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Accounting Policies of Indo Amines Ltd. Company

Mar 31, 2015

A. Basis of Accounting:

The financial statements are prepared under historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013.

B. Use of Estimates:

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

C. Fixed Assets :

i) The cost of major civil works required for plant and machinery support is considered as plant and machinery.

ii) Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies other than recoverable and any directly attributable cost of bringing the assets to its working condition for the intended use.

D. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method considering the useful life of assets as specified in Scheduled II to the Companies Act ,2013.

E. Inventories

Inventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows:

Semi Finished Goods : - At Raw Material Cost, Labour plus estimated overheads.

Finished Goods : - At Raw Material Cost, Labour plus estimated overheads.

Traded Finished Goods : - At lower of Cost or net realizable value.

F. Revenue Recognition:

Sale of products is recognized when the products are despatched from the factory / stock points to the customers. Sales include excise duty & sales tax. Revenue in respect of interest, commission, etc. is recognized only when it is reasonably certain that ultimate collection will be made.

G. Excise Duty on Finished Goods:

Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respect of finished goods lying in the factory premises as at year-end.

H. Foreign exchange transactions (AS-11):

Foreign exchange transactions are recorded on following basis :-

i) In case of Import, on the basis of rate mentioned on Bill of Entry of Import.

ii) In case of Export, on the basis of rates declared by Customs Department.

iii) In case of Expenses, on the basis of rates prevailing on date of transaction.

Exchange differences arising on settlement of items of Income/Expenditure are accounted for as exchange gain/loss as the case may be. The current assets/liabilities in foreign currency on the date of the balance sheet are translated at the prevailing rate on the balance sheet date and the exchange gain/loss arising from such translation is recognized in the Profit & Loss account.

I. Employee benefits (AS-15):

a) Defined Contribution Plan – Contribution to Defined contribution plan namely employer's contribution to Provident fund & Pension Plan is charged to Profit and Loss Account.

b) Defined Benefit Plan - The employees gratuity fund scheme managed by Life Insurance Corporation of India is defined benefit plan. The present value of obligation is determined by LIC of India on Actuarial Valuation.

J. Accounting for Taxes on Income(AS-22) :

i) Provision for current tax is made based on estimated taxable income for current financial year.

ii) In accordance with Accounting Standard 22 – 'Accounting for Taxes on Income', the Company has recognized deferred tax asset arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measured using substantially enacted tax rates.

K. Investments :

i) Trade Investments are valued at Cost.

ii) Other Investments are valued at Cost or Market Value, whichever is less.

L. Borrowing Costs :

Borrowing costs are attributable to acquisition and / or construction of qualifying asset / are capitalised as a part of capital asset.

M. Provisions, Contingent Liabilities and Contingent Asset:-

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require as outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognised nor disclosed in the financial statement

N. Earning Per Share

Basic and diluted earning per share are computed in accordance with Accounting Standard - 20.

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period Diluted earnings per share is calculated as follows:- The net profit attributable to equity shareholders and the weighted average of number of shares outstanding are adjusted for the effect of all dilutive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which would be issued on the conversion of all the diliutive potential equity shares into equity shares


Mar 31, 2014

A. Basis of Accounting:

The financial statements are prepared under historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

B. Use ofEstimates:

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

C. Fixed Assets :

i) The cost of majorcivilworks requiredfor plant and machinerysupport is consideredas plant and machinery.

ii) Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

D. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In case of plant & machinery depreciation is charged on the basis of triple shift rate as per ScheduleXIV of theCompaniesAct, 1956.

E. Inventories

Inventories are stated at lower of cost and net realizablevalue. Thecost ofinventories are arrivedat as follows:

Raw Materials, Packing Material & fuel:- Valued on FIFO basis.

Semi Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

Traded Finished Goods : At lower of Cost or net realizable value.

F. Revenue Recognition:

Sale of products is recognized when the products are despatched from the factory / stock points to the customers. Salesinclude exciseduty & salestax. Revenuein respect of interest, commission, etc. is recognizedonly when it is reasonably certain that ultimatecollection will be made.

G. ExciseDuty on Finished Goods:

Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respectof finished goodslying in the factory premises as at year-end.

H. Foreign exchange transactions (AS-11):

Foreignexchange transactions are recorded onfollowing basis:- i) In case of Import, on the basisof rate mentioned on Bill of Entry of Import. ii) Incaseof Export, on the basisof rates declaredby Customs Department. iii) In case ofExpenses, on thebasis ofrates prevailing ondate oftransaction. Exchange differences arising on settlement of items of Income/Expenditure are accounted for as exchange gain/loss as the case may be. The current assets/liabilities in foreign currency on the date of the balance sheet are translated at the prevailing rate onthe balance sheet date and the exchange gain/loss arising from such translation is recognized inthe Profit & Loss account.

I. Employee benefits(AS-15):

a) Defined Contribution Plan – Contribution to Defined contribution plan namely employer''s contribution to Provident fund & Pension Plan is charged to Profit and Loss Account.

b) Defined Benefit Plan - The employees gratuity fund scheme managed by Life Insurance Corporation of India is defined benefit plan. The present value of obligation is determined by LIC of India on Actuarial Valuation.

J. Accounting for Taxes on Income(AS-22):

i) Provision for current tax ismade based onestimated taxable income for current financial year.

ii) In accordance with Accounting Standard 22 – ''Accounting for Taxes on Income'', the Company has recognized deferred tax arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measure during relevant enacted tax rates.

K. Investments:

i) TradeInvestments are valued at Cost.

ii) Other Investments are valued at Cost or Market Value,whichever is less.

L. Borrowing Costs :

Borrowing costs are attributable to acquisition and / or construction of qualifying assets are capitalised as a part of capital assets

M. Provisions, ContingentLiabilites and Contingent Asset :-

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require as outflow of resources. Where there is a possible obligation or a present obligation that the likelihood ofoutflowof resources isremote, no provsion or disclosure is made.

Contingent Assets are neither recognised nor disclosed in the financial statement

N.Earning PerShare

Basicand diluted earning per share are computedin accordance with Accounting Standard-20.

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number ofequityshares outstandingduringthe period

Diluted earnings per share,the net profit attributable to equity shareholders and the weighted average of number of shares outstanding are adjusted for the effect of all dilutive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which would be issued on the conversion of all the diliutive potential equity shares into equity shares


Mar 31, 2013

A. Basis of Accounting: The financial statements are prepared under historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

B. Use of Estimates:

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

C Fixed Assets:

i) The cost of major civil works required for plant and machinery support is considered as plant and machinery. ii) Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

D. Depreciation:

Depreciation on Fixed Assets is provided on Written Down Value method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In case of plant & machinery depreciation is charged on the basis of triple shift rate as per Schedule XIV of the Companies Act, 1956.

E. lnventories:lnventories are stated at lower of cost and net realizable value. The cost of inventories are arrived at as follows:Raw Materials, Packing

Material & fuel : Valued on FIFO basis.

Semi Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

Finished Goods : At Raw Material Cost, Labour plus estimated overheads.

F. Revenue Recognition:Sale of products is recognized when the products are shipped from the factory / stock points to the customers. Sales include excise duty & sales tax. Revenue in respect of interest, commission, etc. is recognized only when it is reasonably certain that ultimate collection will be made.

G Excise Duty on Finished Goods:Closing stock of finished goods includes excise duty accrued thereon. Similarly provision is made for Excise Duty payable in respect of finished goods lying in the factory premises as at year-end.

H. Foreign exchange transactions (AS-11):

Foreign exchange transactions are recorded on following basis :-

i) In case of Import, on the basis of rate mentioned on Bill of Entry of Import.

ii) In case of Export, on the basis of rates declared by Customs Department.

iii) In case of Expenses, on the basis of rates prevailing on date of transaction.

Exchange differences arising on settlement of items of Income/Expenditure are accounted for as exchange gain/loss as the case may be. The current assets/liabilities in foreign currency on the date of the balance sheet are translated at the prevailing rate on the balance sheet date and the exchange gain/loss arising from such translation is recognized in the Profit & Loss account.

L Employee benefits (AS-15):

a) Defined Contribution Plan - Contribution to Defined contribution plan namely employer''s contribution to Provident fund & Pension Plan is charged to Profit and Loss Account Rs.20.09 lacs ( Prev Year Rs. 17.23 lacs).

b) Defined Benefit Plan - The employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is defined benefit Plan. The present value of obligation is determined by Life Insurance Corporation of India on actuarial valuation. The contribution of Rs.4.68 Lacs ( Prev year Rs. 3.96 lacs ) paid to Life Insurance Corporation of India is charged to Profit and Loss Account.

J. Accounting for Taxes on Income :i) Provision for current tax is made based on estimated taxable income for current financial year.

ii) In accordance with Accounting Standard 22 - ''Accounting for Taxes on Income'', the Company has recognized deferred tax arising out of timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent years and are measured using relevant enacted tax rates.

K. Investments:

i) Trade Investments are valued at Cost.

ii) Other Investments are valued at Cost or Market Value, whichever is less.

 
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