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Accounting Policies of Adarsh Plant Protect Ltd. Company

Mar 31, 2015

(1) BASIS FOR PREPARATION OF ACCOUNTS

(i) The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on an accrual basis except in case of Accumulated leaves which are accounted on payment basis.

(ii) The Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 2013 as adopted consistently by the Company.

(iii) The Financial Statements comply with the Accounting Standards issued by the Institute of Chartered Accountants of India as referred to Sec 133 of the Companies Act, 2013, of India except AS -15 "Employee's Benefits".

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(2) ASSETS AND DEPRECIATIONS :

TANGIBLE ASSETS

(i) The Gross Block of Fixed Assets is shown at the cost of acquisition which includes Taxes, Duties and other identifiable direct expenses.

(ii) Depreciation has been provided on Straight Line Method based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. Residual Value has been assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

(iii) Depreciation on additions to fixed assets is being provided on pro- rata basis from the next month of acquisition and on assets sold, discarded, demolished or scrapped, the same is being provided up to the month in which the said asset is sold, discarded, demolished or scrapped.(iv) The balance amount brought forward as Written Down Value of Fixed assets whose remaining useful life as on 31st March, 2014 is Nil, is transferred to Retained Earnings after setting aside the residual value for those Fixed Assets.

(3) INVESTMENT :

(i) Unquoted Investments are valued at cost of acquisition.

(ii) Provision for dimunition in value of long term investment is made only if such a decline is other than temporary.

( 4 ) INVENTORIES :

(i) Raw Materials, Packing Materials are valued at Landed Cost.

(ii) Stores, Spares and consumable are valued at Landed Cost.

(iii) Finished Products and Work in progress are valued on the principle of direct cost or estimated net realisable value whichever is lower.

(iv) Scrap generated on manufacturing of barrel are valued at realizable value.

(5) USE OF ESTIMATES :

The preparation of Financial Statements require estimates and assumption 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 reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(6) REVENUE RECOGNITION :

(i) Sales are recognized when goods are supplied and are recorded net of trade discounts and rebates.

(ii) Interest income on investments is booked on a time proportionate basis taking into account the amounts invested and the rate of interest.

(iii) Dividend income is recognised when the right to receive dividend is established.

(7) RETIREMENT BENEFITS :

(i) Contributions to Provident Fund & Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss Account for the year. (ii) The Company has adopted a policy to make payment of accumulated leaves at the time of termination of its employees. Hence, no provision on account of leave encashment is made in the books of accounts.

(iii) The Company accounts for Gratuity on the basis of Management estimates.

(8) TREATMENT OF CONTINGENT LIABILITIES :

Contingent Liabilities are determined on the basis of available information and disclosed by way of Accounts.

ACCOUNTING FOR TAXES ON INCOME :

(9) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be availbale against which such assets can be realized. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance sheet date to reassess realization.

Deferred tax assets and liabilities are measured using the tax rates and laws that have been enacted on the balance sheet date.


Mar 31, 2013

(1.1) BASIS FOR PREPARATION OF ACCOUNTS

Financial statement are prepared under the historical cost convention and on accrual basis, in accordance with generally accepted accounting principles and applicable accounting standards referred to in Section 211 (3C) and Provisions of the Companies Act,1956. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(1.2) ASSETS AND DEPRECIATIONS :

TANGIBLE ASSETS

(i) The. Gross Block of Fixed Assets is shown at the cost of acquisition, which includes Taxes, Duties and other identifiable direct expenses.

(ii) The Company provides depreciation on all its fixed assets on Straight Line Method in accordance with the provisions of Sec. 205(2) (b) of the Companies Act, 1956 in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956. (iii) Depreciation on additions to fixed assets is being provided on pro- rata basis from the next month of acquisition and on assets sold, discarded, demolished or scrapped, the same is being provided up to the month in which the said asset is sold, discarded, demolished or scrapped.

(1.3) INVESTMENT:

Unquoted Investments are valued at cost of acquisition. Provision for diminution in value of long term investment is made only if such a decline is other than temporary.

(1.4) INVENTORIES :

(i) Raw Materials, Packing Materials are valued at Landed Cost.

(ii) Stores, Spares and consumable are valued at Landed Cost.

(iii) Finished Products and Work in progress are valued on the principle of direct cost or estimated net realisable value whichever is lower.

(iv) Scrap generated on manufacturing of barrel are valued at realizable value.

(1.5) USE OF ESTIMATES :

The preparation of Financial Statements require estimates and assumption 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 reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

(1.6) REVENUE RECOGNITION:

(i) Sales are recognized when goods are supplied and are recorded net of trade discounts and rebates.

(ii) Interest income on investments is booked on a time proportionate basis taking into account the amounts invested and the rate of interest.

(iii) Dividend income is recognised when the right to receive dividend is established.

(1.7) RETIREMENT BENEFITS :

(i) Contributions to Provident Fund & Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss Account for the year. (ii) In order to avoid accumulation of leave, the Company has adopted a policy of permitting its employees to avail their leave due in a year in a planned and phased manner. Hence, no liability on account of leave encashment is provided in the books of accounts. (iii) The Company has made provision for gratuity as per Payment of Gratuity Act, 1972.

(1.8) TREATMENT OF CONTINGENT LIABILITIES :

Contingent Liabilities are determined on the basis of available information and disclosed by way of Accounts.

(1.9) ACCOUNTING FOR TAXES ON INCOME :

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realized. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance Sheet date to reassess realization.

Deferred tax assets and liabilities are measured using the tax rates and laws that have been enacted on the Balance Sheet date.

(i) In view of the loss during the year as well as carried forward losses no provision for taxation is made.

(ii) In absence of Deferred Tax Liability no provision for the same is required to be made. The Company has also not recognized the Deferred Tax Assets as carried forward losses are significant and shall recognize the Deferred Tax Assets in succeeding years when there is certainty to have sufficient taxable income.


Mar 31, 2012

(1.1) BASIS FOR PREPARATION OF ACCOUNTS

Financial statement are prepared under the historical cost convention and on accrual basis in accordance with generally accepted accounting principles and applicable accounting standards referred to in Section 211 (3C) and Provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(1.2) TANGIBLE ASSETS AND DEPRECIATIONS :

(i) The Gross Block of Fixed Assets is shown at the cost of acquisition, which includes Taxes, Duties and other identifiable direct expenses.

(ii) The Company provides depreciation on all its fixed assets on Straight Line Method in accordance with the provisions of Sec. 205(2) (b) of the Companies Act, 1956 in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Depreciation on additions to fixed assets is being provided on pro- rata basis from the next month of acquisition and on assets sold, discarded, demolished or scrapped, the same is being provided up to the month in which the said asset is sold, discarded, demolished or scrapped.

(1.3) INVESTMENT :

Unquoted Investments are valued at cost of acquisition. Provision for diminution in value of long term investment is made only if such a decline is other than temporary.

(1.4) INVENTORIES :

(i) Raw Materials, Packing Materials are valued at Landed Cost.

(ii) Stores, Spares and consumable are valued at Landed Cost.

(ii) Finished Products and Work in progress are valued on the principle of direct cost or market value whichever is lower.

(1.5) USE OF ESTIMATES :

The preparation of Financial Statements require estimates and assumption 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 reported period. Difference between the actual results and estimates are recognized in the period which the results are known/materialized.

(1.6) REVENUE RECOGNITION :

(i) Insurance, dividend, refunds and other claims are accounted on cash basis in the year ofreceipt.

(ii) Sales are recognized when goods are supplied and are recorded net of trade discounts and rebates.

(iii) Interest income on investments is booked on a timed proportionate basis taking into account the amounts invested and the rate of interest.

(1.7) RETIREMENT BENEFITS :

(i) Contributions to Provident Fund & Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss Account for the year.

(ii) The Company has adopted a policy of permitting its employees to avail their leave due in a year in a planned and phased manner so as to avoid accumulation of leave therefore, liability on account of leave encashment is not provided for the year as the employees are eligible for leave salary of the year in the year of termination or retirement.

(iii) The Company has provided on an actuarial basis during the year liability in respect of Gratuity payable to employees and the same is charged to the Profit & Loss Account.

(1.8) RESEARCH AND DEVELOPMENT :

Revenue expenditure pertaining to Research and Development is charged to revenue under the respective heads of account in the year in which it is incurred. Capital expenditure, if any, on Research and Development is shown as an addition to fixed assets.

(1.9) TREATMENT OF CONTINGENT LIABILITIES :

Contingent Liabilities are determined on the basis of available information and disclosed by way of to the Accounts.

(1.10) ACCOUNTING FOR TAXES ON INCOME :

Current tax is determined as the amount of tax payable in respect of texable income for the year.

Deferred tax is recognized, on timimng difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be availbale against which such assets can be realized. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance sheet date to reassess realization.

Deferred tax assets and liabilities are measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

(i) In view of the loss during the year as well as carried forward losses no provision for taxation is made.

(ii) In absence of Deferred Tax Liability no provision for the same is required to be made. The Company has not also recognized the Deferred Tax Assets as carried forward losses are significant and shall recognized the Deferred Tax Assets in succeeding years when there is certainty to have sufficient taxable income.


Mar 31, 2011

1. System of Accounting:

(i) The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on an accrual basis.

(ii) The Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company.

2. Use of Estimates

The preparation of Financial Statements require estimates and assumption 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 reported period. Difference between the actual results and estimates are recognized in the period which the results are known/materialized.

3. Fixed Assets and Depreciation:

(i) The Gross Block of Fixed Assets is shown at the cost of acquisition, which includes Taxes, Duties and other identifiable direct expenses.

(ii) The Company provides depreciation on all its fixed assets on Straight Line Method in accordance with the provisions of Sec. 205(2) (b) of the Companies Act, 1956 in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Depreciation on additions to fixed assets is being provided on pro- rata basis from the next month of acquisition and on assets sold, discarded, demolished or scrapped, the same is being provided up to the month in which the said asset is sold, discarded, demolished or scrapped.

4. Investments:

Unquoted Investments are valued at cost of acquisition. Provision for diminution in value of long term investment is made only if such a decline is other than temporary.

5. Inventories:

(i) Finished Goods and Work-in-progress are valued on the principle of direct cost or market value whichever is lower.

(ii) Raw and Packing Materials are valued at Landed Cost.

(iii) Stores, spares and consumables are valued at landed cost.

6. Sales and Income Recognition:

(i) Sales are recognized when goods are supplied and are recorded net of trade discounts and rebates.

(ii) Insurance, dividend, refunds and other claims are accounted on cash basis in the year of receipt.

(iii) Interest income on investments is booked on a timed proportionate basis taking into account the amounts invested and the rate of interest.

7. Employees Retirement Benefits:

(i) Contributions to Provident Fund & Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss Account for the year.

(ii) The Company has adopted a policy of permitting its employees to avail their leave due in a year in a planned and phased manner so as to avoid accumulation of leave therefore, liability on account of leave encashment is not provided for the year as the employees are eligible for leave salary of the year in the year of termination or retirement.

(iii) The Company has provided on an actuarial basis during the year liability in respect of Gratuity payable to employees and the same is charged to the Profit & Loss Account.

8. Research and Development:

Revenue expenditure pertaining to Research and Development is charged to revenue under the respective heads of account in the year in which it is incurred. Capital expenditure, if any, on Research and Development is shown as an addition to fixed assets.

9. Provision for Taxation:

(i) In view of the loss during the year as well as carried forward losses no provision for taxation is made.

(ii) In absence of Deferred Tax Liability no provision for the same is required to be made. The Company has not also recognized the Deferred Tax Assets as carried forward losses are significant and shall recognize the Deferred Tax Assets in succeeding years when there is certainty to have sufficient taxable income.

10. Treatment of Contingent Liabilities:

Contingent Liabilities are determined on the basis of available information and disclosed by way of to the Accounts.


Mar 31, 2010

1. System of Accounting:

(i) The Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company.

(ii) The Company follows the mercantile system of accounting and recognizes significant items of income and expenditure on an accrual basis.

2. Use of Estimates:

The preparation of Financial Statements require estimates and assumption 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 reported period. Difference between the actual results and estimates are recognized in the period which the results are known/materialized.

3. Fixed Assets and Depreciation / Amortization:

(i) The Gross Block of Fixed Assets is shown at the cost of acquisition, which includes Taxes, Duties and other identifiable direct expenses.

(ii) The Company provides depreciation on all its fixed assets on Straight Line Method in accordance with the provisions of Sec. 205(2) (b) of the Companies Act, 1956 in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Depreciation or additions to fixed assets is being provided on pro- rata basis from the next month of acquisition and on assets sold, discarded, demolished, or scraped, the same is being provided up to the month in which the said asset is sold, discarded, demolished, or scrapped.

4. Inventories:

Inventory is valued at cost or net realizable value, whichever is lower. Cost of inventories comprises of all cost of purchase, cost of conversion, and other costs incurred in bringing them to their respective present location and condition.

(i) Raw materials, Packing materials, Fuel and stores and spares are valued on First In First Out method. (ii) Finished goods and Semi-Finished goods valuation includes material cost and relevant overhead.

5. Investments:

Current Investments are carried at lower of cost and quoted/fair value computed category wise. Long term investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary.

6. Foreign Currency Transaction:

(i) Transaction denominated in foreign currencies is normally recorded at the exchange rate prevailing at the time of transaction.

(ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. (iii) Any income or expense on account of exchange difference either on settlement or on restatement is recognized in the Profit and Loss Account.

7. Sales and Income Recognition:

(i) Sales are recognized when goods are supplied and are recorded net of trade discounts and rebates. (ii) Insurance, dividend, refunds and other claims are accounted on cash basis in the year of receipt. (iii) Interest income on investments is booked on a timed proportionate basis taking into account the amounts invested and the rate of interest.

8. Employees Retirement Benefits:

(i) Contributions to Provident Fund & Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss Account for the year.

(ii) The Company has adopted a policy of permitting its employees to avail their leave due in a year in a planned and phased manner so as to avoid accumulation of leave therefore, liability on account of leave encashment is not provided for the year as the employees are eligible for leave salary of the year in the year of termination or retirement.

(iii) The Company has provided on an actuarial basis during the year liability in respect of Gratuity payable to employees and the same is charged to the Profit & Loss Account.

9. Research and Development:

Revenue expenditure pertaining to Research and Development is charged to revenue under the respective heads of account in the year in which it is incurred. Capital expenditure, if any, on Research and Development is shown as an addition to fixed assets.

10. Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed/adjusted if there has been a change in the estimate of recoverable amount

11. Provision for Taxation:

(i) In view of the carried forward losses no provision for taxation is made.

(ii) In absence of Deferred Tax Liability no provision for the same is required to be made. The Company has not also recognized the Deferred Tax Assets as carried forward losses are significant and sKall recognized the Deferred Tax Assets in succeeding years when there is certainty to have sufficient taxable income. 12. Contingent Liabilities:

Contingent Liabilities are determined on the basis of available information and disclosed by way of Notes to the Accounts.