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Accounting Policies of Garodia Chemicals Ltd. Company

Mar 31, 2015

A) Basis of Accounting:

The Company follows the accrual system of accounting except gratuity and leave encashment i) benefits to employees.

ii) The financial statements are based on historical cost convention.

b) Fixed Assets :

i) Fixed Assets are stated at cost less accumulated depreciation.

ii) Capitalization of construction period expenses :

Direct expenses as well as clearly identifiable indirect expenses, incurred on project during the period of construction are capitalized proportionately to respective assets.

c) Depreciation

Depreciation is provided on the fixed assets on straight line method in the manner specified in schedule II to the Companies Act, 2013.

d) Inventories :

Inventories are valued at lower of the cost and net realizable value.

e) Investments :

Investments are stated at cost.

f) Revenue Recognition:

i) Revenue from sale of goods and steam is recognized when the substantial risk and rewards of ownership are transferred to the buyer under the terms of the contract.

ii) Other items of income are accounted as and when right to receive arises.

g) Provision for Taxation :

Provision for tax is made on both current and deferred taxed. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax liabilities arising on account of timing difference and which are capable of reversals in subsequent period are provided using tax rates and tax laws that have been enacted or subsequently enacted.


Mar 31, 2014

A) Basis of Accounting:

The Company follows the accrual system of accounting except gratuity and leave encashment

i) benefits to employees.

ii) The financial statements are based on historical cost convention.

b) Fixed Assets :

i) Fixed Assets are stated at cost less accumulated depreciation.

ii) Capitalisation of construction period expenses :

Direct expenses as well as clearly identifiable indirect expenses, incurred on project during the period of construction are capitalised proportionately to respective assets.

c) Depreciation

Depreciation is provided on the fixed assets at the rates and in the manner specified in schedule XIV to the Companies Act, 1956 on straight line method.

d) Inventories :

Inventories are valued at lower of the cost and net realisable value. The cost has been determined as under:

e) Investments :

Investments are stated at cost.

f) Revenue Recognition:

i) Revenue from sale of goods and steam is recognized when the substantial risk and rewards of ownership are transferred to the buyer under the terms of the contract.

ii) Interest income is accured at applicable rate.

iii) Other items of income are accounted as and when right to receive arises.

g) Foreign Currency Transactions :

i) Foreign currency transactions are recorded at the exchange rate prevailing at the time of transactions.

ii) Current assets and Current liabilites are converted at the prevailing year end rate.

iii) Exchange Flutuation on account of acquisition of Fixed Assets is adjusted to carrying cost of Fixed Assets. Other fluctuation difference is adjusted In the profit and loss account.

h) Provision for Taxation :

Provision for tax is made on both current and deferred taxed. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax liabilites arising on account of timing difference and which are capable of reversals in subsequent period are provided using tax rates and tax laws tha have been enacted or subsequently enacted.


Mar 31, 2012

A) Basis of Accounting:

i) The Company follows the accrual system of accounting except gratuity and leave encashment benefits to employees.

ii) The financial statements are based on historical cost convention.

b) Fixed Assets :

i) Fixed Assets are stated at cost less accumulated depreciation.

ii) Capitalisation of construction period expenses :

Direct expenses as well as clearly identifiable indirect expenses, incurred on project during the period of construction are capitalised proportionately to respective assets.

c) Depreciation

Depreciation is provided on the fixed assets at the rates and in the manner specified in schedule XIV to the Companies Act, 1956 on straight line method.

d) Inventories:

Inventories are valued at lower of the cost and net realisable value. The cost has been determined as under:

i) Raw Materials - at cost-( FIFO basis.)

ii) Finished Products and Stock-in-process - at Raw Material cost adding proportionate ’conversion cost.

iii) Traded goods at cost-( FIFO basis).

e) INVESTMENTS:

Investments are stated at cost.

f) SALES:

Sales comprise of value of sale of goods excluding Sales tax but including excise duty.

g) FOREIGN CURRENCY TRANSACTIONS :

i) Foreign currency transactions are recorded at the exchange rate prevailing at the time of transactions.

ii) Current assets and Current liabilites are converted at the prevailing year end rate

iii) Exchange Flutuation on account of acquisition of Fixed Assets is adjusted to carrying cost of Fixed Assets. Other fluctuation difference is adjusted In the profit and loss account.

h) Provision for Taxation :

Provision for tax is made on both current and deferred taxed. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax liabilities arising on account of timing difference and which are capable of reversals in subsequent period are provided using tax rates and tax laws tha have been enacted or subsequently enacted.


Mar 31, 2011

A) BASIS OF ACCOUNTING:

I) The Company follows the accrual system of accounting except gratuity and leave encashment benefits to employees.

ii) The financial statements are based on historical cost convention.

B) FIXED ASSETS:

I) Fixed Assets are stated at cost less accumulated depreciation.

Capitalisation of construction period expenses :

Direct expenses as well as clearly identifiable indirect expenses, incurred on project during the period of construction are capitalised proportionately to respective assets.

C) DEPRECIATION :

Depreciation is provided on the fixed assets at the rates and in the manner specified in schedule XIV to the Companies Act, 1956 on straight line method.

D) INVENTORIES:

Inventories are valued at lower of the cost and net realisable value. The cost has been determined as under:

I) Raw Materials - at cost-( FIFO basis.)

II) Finished Products and Stock-in-process - at Raw Material cost adding proportionate 'conversion cost.

III) Traded goods at cost-( FIFO basis).

E) INVESTMENTS:

Investments are stated at cost.

F) SALES:

Sales comprise of value of sale of goods excluding Sales tax but including excise duty.

G) FOREIGN CURRENCY TRANSACTIONS :

I) Foreign currency transactions are recorded at the exchange rate prevailing at the time of transactions.

II) Current assets and Current liabilities are converted at the prevailing year end rate.

III) Exchange Fluctuation on account of acquisition of Fixed Assets is adjusted to carrying cost of Fixed Assets. Other fluctuation difference is adjusted In the profit and loss account.

H) Provision for Taxation:


Mar 31, 2010

A) Basis of Accounting:

I) The Company follows the accrual system of accounting except gratuity and leave encashment benefits to employees.

ii) The financial statements are based on historical cost convention.

B) FIXED ASSETS:

I) Fixed Assets are stated at cost less accumulated depreciation.

II) Capitalisation of construction period expenses :

Direct expenses as well as clearly identifiable indirect expenses, incurred on project during the period of construction are capitalised proportionately to respective assets.

C) DEPRECIATION:

Depreciation is provided on the fixed assets at the rates and in the manner specified in schedule XIV to the Companies Act, 1956 on straight line method.

D) INVENTORIES:

Inventories are valued at lower of the cost and net realisable value. The cost has been determined as under:

I) Raw Materials - at cost-( FIFO basis.)

II) Finished Products and Stock-in-process - at Raw Material cost adding proportionate 'conversion cost.

III) Traded goods at cost-( FIFO basis). ¦'

E) INVESTMENTS:

Investments are stated at cost.

F) SALES:

Sales comprise of value of sale of goods excluding Sales tax but including excise duty.

G) FOREIGN CURRENCY TRANSACTIONS :

I) Foreign currency transactions are recorded at the exchange rate prevailing at the time of transactions.

II) Current assets and Current liabilities are converted at the prevailing year end rate.

III) Exchange Fluctuation on account of acquisition of Fixed Assets is adjusted to carrying cost of Fixed Assets. Other fluctuation difference is adjusted In the profit and loss account.

H) Provision for Taxation :

1) Provision for tax is made on both current and deferred taxed. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax liabilities arising qp account of timing difference and which are capable of reversals in subsequent period are provided using tax rates and tax laws tha have been enacted or subsequently enacted.

2) As per the agreement for Assignment of Debt executed on 13th July, 2007 between IDBI (Assignor) and Aaskha Holding Pvt Ltd (Assignee). IDBI has transferred it's rights of the amount receivable from the company to the assignee, Consequently the amount payable as per Books of Accounts of the company to the IDBI, have been transferred in the name of the assignee i.e. Aaskha Holdings Pvt Ltd.

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