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Accounting Policies of India Glycols Ltd. Company

Mar 31, 2014

A. REVENUE RECOGNITION

(a) Revenue from the sale of goods is recognized at the time of transfer of substantial risks and reward of ownership to the buyers under the term of contract, usually on the delivery of the goods.

(b) Revenue is recognized based on the nature of the activity to the extent it is probable that the economic benefit will flow to the company and the revenue can be reliably measured with the reasonable certainty of its recovery.

(c) Revenue in respect of Export benefits are recognized on post export basis at the rate at which the entitlement accrues and is included in the turnover.

B. FIXED ASSETS AND DEPRECIATION

(a) (i) All tangible fixed assets are stated at their historical cost less accumulated depreciation. Depreciation

on fixed assets, except on leasehold land, EO Derivative unit is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on additions/disposals is provided with reference to the month of addition/disposal.

(ii) Certain Plant and Machinery considered as continuous process plant based on technical evaluation.

(iii) Leasehold land is amortised over the period of lease.

(b) Intangible assets: Computer software are accounted for at their cost of acquisition and amortised over the estimated useful life i.e. not exceeding six years.

C. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation / construction.

D. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to the Statement of Profit & Loss.

Current Investments are valued at lower of cost or fair value.

E. VALUATION OF INVENTORIES

Inventories are valued ''at lower of cost or net realisable value'' except stock of residual products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

F. FOREIGN EXCHANGE & DERIVATIVE TRANSACTIONS

(a) Foreign currency transactions are recorded at the rate of exchange prevailing at the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the yearend except those covered under firm commitment which are stated at contracted rate. Exchange differences charged to the Statement of Profit & Loss, except arising on account of such conversion related to (i) the purchase of fixed assets is adjusted therewith, and (ii) other long term monetary items is adjusted in the"Foreign Currency Monetary Item Translation Difference".

(b) Transactions covered by derivative contract are adjusted with variations, if any, and are recognised on reinstatement and settlement, except for gains, that are recognised only on settlement. The premium on derivative contract is expensed out over the terms of contract.

G. EMPLOYEES BENEFITS

(a) Defined Contribution Plan:

Employee benefits in the form of Provident Fund (with Government Authorities) are considered as defined contribution plan and the contributions are charged to the Statement of Profit & Loss of the year when the contributions to the respective funds are due.

(b) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and Long term compensated leaves are considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

Actuarial gain/losses, if any, are immediately recognised in the Statement of Profit & Loss.

(c) Other short term absences are provided based on past experience of leave availed.

H. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to Statement of Profit & Loss. Ancillary cost incurred in connection with the borrowings are amortised over the term of loan.

J. PROVISION FOR CURRENT TAX AND DEFERRED TAX

Provision for current tax has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted / substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable / virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. IMPAIRMENT

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

L. USE OF ESTIMATES AND ASSUMPTIONS

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognised in the period in which the results are known / materialised.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

A. REVENUE RECOGNITION

(a) Revenue from the sale of goods is recognized at the time of transfer of substantial risks and reward of ownership to the buyers under the term of contract, usually on the delivery of the goods.

(b) Revenue is recognized based on the nature of the activity to the extent it is probable that the economic benefit will flow to the company and the revenue can be reliably measured with the reasonable certainty of its recovery.

(c) Revenue in respect of Export benefits are recognized on post export basis at the rate at which the entitlement accrues and is included in the turnover.

B. FIXED ASSETS AND DEPRECIATION

(a) (i) All tangible fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land, EO Derivative unit is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on additions/disposals is provided with reference to the month of addition/disposal.

(ii) Certain Plant and Machinery considered as continuous process plant based on technical evaluation.

(iii) Leasehold land is amortised over the period of lease.

(b) Intangible assets: Computer software are accounted for at their cost of acquisition and amortised over the estimated useful life i.e. not exceeding six years.

C. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation / construction.

D. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to the Statement of Profit & Loss.

Current Investments are valued at lower of cost or fair value.

E. VALUATION OF INVENTORIES

Inventories are valued ''at lower of cost or net realisable value'' except stock of residual products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

F. FOREIGN EXCHANGE & DERIVATIVE TRANSACTIONS

(a) Foreign currency transactions are recorded at the rate of exchange prevailing at the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end except those covered under firm commitment which are stated at contracted rate. Exchange differences charged to the Statement of Profit & Loss, except arising on account of such conversion related to (i) the purchase of fixed assets is adjusted therewith, and (ii) other long term monetary items is adjusted in the "Foreign Currency Monetary Item Translation Difference".

(b) Transactions covered by derivative contract are adjusted with variations, if any, and are recognised on reinstatement and settlement, except for gains, that are recognised only on settlement. The premium on derivative contract is expensed out over the terms of contract.

G. EMPLOYEES BENEFITS

(a) Defined Contribution Plan:

Employee benefits in the form of Provident Fund (with Government Authorities) are considered as defined contribution plan and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

(b) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and Long term compensated leaves are considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

Actuarial gain/losses, if any, are immediately recognised in the Statement of Profit and Loss.

(c) Other short term absences are provided based on past experience of leave availed.

H. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to Statement of Profit and Loss. Ancillary cost incurred in connection with the borrowings are amortised over the term of loan.

J. PROVISION FOR CURRENT TAX AND DEFERRED TAX

Provision for current tax has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted / substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable / virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. IMPAIRMENT

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

L. USE OF ESTIMATES AND ASSUMPTIONS

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognised in the period in which the results are known / materialised.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

A. FIXED ASSETS AND DEPRECIATION

(a) (i) All tangible fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land, EO Derivative unit, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on additions/disposals is provided with reference to the month of addition/disposal.

(ii) Certain Plant and Machinery considered as continuous process plant based on technical evaluation.

(iii) Leasehold land is amortized over the period of lease.

(b) Intangible assets: Computer software are accounted for at their cost of acquisition and amortized over the estimated useful life i.e. not exceeding six years.

B. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation / construction.

C. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

Current Investments are valued at lower of cost or fair value.

D. VALUATION OF INVENTORIES

Inventories are valued 'at lower of cost or net realizable value' except stock of residual products and scrap which are valued at net realizable value. The cost is computed on the weighted average basis. In case of finished goods and stock in process, cost is determined by considering material, lab our, related overheads and duties thereon.

E. FOREIGN EXCHANGE & DERIVATIVE TRANSACTIONS

a) Foreign currency transactions are recorded at the rate of exchange prevailing at the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end except those covered under firm commitment which are stated at contracted rate. Exchange difference is charged to the revenue account except arising on account of such conversion related to (i) the purchase of fixed assets is adjusted therewith, and (ii) other long term monetary items is adjusted in the "Foreign Currency Monetary Item Translation Difference".

b) Transactions covered by derivative contract are adjusted with variations, if any, are recognized on reinstatement and settlement whereas gains are recognized only on settlement. The premium on derivative contract is expensed out over the terms of contract.

F. EMPLOYEES BENEFITS

(a) Defined Contribution Plan:

Employee benefits in the form of Provident Fund (with Government Authorities) are considered as defined contribution plan and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

(b) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and Long term compensated leaves are considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

Actuarial gain/losses, if any, are immediately recognized in the Profit and Loss Account.

(c) Other short term absences are provided based on past experience of leave availed.

G. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

H. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalized up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account. Ancillary cost incurred in connection with the borrowings are amortized over the term of loan.

I. PROVISION FOR CURRENT TAX AND DEFERRED TAX

Provision for current tax has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted / substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable / virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.

J. IMPAIRMENT

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

K. USE OF ESTIMATES AND ASSUMPTIONS

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognized in the period in which the results are known / materialized.

L. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

A. FIXED ASSETS AND DEPRECIATION

(a) (i) All tangible fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land, EO Derivative unit, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on additions/disposals is provided with reference to the month of addition/disposal.

(ii) Certain Plant and Machinery considered as continuous process plant based on technical evaluation.

(iii) Leasehold land is amortised over the period of lease.

(b) Intangible assets: Computer software are accounted for at their cost of acquisition and amortised over the estimated useful life i.e. not exceeding six years.

B. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation /construction.

C. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account. Current Investments are valued at lower of cost or fair value.

D. VALUATION OF INVENTORIES

Inventories are valued `at lower of cost or net realisable value' except stock of residual products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

E. FOREIGN EXCHANGE & DERIVATIVE TRANSACTIONS

a) Foreign currency transactions are recorded at the rate of exchange prevailing at the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the yearend except those covered under firm commitment which are stated at contracted rate. Exchange difference is charged to the revenue account except arising on account of such conversion related to (i) the purchase of fixed assets is adjusted therewith, and (ii) other long term monetary items is adjusted in the "Foreign Currency Monetary Item Translation Difference".

b) Transactions covered by derivative contract are adjusted with variations, if any, are recognised on reinstatement and settlement whereas gains are recognised only on settlement. The premium on derivative contract is expensed out over the terms of contract.

F. MANAGEMENT OF RAW MATERIAL (GUAR GUM) PRICES

Risk associated with fluctuation in the prices of Guar Gum (Raw Material) is mitigated by hedging on futures/ options market. The result of this hedging contract/transactions are recorded upon their settlement as part of Raw Material cost. Portion of Cash flow to the extent of underlying transactions having not been completed is carried forward as receivable/payable.

G. EMPLOYEES BENEFITS

(a) Defined Contribution Plan:

Employee benefits in the form of Provident Fund (with Government Authorities) are considered as defined contribution plan and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

(b) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and Long term compensated leaves are considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. Actuarial gain/losses, if any, are immediately recognised in the Profit and Loss Account.

(c) Other short term absences are provided based on past experience of leave availed.

H. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

J. PROVISION FOR CURRENT TAX AND DEFERRED TAX

Provision for current tax has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted /substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable / virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. IMPAIRMENT

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

L. USE OF ESTIMATES AND ASSUMPTIONS

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognised in the period in which the results are known / materialised.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outfow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

Not Available


Mar 31, 2009

A. Fixed Assets and Depreciation

(a) (i) All tangible fixed assets are stated at their historical cost less accumulated depreciation.

Depreciation on fixed assets, except on leasehold land, EO Derivative unit and Catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on additions/disposals is provided with reference to the month of addition/disposal.

(ii) Certain Plant and Machinery considered as continuous process plant based on technical evaluation.

(iii) Leasehold land is amortised over the period of lease.

(b) Intangible assets: Computer software are accounted for at their cost of acquisition and amortised over the estimated useful life i.e. not exceeding six years.

B. Expenditure During Construction

Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation / construction.

C. Investments

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

Current Investments are valued at lower of cost or fair value.

D. Valuation of Inventories

Inventories are valued at lower of cost or net realisable value except stock of residual products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

E. Foreign Exchange & Derivative Transactions

a) Foreign currency transactions are recorded at the rate of exchange prevailing at the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end except those covered under firm commitment which are stated at contracted rate. Exchange difference is charged to the revenue account except arising on account of such conversion related to (i) the purchase of fixed assets is adjusted therewith, and (ii) other long term monetary items is adjusted in the "Foreign Currency Monetary Item Translation Difference".

b) Transactions covered by derivative contract are adjusted with variations, if any, are recognised on reinstatement and settlement where as gains are recognised only on settlement. The premium on derivative contract is expensed out over the terms of contract.

F. Management of Raw Material (Guar Gum) prices

Risk associated with fluctuation in the prices of Guar Gum (Raw Material) is mitigated by hedging on futures/ options market. The result of this hedging contract/transactions are recorded upon their settlement as part of Raw Material cost. Portion of Cash flow to the extent of underlying transactions having not been completed is carried forward as receivable/payable.

G. Employees Benefits

(a) Defined Contribution Plan:

Employee benefits in the form of Provident Fund (with Government Authorities) are considered as defined contribution plan and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

(b) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and Long Term compensated leaves are considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

(c) Other short term absences are provided based on past experience of leave availed. Actuarial gain/losses, if any, are immediately recognised in the Profit and Loss Account.

H. Government Grants

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. Borrowing Cost

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

J. Provision for Current Tax And Deferred Tax

Provision for current tax has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted / substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable / virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. Impairment

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

L. Use of Estimates and Assumptions

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognised in the period in which the results are known / materialised.

M. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2008

A. Fixed Assets And Depreciation

a) i) All tangible fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land, EO Derivative unit and Catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on catalyst is provided on straight line method (SLM) over the technically assessed useful life. Depreciation on additions/disposals is provided with reference to the month of addition/disposal.

ii) Certain Plant and Machinery considered as continuous process plant based on technical evaluation.

iii) Leasehold land is amortised over the period of lease.

b) Intangible assets: Computer software are accounted for at their cost of acquisition and amortised over the estimated useful life i.e. not exceeding six years.

B. Expenditure During Construction

Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation /construction.

C. Investments

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

Current Investments are valued at lower of cost or fair value.

D. Valuation Of Inventories

Inventories are valued at lower of cost and net realisable value except stock of residual products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

E. Foreign Exchange & Derivative Transactions

a) Foreign currency transactions are recorded at the rate of exchange prevailing at the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end except those covered under firm commitment which are stated at contracted rate. Any exchange difference arising on account of such conversion is charged to the revenue account.

b) Transactions covered by derivative contract are adjusted with variations, if any, are recognised on reinstatement and settlement where as gains are recognised only on settlement. The provision on derivative contract is expensed out over the terms of contract.

F. Management of Raw Material (Guar Gum) prices

Risk associated with fluctuation in the prices of Guar Gum (Raw Material) is mitigated by hedging on futures/options market. The result of this hedging contract/transactions are recorded upon their settlement as part of Raw Material cost. Portion of Cash flow to the extent of underlying transactions having not been completed is carried forward as receivable/payable.

G. Employees Benefits

a) Defined Contribution Plan:

Employee benefits in the form of Provident Fund (with Government Authorities) are considered as defined contribution plan and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

b) Defined Benefit Plan:

Retirement benefits in the form of Gratuity, Long Term compensated leaves and Provident Fund (multi- employer plan) are considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

c) Other short term absences are provided based on past experience of leave availed. Actuarial gain/losses, if any, are immediately recognised in the Profit and Loss Account.

H. Government Grants

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. Borrowing Cost

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

J. Provision For Current Tax And Deferred Tax

Provision for current tax has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted / substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable / virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. Impairment

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

L. Use Of Estimates And Assumptions

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognised in the period in which the results are known / materialised.

M. Provisions, Contingent Liabilities And Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2007

A. FIXED ASSETS AND DEPRECIATION

(a) (i) All tangible fixed assets are stated at their

historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land, EO Derivative unit and Catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on catalyst is provided on straight line method (SLM) over the technically assessed useful life. Depreciation on additions/ disposals is provided with reference to the month of addition/disposal.

(ii) Certain Plant and Machinery considered as continuous process plant based on technical evaluation.

(iii) Leasehold land is amortised over the period of lease.

(iv) Depreciation on increase/decrease in value due to foreign exchange fluctuation is provided on straight line method over the residual life of the assets.

(b) Intangible assets: Computer software are accounted for at their cost of acquisition and amortised over the estimated useful life not exceeding six years.

B. EXPENDITURE DURING CONSTRUCTION Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation/ construction.

C INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account. Current Investments are valued at lower of cost or fair value.

D. VALUATION OF INVENTORIES

Inventories are valued at lower of cost and net realisable value except stock of residual products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In case of finished goods and stock in process, cost is

determined by considering material, labour, related overheads and duties thereon.

E. FOREIGN EXCHANGETRANSACTIONS Foreign currency transactions are recorded at the rate of exchange prevailing at the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end except those covered under firm commitment which are stated at contracted rate. The increase/decrease in liability arising in respect of fixed assets acquired from country outside India is adjusted to the cost of fixed asset and in respect of others is charged to the revenue account.

F. MANAGEMENT OF RAW MATERIAL(GUAR GUM) PRICES

Risk associated with fluctuation in the prices of Guar Gum (Raw Material) are mitigated by hedging on futures/options market. The result of this hedging contract/transactions are recorded upon their settlement as part of Raw Material cost. Portion of Cash flow to the extent of underlying transactions having not been completed is carried forward as receivable/payable.

G. RETIREMENT BENEFITS

The Superannuation Scheme is a defined benefit plan, which has been funded and the annual contribution to the fund is expensed. The Gratuity Scheme is a defined benefit plan, which is funded and the liability of accrued gratuity based on actuarial valuation as confirmed is expensed.The liability of leave encashment benefit is accounted for on actuarial basis as at the year end.

H. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

J. PROVISION FOR CURRENTTAX AND DEFERRED TAX

Provision for current tax has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961. Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted / substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is

a reasonable / virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. IMPAIRMENT

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

L. USE OF ESTIMATES AND ASSUMPTIONS

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognised in the period in which the results are known / materialised.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2006

1. ACCOUNTING POLICIES

A. FIXED ASSETS AND DEPRECIATION

(a) (i) All tangible fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land, EO Derivative unit and Catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on catalyst is provided on straight line method (SLM) over the technically assessed useful life. Depreciation on additions/disposals is provided with reference to the month of addition/disposal, (ii) Certain Plant and Machinery considered as continuous process plant based on technical evaluation, (iii) Leasehold land is amortised over the period of lease, (iv) Depreciation on increase/decrease in value due to foreign exchange fluctuation is provided on straight line method over the residual life of the assets.

(b) Intangible assets: Computer software arc accounted for at their cost of acquisition and amortised over the estimated useful life not exceeding six years.

B. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation/construction.

C. INVESTMENTS

Long term investments arc stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

Current Investments arc valued at lower of cost or fair value.

D. VALUATION OF INVENTORIES

Inventories are valued `at lower of cost and net realisable value' except stock of residual products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

E. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end except those covered under firm commitment which are stated at contracted rate. The increase/decrease in liability arising in respect of fixed assets acquired from country outside India is adjusted to the cost of fixed asset and in respect of others is charged to the revenue account.

F. RETIREMENT BENEFITS

The Superannuation Scheme is a defined benefit plan, which has been funded and the annual contribution to the fund is expensed. The Gratxiity Scheme is a defined benefit plan, which is funded and the liability of accrued gratuity based on actuarial valuation as confirmed is expensed. The liability of leave encashment benefit is accounted for on actuarial basis as at the year end.

G. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

H. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

I. PROVISION FOR CURRENT TAX AND DEFERRED TAX

Provision for current tax has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted/substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable/virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

J. IMPAIRMENT

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

K. USE OF ESTIMATES AND ASSUMPTIONS

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates arc recognised in the period in which the results are known/materialised.

L. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities arc not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2005

1. ACCOUNTING POLICIES

A. FIXED ASSETS AND DEPRECIATION

(i) All tangible fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land, EO Derivative unit and Catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on catalyst is provided on straight line method (SLM) over the technically assessed useful life. Certain Plant and Machinery considered as continuous process plant based on technical evaluation. Depreciation on additions/disposals is provided with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value due to foreign exchange fluctuation is provided on straight line method over the residual life of the assets.

(ii) Intangible assets : Computer software are accounted for at their cost of acquisition and amortised over the estimated useful life not exceeding six years.

B. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is being included under capital work-in progress and the same is allocated to fixed assets on completion of installation/construction.

C. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value , the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

D. VALUATION OF INVENTORIES

Inventories are valued `at lower of cost and net realisable value' except stock of residue products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In the case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

E. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

K. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end except those covered under firm commitment which are stated at contracted rate. The increase/decrease in liability arising in respect of fixed assets acquired from country outside India is adjusted to the cost of fixed asset and in respect of others is charged to revenue account.

G. RETIREMENT BENEFITS

The Superannuation Scheme is a defined benefit plan, which has been funded with the Life Insurance Corporation of India (LIC) and the annual contribution to the fund is expensed. The Gratuity Scheme is a defined benefit plan, which is funded with the (LIC) and the liability of accrued gratuity based on actuarial valuation as confirmed by LIC is expensed. The liability of leave encashment benefit is accounted for on actuarial basis as at the year end.

H. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

J. PROVISION FOR CURRENT TAX AND DEFERRED TAX

Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted/substantially enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable/virtual certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. IMPAIRMENT

Where the recoverable amount of fixed assets is lower than its carrying amount, a provision is made for the impairment loss. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life.

L. SALES

Sales are net of rebate and discounts.

M. USE OF ESTIMATES AND ASSUMPTIONS

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognised in the period in which the results are known/materialised.

N. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2003

A. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land, EO Derivative unit and Catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on fixed assets of EO Derivative unit is provided on written down value method (WDV) at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on catalyst is provided on straight line method (SLM) over the technically assessed useful life. Certain Plant and Machinery considered as continuous process plant based on technical evaluation. Depreciation on additions/disposals is provided with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value due to foreign exchange fluctuation is provided on straight line method during the residual life of the assets.

B. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is included under capital work-in progress and the same is allocated to fixed assets on commencement of commercial production.

C. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

D. VALUATION OF INVENTORIES

Inventories are valued 'at lower of cost and net realisable value' except stock of residue products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In the case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

E. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

F. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of in respect of fixed assets is adjusted to the cost of fixed asset and in respect of other is charged to revenue account.

G. RETIREMENT BENEFITS

The liability of superannuation and gratuity is funded. The liability of leave encashment benefit is accounted for on acturial basis.

H. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

J. PROVISION FOR CURRENT TAX AND DEFERRED TAX

Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable certainity that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. Contingent Liabilities are not provided for and are disclosed by way of notes.


Mar 31, 2002

A. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land and catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation rates applicable for continuous process plant as defined therein have been taken on technical assessment. Depreciation on additions/disposals is provided pro rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value of fixed assets due to foreign exchange fluctuation is provided on straight line method during the residual life of the assets. Depreciation on catalyst is provided on straight line method (SLM) over the technically assessed useful life.

B. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is included under capital work-in progress and the same is allocated to fixed assets on commencement of commercial production.

C. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

D. VALUATION OF INVENTORIES

Inventories are valued `at lower of cost and net realisable value except stock of residue products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In the case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

E. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

F. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of in respect of fixed assets is adjusted to the cost of fixed asset and in respect of other is charged to revenue account.

G. RETIREMENT BENEFITS

The liability of superannuation and gratuity is funded. The liability of leave encashment benefit as estimated by the management is accounted on accrual basis.

H. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

J. PROVISION FOR CURRENT TAX AND DEFERRED TAX

Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

Deferred Tax resulting from all timing differences between book profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent that there is a reasonable certainity that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

K. Contingent Liabilities are not provided for and are disclosed by way of notes.


Mar 31, 2001

1. ACCOUNTING POLICIES

A. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land and catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation rates applicable for continuous process plant as defined therein have been taken on technical assessment. Depreciation on additions/disposals is provided pro rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value of fixed assets due to foreign exchange fluctuation is provided on straight line method during the residual life of the assets. Depreciation on catalyst is provided on straight line method over the technically assessed useful life.

B. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is included under capital work-in progress and the same is allocated to fixed assets on commencement of commercial production.

C. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

D. VALUATION OF INVENTORIES

Inventories are valued 'at lower of cost and net realisable value' except stock of residue products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In the case of finished goods and stock in process, cost is determined by considering material, labour, related overheads and duties thereon.

E. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

F. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of in respect of fixed assets is adjusted to the cost of fixed asset and in respect of other is charged to revenue account.

G. RETIREMENT BENEFITS

The liability of superannuation and gratuity is funded. The liability of leave encashment benefit as estimated by the management is accounted on accrual basis.

H. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.

I. BORROWING COST

Interest and other costs in connection with the borrowing of funds are capitalised up to the date when such assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

J. Contingent Liabilities are not provided for and are disclosed by way of notes.


Mar 31, 2000

1. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land and catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation rates applicable for continuous process plant as defined therein have been taken on technical assessment. Depreciation on additions/disposals is provided pro rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value of fixed assets due to foreign exchange fluctuation is provided on straight line method during the residual life of the assets. Depreciation on catalyst is provided on straight line method over the technically assessed useful life.

2. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is included under capital work-in progress and the same is allocated to fixed assets on commencement of commercial production.

3. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

4. VALUATION OF INVENTORIES

Inventories are valued ' at lower of cost and net realisable value' except stock of residue products and scrap which are valued at net realisable value. The cost is computed on the weighted average basis. In the case of finished goods and stock in process, cost is determined by considering material, labour,f related overheads and duties thereon.

5. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development and added to the fixed assets.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of in respect of fixed assets is adjusted to the cost of fixed asset and in respect of other is charged to revenue account.

7. RETIREMENT BENEFITS

The liability of superannuation and gratuity is funded. The liability of leave encashment benefit as estimated by the management is accounted on accrual basis.

8. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses


Mar 31, 1999

1. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land and catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act,1956. Depreciation rates applicable for continuous process plant as defined therein have been taken on technical assessment. Depreciation on additions/disposals is provided pro rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value of fixed assets due to foreign exchange fluctuation is provided on straight line method during the residual life of the assets.

2. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is included under capital work-in progress and the same is allocated to fixed assets on commencement of commercial production.

3. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

4. VALUATION OF INVENTORIES

Raw material, stores, spares and chemicals are valued at weighted average cost inclusive of duties or market price whichever is lower. Finished goods are valued at cost or market price whichever is lower.

Stock-in-process and loose tools are valued at cost.

Stock of residue product and Scrap are valued at market price.

In the case of finished goods & stock in process cost is determined by considering material, labour and related overheads and duties thereon.

5. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Assets and Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of in respect of fixed assets is adjusted hi the cost of fixed asset and in respect of other is charged to revenue account.

7. RETIREMENT BENEFITS

The liability of superannuation and gratuity is funded. The liability (if leave encashment benefit as estimated by the management is accounted on accrual basis.

8. GOVERNMENT GRANTS

Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.


Mar 31, 1998

1. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land and catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation rates applicable for continuous process plant as defined therein have been taken on technical assessment. Depreciation on additions/disposals is provided pro rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value of fixed assets due to foreign exchange fluctuation is provided on straight line method during the residual life of the assets.

2. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is included under capital work-in-progress and the same is allocated to fixed assets on commencement of commercial production.

3. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

4. VALUATION OF INVENTORIES

Raw material, stores, spares and chemicals are valued at weighted average cost or market price whichever is lower. Finished goods are valued at cost or market price whichever is lower.

Stock-in-process and loose tools are valued at cost.

Stock of residue product and Scrap are valued at market price.

In the case of finished goods & stock in process cost is determined by considering material, labour and related overheads.

5. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Loans/Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of in respect of fixed assets is adjusted to the cost of fixed asset and in respect of other is charged to revenue account.

7. RETIREMENT BENEFITS

The liability of superannuation and gratuity is funded. The liability of leave encashment benefit as estimated by the management is accounted on accrual basis.

8. GOVERNMENT GRANTS

Grants are accounted for where it is reasonably certain that the ultimate collection will be made. Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.


Mar 31, 1997

1.FIXED ASSETS AND DEPRECIATION : Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land and catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation rates applicable for continuous process plant as defined therein have been taken on technical assessment. Depreciation on additions/disposals is provided pro-rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value of fixed assets due to foreign exchange fluctuation is provided on straight line method during the residual life of the assets.

2. EXPENDITURE DURING CONSTRUCTION : Expenditure during construction period is included under capital work-in-progress and the same is allocated to fixed assets on commencement of commercial production.

3. INVESTMENTS : Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

4. VALUATION OF INVENTORIES : Raw materials, stores and spare parts are valued at weighted average cost or market price whichever is lower. Finished goods are valued at cost or market price whichever is lower.

Stock-in-process and loose tools are valued at cost. Stock of residue product is valued at market price.

In the case of finished goods & stock in process cost is determined by considering material, labour and related overheads.

Excise duty on finished goods is accounted at the time of clearance.

5. RESEARCH AND DEVELOPMENT : Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

6. FOREIGN EXCHANGE TRANSACTIONS : Foreign Currency Loans/Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of it is adjusted to the cost of fixed assets.

7. RETIREMENT BENEFITS : The liability of superannuation and gratuity is funded. The liability of leave encashment benefit as estimated by the management is accounted on accrual basis.

8. GOVERNMENT GRANTS : a) Grants are accounted for where it is reasonably certain that the ultimate collection will be made.

b) Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.


Mar 31, 1996

1. FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land and catalysts, is provided in straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation rates applicable for continuous process plant as defined therein have been taken on technical assessment. Depreciation on additions/disposals is provided pro-rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease. Depreciation on increase/decrease in value of fixed assets due to foreign exchange fluctuation is provided on straight line method during the residual life of the assets.

2. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is included under capital work-in-progress and the same is allocated to fixed assets on commencement of commercial production.

3. INVESTMENTS

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on individual investment basis and is charged to Profit & Loss Account.

4. VALUATION OF INVENTORIES

Raw material, stores, spares and chemicals are valued at weighted average cost or market price whichever is lower. Finished goods are valued at cost or market price whichever is lower.

Stock-in-process and loose tools are valued at cost.

Stock of residue product is valued at market price.

In the case of finished goods & stock in process cost is determined by considering material, labour and related overheads.

Excise duty on finished goods is accounted at the time of clearance.

5. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Loans/Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of it is adjusted to the cost of fixed assets.

7. RETIREMENT BENEFITS

The liability of superannuation is funded. The liability of gratuity and leave encashment benefit as estimated by the management are accounted on accrual basis.

8. AMORTISATION OF MISCELLANEOUS EXPENDITURE

Preliminary, Share Issue and Deferred Revenue expenses are being amortised in equal instalments in five financial years.

9. GOVERNMENT GRANTS

a) Grants are accounted for where it is wasonably certain that the ultimate collection will be made.

b) Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.


Mar 31, 1995

SIGNIFICANT ACCOUNTING POLICIES

FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except on leasehold land and catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation rates applicable for continuous process plant as defined therein have been taken on technical assessment. Depreciation on additions/disposals is provided pro-rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease.

2. EXPENDITURE DURING CONSTRUCTION

Expenditure during construction period is included under capital work-in-progress and the same is allocated to fixed assets on commencement of commercial production.

3. INVESTMENTS

Investments are stated at cost.

4. VALUATION OF INVENTORIES

Raw material, stores, spares and chemicals are valued at weighted average cost or market price whichever is lower. Finished goods are valued at cost or market price whichever is lower.

Stock-in-process and loose tools are valued at cost.

Stock of residue product is valued at market price.

In the case of finished goods & stock in process cost is determined by considering material, labour and related overheads.

Excise duty on finished goods is accounted at the time of clearance.

5. RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to the Profit & Loss Account of the year in which it is incurred. Capital expenditure on Research and Development is added to the fixed assets.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Loans/Liabilities are converted at the exchange rates prevailing at the year end. The increase/decrease arising out of it is adjusted to the cost of fixed assets.

7. RETIREMENT BENEFITS

Gratuity and Superannuation liabilities are provided on accrual basis.

8. AMORTISATION OF MISCELLANEOUS EXPENDITURE

Preliminary, Share Issue and Deferred Revenue expenses are being amortised in equal instalments in five financial years.

9. GOVERNMENT GRANTS

a) Grants are accounted for where it is reasonably certain that the ultimate collection will be made.

b) Grants in the nature of Project Capital Subsidy are credited to Capital Reserves. Other Government grants are deducted from the related expenses.


Mar 31, 1994

FIXED ASSETS AND DEPRECIATION Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except leasehold land and catalyst, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on additions/disposals is provided pro-rata with reference to the month of addition/disposal Leasehold land is amortised over the period of lease.

EXPENDITURE DURING CONSTRUCTION Expenditure during construction period is included under capital work in progress and the same will be allocated to fixed assets on commencement of commercial production.

VALUATION OF INVENTORIES Raw materials, stores, spares and chemicals are valued at weighted average cost or market price whichever is lower. Finished goods are valued at cost or market price whichever is lower. Stock-in-process and losse tools are valued at cost. Stock of residue product is valued at market price. In the case of finished goods & Stock in process cost is determined by considering material, labour and related overheads. Excise duty on finished goods is accounted at the time of clearance.

FOREIGN EXCHANGE TRANSACTIONS Foreign Currency Loans/Liabilities are converted at the exchange rates prevailing at year end or at forward contract rates wherever covered by forward contracts. The increase/decrease arising out of it is adjusted to the cost of fixed assets.

AMORTISATION OF MISCELLANEOUS EXPENDITURE Preliminary, share issue and Deferred revenue expenses are being amortised in equal instalments in five financial years.


Mar 31, 1993

FIXED ASSETS AND DEPRECIATION Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except leasehold land and catalyst, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. Depreciation on additions/disposals is provided pro-rata with reference to the month of addition/disposal Leasehold land is amortised over the period of lease.

FOREIGN EXCHANGE TRANSACTIONS Foreign Currency Loans/Liabilities are converted at the exchange rates prevailing at year end or at forward contract rates wherever covered by forward contracts. The increase/decrease arising out of it is adjusted to the cost of fixed assets.

EXPENDITURE DURING CONSTRUCTION Expenditure during construction period is included under capital work in progress and the same will be allocated to fixed assets on commencement of commercial production.

AMORTISATION OF MISCELLANEOUS EXPENDITURE Preliminary, share issue and Deferred revenue expenses are being amortised in equal instalments in five financial years.


Mar 31, 1992

1. ACCOUNTING CONCEPTS The accounts are prepared on historical cost basis as a going concern following the mercantile system of accounting and recognising income and expenditure on accrual basis.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. FIXED ASSETS AND DEPRECIATION Fixed assets are stated at their historical cost less accumulated depreciation. Depreciation on fixed assets, except leasehold land and catalysts, is provided on straight line method at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956. On additions/disposals, depreciation is provided pro rata with reference to the month of addition/disposal. Leasehold land is amortised over the period of lease.

3.Depreciation on Catalysts is provided on straight line method over the technically assessed useful life of 2 and 4 years after considering the residual value.

3. FOREIGN EXCHANGE TRANSACTIONS Foreign currency loans/liabilities are converted at the exchange rate prevailing at year end or at forward contracts rates wherever covered by forward contract and increase/decrease out of it adjusted to the cost of fixed assets.


Mar 31, 1991

Leasehold land is being amortised over the period of lease. Depreciation on catalysts has been provided on straight line method over the technically assessed useful life of 2 and 4 years after considering the residual value. Depreciation on other fixed assets has been provided on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on the assets added/disposed off during the year has been provided on pro-rata basis with reference to the month of addition/disposal.

Preliminary, Share Issue and Deferred Revenue expenses are being amortised in equal instalments in five financial years.

 
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