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Accounting Policies of Indo Euro Indchem Ltd. Company

Mar 31, 2015

I) Method of Accounting

The Financial statement are prepared under historical cost convention on an accrual basis and are in accordance with the Accounting Standards specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014 and the relevant provisions of the Companies Act, 2013 / Companies Act, 1956 as applicable.

ii) Use of Estimates

The preparation of financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported year. Differences between the actual results and estimates are recognized in the period in which the results are known / materialize.

iii) Fixed Assets

Fixed Assets are stated at cost inclusive of freight duties, taxes and all incidental expenses related upto commencement of production, but net of modvat credit.

iv) Depreciation

Depreciation has been provided on the assets on straightline method workout as per useful life of asssets as prescribed under Schedule II to the Companies Act,2013. The Leasehold right in land are not amortised over the period of lease agreement as the management will either extent the lease or get converted as freehold and are stated at cost of Leasehold right.

v) Impairment of Assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on 'Impairment of Assets'. When the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in period accounting periods is reversed if there has been a change in the estimate of recoverable amount.

vi) Investments

Long-term investments are carried at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried, at the lower of cost and fair value.

vii) Investments

Non - Current Investment are stated at cost.

viii) Inventories

Inventories are taken by the Management at end of year. Raw Materials and Finished goods Stock are valued at lower of cost or net realisable value, however Semi Finished Goods are valued at raw material cost, and stores, spares, packing materials & fuels are valued at cost, stock in trade (Trading Stock) are valued at lower of cost or net realizable value.

ix) Employee Benefits:

Retirement benefits are dealt in following manner

a) Company is not covered under the provident fund, hence no provision are made.

b) Gratuity liability is accounted on cash basis.

c) Provision for value of un-utilised leave due to employees on retirement are accounted on cash basis.

x) Treatment of Contingent Liabilities

Contingent liabilities are not provided in account but are disclosed in notes on Accounts.

xi) Sales

Sales arerecognised net of returns and trade discount on dispatches of goods to the customers and are reflected in the accounts as gross realisable value i.e. inclusive of excise duty, but MVAT are excluded.

xii) Other Income

Interest income is accounted on accrual basis, but Sales Tax Refund etc on receipt basis.

xiii) Accounting for Taxes on Income

Tax expenses comprises both current and deferred income tax. Current Tax is the provision made for Income Tax liability on the profits for the year in accordance with the provisions of the Income Tax Act, 1961. Deferred Taxes reflect the impact of timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted as at the Balance Sheet date. Deferred Tax Assets/Liabilities are recognised only if there is reasonable certainty of their realization.

xiv) Borrowing of Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use of sale. All other borrowing costs are charged to revenue.

xv) Earnings per Share

Basic earning per shares is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of the equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

xvi) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the company. Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand, balance in current accounts and unencumbered demand deposits with banks.

xvii) Provision and Contingencies

A provision is recognized when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation. Contingent liabilities, if any, are disclosed in the notes to the financial statements.


Mar 31, 2014

I. Method of Accounting

The Financial statement are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act,1956.

ii. Fixed Assets

Fixed Assets are stated at cost inclusive of freight duties, taxes and all incidental expenses related upto commencement of production, but net of modvat credit.

iii. Depreciation

Depreciation has been provided on the assets on straight line method at the rate prescribed under schedule XIV of the Companies Act, 1956 as amended. The Leasehold right in land are not amortised over the period of lease agreement and are slated at cost.

iv. Inventories

Inventories are taken by the Management at end of year. Raw Materials and Finished goods are valued at lower of cost or net realisable value, however Semi Finished Goods are valued at raw material cost only, and stores, spares, packing materials & fuels are valued at cost, stock in trade are valued at lower of cost or net realizable value.

v. Investments

Current Investment are stated at cost.

vi. Retirement benefit:

Retirement benefits are dealt in following manner

a) Company is not covered under the provident fund, hence no provision are made.

b) Gratuity liability is accounted on cash basis.

c) Provision for value of un-utilised leave due to employees on retirement are made on cash basis.

vii. Treatment of Contingent Liabilities

Contingent liabilities are not provided in account but are disclosed in notes on accounts.

viii. Sales

Sales are recognised net of returns and trade discount on dispatches of goods to the customers and are reflected in the accounts as gross realisable value i.e. inclusive of excise duty, but MVAT are excluded.

ix. Other Income

Interest income is accounted on accrual basis, but Sales Tax Refund etc on receipt basis.

x. Accounting for Taxes on Income

Tax expenses comprises both current and deferred income tax. Current Tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of the Income Tax Act, 1961. Deferred Taxes reflect the impact of timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted as at the Balance Sheet date. Deferred Tax Assets/Liabilities are recognised only if there is reasonable certainty of their realization,

xi) Earning per Share

Basic earning per shares is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of the equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

xii) linp airment of Assets

The Company is keeping all fixed assets duly greased and painted, hence feel there is no deterioration in value of assets of the Company as on date of the Balance Sheet. The Plant & Machinery are not in use but expected to get price at WDV as per books.


Mar 31, 2013

I. Method of Accounting

The Financial statement are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

ii. Fixed Assets

Fixed Assets are stated at cost inclusive of freight duties, taxes and all incidental expenses related up to commencement of production, but net of modal credit.

iii. Depreciation

Depreciation has been provided on the assets on straight line method at the rate prescribed under schedule XIV of the Companies Act, 1956 as amended. The Leasehold right in land are not amortised over the period of lease agreement and are stated at cost.

iv. Inventories

Inventories are taken by the Management at end of year. Raw Materials and Finished goods are valued at lower of cost or net realisable value, however Semi Finished Goods are valued at raw material cost only, and stores, spares, packing materials & fuels are valued at cost, stock in trade are valued at lower of cost or net realizable value.

v. Investments

Current Investment are stated at cost or fair market value

vi. Retirement benefit:

Retirement benefits are dealt in following manner

a) Company is not covered under the provident fund, hence no provision are made.

b) Gratuity liability is accounted on cash basis.

c) Provision for value of un-utilised leave due to employees on retirement are made on cash basis.

vii. Treatment of Contingent Liabilities

Contingent liabilities are not provided in account and are disclosed in notes on accounts.

viii. Sales

Sales are recognised net of returns and trade discount on dispatches of goods to the customers and are reflected in the accounts as gross realisable value i.e. inclusive of excise duty, but MVAT are excluded.

ix. Other Income

Interest income is accounted on accrual basis, but Sales Tax Refund etc on receipt basis.

x. Accounting for Taxes on Income

Tax expenses comprises both current and deferred income tax. Current Tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of the Income Tax Act, 1961. Deferred Taxes reflect the impact of timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted as at the Balance Sheet date. Deferred Tax Assets/Liabilities are recognised only if there is reasonable certainty of their realization.

xi) Earnings per Share

Basic earnings per shares is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of the equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

xii) Impairment of Assets

The Company is keeping all fixed assets duly greased and painted, hence feel there is no deterioration in value of assets of the Company as on date of the Balance Sheet. The Plant & Machinery are not .in use but expected to get price at WDV as per books.


Mar 31, 2011

I. Basis of Accounting

The Financial statement are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act,1956.

ii. Fixed Assets

Fixed Assets are capitalised at cost inclusive of freight duties, taxes and all incidental expenses related up to commencement of production, but net of modvat credit.

iii. Depreciation

Depreciation has been provided on the assets on straight line method at the rate prescribed under schedule XIV of the Companies Act,1956 as amended. The Leasehold right in land will be amortised over the period of lease agreement.

iv. Inventories

Inventories are taken by the Management at end of year. Raw Materials and Finished goods are valued at lower of cost or net realisable value, however Semi Finished Goods are valued at raw material cost only, and stores, spares, packing materials & fuels are valued at cost.

v. Investments

Investment are stated at cost.

vi. Retirement benefit:

Retirement benefits are dealt in following manner

a) Company is not covered under the provident fund, hence no provision are made.

b) Gratuity liability is accounted on cash basis.

c) Provision for value of un-utilised leave due to employees on retirement are made on cash basis.

vii. Treatment of Contingent Liabilities

Contingent liabilities are not provided in account and are disclosed in notes on accounts.

viii. Sales

Sales are recognised net of returns and trade discount on dispatches of goods to the customers and are reflected in the accounts as gross realisable value i.e. inclusive of excise duty, but sales tax are excluded.

ix. Other Income

Interest income is accounted on accrual basis, but Sales Tax Refund etc. are accounted on cash basis.

x. Accounting for Taxes on Income

Tax expenses comprises both current and deferred income tax. Current Tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of the Income Tax Act, 1961. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.

Deferred Tax Assets/Liabilities are recognised only if there is reasonable certainty of their realisation, except in case of Deferred Tax Assets on unabsorbed depreciation and carried forward business losses, which are recognised only if there is virtual certainty of their realisation.

xi) Earning per Share

Basic earning per shares is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of the equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

xii) Impairment of Assets

The Company is keeping all fixed assets duly greased and painted, hence feel there is no deterioration in value of assets of the Company as on date of the Balance Sheet. The Plant & Machinery are not in use but expected to get price at WDV as per books.


Mar 31, 2010

I. Basis of Accounting

The Financial statement are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act,1956.

ii. Fixed Assets

Fixed Assess are capitalised at cost inclusive of freight duties, taxes and all incidental expenses related upto commencement of production, but net of modvat credit.

iii. Depreciation

Depreciation has been provided on the assets on straight line method at the rate prescribed under schedule XIV of the Companies Act,1956 as amended. The Leasehold right in land will be amortised over the period of lease agreement.

iv. Inventories

Inventories are taken by the Management at end of year. Raw Materials and Finished goods are valued at lower of cost or net realisable value, however Semi Finished Goods are valued at raw material cost only, and stores, spares, packing materials
v. Investments

Investment are stated at cost.

vi. Retirement benefit:

Retirement benefits are dealt in following manner

a) Company is not covered under the provident fund, hence no provision are made.

b) Gratuity liability is accounted on cash basis.

c) Provision for value of unutilised leave due to employees on retirement are made on cash basis.

vii. Treatment of Contingent Liabilities

Contingent liabilities are not provided in account and are disclosed in notes on accounts.

viii. Sales

Sales are recognised net of returns and trade discount on dispatches of goods to the customers and are reflected in the accounts as gross realisable value i.e. inclusive of excise duty, but sales tax are excluded.

ix. Other Income

Interest income is accounted on accrual basis, but Sales Tax Refund etc. are accounted on cash basis.

x. Accounting for Taxes on Income

Tax expenses comprises both current and deferred income taxes. Current Tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of the Income Tax Act, 1961. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.

Deferred Tax Assets/Liabilities are recognised only if there is reasonable certainty of their realisation, except in case of Deferred Tax Assets on unabsorbed depreciation and carried forward business losses, which are recognised only if there is virtual certainty of their realisation.

xi) Earning per Share

Basic earning per shares is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of the equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

xii) Impairment of Assets

The Company is keeping all fixed assets duly greased and painted, hence feel there is no deterioration in value of assets of the Company as on date of the Balance Sheet. The Plant & Machinery are not in use but expected to returns at WDV as per books.


Mar 31, 2009

I. Basis of Accounting

The Financial statement are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act,1956.

ii. Fixed Assets

Fixed Assets are capitalized at cost inclusive of freight duties, taxes and all incidental expenses related up to commencement of production, but net of modal credit.

iii. Depreciation ''

Depreciation has been provided on the assets on straight line method at the rate prescribed under schedule XIV of the Companies Act,1956 as amended. The Leasehold right in land will be amortized over the period of lease agreement.

iv. Inventories 4 Inventories are taken by the Management at end of year. Raw Materials and Finished goods are valued at lower of cost or net realizable value, however Semi Finished Goods are valued at raw material cost only, and stores, spares, packing materials <& fuels are valued at cost.

v. Investments

Investment are stated at cost.

vi. Retirement benefit: '' . Retirement benefits are dealt in following manner

a} Company is not covered under the provident fund, hence no provision are made.

b) Gratuity liability is accounted on cash basis.

c) Provision for value of unutilized leave due to employees on retirement are made on cash basis.

vii. Treatment of Contingent Liabilities

Contingent liabilities are not provided in account and are disclosed in notes on accounts.

viii. Sales

Sales are recognized net of returns and trade discount on dispatches of goods to the customers and are reflected in the accounts as gross realizable value i.e. inclusive of excise duty, but sales tax are excluded.

ix. Other Income

Interest income is accounted on accrual basis, but Sales Tax Refund etc. are accounted on cash basis.

x. Accounting for Taxes on Income

Tax expenses comprises both current and deferred income taxes. Current Tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of the Income Tax Act, 1961. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only if there is reasonable certainty of their realization, except in case of Deferred Tax Assets on unabsorbed depreciation and carried forward business losses, which are recognized only if there is virtual certainty of their realization. .

xi) Earnings per Share

Basic earnings per shares is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of the equity shares outstanding during the period. ,

For the purpose of calculating diluted earnings per share net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted-for the effect of all dilutive potential equity shares.

xii) Impairment of Assets

The Company is keeping all fixed assets duly greased and painted, hence feel there is no deterioration in value of assets of the Company as on date of the Balance Sheet. The Plant A Machinery are not in use but expected to returns at WDV as per books.

 
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