1 Basis of preparation:
 
 These financial statements have been prepared on accrual basis and
 under historical cost convention and in compliance, in all material
 aspects, with the applicable Accounting Principles in India, the
 applicable Accounting Standards notified under Section 211 (3C) and the
 relevant provisions of the Companies Act, 1956.  The significant
 Accounting Policies adopted by the Company are detailed below.
 
 All the assets and liabilities have been classified as current or
 non-current as per the normal operating cycle of the Company and other
 criteria set out in Schedule VI to the Companies Act, 1956. Based on
 the nature of products and the time between the acquisition of assets
 for processing and their realisation in cash and cash equivalents, the
 Company has ascertained its operating cycle as 12 months for the
 purpose of current and non-current classification of assets and
 liabilities.
 
 2 Use of Estimates:
 
 The preparation of financial statements in conformity with generally
 accepted Accounting Principles requires Management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based on best knowledge of current
 events and actions of the Management, actual results could differ from
 these estimates. Differences between actual results and estimates are
 recognised in the period in which the results are known | materialised.
 
 3 Fixed Assets:
 
 a) Tangible Assets:
 
 i) Fixed assets are carried at cost of acquisition including incidental
 expenses, less accumulated depreciation, amortisation and impairment.
 Freehold land, lease hold land at Panoli and certain business premises
 and assets received free of cost on premature cancellation of a Lease
 Agreement are valued at fair value.
 
 ii) Spares for specific machinery are carried at cost less
 amortisation.
 
 b) Intangible Assets:
 
 Computer software includes Enterprise Resource Planning Project and
 other cost relating to software which provides significant future
 economic benefit. Costs comprise license fees and cost of system
 integration services.
 
 4 Depreciation and Amortisation:
 
 Depreciation:
 
 Depreciation on building and plant and machinery is being provided on
 ''Straight Line Method'' basis and on all other assets on ''Written Down
 Value'' basis in accordance with the provisions of Section 205(2)(b) and
 205(2) (a) of the Companies Act, 1956 respectively, in the manner and
 at the rates specified in Schedule XIV to the said Act.
 
 Depreciation on additions to the assets during the year is being
 provided on pro-rata basis at their respective rate with reference to
 the month of acquisition | installation.
 
 Depreciation on assets sold, scrapped or discarded during the year is
 being provided at their respective rates up to the month in which such
 assets are sold, scrapped or discarded.
 
 Depreciation is adjusted in subsequent periods to allocate the revised
 carrying amount of assets after the recognition of an impairment loss
 on a systematic basis over its remaining useful life of assets.
 
 Amortisation:
 
 a) Premium on lease hold land is amortised over the period of lease.
 
 b) Cost of spares for specific machinery is amortised over remaining
 useful life of related machinery.
 
 c) Computer software is amortised over a period of three years.
 
 5 Impairment of Assets:
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 to assess if there is any indication of impairment based on internal |
 external factors. An impairment loss will be recognised wherever the
 carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount of the assets is net selling price or value in use,
 whichever is higher. While assessing value in use, the estimated future
 cash flows are discounted to the present value by using weighted
 average cost of capital. A previously recognised impairment loss is
 further provided or reversed depending on changes in the circumstances.
 
 6 Borrowing Costs:
 
 Borrowing costs in relation to acquisition and construction of
 qualifying assets are capitalised as part of cost of such assets up to
 the date when such assets are ready for intended use. Other borrowing
 costs are charged as expense in the year in which these are incurred.
 
 7 Investments:
 
 Investments that are intended to be held for more than a year, from the
 date of acquisition, are classified as long-term investments and are
 carried at cost. However, provision for diminution in value of
 investments is made to recognise a decline, other than temporary, in
 the value of the investments.
 
 8 Inventories:
 
 a) Raw materials, packing materials, purchased finished goods,
 work-in-progress, finished goods, fuel, stores and spares other than
 specific spares for machinery are valued at cost or net realisable
 value whichever is lower. Cost is arrived at on moving weighted average
 basis.
 
 b) Goods-in-transit and in bonded warehouse are stated at the cost to
 the date of Balance Sheet.
 
 c) ''Cost'' comprises all costs of purchase, costs of conversion and
 other costs incurred in bringing the inventory to the present location
 and condition.
 
 d) Due allowances are made for obsolete inventory based on technical
 estimates made by the Company.
 
 9 Foreign Currency Transactions:
 
 a) Initial recognition:
 
 Transactions denominated in foreign currencies are recorded at the rate
 prevailing on the date of the transaction.
 
 b) Conversion:
 
 At the year end, monetary items denominated in foreign currencies
 remaining unsettled are converted into Indian rupee equivalents at the
 year end exchange rates. Non-monetary items which are carried in terms
 of historical cost denominated in a foreign currency are reported using
 the exchange rate at the date of the transaction.
 
 c) Exchange differences:
 
 All exchange differences arising on settlement and conversion of
 foreign currency transactions are included in the Statement of Profit
 and Loss. The Company has opted to avail the choice provided under
 paragraph 46A of Accounting Standard-11 ''The effects of changes in
 foreign exchange rates'' inserted vide Notification dated December 29,
 2011 issued by the Ministry of Corporate Affairs. Consequently, foreign
 exchange difference on account of a depreciable asset acquired out of
 long-term borrowings is adjusted in the cost of the depreciable asset,
 which would be depreciated over the balance life of the asset.
 
 d) Forward exchange contracts not intended for trading or speculation
 purposes:
 
 The premium or discount arising at the inception of forward exchange
 contract is amortised as expense or income over the life of the
 contract. Exchange differences on such contract are being recognised in
 the Statement of Profit and Loss for the year. Any profit or loss
 arising on cancellation or renewal of forward exchange contract is
 recognised as income or expense for the year.
 
 e) Derivatives:
 
 Where the Company has entered into derivative contracts such as
 Interest Rate Swaps, Currency Swaps, Forward Contracts and Currency
 Options, to hedge risk associated with interest and foreign currency
 fluctuations relating to firm commitments and forecasted transactions,
 hedging instruments are initially measured at fair value, and are
 remeasured at subsequent reporting dates.
 
 Changes in the fair value of these derivatives that are designated and
 effective as hedges of future cash flows are recognised directly in
 shareholders'' funds, under ''Hedging Reserve'' and the ineffective
 portion is recognised immediately in the Statement of Profit and Loss.
 Changes in the fair value of derivative financial instruments that do
 not qualify for hedge accounting are recognised in the Statement of
 Profit and Loss as they arise.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated, or exercised, or no longer qualifies for hedge
 accounting. At that time, for forecasted transactions, any cumulative
 gain or loss on the hedging instrument recognised in shareholders''
 funds is retained there until the forecasted transaction occurs. If a
 hedged transaction is no longer expected to occur, the net cumulative
 gain or loss recognised in shareholders'' funds is transferred to the
 Statement of Profit and Loss for the period.
 
 10 Revenue Recognition:
 
 a) Sale of goods:
 
 Revenue is recognised when the significant risks and rewards of
 ownership of goods have passed to the buyer, which generally coincides
 with delivery. It includes excise duty but excludes value added tax and
 sales tax.
 
 b) Export sales are accounted on the basis of dates of on board Bill of
 Lading and | or Air Way Bill.
 
 c) Service income is recognised, net of service tax, when the related
 services are provided.
 
 d) Eligible export incentives are recognised in the year of export.
 
 e) Lease rental income is recognised on accrual basis.
 
 f) Dividend income is accounted for in the year in which the right to
 receive the same is established.
 
 g) Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 11 Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving a substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Provision is not discounted to its present value and is determined
 based on the best estimate required to settle an obligation at the year
 end. These are reviewed every year end and adjusted to reflect the best
 current estimate.  Contingent liabilities are not recognised but are
 disclosed in the financial statements. Contingent assets are neither
 recognised nor disclosed in the financial statements.
 
 12 Research & Development Expenditure:
 
 Research & Development expenditure is charged to revenue under the
 natural heads of account in the year in which it is incurred. Research
 & Development expenditure on fixed assets is treated in the same way as
 expenditure on other fixed assets.
 
 13 Employee Benefits:
 
 a) Defined contribution plan:
 
 Contribution paid | payable by the Company during the period to
 Provident Fund, Super Annuation Fund, Employees'' State Insurance
 Corporation, and Labour Welfare Fund are recognised in the Statement of
 Profit and Loss.
 
 b) Defined benefit plan:
 
 Gratuity:
 
 Gratuity liability is a defined benefit obligation and is provided for
 on the basis of an actuarial valuation on projected unit credit method
 made at the end of each financial year. The liability so provided is
 represented by creation of separate funds and is used to meet the
 liability as and when it accrues for payment in future.  Actuarial
 gains | losses are immediately taken to Statement of Profit and Loss.
 
 Long-term leave encashment:
 
 Long-term leave encashment is provided for on the basis of an actuarial
 valuation carried out at the end of the year on the project unit credit
 method. Actuarial gains | losses are immediately taken to Statement of
 Profit and Loss.
 
 Provident fund:
 
 Provident fund for certain eligible employees is managed by the Company
 through the ''Atul Products Ltd - Ankleshwar Division Employees
 Provident Fund Trust'' in line with Provident Fund and Miscellaneous
 Provisions Act, 1952. The plan guarantees interest at the rate notified
 by the Provident Fund Authorities.  The contribution by the employer
 and employee together with the interest accumulated thereon are payable
 to employees at the time of their separation from the Company or
 retirement, whichever is earlier.  The benefits vest immediately on
 rendering of the services by the employee.
 
 c) Short-term leave encashment:
 
 Short-term leave encashment is provided at undiscounted amount during
 the accounting period based on service rendered by employees.
 
 d) Voluntary retirement scheme:
 
 Compensation payable under the voluntary retirement scheme is being
 charged to Statement of Profit and Loss in the year of settlement.
 
 14 Taxation:
 
 a) I ncome tax expense comprises current tax and deferred tax charge or
 credit. Provision for current tax is made on the basis of the
 assessable income at the tax rate applicable to the relevant assessment
 year.
 
 b) MAT credit is recognised as an asset only when and to the extent
 there is convincing evidence that the Company will pay normal income
 tax within the specified period.
 
 c) Deferred tax asset and deferred tax liability are calculated by
 applying tax rate and tax laws that have been enacted or substantively
 enacted by the Balance Sheet date. Deferred tax assets on account of
 timing differences are recognised, only to the extent there is a
 reasonable certainty of its realisation. Deferred tax assets are
 reviewed at each Balance Sheet date to reassure realisation.
 
 15 Government Grants:
 
 a) Government grants are recognised when there is reasonable assurance
 that the same will be received.
 
 b) Revenue grants for expenses incurred are reduced from the respective
 expenses.
 
 c) Capital grants relating to specific fixed assets are reduced from
 the cost of the respective fixed assets.