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Accounting Policies of Balaji Amines Ltd. Company

Mar 31, 2015

(1) System of Accounting:

i. The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

ii. The financial statements have been prepared in all material respects with Accounting Standards as relevant and notified by the Central Government.

iii. The financial statements are prepared on historical cost basis and as a going concern.

(2) Revenue recognition :

i. Sale of goods is recognized at the point of dispatch of goods to customers. Gross sale is inclusive of Excise Duty and is net of Value Added Tax / Sales Tax.

ii. Income from guest accommodation in respect of hotel division is recognized on day to day basis after the guests checks-in. Discounts if any in this regard are accounted upon final conclusion of the bill with the guests. Any advance received in respect of the same is treated as a liability pending finalization of bill / provision of services and income from sale of Food & Beverages is recognized at the point of serving of these items to the guests. The income stated is exclusive of Sales Tax, Luxury Tax and Service Tax.

iii. Dividends from investment are recognized as income of the year in which the same are declared by in the investee company.

(3) Tangible Fixed Assets and Depreciation :

Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

The acquisition cost for this purpose includes the purchase price (net of duties and taxes which are recoverable in future) and expenses directly attributable to the asset to bring it to the site and in the working condition for its intended use.

Where the construction or development of any such asset requiring time to set up for its intended use, is funded by borrowings, the corresponding borrowing costs are capitalized up to the date when the asset is ready for its intended use.

The interest during construction period, indirect project expenditure and trial run expenditure (net of trial run income) incurred in respect of projects under implementation are capitalized to the asset created.

Depreciation is provided in accordance with Schedule II of the Companies Act, 2013 in respect of the remaining useful life of the asset as far as the existing assets are concerned. In respect of additions, depreciation is provided on the basis of the useful life of the assets as prescribed by Schedule II of Companies Act, 2013.

During the year the company had carried out technical evaluation of the useful life of the existing assets and applied the method of depreciation as prescribed by Schedule II of the Companies Act, 2013. The adjustment as a result of the re-computation is made to the opening balance of profit and loss account.

(4) Investments: Investments are stated at cost.

(5) Inventories:

a) Finished goods are valued at lower of cost or Net Realizable Value. Cost for this purpose is arrived at on Absorption costing basis. Excise duty is included in valuation of finished goods.

b) Stock in process/plant is valued at cost.

c) Stock of raw materials, Stores and Spares and packing materials are valued at cost. Cost for this purpose, does not include duties/taxes that are recoverable in future.

d) Food & Beverages :

1. Groceries : Groceries is valued at cost arrived at on weighted average basis.

2. Beverages : Valued at cost.

(6) Staff Benefits :

a. Provident Fund Contributions are accounted on accrual basis.

b. The company has taken a policy of Group Gratuity Scheme of Life Insurance Corporation of India. All contributions made are charged to revenue.

(7) Research and Development:

Revenue expenditure on research and development is charged to Statement of profit and loss in the year in which it is incurred. Capital expenditure on research and development is treated at par with fixed assets and depreciated as such.

(8) Deferred Taxation :

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

(9) Sales Tax Benefits:

Shortfall / increase in sales tax benefits accruing to the company are accounted for in the year in which the final assessment by the concerned authorities is completed.

(10) Borrowing Costs:

Costs in respect of borrowings for the purpose of expansion / additional fixed investments including R & D projects are capitalized to such investments.

Borrowing costs relating to period after the commencement of operations of the project are charged to revenue.

(11) Foreign Currency Transactions:

Foreign Exchange Transactions are recorded at pre-determined standard exchange rates which are reviewed periodically. Gains or losses arising out of such periodic revisions of such standard rates and also on realization / settlement are accounted for accordingly.

(12) Impairment of Assets :

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value using the weighted average cost of capital. In carrying out such exercise, due effect is given to the requirements of Schedule II to Companies Act, 2013.

(13) Corporate Social Responsibility:

The company computes the amount required to be spent on Corporate Social Responsibility in accordance with the provisions of Section 135 of the Companies Act, 2013. The amounts are spent on the eligible projects prescribed under Schedule VII of the Act. Provision is made in the books for the amounts unspent, if material and the same is carried forward to be spent in the subsequent year.


Mar 31, 2014

(A) System of Accounting:

i. The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

ii. The financial statements have been prepared in all material respects with Accounting Standards as relevant and notified by the Central Government.

iii. The financial statements are prepared on historical cost basis and as a going concern.

(B) Revenue recognition :

i. Sale of goods is recognized at the point of dispatch of goods to customers. Gross sale is inclusive of Excise Duty and is net of Value Added Tax / Sales Tax.

ii. Income from guest accommodation in respect of hotel division is recognized on day to day basis after the guests checks-in. Discounts if any in this regard are accounted upon final conclusion of the bill with the guests. Any advance received in respect of the same is treated as a liability pending finalization of bill / provision of services and income from sale of Food & Beverages is recognized at the point of serving of these items to the guests. The income stated is exclusive of Sales Tax, Luxury Tax and Service Tax.

iii. Dividends from investment are recognized as income of the year in which the same are declared by in the investee company.

(C) Tangible Fixed Assets and Depreciation :

Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any. The acquisition cost for this purpose includes the purchase price (net of duties and taxes which are recoverable in future) and expenses directly attributable to the asset to bring it to the site and in the working condition for its intended use. Where the construction or development of any such asset requiring time to set up for its intended use, is funded by borrowings, the corresponding borrowing costs are capitalized up to the date when the asset is ready for its intended use.

The interest during construction period, indirect project expenditure and trial run expenditure (net of trial run income) incurred till the date of declaration of commercial operations in respect of hotel division are capitalized pro-rata to the building and plant & machinery of hotel division. Depreciation is provided on a straight-line basis at rates and in the manner specified in schedule XIV to the Companies Act, 1956, unless the use of a higher rate or an accelerated charge is justified through technical estimates.

(D) Investments: Investments are stated at cost.

(E) Inventories:

a) Finished goods are valued at lower of cost or Net Realizable Value. Cost for this purpose is arrived at on Absorption costing basis. Excise duty is included in valuation of finished goods.

b) Stock in process/plant is valued at cost.

c) Stock of raw materials, Stores and Spares and packing materials are valued at cost. Cost for this purpose, does not include duties/taxes that are recoverable in future.

d) Food & Beverages :

1. Groceries : Groceries is valued at cost arrived at on weighted average basis.

2. Beverages : Valued at cost.

(F) Staff Benefits :

a. Provident Fund Contributions are accounted on accrual basis.

b. The company has taken a policy of Group Gratuity Scheme of Life Insurance Corporation of India. All contributions made are charged to revenue.

(G) Research and Development:

Revenue expenditure on research and development is charged to Statement of profit and loss in the year in which it is incurred. Capital expenditure on research and development is treated at par with fixed assets and depreciated as such.

(H) Deferred Taxation :

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22 -"Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

(I) Sales Tax Benefits:

Shortfall / increase in sales tax benefits accruing to the company are accounted for in the year in which the final assessment by the concerned authorities is completed.

(J) Borrowing Costs:

Costs in respect of borrowings for the purpose of expansion / additional fixed investments including R & D projects are capitalized to such investments. Borrowing costs relating to period after the commencement of operations of the project are charged to revenue.

(K) Foreign Currency Transactions:

Foreign Exchange Transactions are recorded at pre-determined standard exchange rates which are reviewed periodically. Gains or losses arising out of such periodic revisions of such standard rates and also on realization are accounted for accordingly.

(L) Impairment of Assets :

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset''s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value using the weighted average cost of capital.

(M) Segment Reporting :

During the year the company started commercial operations in respect of its hotel division at Solapur, Maharashtra. Accordingly the company now operates in two segments viz., Amines & Speciality Chemicals segment and Hotel segment.


Mar 31, 2012

(A) System of Accounting:

i. The company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

ii. The financial statements have been prepared in all material respects with accounting standards as notified in the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

iii. Financial statements are prepared on historical cost basis and as a going concern.

(B) Revenue Recognition:

Sale of goods is recognised at the point of despatch of goods to customers. Gross sales are inclusive of excise duty and net of value added tax / sales tax.

(C) Tangible Fixed Assets and Depreciation:

Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any. v

The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to the asset to bring it to the site and in the working condition for its intended use.

Where the construction or development of any such asset requiring time to set up for its intended use, is funded by borrowings, the corresponding borrowing costs are capitalised up to the date when the asset is ready for its intended use.

Depreciation is provided on a straight-line basis at rates and in the manner specified in schedule XIV to the Companies Act, 1956, unless the use of a higher rate or an accelerated charge is justified through technical estimates.

(D) Investments:

Investments are stated at cost.

(E) Inventories:

a) Finished goods including stock of R & D products are valued at lower of cost or Net Realizable Value. Cost for this purpose is arrived at on Absorption costing basis. Excise duty is included in valuation of finished goods.

b) Stock in process/plant is valued at cost.

c) Stock of raw materials. Stores and Spares and packing materials are valued at cost for these purpose is net of duties/taxes are recoverable in future.

IF) Staff Benefits:

a) Provident Fund Contributions are accounted on accrual basis.

b) The company has taken a policy of Group Gratuity Scheme of Life Insurance Corporation of India. All contributions made are charged to revenue.

(G) Research and Development:

Revenue expenditure on research and development is charged to Statement of profit and loss in the year in which it is incurred. Capital expenditure on research and development is treated at par with fixed assets and depreciated as such.

(H) Deferred Taxation:

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

(I) Sales Tax Benefits:

Shortfall / increase in sales tax benefits accruing to the company are accounted for in the year in which the final assessment by the concerned authorities is completed.

(J) Borrowing Costs:

Costs in respect of borrowings for the purpose of expansion / additional fixed investments including R&D projects are capitalized to such investments.

(K) Foreign Currency Transactions:

Foreign Exchange Transactions are recorded at pre-determined standard exchange rates which are reviewed periodically. Gains or losses arising out of such periodic revisions of such standard rates and also on realization are accounted for accordingly.

(L) Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value using the weighted average cost of capital. .

(M) Segment Reporting:

The company's Hotel Division at Solapur is under construction and is yet to start commercial operations. Segment reporting in respect of these streams of revenues and investments will be made from the year of commencement of operations of this division. The amount invested in construction so far is included in Capital Work in Progress.


Mar 31, 2010

(A) Accounting convention: The accompanying financial statements are prepared in accordance with historical cost convention.

(B) Fixed Assets and Depreciation: Fixed assets are valued at cost less depreciation provided on straight line basis at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. In respect of additions made during the year, depreciation is provided on pro-rata basis. The Company has a system of determining impairment of Assets. The losses arising on such determination, if any, are recognized in the Profit & Loss account.

(C) Investments: Investments are stated at cost.

(D) Inventories: a) Finished goods including R & D products are valued at lower of cost or Net Realizable Value. Cost for this purpose is arrived at on Absorption costing basis.

b) Stock in process/plant is valued at cost.

c) Stock of raw materials, Stores and Spares and packing materials are valued at cost.

(E) Staff Benefits : a) Provident Fund Contributions are accounted on accrual basis.

b) The company has taken a policy of Group Gratuity Scheme of LIC. All contributions made are charged to revenue.

(F) Research and Development: Revenue expenditure on research and development is charged to profit and loss account in the year in which it is incurred. Capital expenditure on research and development is treated at par with fixed assets and depreciated as such.

(G) Deferred Taxation: Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

(H) Sales Tax Benefits: Shortfall / increase in sales tax benefits accruing to the company are accounted for in the year in which the final assessment by the concerned authorities is completed.

(I) Borrowing Costs: Costs in respect of borrowings for the purpose of expansion / additional fixed investments including R & D projects are capitalized to such investments.

(J) Foreign Currency Transactions: Foreign Exchange Transactions are recorded at pre-determined standard exchange rates which are reviewed periodically. Gains or losses arising out of such periodic revisions of such standard rates and also on realization are accounted for accordingly.

 
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