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Accounting Policies of Chandra Prabhu International Ltd. Company

Mar 31, 2015

Background

Chandra Prabhu International Ltd. is a Company registered with Registrar of Companies, Delhi & Haryana, New Delhi. The Company is a Public Limited Company whose shares are listed in BSE. Chandra Prabhu International Ltd. is a well-known name in the trading of Synthetic Rubber and Coal.

1 Basis of preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, in accordance with applicable accounting standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013 ("the Act"), as applicable.

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 amount 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 end. Although, these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3 Fixed Assets

Tangible fixed assets are stated at cost of acquisition including incidental expenses less depreciation. All costs including financing costs till the assets are ready to be put to use are adjusted to the carrying amount of fixed assets.

4 Depreciation

In respect of fixed assets during the year, depredation/ amortisation is charged on written Down Method as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depredated over the remaining usefull life based on an evaluation.

Type of Asset Period

Vehides-Car 8 years

Vehides- Motar Bike 10 years

Plant & Machinery 15 years

Office Equipments 5 years

Furniture & Fixtures 10 years

Computers 3 years

5 Impairment of Assets

Where there is any indication that an asset is impaired, the recoverable amount, if any, is estimated and impairment loss is recognized to the extent carrying amount exceeds recoverable amount.

6 Investments

All long-term unquoted investments are valued at cost less provision for diminiution in value.

7 Inventories.

Traded goods inventories are stated at lower of cost or net realizable value. Cost is determined on weighted average basis.

Inventory of shares is valued at cost.

8 Foreign Exchange Transaction

Gain/Losses arising out of fluctuation in exchange rates are accounted for on the basis of payments. Fluctuation in foreign exchange payment is being credited/charged to the Statement of Profit & Loss.

Premium or discount on foreign exchange contracts outstanding at the Balance Sheet date are stated at fair values and any gain or losses are recognised in the statement of Profit & Loss .

9 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.

Sales are recognized when the products are shipped or services rendered. Central Sales Tax and Value Added Tax are excluded

Dividend from investments is recognized in the Statement of Profit & Loss on receipt basis

10 Employee Retirement Benefits

1. Provident Fund

The eligible employees of the company are entitiled to receive benefit under the Proident Fund , a defined contribution Plan in which the employees and the company make monthly contributions at a specified percentage of the covered employee's salary (currently 12% of employees' salary) which is recognised as a expense in the statement of profit & loss account. The contributions as specified under law are paid to the Government Provident Fund.

2. Gratuity Fund Scheme

The company has taken group gratuity insurance scheme from UC of India under defined contribution plan . The company accounts for liability of future gratuity benefit based on Actuarial valuation on projected unit credit method carried out for assessing liability as at the reporting date.Actuarial Gains and losses are recognised

3. Compensated Absenses

The liability of leave encashment and other compensated absences is recognised on arithmetical basis at the end of the year are charged to revenue each year.

4. Employee Pension Scheme

Employees contribution to Employees Pension Scheme, a defined contribution plan is made in accordance with The Employees Pension Scheme, 1995.

5. Other Employee Benefits

Accidental Insurance Scheme, defined contribution plan is taken from Aviva Life Insurance

11 Taxation

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

Deferred tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing differences being the difference in income and accounting that originates in one period and capable of reversal in one or more subsequent period.

12 Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

13 Cash Flow Statement

Cash Flows are reported using the Indirect Method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available infomation.

14 Segment Reporting

Identification of segments

The company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. 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 executive Management in deciding how to allocate resources and in assessing performance.

Allocation of common costs:

Common allocable costs are allocated to each segment pro-rata on the basis of revenue of each segment to the total revenue of the Company.

Unallocated items:

Unallocated items include income and expenses which are not allocated to any reportable business segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the Financial Statements of the Company as a whole.

15 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present legal obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those

Contingent Assets are not recognized in the Financial Statement.


Mar 31, 2014

Note No. 1 Background

Chandra Prabhu International Ltd. is a Company registered with Registrar of Companies, Delhi & Haryana, New Delhi. The Company is a Public Limited Company whose shares are listed in BSE. Chandra Prabhu International Ltd. is a well- known name in the trading of Synthetic Rubber & Chemicals and Coal.

1 Basis of preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, in accordance with applicable accounting standards issued by Institute of Chartered Accountants of India and provisions of the Companies Act, 1956.

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 amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statement and the result of operation during the reporting period end. Although, these estimates are based upon managements best knowledge of current events and action actual results could differ from these estimates.

3 Fixed Assets

Tangible fixed assets are stated at cost of acquisition including incidental expenses less depreciation. All costs including financing costs till the assets are ready to be put to use are adjusted to the carrying amount of fixed assets.

4 Depreciation

Depreciation has been provided on Written Down Value Method in accordance with the rates prescribed in Schedule

XIV of the Companies Act, 1956

5 Impairment of Assets

Where there is any indication that an asset is impaired, the recoverable amount, if any, is estimated and impairment loss is recognized to the extent carrying amount exceeds recoverable amount.

6 Investments

All long-term unquoted investments are valued at cost.

7 Inventories.

Traded goods inventories are stated at lower of cost or net realizable value.

Inventory of shares is valued at cost.

8 Foreign Exchange Transaction

Gain/Losses arising out of fluctuation in exchange rates are accounted for on the basis of payments. Fluctuation in foreign exchange realization is being credited/charged to the Statement of Profit & Loss.

9 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.

Sales are recognized when the products are shipped or services rendered. Sales Tax and Value Added Tax are excluded Dividend from investments is recognized in the Statement of Profit & Loss on receipt basis.

10 Employee Retirement Benefits

1. Provident Fund

The eligible employees of the company are entitiled to receive benefit under the Proident Fund , a defined contribution Plan in which the employees and the company make monthly contributions at a specified percentage of the covered employee''s salary (currently 12% of employees'' salary) which is recognised as a expense in the statement of profit & loss account. The contributions as specified under law are paid to the Government Provident Fund.

2. Gratuity Fund Scheme

The company has taken group gratuity insurance scheme from LIC of India under defined contribution plan . The company accounts for liability of future gratuity benefit based on Actuarial valuation on projected unit credit method carried out for assessing liability as at the reporting date. Acturial gains and losses are recognised.

3. Compensated Absenses

The liability of leave encashment and other compensated absences is recognised on arithmetical basis at the end of the year are charged to revenue each year.

4. Employee Pension Scheme

Employees contribution to Employees Pension Scheme, a defined contribution plan is made in accordance with The Employees Pension Scheme, 1995.

5. Other Employee Benefits

Accidental Insurance Scheme, defined contribution plan is taken from Aviva Life Insurance

11 Taxation

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

Deferred tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing differences being the difference in income and accounting that originates in one period and capable of reversal in one or more subsequent period.

12 Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

13 Cash Flow Statement

Cash Flows are reported using the Indirect Method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of apst or future cash receipts or payments. The cash flow operating, investing and financing acitivities of the company are segregated based on the available information.

14 Segment Reporting

Identification of segments

The company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amount are evaluated regularly by the executive management in deciding how to allocate resouces and in assessing performance.

Allocation of common costs:

Common allocable costs are allocated to each segment pro-rata on the basis of revenue of each segment to the total revenue of the Company.

Unallocated items:

Unallocated items include income and expenses which are not allocated to any reportable business segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the Financial Statements of the Company as a whole.

15 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present legal obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resouces or where a reliable estimate of the obligation cannot be made, obligation are assessed on going basis and only those having a Contingent Assets are not recognized in the Financial Statement.


Mar 31, 2013

1 Basis of preparation of Financial Statements

These financial statements arc prepared under the historical cost convention on an accrual basis, in accordance with applicable accounting standards issued by Institute of Chartered Accountants of India and provisions of the Companies Act, 1956.

2 Use of Estimates

The preparalion of financial Statements in conformity with generally accepted accounting principle requires management to malte estimates and assumptions that affect the reported amount of assets And liabilities lad disclosure of continent tabuilies «the date of the financial statement and the result of operation during the reporting period end. Although, these estimates are based upon managements best knowledge of current events and action actual results could

3 Fixed Assets

Tangible fixed assets *fe stated at cost r,f acquisition including incidental expenses less deprccsatiorv All costs including financing costs rill the assets ate ready to be put to use art adjusted to the carrying amount of feed assets,

4 Depreciation

Companies Act, 1956

5 Impairment of Assets

Whoe there k any indication that an asset is impaired, the recoverable amount, if any. is estimated and impairment less is recognized to the extent carrying amount exceeds recoverable amount.

6 Investments

All long-term unquoted investments arc valued at cost.

7 Inventories,

Traded goods inventories are stated at lower of cost or net realizable value. Inventory of shares is valued at cost.

8 Furcign Exchange Transaction

Cain/Losses arising out at fluctuation in exchange rates ate accounted for on the basis of payments. Fluctuation in foreign exchange realization is being credited /charged to the Statement of Profit & .

9 Revenue Recognition

Revenue is recognised to the extent Ait it is probable that the economic benefits-will flow to the Company and revenue can be reliably measured.

Sales ate recognized when the products are shipped Of services rendered. Sales Tax and Value Added Tax are excluded

Dividend from investments is recognised in the Statement of Profit & Loss on receipt basis

10 Employee Retirement Benefits

1. PfOVsdtR! I ''H''liS

The eligible employees of the company are cnritiled to receive benefit under the Proident Fund , a defined Curttfibution Plan in which the employees and the Company nuke monthly enn ttihutions at a specified percentage of the coveted employee''s salary (currently 2"U of employees'' salary) which is recognised as a expense in the statement of profit & loss account. The contributions as specified under law are paid to the Government Provident Fund.

2. Gratuity fxn
The company has taken group gratuity insurance scheme from LIC of India Under defined conrribuuon plan . The. company accounts for liability of future gratuity benefit based on Actuarial valuarion on projected unit credit method earned out for assessing liability as at the reporting date- Acturial gains and losses are recognised.

3. GunptflMttd AbttHiei

The liability ofleave encashment and other compensated absences is recognised on arithmetical basis at the end of the year arc charged to revenue each year.

4. Eoipkytt PtaSNlt Sib&fft

Employees contribution to Employees: Pension Scheme, a defined contribution plan is made in accordance srith The Employees Pension Scheme, 1995-

5. Euplajte JSestftts

Accidental Insurance Scheme, defined contribution plan is taken from Aviva Life Insurance

11 Tax Jlion

Current ta* is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to consideration of prudence in respect of deferred uui assets on timing difference* being the difference in income and accounting that originates in (jne period and capable of reversal in one or more subsequent period,

12 Earning Per Share

Paste earnings per share arc calculated by dividing the net profit or loss for the period attributable to equity shareholders by the wetted average number of equity shares outstanding during the period.


Mar 31, 2010

1. Basis of Accounting

i) The financial statements have been prepared on the historical cost convention in accordance with generally accepted accounting policies and in accordance with applicable accounting standards.

ii) The company generally follows the Mercantile System of Accounting and recognizes Income and Expenditure on accrual basis except stated otherwise.

2. Fixed Assets.

Fixed Assets are stated at cost of acquisition including expenses directly attributable thereto.

3. Depreciation

Depreciation on fixed assets has been provided on "Written Down Value" method at the rates and in the manner specified in Schedule XIV of the Companies Act,1956 as amended. Depreciation is calculated on a pro-rata basis only in respect of additions to Fixed Assets having a cost in excess of Rs. 5000/- Assets costing upto Rs. 5000/- are fully depreciated in the year of purchase.

4. Investments.

All long-term unquoted investments are valued at cost & quoted investments at their depleted value.

5. Inventories.

Traded goods inventories are stated at lower of cost or net realizable value. Inventory of shares is valued at cost.

6. Foreign Exchange Transaction. Gains/Losses arising out of fluctuation in exchange rates are accounted for on the basis of payments. Fluctuation in foreign exchange realization is being credited/charged to Profits Loss Account.

7. Revenue Recognition.

a) Sale are recognized when the products are shipped or services rendered. Sales Tax and Value Added Tax are excluded.

b) Dividend from investments is recognized in the Profit & Loss Account on receipt basis.

8. Employee Benefits.

Short Term employee benefits:- Short term employee benefits are recognized as an expense on an undiscounted basis in the P & L Account of the year in which the related services are rendered.

Post Employed Benefits:-

Employees contribution to the Provident Fund and Employees Pension Scheme, a defined contribution plan is made in accordance with the Provident Fund Act, 1952 r.w. The Employees Pension Scheme, 1995.

Long Term Benefits:-

The liability of leave encashment and other compensated absences is recognized on arithmetical basis at the end of the year are charged to revenue each year. Gratuity amounting to Rs. 16,250/- has been provided in the books of account on accrual basis.

9. Taxes on Income.

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable to reversal in one or more subsequent periods.

Deferred Tax Assets (Net)

The components of Deferred tax liability and assets as

10. A sum of Rs. 27,67,781.60/- being shown as recoverable under Schedule no. 11 of Current Assets is an amount deposited under protest as Anti Dumping Duty imposed by the Customs Authority Delhi on Synthetics Rubber (Styrene Butadiene KHS-68) which is being contested and the company is hopeful of recovery.

 
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