Mar 31, 2023
Significant accounting policies
Fischer Chemic Limited (the company) was incorporated in India in the year 1993 as public limited company and is
listed on Bombay stock exchange having its registered office at 104,1st Floor, Raghuleela Mega Mall, Poisar Depot,
Kandivali, Mumbai - 400067. The company''s main object is trading in chemicals and machineries and commission &
brokerage
(i) Compliance with Ind AS
The company has prepared financial statements which comprise the Balance Sheet as at 31 March, 2023, the Statement of
Profit and Loss for the year ended 31 March, 2023, the Statement of Cash Flows for the year ended 31 March, 2023 and
the Statement of Changes in Equity for the year ended as on that date, and accounting policies and other explanatory
information for the year ended March 31, 2023 in accordance with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards)Rules, 2015 and other
relevant provisions of the Act together with comparative period data as at and for the year ended March 31, 2022.
(ii) Historical Cost Convention
The financial statements have been prepared on a historical cost basis.
(iii) Current versus Non-Current Classification
The Company presents assets and liabilities in the standalone balance sheet based on current/ noncurrent classification.
An asset is treated as current when it is:
i. Expected to be realised or intended to be sold or consumed in normal operating cycle,
ii. Held primarily for the purpose of trading,
iii. Expected to be realised within twelve months after the reporting period, or
iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period
All other assets are classified as non-current.
A liability is current when:
i. It is expected to be settled in normal operating cycle,
ii. It is held primarily for the purpose of trading,
iii. It is due to be settled within twelve months after the reporting period, or
iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
Operating cycle for current and non-current classification
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.
Revenue from contracts with customers is recognised when control of the goods and services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those
goods or services.
Allocation of transaction price to performance obligations - A contract''s transaction price is allocated to each distinct
performance obligation and recognised as revenue, when, or as, the performance obligation is satisfied. To determine the
proper revenue recognition method, the Company evaluate whether two or more contracts should be combined and
accounted for as one single contract and whether the combined or single contract should be accounted for as more than
one performance obligation. This evaluation requires significant judgment; mostly the Company''s contracts have a single
performance obligation as the promise to transfer the individual services is not separately identifiable from other
promises in the contracts and. therefore, not distinct.
(iii) Interest Income
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable
interest rate.
(iv) Dividend Income
Dividend Income from investments is recognized when the Company''s right to receive the amount has been established
(provided that it is probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably) which is generally when shareholder approves the dividend and it is probable that economic benefit
associated with the dividend will flow to the company and the amount of dividend can be measured reliably.
The tax expense for the period comprises current tax and deferred income tax. Tax is recognized in the statement of
income except to the extent it relates to items directly recognized in equity or in other comprehensive income.
(i) Current Tax:
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.
(ii) Deferred Tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognized to the extent it is probable that taxable profit will be available against which the
deductible temporary difference and the carry forward of unused tax credit and unused tax losses, if any, can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of
each reporting period.
(iii) Minimum Alternate Tax: MAT credit is recognised as an asset only when and to the extend there is convincing
evidence that company will pay higher than the computed under MAT, during the period that MAT is permitted to be
set off under the Income Tax Act, 1961.
For the purposes of presentation in the statement of cash flows, cash and cash equivalents include cash on hand, in banks
and other short-term highly liquid investments with original maturities of three months or less that is readily convertible
to known amounts of cash and which are subject to insignificant risk of change in value.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment, if any.
f. Financial instruments
i) Financial Assets
A. Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss transaction costs that are attributable to the acquisition of the financial asset. Purchase and sale of
financial assets are recognised using trade date accounting.
a) Financial assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
b) Financial assets at fair value through other comprehensive income (FVOCI)
A financial asset is measured at FVOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
c) Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL.
All other equity investments are measured at fair value, with value changes recognised for those equity investments for
which the Company has elected to present the value changes in ''Other Comprehensive Income''.
D. Impairment of financial assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are
not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is
measured at an amount equal to lifetime ECL. The amount of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an
impairment gain or loss in profit or loss.
(ii)Financial liabilities
A. Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring
nature are directly recognised in the Statement of Profit and Loss as finance cost.
B. Subsequent measurement
(i) Trade and other payables:
These amounts represent liabilities for goods and services provided to the company prior to the end of financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They
are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest
method.
(ii) Loans and borrowings:
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the
Effective Interest Rate (EIR) amortisation process. The EIR amortisation is included as finance costs in the statement of
profit and loss. This category generally applies to borrowings.
Mar 31, 2014
(a) The company follows the accural system of accounting in accordance
with the requirement of the Companies Act, 1956 and complies with the
accounting standards referred to in sub- section 211 of the said Act.
(b) The accounts are prepared on historical cost basis and on the basis
of going concern. Accounting policies not specifically referred to
otherwise are consistent with generally accepted accounting
priniciples.
Mar 31, 2012
A. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost
convention on the accrual basis and in accordance with Generally
Accepted Accounting Principles (GAAP) applicable in India, the
Accounting Standards notified under section 211(3C) and other relevant
provisions of the Companies Act, 1956.
b. USE OF ESTIMATES
The preparation of Financial Statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Examples of such estimates include the useful
lives of fixed assets and intangible assets, provision for doubtful
debts/advances, future obligations in respect of retirement benefit
plans, etc. Actual results could differ from these estimates.
Differences between the actual results and estimates are recognized in
the period in which the results are known/ materialized. Management
believes that the estimates used in preparation of financial statements
are prudent and reasonable.
c. FIXED ASSETS:
Fixed Assets are stated at cost less accumulated depreciation. All
significant costs relating to the acquisition and installation of fixed
assets are capitalized. Assets acquired under finance lease are
recognized at the inception of lease at the lower of the fair value or
present value of Minimum Lease payments. The initial direct costs
incurred in connection with the finance lease are recognized as an
assets under the lease.
d. DEPRECIATION AND AMORTISATION:
Depreciation on Fixed Assets has been provided on Straight-line Method
(SLM) at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956 which coincides with the useful life of the assets
as estimated by the management. Depreciation on assets sold/discarded
during the period is proportionately charged. Individual low cost
assets (acquired for less than Rs.5,000/-) are depreciated in the year
of acquisition. Intangible assets are amortized over their estimated
useful life on straight-line basis.
e. INVESTMENTS:
Investments that are readily realizable and intended to be held for not
more than a year are classified as "Current Investments". All other
investments are classified as Long-term investments.
Current Investments are carried at lower of cost or market/fair value
determined on an individual investment basis.
Long Term Investments are valued at cost. Provision for diminution in
the value of long term investment is made only if such decline is other
than temporary in nature.
f. FOREIGN CURRENCY TRANSACTIONS:
Foreign exchange transactions are normally recorded at the exchange
rate prevailing on the date of the respective transaction. Foreign
exchange monetary items in the balance sheet are translated at the
year-end rates. Exchange differences on settlement of/ conversion are
recognized in the Profit or Loss Account.
g. BORROWING COSTS
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to revenue.
h. REVENUE RECOGNITION
i. The Company recognizes revenue on sale of goods when goods are
dispatched to the customers which are when the risk and rewards of the
ownership of the goods pass on to the customers.
ii. Sales are net of discounts and inclusive of Excise Duty and Sales
tax, wherever applicable.
iii. Interest income is recognized on time-proportion basis.
i. INVENTORIES:
Inventories are valued at lower of cost and estimated net realizable
value after providing for cost of obsolescence and other anticipated
losses, wherever considered necessary. Cost includes taxes, duties and
all incidental expenses directly attributable to the purchases. Method
of assignment of cost is as under:
i. Raw Material, Stores and Spares: First in First out Method
ii. Work In Progress: Direct Expenses plus appropriate factory
overheads on the basis of completed production
iii. Finished goods: Cost of goods plus direct expenses plus
appropriate factory overheads
iv. Traded goods: Actual costs
j. EMPLOYEE BENEFITS:
a. Gratuity:
In accordance with the Payment of Gratuity Act, 1972, the company
provides for gratuity, a non-funded defined benefit retirement plan
("Gratuity Plan") covering all employees. The company estimates its
liability on valuation as per the payment of Gratuity Act as of each
year-end balance sheet date and is charged to Profit and Loss Account
in accordance with AS-15 (Revised).
b. Provident Fund/ESI:
(i) The Company's superannuating scheme, State governed provident fund
scheme and employee state insurance scheme are the defined contribution
plans. The company contributes a fixed sum to the Provident Fund/
Employee State Insurance Scheme maintained by the Central Government.
The contribution paid/payable under the schemes is recognized during
the period in which the employee renders the related service.
c. Leave Salary:
In respect of Leave Salary, the same is accounted as and when the
liability arises in accordance with the provision of law governing the
establishment and at each balance sheet date the leave encashment
eligibility is determined and provided for.
k. LEASES:
Finance Lease: Leases which effectively transfer to the company the
entire risks and benefit incidental to ownership of the leased item,
are classified as Finance Lease. Lease rentals are capitalized at the
lower of the fair value and present value of the minimum lease payments
at the inception of the lease term and disclosed as leased assets.
Lease payments are apportioned between finance charges and reduction of
the lease liability based on the implicit rate of return. Finance
charges are charged directly against income life of the assets.
l. TAXES ON INCOME:
Taxes on Income are accrued in the same period as the revenue and the
expenses to which they relate. Deferred tax assets are recognized to
the extent there is a virtual certainty of its realization.
m. GOVERNMENT GRANTS:
Subsidy received from the State Government towards the part of the
project cost has been shown under the head "Reserves and Surplus"
n. EARNINGS PER SHARE:
Earnings considered in ascertaining the Company's earnings per share
comprise of the net profit after tax. The number of shares used in
computing the basic earnings per share is weighted average number of
shares outstanding during the year. The number of shares used in
computing diluted earnings per share comprises the weighted average
share considered for deriving basic earnings per share, and also the
weighted average number of shares, if any, which would have been issued
on the conversion of dilutive potential equity shares, if any.
o. IMPAIRMENT OF ASSETS:
As at Balance Sheet Date, the carrying amount of assets is tested for
impairment so as to determine:
"a. Provision for Impairment Loss, if any, required or"b. The reversal,
if any, required of impairment loss recognized in previous periods.""
Impairment Loss is recognized when the carrying amount of an asset
exceeds its recoverable amount.
p. PROVISIONS:
A provision is recognized when an enterprise has a potential obligation
as a result of past event; 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 are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to the current best estimates.
Mar 31, 2010
A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
The Financial Statements have been prepared under historical cost
conventions on the accrual basis and in accordance with the Generally
Accepted Accounting Principles (ÃGAAP) applicable in India, the
Accounting Standards notified under section 211(3C) and other relevant
provisions of the Companies Act, 1956.
B) USE OF ESTIMATES
The preparation of Financial Statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Examples of such estimates include the useful
lives of fixed assets and intangible assets, provision for doubtful
debts / advances, future obligations in respect of retirement benefit
plans, etc. Actual results could differ from these estimates.
Difference between the actual results and estimates are recognized in
the period in which the results are known/materialized. Management
believes that the estimates used in preparation of financial statements
are prudent and reasonable.
C) FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. All
significant costs relating to the acquisition and installation of fixed
assets are capitalized. Assets acquired under finance lease are
recognized at the inception of lease at the lower of the fair value or
present value of Mnimum Lease Payments. The initial direct costs
incurred in connection with the finance lease are recognized as an
asset under the lease.
D) DEPRECIATION AND AMORTISATION
Depreciation on fixed assets is provided on Straight-line method (SLM)
at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956 which coincides with the useful life of the assets
as estimated by the management. Depreciation of Assets sold / discarded
during the period is proportionately charged. Individual low/cost
assets (acquired for less than Rs 5,000/-) are depreciated in the year
of acquisition. Intangible assets are amortized over their estimated
useful life on a straight-line basis.
E) INVESTMENTS:
Investments that are readily realizable and intended to be held for not
more than a year are classified as ÃCurrent InvestmentsÃ. All other
Investments are classified as Long Term Investments.
Current Investments are carried at lower of cost or Market / Fair Value
determined on an individual investment basis.
Long Term investments are valued at cost. Provision for diminution in
the value of long-term investment is made only if such decline is other
than temporary in nature.
F) FOREIGN CURRENCY TRANSACTIONS
Foreign Exchange transaction is recorded at the rate of exchange
prevailing on the date of the respective transaction. Foreign exchange
monetary items in the Balance Sheet are translated at the year-end
rates. Exchange differences on settlement of / conversion are
recognized in the Profit & Loss account.
G) BORROWING COSTS
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
H) REVENUE RECOGNITION
i. The Company recognizes revenue on sale of goods when the goods are
dispatched to the customers which are when the risk and rewards of the
ownership of the goods pass on to the customers.
ii. Sales are net of discounts and inclusive of Excise duty and Sales
tax, wherever applicable.
iii. Interest income is recognized on time-proportion basis.
I) INVENTORIES
Inventories are valued at lower of cost and estimated net realizable
value after providing for cost of obsolescence and other anticipated
losses, wherever considered necessary. Cost includes taxes, duties and
all incidental expenses directly attributable to the purchases. Method
of assignment of cost is as under
Method of assignment of cost is as under
Raw Material,
Stores & Spares First In First Out Method
Work - in - progress Direct expenses plus appropriate Factory
overheads on the basis of completed production.
Finished Goods Cost of goods, direct expenses plus
appropriate Factory overheads.
Traded Goods Actual cost
J) EMPLOYEE BENEFIT
The companyÃs superannuating scheme, state governed provident fund
scheme and employee state insurance scheme are defined contribution
plans. The company contributes a fixed sum to the Provident Fund /
Employees State Insurance Scheme maintained by the Central Government.
The contribution paid/payable under the schemes is recognised during
the period in which the employee renders the related service.
In accordance with the Payment of Gratuity Act, 1972, the Company
provides for gratuity a non-funded defined benefit retirement plan (the
ÃGratuity PlanÃ) covering all employees. The company estimates its
liability on valuation as per the payment of Gratuity Act as of each
year-end balance sheet date, and is charged to Profit and Loss Account
in accordance with AS-15 (revised).
K) LEASES
Finance Lease
Leases, which effectively transfer to the company the entire risks and
benefits incidental to ownership of the leased item, are classified as
Finance Lease. Lease rentals are capitalized at the lower of the fair
value and present value of the minimum lease payments at the inception
of the lease term and disclosed as leased assets. Lease payments are
apportioned between the finance charges and reduction of the lease
liability based on the implicit rate of return. Finance charges are
charged directly against income life of the assets at the following
rates
Operating Lease
Lease where the lessor effectively retains substantially all risks and
benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss
account on a Straight Line Basis over the Lease term
I) INCOME TAXES
Tax expenses comprises of Current, Deferred and Fringe Benefit Tax
(i) Current income tax is determined as the amount of tax payable in
respect of taxable income for the period computed in accordance with
the Income Tax Act, 1961.
(ii) Deferred Tax is recognized on timing differences between the
accounting income and the taxable income for the reporting period and
is capable of reversal in one or more subsequent periods. Deferred tax
are quantified using the tax rates and laws enacted or substantively
enacted as on the Balance Sheet Date.
(iii) Deferred tax assets are recognized and carried forward only to
the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. Deferred tax asset on unabsorbed depreciation and
carry forward of losses are not recognized unless there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
M) EARNINGS PER SHARE
In determining the Earnings Per share, the company considers the net
profit after tax this includes any post tax effect of any extraordinary
/ exceptional item The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing Diluted
earnings per share comprises the weighted average number of shares
considered for computing Basic Earning per share and also the weighted
number of equity shares that would have been issued on conversion of
all potentially dilative shares.
N) IMPAIRMENT OF ASSETS
At each Balance Sheet date, the carrying values of the tangible and
intangible assets are reviewed to determine whether there is any
indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss.
Where there is an indication of impairment, loss is recognized in the
Profit and Loss account when the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount is the greater of the
assets net selling price and value in use.
Value in use is determined from the Present Value of the estimated
future cash flows from continuing use of the assets. The impairment
loss recognized in prior accounting period is reversed if there is a
change in the estimate of recoverable amount.
O) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSET
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made.
Contingent Liability is disclosed for
a) Possible obligation which will be confirmed only by future events
not wholly with in the control of the company or
b) Present obligations arising from the past events where it is not
probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation can
not be made.
c) Contingent Assets are not recognized in the financial statements
since this may result in the recognition of income that may never be
realized.
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