Background :
Laxmi Organic Industries Limited (LOIL) is the Goenka Group’s flagship company, established in 1989 and is in the business on specialty chemicals. The Company primarily manufactures Ethyl Acetate, Acetic Acid and Diketene Derivative Products (DDP). DDP is a specialty chemical group, the technology and business of which has been acquired by LOIL from Clariant Chemicals India Limited. LOIL is currently the only manufacturer of DDP in India. Further LOIL has successfully commissioned a captive power plant of 5 MW in Mahad which will cater to the existing electricity requirement of the plants.
Significant Accounting Policies :
Basis of brparation of Financial Statements:
(a)	The Financial Statements have been brpared to comply in all material respects with the notified accounting standards issued by the Companies Accounting Standards Rules, 2006 (which are specified under section 133 of the Companies Act 2013 read with rule 7 of the Companies (Accounts) Rules, 2014) and the relevant provisions of the Companies Act 2013. The financial statements have been brpared under the historical cost convention, on an accrual basis of accounting.
(b)	The assets and liabilities of the Company are classified as current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of realisability and expected settlement of the respective  asset and liability within a period of twelve months from the reporting date as required by Schedule III to the Companies Act, 2013.
(c)	The accounting policies discussed below, are consistent with those used in the brvious year.
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 the actual results and estimates are recognized in the period in which the results are known. Although these estimates are based upon management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets or liabilities in future periods.
Inflation:
Assets and liabilities are shown at historical cost. No adjustments are made for changes in purchasing power of money.
Revenue Recognition:
(a)	Revenue from sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax. Other items of Income are recognized on accrual and prudent basis.
(b)	Interest income is recognised on time proportion method basis taking into account the amounts outstanding and the rate applicable.
(c)	Dividend Income is accounted when the right to receive the same is established.
(d)	Revenue in respect of insurance/other claims, commission, etc. are recognised only when it is reasonably certain that the ultimate collection will be made.
Export Incentives
In respect of incentives attributable to the export of goods, the Company following the accounting principle of matching revenue with the cost has recognised export incentive receivable when all conditions brcedent to the eligibility of benefits have been satisfied and when it is reasonably certain of deriving the benefit. Since these schemes are meant for neutralisation of duties and taxes on inputs pursuant to exports, the same are grouped under material costs. The other export incentives that do not arise out of neutralisation of duties and taxes are disclosed under other operating revenue.
Property, plant and equipment and Debrciation:
Property, plant and equipment are valued and stated at cost of acquisition less accumulated debrciation thereon. Cost comprises of the purchase price and any attributable cost of bringing the asset to its working condition of its intended use.
Debrciation for the accounting period is provided on:
(a)	Debrciation on all assets of the Company is charged on Written down Value over the useful life of assets mentioned in Schedule II to the Companies Act ,2013  except in case of Property Pant and Equipment of Distillery unit at Satara which is calculated on straight line method on a pro-rata basis calculated as per usefullife of assets mentioned in Schedule II to the Companies Act, 2013.
(b)	Lease hold land is amortized over the period of Lease.
(c)	Intangible assets are amortised over their estimated useful life
Impairment of Assets:
(a)	On annual basis the Company makes an assessment of any indicator that may lead to impairment of assets. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is higher of an asset’s net selling price and its value in use. Value in use is the brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.
(b)	An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.
(c)	The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
Research and Development Expenses:
All expenditure of revenue nature is charged to the Statement of Profit and Loss of the period.  All expenditure of capital nature is capitalised and debrciation provided thereon, at the rates as applied to other assets of similar nature.
Employee Retirement Benefits:
Retirement benefits in the form of provident fund is a defined contribution scheme and contributions are charged to the Statement of Profit and Loss for the year/period in which the contributions are due.
Gratuity, a defined benefit obligation is provided on the basis of an actuarial valuation made at the end of each year/period on Projected Unit Credit Method. The Company has a defined benefit of gratuity plan.  Every employee who has completed five years or more of service is eligible for gratuity on leaving the service at 15 days last drawn salary for each completed year of service.  The scheme is funded with an insurance company.
Leave encashment is recognised on the basis of an actuarial valuation made at the end of each year on Projected Unit Credit Method.
Actuarial gains/losses are immediately taken to Statement of Profit and Loss and are not deferred.
Investments:
Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments.
Current investments are carried individually, at the lower of cost and fair value.
Long-term investments, are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.
Cost of investments include acquisition charges such as brokerage, fees and duties.
Cash and cash equivalents:
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
Inventories:
(a)	Raw materials and other inventories held for use in production are not written down below cost except in cases were materials prices have declined and it is estimated that the cost of the finished goods will exceed their net realizable value. The cost of raw materials and other inventories of stores and spares and packing materials are computed on Weighted Average basis. Cost Comprises of Material Cost Net of Cenvat .
(b)	Work in process are valued at the lower of cost and net realizable value. The cost is computed on weighted average method.
(c)	Finished Goods & semifinished goods are valued at lower of cost and net realizable value. The cost is computed on weighted average method and includes cost of materials, cost of conversion and other costs incurred in acquiring the inventory and bringing them to their brsent location and condition. Excise duty is considered as cost for finished goods, wherever applicable.
Foreign Currency Translation:
Initial recognition
(a)	Transactions in foreign currencies entered into by the Company are accounted at the exchange rates brvailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.
Measurement at the balance sheet date
(b)	Foreign currency monetary items (other than derivative contracts) of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.
(c)	Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.
(d)	The exchange differences relating to non-integral foreign operations are accumulated in a "Foreign currency translation reserve" until disposal of the operation, in which case the accumulated balance in "Foreign currency translation reserve" is recognised as income / expense in the same period in which the gain or loss on disposal is recognised.
(e)	Property Pant and Equipment acquired in foreign currencies are translated at the rate brvailing on the date of Bill of Lading.
(f)	The exchange differences arising on settlement / restatement of long-term foreign currency monetary items are capitalised as part of the debrciable Property Pant and Equipment to which the monetary item relates and debrciated over the remaining useful life of such assets.
Accounting for derivative contract
(g)	The Company enters into derivative contracts in the nature of foreign currency swaps, currency options, forward contracts with an intention to hedge its existing assets and liabilities, firm commitments and highly probable transactions in foreign currency.
(h)	Premium / discount on forward exchange contracts, which are not intended for trading or speculation purposes, are amortised over the period of the contracts if such contracts relate to monetary items as at the balance sheet date.    The forward contracts outstanding as on the balance sheet date, are marked-to-market and losses are recognised in the Statement of Profit and Loss.
Borrowing Cost:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets.  A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.  All other borrowing costs are charged to revenue.
Taxation:
Tax expenses comprise Current Tax and Deferred Tax.Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961 and the Income Computation and Disclosure Standards issued by the Central Board of Direct Taxes.
Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities related to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company  recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company  recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT Credit Entitlement.” The company  reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent the company does not have reasonable evidence that it will pay normal tax during the specified period.
Provision, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement are recognised when an enterprise has a brsent obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Disputed demands in respect of Central Excise, Customs, Income tax and Sales Tax are  disclosed as Contingent Liabilities. Payment in respect of such demands, if any, is shown as advance, till the final outcome of the matter.
Contingent Assets are neither recognized nor disclosed in the financial statements.
Earning per share:
Basic & Diluted 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.
For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
Employee Stock Option Scheme
Employee stock options are evaluated as per the accounting treatment brscribed by SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines, 1999 issued by Securities and Exchange Board of India.  Accordingly the excess of market value of the stock options as on the date of grant over the exercise price of the options is recognized as deferred employee compensation and is charged to profit and loss account on graded vesting basis over the vesting period of the options.  The un-amortized portion of the deferred employee compensation is reduced from Employee Stock Option Outstanding which is shown under Reserves and Surplus.
Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary 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 the available information.
Segment reporting
The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit / loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.   Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities”.

Employee Retirement Benefits:
Retirement benefits in the form of provident fund is a defined contribution scheme and contributions are charged to the Statement of Profit and Loss for the year/period in which the contributions are due.
Gratuity, a defined benefit obligation is provided on the basis of an actuarial valuation made at the end of each year/period on Projected Unit Credit Method. The Company has a defined benefit of gratuity plan.  Every employee who has completed five years or more of service is eligible for gratuity on leaving the service at 15 days last drawn salary for each completed year of service.  The scheme is funded with an insurance company.
Leave encashment is recognised on the basis of an actuarial valuation made at the end of each year on Projected Unit Credit Method.
Actuarial gains/losses are immediately taken to Statement of Profit and Loss and are not deferred.