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Accounting Policies of Elf Trading & Chemicals Manufacturing Ltd. Company

Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements:

These financial statements have been prepared in accordance with the generally accepted accounting principles In India under the historical cost convention on accrual basis. These financial statements have been prepared to comply all material aspects with the accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2 Use of estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Tangible Fixed Assets:

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use.

1.4 Depreciation and Amortization:

Depreciation on tangible assets is provided on the Written Down Value Method over the useful lives of assets in accordance with Schedule It of the Companies Act, 2013. Accordingly, depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a Written Down Value Method, commencing from the date the asset is available to the Company for its use. The useful lives for the fixed assets adopted as follows for the year:

1.5 Impairment of Assets:

The carrying values of assets at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised in the Statement of Statement of Profit and Loss, if the carrying amount of these assets exceeds their recoverable amount. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.6 Revenue Recognition:

All income and expenses are accounted on accrual basis except in case of dividend, which is accounted when the owner's right to receive payment is established i.e. usually when it is received. Interest income including interest on securities is accounted on time proportion basis and wherever it is not ascertainable, it is accounted as and when it is received. -

1.7 Expenditure:

Expenses are accounted on accrual basis and provisions are made for all known losses & liabilities.

1.8 Earnings per share:

Basic earnings per share Is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share Is computed by dividing the profit / (loss) after tax (Including the post tax effect of extraordinary items. If any) as adjusted for dividend, interest and other charges to expense or Income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been Issued on the conversion of all dilutive potential equity shares.

1.9 Taxes on Income:

Tax expense comprises current and deferred tax. Current tax is the amount of tax payable on the taxable income for the year as determined in according with the provisions ofthe Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. MAT paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal Income tax during the specified period, l.e., the period for which MAT credit is allowed to be carried forward in the year in which the company recognises MAT credit as an asset in accordance with the Guidance Note on accounting for credit available In respect of Minimum Alternative Tax under the Income Tax Act, 1961, the said asset Is created by way of credit to the Statement of Profit and Loss and shown as 'MAT Credit Entitlement'. The company reviews the ‘MAT Credit . Entitlement' asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

Deferred tax is recognized, subject to the considerations of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal In one or more subsequent period. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.10 Investments:

Investments, which are readily realisable and intended to be held for not more than 1 year from the date of such investments are made, are classified as current investments. Any other investment other than stated above are classified as non-current investments.

Cost of investments include acquisition charges such as brokerage, fees and duties.

Current investments are carried individually, at the lower of cost and fair value.

Non-current investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

1.11 Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognized when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the notes.

1.12 Segment reporting:

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.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

1.13 Employee benefits

Employee benefits include provident fund, gratuity fund, compensated absences and post employment medical benefits *


Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply all material aspects with the accounting standards notified under Section 211 (3C) [Companies (Accounting Standards) rules, 2006, as amended and the other relevant provisions of the Companies Act 1956.

1.2 Use of estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Tangible Fixed Assets:

The Fixed Assets are stated at cost of acquisition minus the accumulated depreciation. Cost is inclusive of incidental expenses.

1.4 Depreciation and Amortization:

Depreciation on fixed assets is provided on Written Down Value Method and using the rates specified In Schedule XIV of the Companies Act, 1956. In respect of assets purchased during the year, depreciation is charged on a pro-rata basis from the date of acquisition.

The company has used the following rates to provide depreciation on its Fixed Assets: Rates (%) WDV

Buildings 5.00

Furnitures & Fixtures 18.10

Vehicles 25.89

Computer 40.00

Assets costing less than Rs. 5,000 each are fully depreciated in the year of capitalisation

1.5 Impairment of Assets:

The carrying values of assets at each Balance Sheet date are reviewed for Impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised in the Statement of Statement of Profit and Loss, if the carrying amount of these assets exceeds their recoverable amount. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.6 Revenue Recognition:

All income and expenses are accounted on accrual basis except in case of dividend, which is accounted when the owner's right to receive payment is established i.e. usually when it is received. Interest income including interest on securities is accounted on time proportion basis and wherever it is not ascertainable, It is accounted as and when it is received.

1.7 Expenditure:

Expenses are accounted on accrual basis and provisions are made for all known losses & liabilities.

1.8 Earnings per share:

Basic earnings per share Is computed by dividing the profit / (loss) after tax (Including the post tax effect of extraordinary Items, If any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share Is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, If any) as adjusted for dividend. Interest and other charges to expense or Income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per Share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.9 Taxes on Income:

Tax expense comprises current and deferred tax. Current tax is the amount of tax payable on the taxable income for the year as determined in according with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in a year Is charged to the Statement of Profit and Loss as current tax. MAT paid in accordance with the tax laws, which gives future economic benefits In the form of adjustment to future Income tax liability, is considered as an asset If there is convincing evidence that the Company will pay normal income tax during the specified period, the period for which MAT credit is allowed to be carried forward In the year in which the company recognises MAT credit as an asset In accordance with the Guidance Note on accounting for credit available In respect of Minimum Alternative Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as 'MAT Credit Entitlement'. The company reviews the 'MAT Credit Entitlement' asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

Deferred tax Is recognized, subject to the considerations of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal In one or more subsequent period. Deferred tax assets are not recognized on unabscrbed depredation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.10 Investments:

Investments, which are readily realisable and intended to be held for not more than 1 year from the date of such investments are made, are classified as current Investments. Any other Investment other than stated above are classified as non-current investments.

Cost of investments include acquisition charges such as brokerage, fees and duties.

Current investments are carried individually, at the lower of cost and fair value.

Non-current investments (excluding Investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such Investments.

1.11 Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognized when there is a present obligation as a result of past events and It Is probable that an outflow of resources will be required to settle the obligation In respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the notes.

1.12 Segment reporting:

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.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been Identified to segments on the basis of their relationship to the operating activities of the segment

inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

expenses, assets and which relate to the company as a Whole and are not allocable to segments on reasonable basis have been Included under "unallocated revenue / expenses / assets / liabilities".

1.13 Employee benefits

Employee benefits Include provident fund, gratuity fund, compensated absences and post employment medical benefits




Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements:

These financial statements have been prepared in accordance wilh the generally accepted accounting principles In India under the historical cost convention on accual basis. These financial statements have been prepared to comply all material aspects with the accounting standards notified under Section 111 (3d [Companies (Accounting Standards) rules, 2006, as amended and the other relevant provisions of the Companies Act 19S6.

The accounting policies adopted In the preparation of the said financial statements are consistent with those of previous year except for the change In accounting policies arising out of revision of Schedule VI

1.2 Use of estimates:

The preparation of the financial statements In conformity with Indian GAAP requires the Management to make estimates and assumptions considered In the reported amounts of assets and liabilities (including contingent liabilities! and the reported Income and expenses during the year. The Management believes that the estimates used In preparation of the financial statements are prudent and reasonable, future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods In which Ifte results are known/ materialise.

1.3 Tangible Fined Assets: .

The Fixed Assets are stated at cost of acquisition minus the accumulated depreciation. Cost ts inclusive of Incidental expenses.

1.4 Depreciation and Amortization:

Depreciation on fixed assets is provided on Written Down Value Method and using the rates specified in Schedule KIV of the Companies Act, 1956. In respect of assets purchased during the year, depreciation is charged on a pro-rata basis from the date of acquisition..

1.5 Impairment of Assets:

The carrying values of assets at each Balance Sheet date are reviewed for impairment. If any lndlcation_of Impairment exists, the recoverable amount of such assets Is estimated and impairment Is recognised In the Statement of Statement of Profit and Loss, If the carrying amount of these assets exceeds their recoverable amount. The impairment toss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.6 Revenue Recognition:

All Income and expenses are accounted on accrual basis except In case of dividend, which Is accounted when the owner''s right to receive payment is established I.e. usually when It is received. Interest income Including Interest on securities Is accounted on time proportion basis and wherever It Is not ascertainable, it is accounted as and when it Is received.

1.7 expenditure:

Expense: are accounted on accrual basis and provisions are made for all known losses & liabilities.

1.8 Earnings per share:

Basic earnings per share Is computed by dividing the profit / (loss) after tax-(Including the post tax effect of extraordinary Items, If any] by the weighted average number of equity shares outstanding during the year. Diluted earnings per share Is computed by dividing the profit/ (loss] after tax (including the post tax effect of extraordinary items, il any) as adjusted for dividend, Interest and other charges to expense or Income relating to the dilutive potential equity sharps, by the weighted average number of equity shares considered for deriving basic earnings per share and Ihe weighted average number of equity shares which could have been Issued an the conversion of all dilutive potential equity shares.

1.9 Taxes on Income:

Tax expense comprises current and deferred tax. Current tax is the amount of tax payable on the taxable Income Tor the year as determined In according with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid In a year Is charged to the Statement of Profit and Loss as current tax. MAT paid In accordance with the tax laws, which gives future economic benefits In the form of adjustment to future Income tax liability. Is considered as an asset (I there is convincing evidence that the Company will pay normal Income tax during the specified period. I.e., the period for which MAT credit is allowed to be carried forward in the year in which the company recognises MAT credit as an asset In accordance with the Guidance Note on accounting for credit available In respect of Minimum Alternative Tax under the Income Tox Act, 1S61, the said asset Is created by way of iredit to the Statement of Profit an J Loss and sn own as ''MAT Credit Entitlement'', The company reviews the ''MAT Credit Entitlement'' asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

Deferred tax Is recogniied, subject to the considerations of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward ef losses unless there is virtual certainty that sufficient future taxable income will Le available against which such deferred tax assets can be lealiied

1.10. Investments:

Investments, which are readily realisable and intended to be held for not more than 1 year from the date of such investments are rri3de, are classified as current investments. Any other Investment other than stated above are classified as non-current Investments.

Cost of Investments Include acquisition charges such as brokerage, fees and duties.

Current Investments are carried individually, at the lower of cost and fair value.

Non-current Investments (excluding investment properties), are carried Individually at cost less provision for diminution, other than temporary. In the value of such Investments.

1.11 Provisions, Contingent Liabilities and Contingent Assets:

Provision Is recognized when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect nf which a reliable estimate can be made. Provisions (excluding retirement benefits] are noi discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the notes.

1.12 Segment reporting:

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.

The accounting policies adopted for segment reporting are In line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been Identified to segments on the basis of their relationship to the operating activities of the segment

Inter-segment revenue Is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under ''unallocated revenue / expenses / assets / liabilities".

1.13 Employee benefits

Employee benefits include provident fund, gratuity fund, compensated absences and post employment medical benefits


Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements:

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended), the relevant provisions of the Companies Act, 1956,other pronouncements of ICAI and guidelines issued by SEBI as applicable. The said financial statements have been prepared under historical cost convention and on an accrual basis.

The accounting policies adopted in the preparation of the said financial statements are consistent with those of previous year except for the change in accounting policies arising out of revision of Schedule VI

a. Presentation and disclosure of financial statements:

During the year ended 31st March, 2012, the Revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company, for preparation and presentation of its financial statements. Though 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 therefore reclassified the previous year figures in accordance with the revised Schedule VI as applicable in the current year.

1.2 Use of estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Tangible Fixed Assets:

The Fixed Assets are stated at cost of acquisition minus the accumulated depreciation. Cost is inclusive of incidental expenses.

1.4 Depreciation and Amortization:

Depreciation on fixed assets is provided on Written Down Value Method and using the rates specified in Schedule XIV of the Companies Act, 1956. In respect of assets purchased during the year, depreciation is charged on a pro-rata basis from the date of acquisition.

The company has used the following rates to provide depreciation on its Fixed Assets :

Rates (%) WDV

Buildings 10.00

Furnitures & Fixtures 18.10

Vehicles 25.89

Computer 40.00

Assets costing less than Rs 5,000 each are fully depreciated in the year of capitalisation

1.5 Impairment of Assets:

The carrying values of assets at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised in the Statement of Statement of Profit and Loss, if the carrying amount of these assets exceeds their recoverable amount. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.6 Revenue Recognition:

All income and expenses are accounted on accrual basis except in case of dividend, which is accounted when the owner's right to receive payment is established i.e. usually when it is received. Interest income including interest on securities is accounted on time proportion basis and wherever it is not ascertainable, it is accounted as and when it is received.

1.7 Expenditure:

Expenses are accounted on accrual basis and provisions are made for all known losses & liabilities.

1.8 Earnings per share:

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. '

1.9 Taxes on Income:

Tax expense comprises current and deferred tax. Current tax is the amount of tax payable on the taxable income for the year as - determined in according with the provisions of the Income Tax Act, 1961. Current Income tax relating to items recognised directly in equity is recognised in equity and not in the Statement of Profit & Loss.

Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. MAT paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward in the year in which the company recognises MAT credit as an asset in accordance with the Guidance Note on accounting for credit available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as 'MAT Credit Entitlement1. The company reviews the 'MAT Credit Entitlement' asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

Deferred tax is recognized, subject to the considerations of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.10 Investments:

Investments, which are readily realisable and intended to be held for not more than 1 year from the date of such investments are made, are classified as current investments. Any other investment other than stated above are classified as non-current investments.

Cost of investments include acquisition charges such as brokerage, fees and duties.

Current investments are carried individually, at the lower of cost and fair value.

Non-current investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

1.11 Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognized when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect" of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the notes.

1.12 Segment reporting:

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.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

1.13 Employee benefits

Employee benefits include provident fund, gratuity fund, compensated absences and post employment medical benefits

a) Terms/rights attached to Equity Shares

The Company has only one class of Equity shares having a par value of Rs.10/- each share. Each holder of Equity Shares is entitiled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

The Board of Directors at its meeting held on 30.05.2012 recognised as Rs 2/- (Rupees Two Only) per share as distribution to equity shareholders subject to the approval at the ensuing Annual General Meeting. If approved dividend for the financial year 2011-12 will be Rs 2/- per share (Previous year Rs 2/-). The total Equity dividend appropriation for the year ended 31st March, 2012 amounted to Rs 4,35,137/- including corporate dividend tax of Rs 60,737/-(Previous year Rs 4,35,137/- including corporate dividend tax Rs 60,737/-)

In the event of the liquidation of the Company and in accordance with the Companies Act 1956, the holders of equity shares will be entitiled to receive remaining asssets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.


Mar 31, 2011

A. Basis for preparation of financial statements:

The financial statements have been prepared under the historical convention in accordance with Generally Accepted Accounting Principals (GAAP) and the provisions of the Companies Act, 1956 and adopted consistently by the Company. All income and expenditure having a material bearing on the Financial Statements are recognised on accrual basis.

B) Fixed Assets - Tangible and Intangible

Fixed Assets are stated at cost of acquisition less the accumulated depreciation.

C) Depreciation.

Depreciation is provided under the Written Down Value Method at the rates specified in schedule XIV of the Companies Act, 1956. In respect of assets purchased during the year, depreciation is charged on pro rata basis from the date of acquisition.

Assets costing less than Rs.5000/- are fully charged to the Profit and Loss Account in the year and acquisition.

D) Impairment of Fixed Assets:

At the Balance Sheet date, the management periodically assesses using external And internal sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceed the present value of cash flow expected to arise from the continuing use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of asset is lower than the carrying amount.

An assessment is also done at each Balance sheet date whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased. If any such indication exists the asset's recoverable amount is estimated. The carrying amount of the fixed asset is increased to the revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss is recognized in the Profit and Loss Account.

After recognition of an impairment loss or reversal of an impairment loss as applicable, the depreciation charge for the asset is adjusted in future periods to allocate the asset's carrying amount, less its residual value (if any), over its remaining useful life.

E) Investments:

Long term investments are stated at cost of acquisition and related expenses such as brokerage and stamp duty. The Provisions for diminution in the value of long term investments is made to recognize a decline wherever required.

F) Inventory: Closing Stock of goods is valued on weighted Average Cost Formula.

G) Revenue Recognition:

i) Sales of traded goods are:

a) Net of trade discount

b) Exclusive of sales tax

c) Recognized on dispatch of goods

ii) Dividend income is accounted as and when it is declared and received.

iii) Interest income including interest on securities is accounted on time proportion basis and wherever it is not ascertainable, it is accounted as and when it is received.

H) Expenses:

Expenses are accounted on accrual basis.

I) Proposed Dividend:

Dividend recommended by the Board of Director's is provided for in the accounts, pending approval at the Annual General Meeting.

J) Taxes on Income:

Current Tax is provided on the basis tax liability computed as per applicable provisions of the Income tax Act, 1961.

K) Deferred Taxation:

Income tax expenses comprise of current tax and deferred tax charge of credit. The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets /liabilities are reviewed as at each Balance Sheet date based on developments during the year and available case laws, to reassess realisation of assets/liabilities.

L) Transactions in Foreign Exchange:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transactions. Transactions not covered by forward exchange rates and outstanding at year end are translated at exchange rates prevailing at the year end and the profit/loss so determined and also the realised exchange gains/losses are recognised in the Profit and Loss Account.

N) Contingent Liability:

Claims against the company not acknowledged as debts. Tax matters in dispute under appeal: Rs.3,78,621/-.

Policies relating to accounting standards issued by the Institute of Chartered Accountants and also referred to in Section 211(3C) and other relevant provisions of the Companies Act 1956 in respect of AS7: Construction Costs, AS11: Transaction in Foreign Exchange, AS12: Government grants, ASM: Accounting for amalgamations, AS 15: Employee Benefits, AS 16: Borrowing Costs, AS 19: Leases, AS24: Discounting Operations, AS27: Financial Reporting of Interest in Joint Ventures are not stated as the same is not applicable as on the date of Balance Sheet.


Mar 31, 2010

A. Basis for preparation of financial statements:

The financial statements have been prepared under the historical convention in accordance with Generally Accepted Accounting Principals (GAAP) and the provisions of the Companies Act, 1956 and adopted consistently by the Company. All income and expenditure having a material bearing on the Financial Statements are recognised on accrual basis.

B) Fixed Assets - Tangible & Intangible

Fixed Assets are stated at cost of acquisition less the accumulated depreciation.

C) Depreciation.

Depreciation is provided under the Written Down Value Method at the rates specified in schedule XIV of the Companies Act, 1956. In respect of assets purchased during the year, depreciation is charged on pro rata basis from the date of acquisition.

Assets costing less than Rs.5000/- are fully charged to the Profit and Loss Account in the year and acquisition.

D) Impairment of Fixed Assets:

At the Balance Sheet date, the management periodically assesses using external & internal sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceed the present value of cash flow expected to arise from the continuing use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of asset is lower than the carrying amount.

An assessment is also done at each Balance sheet date whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased. If any such indication exists the assets recoverable amount is estimated. The carrying amount of the fixed asset is increased to the revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss is recognized in the Profit and Loss Account.

After recognition of an impairment loss or reversal of an impairment loss as applicable, the depreciation charge for the asset is adjusted in future periods to allocate the assets carrying amount, less its residual value (if any), over its remaining useful life.

E) Investments:

Long term investments are stated at cost of acquisition and related expenses such as brokerage and stamp duty. The Provisions for diminution in the value of long term investments is made to recognize a decline wherever required.

F) Inventory:

Closing Stock of goods is valued on weighted Average Cost Formula.

G) Revenue Recognition:

i) Sales of traded goods are:

a) Net of trade discount

b) Exclusive of sales tax

c) Recognized on dispatch of goods

ii) Dividend income is accounted as and when it is declared & received.

iii) Interest income including interest on securities is accounted on time proportion basis and wherever it is not ascertainable, it is accounted as and when it is received.

H) Expenses:

Expenses are accounted on accrual basis.

I) Proposed Dividend:

Dividend recommended by the Board of Directors is provided for in the accounts, pending approval at the Annual General Meeting.

J) Taxes on Income:

Current Tax is provided on the basis tax liability computed as per applicable provisions of the Income tax Act, 1961.

K) Deferred Taxation:

Income tax expenses comprise of current tax and deferred tax charge of credit. The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets /liabilities are reviewed as at each Balance Sheet date based on developments during the year and available case laws, to reassess realisation of assets/liabilities.

L) Transactions in Foreign Exchange:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transactions. Transactions not covered by forward exchange rates and outstanding at year end are translated at exchange rates prevailing at the year end and the profit/loss so determined and also the realised exchange gains/losses are recognised in the Profit and Loss Account.

N) Contingent Liability:

Claims against the company not acknowledged as debts. Tax matters in dispute under appeal: Rs.16,84,099/-.

Policies relating to accounting standards issued by the Institute of C.A. and also referred to in Section 211(3C) and other relevant provisions of the Companies Act 1956 in respect of AS7: Construction Costs, AS11: Transaction in Foreign Exchange, AS 12: Government grants, AS15: Employee Benefits, AS16: Borrowing Costs, AS19: Leases, AS24: Discounting Operations, AS27: Financial Reporting of Interest in Joint Ventures are not stated as the same is not applicable as on the date of Balance Sheet.

O) Amalgamation:

Amalgamtion of Jatayu Investments Limited

(a) Pursuant to the scheme of Amalgamation (the Scheme) of the erstwhile Jatayu Investments Ltd. (JIL) with the Company sanctioned by the Honble High Court of Mumbai on 16th October, 2009, the assets and liabilities of the erstwhile JIL were transferred to and vested with the Company with retrospective effect from April 1, 2009. The scheme has accordingly been given effect to in these accounts.

(b) The operations of JIL include the Trading and Investments in shares and securities.

(c) The amalgamation has been accounted for under the " Polling of interest " method as prescribed by Accounting Standard (AS-14) issued by the Institute of Chartered Accountant of India. Accordingly, the assets, liabilities and other reserves of the erstwhile JIL as of April 1, 2009, have been taken over at their book values subject to adjustments made for the differences in the accounting policies between the two companies, and/or as specified in the scheme. Accordingly, Rs.4,96,000/- has been adjusted to the General Reserve taken over.

(d) The investment of 50,400 equity shares of the face value of Rs. 10/- each held by the Company in erstwhile JIL stand extinguished.

(e) Pursuant to the scheme of amalgamation no shares were to be allotted to the transferor company. Hence the capital of JIL stands extinguished.

 
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