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Accounting Policies of Camex Ltd. Company

Mar 31, 2015

A) Basis of Preparation of Financial Statements

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost and convention. The financial statements are presented in Indian Rupees rounded off to the nearest rupee.

b) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized.

c) Tangible Fixed Assets

- Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

- Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

- Assets which are not ready for their intended use are disclosed under Capital Work-in- Progress.

d) Depreciation:

- Depreciation on tangible fixed assets is provided on the straight-line method over the useful lives of assets as prescribed in the schedule II of the Companies Act, 2013. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

- Depreciation and Amortization methods, useful lives and residential values are reviewed periodically, at each financial year end.

- Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated over the revised remaining useful life. The written down value of fixed assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of profit and loss account amounting to Rs. 0.57 lakhs.

e) Change in Accounting policy and Estimates

Pursuant to the enactment of Companies Act 2013, Company has adopted component wise depreciation policy as per the schedule II of the Companies Act and accordingly amended the accounting policy to that extent. The company is using written down method for one of its division and now the company has change the method of depreciation from written down to the straight line method and accordingly has adopted the useful life of the assets as prescribed in the schedule II of the Companies Act, 2013 This change of method is resulted in excess depreciation written back in the books of accounts amounting to Rs. 22.27 lakhs.

f) Impairment of Tangible and Intangible Assets

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

g) Transaction in Foreign Currencies

- Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

- Monetary items denominated in foreign currencies at the year end are rested at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

- Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss Statement, except in case of long term liabilities, where they relate to acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such assets.

h) Investments

Current Investments are carried at lower of cost or fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

i) Inventory

- Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

- Cost of Raw Materials, Stores and Spares, Packing Materials, Trading and other products are determined at lower of Cost or Net Realizable Value whichever is lower.

- It is not possible to identify net realizable value of Work-in-progress and thus valued at cost.

j) Revenue Recognition

- Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

- Dividend income is recognised when the right to receive payment is established.

- Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

- All other income and Expenditure are recognized and accounted for on accrual basis.

k) Retirement Benefits:

- Company provides for Retirement Benefits in the form of Gratuity. Company has taken Group Gratuity Policy of LIC of India and Premium paid is recognized as expenses when it is incurred.

- Provident fund is accrued on monthly basis in accordance with the terms of contract with the employees and is deposited with the Statutory Provided Fund. The Company's contribution is charged to profit and loss account.

l) Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of such asset. All others borrowing cost are charged to revenue.

m) Financial Derivatives and Commodity Hedging Transactions

In respect of derivative contracts, premium paid, gains/losses on settlement and losses on restatement are recognized in the profit and loss statement except in case where they relate to the acquisition or construction of Fixed Assets, in that case they are adjusted to the carrying cost of such assets.

n) Income Taxes

- Tax expense comprises of current and deferred taxes. Current Income Tax is measured at the amount expected to be paid to the tax authorities using the applicable tax rates.

- Deferred income taxes reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/ period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

- Provision for Current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

o) Segment Reporting

The company is engaged mainly in two reportable segments "Manufacturing & Trading of Dyes, Chemical and others" and "Trading of Coal and Minerals". Accordingly the company has made disclosure of separate segment reporting as required in terms of Accounting Standard AS-17. Segment Reporting is disclosed in notes to accounts.

p) Excise Duty/Service Tax

Excise Duty/Service Tax is accounted on the basis of both, payments made in respect of the goods cleared/services rendered and provisions made for the goods which are lying in stock/warehouses.

q) Contingent Liabilities & Contingent Assets:

- A provision is recognized when the company has a present obligation as a result of past event(s), and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

- Contingent liabilities are disclosed in the financial statement unless the possibility of outflow is remote.

- Contingent Liabilities are not provided for and are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.




Mar 31, 2014

A) Use of Estimates

The preparation of financial statements in conformity with Accounting Standards requires the management to make judgments, estimates and assumptions that affect the reported amounts, at the end of the reporting period. Although these estimates are based on the 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 amounts of assets or liabilities in future periods.

b) Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the asset to working condition for intended use.

c) Depreciation: on Tangible Fixed Assets

* Depreciation is provided on the basis of "Straight Line Method" on all depreciable fixed assets at the rate prescribed in schedule XIV of the Companies Act, 1956 on pro rata basis.

* Depreciation on fixed assets taken over by the company due to merger taken place in the financial year 2005-06 has been provided on "Written Down Value" method in accordance with the provision of Section 205(2)(b) of the Companies Act, 1956. The same method is followed in current year also.

* Depreciation in respect of fixed assets put to use in current year has been charged on pro rata basis. Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished.

d) Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of such asset. All others borrowing cost are charged to revenue.

e) Impairment of Tangible and Intangible Assets

Impairment Loss, if any is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset or from its disposal at the end of its useful life.

f) Investments

Current Investments are carried at lower of cost or fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

g) Revenue Recognition

* Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer.

* All other income and Expenditure are recognized and accounted for on accrual basis.

h) Retirement Benefits:

* Company provides for Retirement Benefits in the form of Gratuity. Company has taken Group Gratuity Policy of LIC of India and Premium paid is recognized as expenses when it is incurred.

* Provident fund is accrued on monthly basis in accordance with the terms of contract with the employees and is deposited with the Statutory Provided Fund. The Company''s contribution is charged to profit and loss account.

i) Financial Derivatives and Commodity Hedging Transactions

In respect of derivative contracts, gains / losses on settlement and losses on restatement are recognized in the Purchase cost as directly related to cost of purchase.

j) Income Taxes

Tax expense comprises of current and deferred taxes. 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. 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. Provision for Current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

k) Segment Reporting

The company is engaged mainly in two reportable segments "Manufacturing & Trading of Dyes, Chemical and others" and "Trading of Coal &Minerals". Accordingly the company has made disclosure of separate segment reporting as required in terms of Accounting Standard AS-17. Segment Reporting is disclosed in notes to accounts.

l) Transaction in Foreign Currencies

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at year- end using the closing foreign exchange rate. Exchange differences arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise as exchange rate difference.

m) Excise Duty

Excise Duty has been accounted based on payments made in respect of the goods cleared.

n) Miscellaneous Expenditure (to the extent not written off or adjusted)

Share Issue expenditure is amortized over a period of five years in which the same was incurred.

o) Contingent Liabilities & Contingent Assets:

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for and are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

A) Use of Estimates

The preparation of financial statements in conformity with Accounting Standards requires the management to make judgments, estimates and assumptions that affect the reported amounts, at the end of the reporting period. Although these estimates are based on the 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 amounts of assets or liabilities in future periods.

b) Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the asset to working condition for intended use.

c) Depreciation: on Tangible Fixed Assets

- Depreciation is provided on the basis of "Straight Line Method" on all depreciable fixed assets at the rate prescribed in schedule XIV of the Companies Act, 1956 on pro rata basis.

- Depreciation on fixed assets taken over by the company due to merger taken place in the financial year 2005-06 has been provided on "Written Down Value" method in accordance with the provision of Section 205(2)(b) of the Companies Act, 1956. The same method is followed in current year also. .

- Depreciation in respect of fixed assets put to use in current year has been charged on pro rata basis. Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished.

d) Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of such asset. All others borrowing cost are charted to revenue.

e) Impairment of Tangible and Intangible Assets

Impairment Loss, if any is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to fhae from the continuing use of an asset or from its disposal at the end of its useful life.

f) Investments

Current Investments are carried at lower of cost or fair value. Long Term Investment* IT* stated at cost. Provision for diminution in the value of long term investments is made horrify if such a decline is other than temporary.

g) Revenue Recognition

- Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer.

- All other income and Expenditure are recognized and accounted for on accrual basis.

h) Retirement Benefits:

- Company provides for Retirement Benefits in the form of Gratuity. Company has taken Group Gratuity Policy of LIC of India and Premium paid is recognized as expenses when it is incurred.

- Provident fund is accrued on monthly basis in accordance with the terms of contract with the employees and is deposited with the Statutory Provided Fund. The Company''s contribution is charged to profit and loss account.

i) Financial Derivatives and Commodity Hedging Transactions

In respect of derivative contracts, gains / losses on settlement and losses on restatement are recognized in the Purchase cost as directly related to cost of purchase.

j) Income Taxes

Tax expense comprises of current and deferred taxes. 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. 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. Provision for Current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

k) Segment Reporting

The company is engaged mainly in two reportable segments "Manufacturing & Trading of Dyes, Chemical and others" and ''Trading of Coal &Minerals". Accordingly the company has made disclosure of separate segment reporting as required in terms of Accounting Standard AS-17. Segment Reporting is disclosed in notes to accounts.

I) Transaction in Foreign Currencies

Transactions in foreign currencies are recorded at the exchange rates prevailing on the ad of the transaction. Foreign currency monetary assets and liabilities are translated at year-er using the closing foreign exchange rate. Exchange differences arising on settlement transactions and translation of monetary items are recognized as income or expense in if year in which they arise as exchange rate difference.

m) Excise Duty

Excise Duty has been accounted based on payments made in respect of the goods clearest

n) Miscellaneous Expenditure (to the extent not written off or adjusted)

Share Issue expenditure is amortized over a period of five years in which the same wait incurred. ,

o) Contingent Liabilities & Contingent Assets:

A provision is recognized when the company has a present obligation as a result of pasl event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for and are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

A) Presentation and disclosure of financial statements

During the year, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Use of estimates

The preparation of financial statements in conformity with Accounting Standards requires the management to make judgments, estimates and assumptions that affect the reported amounts, at the end of the reporting period. Although these estimates are based on the 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 amounts of assets or liabilities in future periods.

c) Tangible fixed assets

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the asset to working condition for intended use.

d) Depreciation: On Tangible fixed assets

- Depreciation is provided on the basis of "Straight Line Method" on all depreciable fixed assets at the rate prescribed in schedule XIV of the Companies Act, 1956 on pro rata basis.

- Depreciation on fixed assets taken over by the company due to merger taken place in the financial year 2005-06 has been provided on "Written Down Value" method in accordance with the provision of Section 205(2)(b) of the Companies Act, 1956. The same method is followed in current year also.

- Depreciation in respect of fixed assets put to use in current year has been charged on pro rata basis. Depreciation on assets sold, discarded or demolished during the yea!- is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished.

e) Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of such asset. All others borrowing cost are charged to revenue.

f) Impairment of tangible and intangible assets

Impairment Loss, if any is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset or from its disposal at the end of its useful life.

g) Investments

Current Investments are carried at lower of cost or fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

h) Revenue recognition

- Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer.

- All other income and Expenditure are recognized and accounted for on accrual basis.

i) Retirement benefits:

- Company provides for Retirement Benefits in the form of Gratuity. Company has taken Group Gratuity Policy of LIC of India and Premium paid is recognized as expenses when it is incurred.

- Provident fund is accrued On monthly basis in accordance with the terms of contract with the employees and is deposited with the Statutory Provided Fund. The Company's contribution is charged to profit and loss account.

j) Income taxes

Tax expense comprises of current and deferred taxes. 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. 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. Provision for Current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

k) Segment reporting

The company is engaged mainly in one reportable segment viz., "Manufacturing & Trading of Dyes and Chemical". During the Year, Company is also engaged in trading of "wellness product". However, revenue from this business segment is not significant and accounts for less than 10% of the total revenue and/or total assets of the Company. Therefore, no disclosure of separate segment reporting is required in terms of Accounting Standard AS-17 "Segment Reporting".

I) Transaction in Foreign Currencies

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at year-end using the closing exchange rate. Exchange differences arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise as exchange rate difference.

m) Excise Duty

Excise Duty has been accounted based on payments made in respect of the goods cleared.

n) Miscellaneous Expenditure (to the extent not written off or adjusted)

Share Issue expenditure is amortized over a period of five years in which the same was incurred.

o) Contingent Liabilities & Contingent Assets:

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for and are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

1) System of accounting

a) The company generally, follows mercantile system of accounting and recognisec income and expenditure on accrual bassis.

b) Financial statements are based on historical cost. These costs are hot adjusted to reflect the impact of the changing value for the purchasing power of money.

c) Accounting Policies not specifically reffered to otherwise are in consonance with generally accepted accounting principles followed by the company.

2) Fixed assets

Fixed assets are stated at cost of acquisition, less accumulated depreciation except land.

3) Investment

Long term investment are being valued at cost of acquisition.

4) Depreciation

a) No depreciation is provided for leasehold land.

b) Depreciation on fixed asset has been provided on straight line method in accordam with the provision of section 205(2)(b) of the Companies Act, 1956, at the rates specified in Schedule XIV to the Companies Act, 1956.

c) Depreciation on fixed asset taken over by the company due to merger taken place the financial year 2005 - 06 has been provided on written down value method accordance with the provision of section 205(2)(b) of the Companies Act, 1956 the rates specified in Schedule XIV to the Companies Act,1956. The same methed is followed in current year also.

d) Depreciation in respect of fixed asset put to use during the year is charged on pro-rata basis with reference to the end of month of installation of the asset.

e) Goodwill has been amortized over a period of Five years.

5) Inventories

a) Raw Materials : At cost.

b) Stores and spares, light diesel : At cost or net realisable value whichever is lov oil, packing material and work inprocess

c) Trading goods : At cost or net realisable value whichever is lov

d) Finished goods : At cost or net realisable value whichever is lov

(Finished goods are inclusive of Excise due

6) Miscellaneous Expenditure (to the extent not written off or adjusted)

Miscellaneous Expenditure, such as preliminary expenditure, share issue expence diture and merger expenditure are amortised over a period of 5 years in which same are incurred.

7) Income from Investments

Income from Investments, where appropriate, are taken into revenuein full on declaration or receipt and tax deducted at source thereon is treated as advance tax.

8) Excise duty

Excise duty has been accounted on the basis of payments made in respect of the goods cleared and also provision made for goods lying in bonded warehouse.

9) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised , on timing differences, being the difference between taxable income and accounting income that originate in one accounting year and are capable of reversal in one or more subsequent years.

10) Retirement Benefits

a) Provident fund

Contribution to provident fund is accounted on accrual basis.

b) Gratuity and Leavecashment

The company is providing for gratuity and leave encashment.

11) Segment reporting

Segment have been identified in line with the AS-17, taking into account the organisational structure as well as the differing risk and returns. The business is disclosed as primary segment.

12) Transaction in Foreign Currencies

Transaction in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at year end exchange rate. Exchange differences arising on settlement of transactions and translation of monetary items are recognised as income or expense in the year in which they arise as exchange rate diference except in respect of liabilities for the acquisition of fixed assets from a country out side India where such exchange difference is adjusted in carrying value of the fixed assets.

13) Contingent Liabilities/Contingent Assets

a) Contingent liabilities are disclosed by way of a note in the balance sheet.

b) Contingent assets are neither recognised nor disclosed in the financial statement.


Mar 31, 2002

I. METHOD-OF ACCOUNTING

The financial statements have been prepared on the basis of historical cost convention and is in accordance with normally accepted Accounting Principles.

II. RECOGNITION OF INCOME & EXPENDITURE

Revenues/Incomes and costs/expenditures are generally accounted on accrual, as they are earned or incurred. Sales are exclusive of excise duty and Sales Tax collected. Income on investments are accounted on receipt basis.

III. EXCISE DUTY

Provision for Excise duty has been made for goods lying in godown.

IV. FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation.

V. INVESTMENTS Investments are stated at cost.

VI. VALUATION OF INVENTORIES

Raw-material, stores and spares light diesel Oil : At cost packing material and Work-in-Process

Finished Goods : At lower of the cost or Net realisable value (Incl. Excise Duty)

Cost formula used for valuation of inventories : For Raw Materials, packing & store-rate is calculated basic amount + Tax + freight without Excise and for semi finished goods consumption of our raw- materials + 25% manufacturing cost.

VII. METHOD OF DEPRECIATION

(a) Depreciation on fixed assets has been provided on straight line method in accordance with the provisions of section 205 (2) (b) of the Companies Act, 1956, at the rates specified in Schedule XIV to the Companies Act, 1956

(b) Depreciation in respect of fixed assets put to use during the year is charged on pro-rata basis with reference to the end of the month of installation of the assets.

(c) No amount has been written off against leasehold land.

VIII. TAXATION

Income-tax expense comprises current tax and deferred tax charge on credit. The deferred tax charge or credit is recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Deferred tax assets liabilities are reviewed as at each balance sheet date based on developments during the year to reassess realisation /liabilities.

IX. MISCELLANEOUS EXPENDITURE

(A) Preliminary Expenses

(a) Preliminary expenses incurred during the period are amortised to profit & loss account over a period of five years.

(b) Preliminary expenses incurred in earlier years are amortised to profit & loss account over a period of Ten years.

(B) Public Issue Expenses

Public issue expenses are amortized to profit and loss account over a period of ten years.

X. RETIREMENT BENEFITS

(a) Provident fund

Contribution to Provident fund is accounted on accrual basis.

(b) Leave encashment

Leave Encashment is accounted on accrual basis.

(c) Gratuity

The company has a scheme with Life Insurance of India & the Premium under policy is accounted on prorata basis. During the year under review the company has changed the method of accounting in respect of gratuity from cash basis to accrual basis. Had the company continued to provide gratuity on cash basis the profit for the year would have been higher by Rs.89,049/- and reserve would have been higher to that extent.

xi) CONTINGENT LIABILITIES

Contingent liabilities are disclosed by way of a note in the balance sheet

 
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