuarial Valuation.

J. Accounting for Taxes on Income:

i) Provision for current tax is made based on estimated taxable income for current financial year.

ii) In accordance with Accounting Standard 22 - 'Accounting for Taxes on Income', the Company has recognized deferred tax asset arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measured using substantially enacted tax rates.

K. Investments :

i) Trade Investments are valued at Cost.

ii) Other Investments are valued at Cost or Market Value, whichever is less.

L. Borrowing Costs :

Borrowing costs are attributable to acquisition and / or construction of qualifying asset / are capitalised as a part of capital asset.

M. Provisions, Contingent Liabilities and Contingent Asset:-

The Company recognises a provision when there is a brsent obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require as outflow of resources. Where there is a possible obligation or a brsent obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognised nor disclosed in the financial statement

N. Earning Per Share

Basic and diluted earning per share are computed in accordance with Accounting Standard - 20.

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period

Diluted earnings per share is calculated as follows:-

The net profit attributable to equity shareholders and the weighted average of number of shares outstanding are adjusted for the effect of all dilutive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which would be issued on the conversion of all the dilutive potential equity shares into equity shares

Note 3 : Note on Micro Small or Medium Enterprises

(a) The principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier at the end of each accounting year; Principal amount due to Micro & Small enterprises V 26.49 lac ( P Yr V 46.76 Lacs)

(b) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year;---NIL

(c) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006---NIL

(d) The amount of interest accrued and remaining unpaid at the end of each accounting year; --- NIL

(e) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.---NIL

Note 3 : Previous years figures are regrouped/rearranged wherever necessary, to conform to the layout of accounts of current year.

for Kulkarni and Khanolkar

Chartered Accountants

Firm Registration No 105407W

Sd/- P M Parulekar

Partner

Membership No.: 036362

For and on behalf of the Board

Indo Amines Limited

Sd/- Vijay B Palkar

Managing Director

Sd/- Ajay Marathe

Chief Financial Officer

Sd/- Rahul Palkar

Executive Director

Sd/- Tripti Sharma

Company Secretary

Place : Mumbai

Date : 4th May 2016