Prinicples of Consolidation:
The consolidated financial statements relate to Archean Chemical Industries Private Limited, the Holding Company, its 100% wholly owned subsidiary (collectively referred to as the Group) and its Joint Ventures and Associates.
The consolidation of accounts of the Company with its subsidiaries has been brpared in accordance with Accounting Standard (AS) 21 ‘Consolidated Financial Statements’. The financial statements of the parent and its subsidiaries are combined on a line by line basis and intra group balances, intra group transactions and unrealised profits or losses are fully eliminated.
In the consolidated financial statements, ‘Goodwill’ rebrsents the excess of the cost to the Company of its investment in the subsidiaries and / or joint ventures over its share of equity, at the respective dates on which the investments are made. Alternatively, where the share of equity as on the date of investment is in excess of cost of investment, it is recognised as ‘Capital Reserve’ in the consolidated financial statements. Minority interest in net income of the consolidated subsidiaries is adjusted against the income of the group in order to arrive at the net income attributable to shareholder’s of the Company.
Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at the respective dates on which investments are made by the Company in the subsidiary companies and further movements in their share in the equity, subsequent to the dates of investment as stated above.
Company background
Archean Chemical Industries Private Limited (‘the Company’) was incorporated on 14th July 2009 as a private limited company in India. The Company is engaged in the manufacturing of and sale of marine chemicals.
Statement of significant accounting policies
Basis of brparation of standalone financial statements
The standalone financial statements have been brpared and brsented under the historical cost convention on an accrual basis in accordance with the generally accepted accounting principles in India (“Indian GAAP”) and comply in all material respects with the Accounting Standards specified under Section 133 of the Companies Act, 2013 (‘the Act’), read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended), and with the relevant provisions of the Act, pronouncements of The Institute of Chartered Accountants of India (‘ICAI’). The accounting policies applied by the Company are consistent with those used in the brvious year. The standalone financial statements are brsented in Indian rupees in lacs.
Use of estimates
The brparation of standalone financial statements in conformity with Indian GAAP requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the standalone financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future periods.
Current and non-current classification
All assets and liabilities are classified into current and non-current. Assets
An asset is classified as current when it satisfies any of the following criteria:
It is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle;
It is held primarily for the purpose of being traded;
It is expected to be realized within twelve months after the reporting date; or
It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
It is expected to be settled in the company’s normal operating cycle;
It is held primarily for the purpose of being traded;
It is due to be settled within twelve months after the reporting date; or
The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
All other liabilities are classified as non-current.
Inventories
Inventories which comprise of raw materials, work-in-progress, finished goods, stores and spares and packing materials are valued at the lower of cost and net realizable value.
Cost of inventories comprise all costs of purchase/ production, cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition and is net of all allowance and any recoverable duties.
In determining the cost, weighted average cost method is used. Cost of work in progress and finished goods includes direct materials and labour and a proportion of fixed overheads.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated cost necessary to make the sale.
The comparison of cost and net realizable value is made on an item-by-item basis. The net realizable value of work-in-progress is determined with reference to the selling prices of related finished goods. Raw materials and other supplies held for use in production of inventories are not written down below cost except in cases where material prices have declined, and it is estimated that the cost of the finished products will exceed their net realizable value.


Cash and cash equivalents
Cash and cash equivalents comprise cash and deposit with banks. The Company considers all highly liquid investments including bank deposits with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.
Cash flow statements
Cash flows are reported using the indirect method, whereby net profit / (loss) before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expense associated with investing or financing activities. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Revenue from sale of goods is recognised when the significant risks and rewards ofownership of the goods have passed to the buyer, which based on the terms of the contract usually coincides with the delivery of the goods to the customers. Where a right to return exists, revenue is recognised when a reasonable estimate of the returns can be made, or when the right to return expires, whichever is earlier. Revenue from sale of goods is stated net of trade discounts and returns, where applicable.

Income from interest on deposits, loans and interest bearing securities is recognised on the time proportion basis taking into account the amount outstanding and interest rate applicable.
Insurance claims are accounted for on the basis of claims received .
The export benefits under Mechant Export Incentive Scheme (MEIS) for bromine exports is considered based on the eligibility to claim the benefits on accrual basis under matching concept. 
h. Tangible fixed assets and debrciation
Tangible fixed assets are stated at original cost net of taxes/duties, credits availed, if any less accumulated debrciation/amortization. The cost of fixed assets includes interest on borrowing attributable to acquisition of qualifying fixed assets and br-operative expenses attributable to the assets upto the date of commissioning of the assets and other incidental expenses incurred upto that date. The interest income earned on the short term investments in mutual fund / fixed deposits/profit on current investment were netted in the interest expenses. Fixed Assets acquired and put to use for projects are capitalized and debrciated thereon is included in the capital work-in progress till the project is ready for commissioning. The service tax/GST paid on various services consumed in connection with fixed assets was considered as CENVAT/Input credit. If any amount not allowed, the same will be added to the respective fixed assets.

Project under commissioning and other capital work in progress are carried at cost, comprising direct cost, attributable expenses and interest thereon.
Subsequent expenditures related to an item of tangible fixed assets are added to its book value only if they increase the future benefits from the existing asset beyond its brviously assessed standard of performance.
The estimated useful life of the tangible and intangible fixed assets has adopted the useful life as specified in Schedule II to the Companies Act, 2013, as in the opinion of the Management the same reflects the estimated useful life. Debrciation is calculated on pro-rata basis from/upto the date asset is sold/purchased as below:

	Buildings other than Factory	60 years
	Factory Buildings	30 years
	Salt Works	10 years
	Roads	3 years
	Plant & Machinery – Chemical	20 years
	Plant & Machinery - Cogeneration Plant	40 years
	Plant & Machinery - Salt works	15 years
	Furniture & Fixtures	10 years
	Office Equipments	5 years
	Computers/ Laptops	3 years
	Motor Vehicles	8 years
	Intangible Assets	5 years

Assets costing less than Rs. 5,000 based on internal assessment and materiality the management has estimated that the same shall be debrciated in the year of purchase.
There are no parts to the asset, which are significant to total cost of the asset and useful life of that parts of the asset are not different from the useful life of the remaining asset. Hence, no useful life of that particular parts are determined separately.
Losses arising from retirement, gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the statement of profit and loss.
Intangible assets and amortisation
Intangible assets are recorded at the consideration paid for acquisition. Intangible assets under development are capitalized only if the Company is able to establish control over such assets and expects future economic benefit will flow to the Company. Intangible assets are amortized in the Statement of Profit and Loss over their estimated useful lives from the date they are available for use based on the expected pattern of economic benefits of the asset. After initial recognition, intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment loss. Subsequent expenditure is capitalized only when it increases the future economic benefits from the specific asset to which it relates.
Software is amortized using the straight-line method over a period of 5 years.

Foreign currency transactions and balances
Foreign currency transactions are recorded using the exchange rates brvailing on the dates of the respective transactions. Exchange differences arising on foreign currency transactions settled during the year are recognised in the statement of profit and loss.

Foreign Currency monetary assets and liabilities of the company are restated at the yearend rates as of balance sheet date and the resultant net gain or loss are recognized as income or expenses in the statement of Profit and Loss in the year in which they arise. The exchange difference on long term foreign currency loans are capitalized to all the eligible assets as per the MCA guidelines
Investments
Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long term investments.
Long-term investments are carried at cost with provision being made for diminution, if any, other than temporary in nature. The reduction in the carrying amount is reversed when there is a rise in the value of the investment or if the reason for the diminution no longer exists.
Employees benefits
Defined Contribution Plan
The Company makes specified monthly contribution towards employee provident fund to Government administered provident fund scheme, which is a defined contribution scheme. The Company's contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.
Defined benefit plan
The Company provides for gratuity and leave encashment, a defined benefit plans covering eligible employees. Gratuity and Leave encashment are covered under a scheme administered by the Life Insurance Corporation of India . The liability recognised in the Balance Sheet in respect of defined benefit plans is the brsent value of the defined benefit obligation as at the Balance Sheet date less the fair value of plan assets. The calculation of the Company's obligation under the plans is performed annually as provided by Life Insurance Corporation of India using the projected unit credit method. Actuarial gains and losses arising during the year are immediately recognised in the Statement of Profit and Loss.
Borrowing costs
Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized to the extent they relate to the period till such assets are ready for the intended use. All other borrowing costs are expensed in the period they occur.
Leases
Assets acquired under leases other than finance leases are classified as operating leases. The total lease rentals (including scheduled rental increases) in respect of an asset taken on operating lease are charged to the statement of profit and loss on a straight line basis over the lease term unless another systematic basis is more rebrsentative of the time pattern of the benefit.

Earnings per share
The basic earnings per share (‘EPS’) is computed by dividing the net profit/loss after tax for the year attributable to equity shareholders (after deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit after tax for the year attributable to equity shareholders and the weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed to be converted as of the beginning of the period, unless they have been issued at a later date.
Income taxes
Income tax expense comprises current tax and deferred tax charge or credit. Current tax
The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred tax
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed debrciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and are written-down or written-up to reflect the amount that is reasonably certain to be realized. The break-up of the major components of the deferred tax assets and liabilities as at the balance sheet date has been arrived at after setting off deferred tax assets and liabilities where the Company has a legally enforceable right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.

Minimum Alternative Tax
Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the
Statement of Profit and Loss and shown as MAT credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.


Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset or group of assets comprising a cash generating unit may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset which is greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their brsent value at the weighted average cost of capital. For an asset or group of assets that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss.
If at the balance sheet date there is an indication that if a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciable historical cost. An impairment loss is reversed only to the extent that the carrying amount of asset does not exceed the net book value that would have been determined, if no impairment loss had been recognized.
Provisions and contingent liabilities
A provision is recognised if, as a result of a past event, the Company has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the brsent obligation at the balance sheet date. The provisions are measured on an undiscounted basis.
A contingent liability exists when there is a possible but not probable obligation, or a brsent obligation that may, but probably will not, require an outflow of resources, or a brsent obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote.
Segment Reporting

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 Board in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in conformity 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 a reasonable basis have been included under ‘unallocated revenue / expenses / assets / liabilities’.

Management has identified two reportable business segments, namely Salt and Other Maraine Chemicals.
Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis
Primary Segment	Year ended 31 March, 2018	Year ended 31 March, 2017
Segmental Revenue from operations
Salt	20,059.58	13,471.59
Marine Chemicals	23,729.43	15,292.98
	43,789.01	28,764.57
Segmental Results
Salt	-517.73	671.33
Marine Chemicals	6,326.06	2,754.54
	5,808.33	3,425.86
Unallocated expenditure net of unallocated income	4,473.07	4,198.90
Finance costs	9,775.11	10,512.34
Loss before tax	(8,439.84)	(11,285.41)
Tax expense	(666.65)	(3,960.64)
Loss for the year from operations	(7,773.19)	(7,324.77)
Segment assets & liabilities	2017-18	2016-17
Segment assets
Salt	21,310.50	23,155.64
Marine Chemicals	86,124.97	91,559.75
Total segemental assets	1,07,435.47	1,14,715.39
Segment liabilities
Salt	11,626.18	15,290.13
Marine Chemicals	7,899.47	5,416.86
Total segemental liabilities	19,525.65	20,707.00
Unallocated assets	17,981.32	16,112.44
Unallocated liabilities	1,05,940.27	1,10,120.83
Secondary Segment	2017-2018		2016-2017
Country Of Destination	Volume (in MT)	Rs. In lakh	Volume (in MT)	Rs. In lakh
China	14,09,218.49	24,012.62	5,82,872.53	11,255.91
Netherland	13,200.00	4,012.89	-	-
South Korea	67,360.00	575.47	2,31,145.00	2,568.17
Japan	2,72,892.00	2,235.94	2,79,050.00	3,918.99
Belgium	2,990.00	799.78	-	-
Taiwan	75,444.00	810.70	-	-
Indonesia	58,286.00	435.19	1,70,030.00	2,346.82
Others	55,949.00	878.39	16,080.00	1,609.61
Total Export (A)	19,55,339.49	33,760.97	12,79,177.53	21,699.50
Domestic - (B)	6,489.00	10,033.35	5,078.00	7,206.07
Total Sales (A+B)	19,61,828.49	43,794.32	12,84,255.53	28,905.57