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Accounting Policies of Indokem Ltd. Company

Mar 31, 2015

Corporate Information

The Company deals in dyes, sizing chemicals and auxiliaries used in Textile industry. After amalgamation of the Company with Khatau Capacitors Pvt. Ltd., (one of the transferor Companies in the scheme of amalgamation) the Company also deals in Electrical Capacitors. It has head office at Mahim, Mumbai and branch offces at Ahmedabad, Delhi and Coimbatore. It has manufacturing and warehouse facility at Dahlias Mori near Mumbai and warehouses at Ahmedabad and Coimbatore locations and manufacturing facilities at Abernathy.

Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India, to comply with the accounting standards specified under section 133 of the Companies Act 2013 read with Rule 7 of the Companies ( Accounts ) Rules 2014.

The accounting statements have been prepared on accrual basis under historical cost convention.

Use of Estimates

The preparation of financial statements in conformity with the Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities and reported income and expenses. The management believes that the estimates used in preparation of financial statements are prudent and reasonable.

Inventories

Inventories are valued on FIFO basis. Inventories of Ankles war Plant are valued on the estimated basis as certified by management.

Cash and cash equivalent

Cash comprises of cash on hand and demand deposits with banks. Cash equivalent are short term , highly liquid investments that are readily convertible into known amount of cash.

Cash Flow statement

Cash fows are reported using indirect method , whereby proft/(loss) before extraordinary items and tax is adjusted for effects of transactions of non-cash nature and any accruals of past and future cash receipts or payments. The cash fows from operating, investing and fnancing activities are segregated on the basis of available information.

Depreciation

With effect from 1st April 2014, net carrying values of fixed assets is amortized in the manner prescribed in part "C" of Schedule II of the Companies Act 2013.

Leasehold land is depreciated over the period of lease.

Depreciation on additions of assets during the year has been provided on pro-rata basis with reference to the date of addition.

Revenue recognition

Sale of goods :

Sales are recognized , net of returns and trade discounts on transfer of significant risks and rewards of the ownership to buyer. Sales include excise duty but exclude sales tax and Vat.

Other Income

Interest income is accounted on accrual basis.

Tangible Fixed Assets

The tangible fixed assets are stated at cost of acquisition ( net of Cen vat credit / Value added tax ). All costs relating to the acquisition and installation, up to the date of such assets are put to use, are capitalized as part of cost of the asset.

Fixed assets retired from use and held for sale are disclosed separately in the Balance Sheet.

Intangible Assets

Intangible assets are carried at cost.

Foreign currency transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the transaction takes place.

Monetary assets and liabilities in foreign currency outstanding at the close of the year are converted in Indian currency at the appropriate rate of exchange prevailing on the date of Balance Sheet. The resultant gain/loss pertaining to revenue is recognized in the Statement of profit / loss for the year and that of pertaining to capital is adjusted to the cost of fxed asset.

Borrowing costs

Borrowing costs are recognized in the Statement of proft and loss in the year in which they are incurred.

Investments

Long Term Investments are stated at cost.

Employees' Retirement Benefits

Short-term Employee Benefits

All Employee benefts payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement Benefits

Contribution to Defend Contribution Plans such as Provident Funds etc. are charged to the Profit and Loss Account as incurred. Defend Benefit Plans - The present value of the obligation under such Plans is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. In the absence of any Plan Assets, the Present Value Obligation is recognized on gross basis.

Termination Benefits

Termination Benefits are recognized as and when incurred.

For Taxes on Income

Provision for current tax is made based on the tax payable for the year under the Income Tax Act, 1961. Deferred tax is recognized for all timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Provision for Contingencies

In the opinion of the management provisions for contingencies in pursuance of AS 29 issued by the Institute of Chartered Accountants of India is not required as there exist no such liabilities unprovoked for.

Goodwill

The goodwill is amortized over a period of fve years commencing from the year in which it arises.

Amalgamation Expenses

Amalgamation expenses incurred during the year are amortized over a period of fve successive previous years commencing from the year in which the amalgamation expenses are incurred. The balance amount of amalgamation expenses is shown under the head Miscellaneous Expenditure to the extent not written off or adjusted.

Earning per share

The basic and diluted earnings per share is computed by dividing the net proft/loss attributable to equity shareholders for the year, by the weighted average number of Equity shares outstanding during the year. The Company did not have any dilutive potential equity shares outstanding as at year end.


Mar 31, 2014

Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India, to comply with the accounting standards notifed under the Companies (Accounting Standard) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The accounting statements have been prepared on accrual basis under historical cost convention.

Use of Estimates

The preparation of financial statements in conformity with the Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities and reported income and expenses. The management believes that the estimates used in preparation of financial statements are prudent and reasonable.

Inventories

Inventories of traded goods are valued on FIFO basis. Inventories of Ankleshwar Plant are valued on the estimated basis as certified by management.

Cash and cash equivalent

Cash comprises of cash on hand and demand deposits with banks. Cash equivalent are short term, highly liquid investments that are readily convertible into known amount of cash.

Cash Flow statement

Cash flows are reported using indirect method , whereby profit/(loss) before extraordinary items and tax is adjusted for effects of transactions of non-cash nature and any accruals of past and future cash receipts or payments. The cash flows from operating, investing and fnancing activities are segregated on the basis of available information.

Depreciation

Depreciation has been provided on the WDV method as per the rates prescribed in the Schedule XIV of the Companies Act 1956.

Depreciation on additions / disposal of assets during the year has been provided on pro-rata basis with reference to the date of addition/disposal.

Revenue recognition Sale of goods :

Sales are recognized , net of returns and trade discounts on transfer of significant risks and rewards of the ownership to buyer. Sales include excise duty but exclude sales tax and Vat.

Other Income

Interest income is accounted on accrual basis.

Tangible Fixed Assets

The tangible fixed assets are stated at cost of acquisition (net of Cenvat credit / Value added tax). All costs relating to the acquisition and installation, up to the date of such assets are put to use, are capitalized as part of cost of the asset.

Fixed assets retired from use and held for sale are disclosed separately in the Balance Sheet.

Intangible Assets

Intangible assets are carried at cost.

Foreign currency transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the transaction takes place.

Monetary assets and liabilities in foreign currency outstanding at the close of the year are converted in Indian currency at the appropriate rate of exchange prevailing on the date of Balance Sheet. The resultant gain/loss pertaining to revenue is recognized in the Statement of profit / loss for the year and that of pertaining to capital is adjusted to the cost of fixed asset.

Borrowing costs

Borrowing costs are recognized in the Statement of profit and loss in the year in which they are incurred.

Investments

Long Term Investments are stated at cost .

Employees'' Retirement benefits

Short-term Employee benefits

All Employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement benefits

Contribution to Defined Contribution Plans such as Provident Funds etc. are charged to the profit and Loss Account as incurred. Defined benefit Plans – The present value of the obligation under such Plans is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the profit and Loss Account. In the absence of any Plan Assets, the Present Value Obligation is recognized on gross basis.

Termination benefits

Termination benefits are recognized as and when incurred.

For Taxes on Income

Provision for current tax is made based on the tax payable for the year under the Income Tax Act, 1961. Deferred tax is recognized for all timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Provision for Contingencies

In the opinion of the management provisions for contingencies in pursuance of AS 29 issued by the Institute of Chartered Accountants of India is not required as there exist no such liabilities unprovided for.

Goodwill

The goodwill is amortized over a period of five years commencing from the year in which it arises.

Amalgamation Expenses

Amalgamation expenses incurred during the year are amortised over a period of five successive previous years commencing from the year in which the amalgamation expenses are incurred. The balance amount of amalgamation expenses is shown under the head Miscellaneous Expenditure to the extent not written off or adjusted.

Earning per share

The basic and diluted earnings per share is computed by dividing the net profit/loss attributable to equity shareholders for the year, by the weighted average number of Equity shares outstanding during the year. The Company did not have any dilutive potential equity shares outstanding as at year end.


Mar 31, 2013

Basis of accounting and preparation of fnancial statements

The fnancial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India, to comply with the accounting standards notifed under the Companies (Accounting Standard) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting statements have been prepared on accrual basis under historical cost convention.

Use of Estimates

The preparation of fnancial statements in conformity with the Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities and reported income and expenses. The management believes that the estimates used in preparation of fnancial statements are prudent and reasonable.

Inventories

Inventories of traded goods are valued on FIFO basis. Inventories of Ankleshwar Plant are valued on the estimated basis as certifed by management.

Cash and cash equivalent

Cash comprises of cash on hand and demand deposits with banks. Cash equivalent are short term , highly liquid investments that are readily convertible into known amount of cash.

Cash Flow statement

Cash fows are reported using indirect method , whereby proft/(loss) before extraordinary items and tax is adjusted for effects of transactions of non-cash nature and any accruals of past and future cash receipts or payments. The cash fows from operating, investing and fnancing activities are segregated on the basis of available information.

Depreciation

Deprecation has been provided on the WDV method as per the rates prescribed in the Schedule XIV of the Companies Act 1956.

Depreciation on additions / disposal of assets during the year has been provided on pro-rata basis with reference to the date of addition/disposal.

Revenue recognition

Sale of goods :

Sales are recognized , net of returns and trade discounts on transfer of signifcant risks and rewards of the ownership to buyer. Sales include excise duty but exclude sales tax and vat.

Other Income

Interest income is accounted on accrual basis.

Tangible Fixed Assets

The tangible fxed assets are stated at cost of acquisition ( net of Cenvat credit / Value added tax ). All costs relating to the acquisition and installation, up to the date such assets are put to use, are capitalized as part of cost of the asset.

Fixed assets retired from use and held for sale are disclosed separately in the Balance Sheet.

Intangible Assets

Intangible assets are carried at cost.

Foreign currency transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the transaction takes place.

Monetary assets and liabilities in foreign currency outstanding at the close of the year are converted in Indian currency at the appropriate rate of exchange prevailing on the date of Balance Sheet. The resultant gain/loss pertaining to revenue is recognized in the Statement of proft / loss for the year and that of pertaining to capital is adjusted to the cost of fxed asset.

Borrowing costs

Borrowing costs are recognized in the Statement of proft and loss in the year in which they are incurred.

Investments

Long Term Investments are stated at cost .

Employees'' Retirement Benefts

Short-term Employee Benefts

All Employee benefts payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement Benefts

Contribution to Defned Contribution Plans such as Provident Funds etc. are charged to the Proft and Loss Account as incurred. Defned Beneft Plans – The present value of the obligation under such Plans is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Proft and Loss Account. In the absence of any Plan Assets, the Present Value Obligation is recognized on gross basis.

Termination Benefts

Termination Benefts are recognized as and when incurred.

For Taxes on Income

Provision for current tax is made based on the tax payable for the year under the Income Tax Act, 1961. Deferred tax is recognized for all timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Provision for Contingencies

In the opinion of the management provisions for contingencies in pursuance of AS 29 issued by the Institute of Chartered Accountants of India is not required as there exist no such liabilities unprovided for.

Goodwill

The goodwill is amortized over a period of fve years commencing from the year in which it arises.

Amalgamation Expenses

Amalgamation expenses incurred during the year are amortised over a period of fve successive previous years commencing from the year in which the amalgamation expenses are incurred. The balance amount of amalgamation expenses is shown under the head Miscellaneous Expenditure to the extent not written off or adjusted.

Earning per share

The basic and diluted earnings per share is computed by dividing the net proft/loss attributable to equity shareholders for the year, by the weighted average number of Equity shares outstanding during the year. The Company did not have any dilutive potential equity shares outstanding as at year end.


Sep 30, 2012

Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India, to comply with the accounting standards notified under the Companies (Accounting Standard) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting statements have been prepared on accrual basis under historical cost convention.

Use of Estimates

The preparation of financial statements in conformity with the Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities and reported income and expenses. The management believes that the estimates used in preparation of financial statements are prudent and reasonable.

Inventories

Inventories other than Ankleshwar plant are valued on FIFO basis. Inventories of Ankleshwar Plant are valued on the estimated basis as certified by management.

Cash and cash equivalent

Cash comprises of cash on hand and demand deposits with banks. Cash equivalent are short term , highly liquid investments that are readily convertible into known amount of cash.

Cash Flow statement

Cash flows are reported using indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for effects of transactions of non-cash nature and any accruals of past and future cash receipts or payments. The cash flows from operating, investing and financing activities are segregated on the basis of available information.

Depreciation

Deprecation has been provided on the WDV method as per the rates prescribed in the Schedule XIV of the Companies Act, 1956.

Depreciation on additions / disposal of assets during the year has been provided on pro-rata basis with reference to the date of addition/disposal.

Revenue recognition

Sale of goods:

Sales are recognized, net of returns and trade discounts on transfer of significant risks and rewards of the ownership to buyer. Sales include excise duty but exclude sales tax and vat.

Other Income

Interest income is accounted on accrual basis.

Tangible Fixed Assets

The tangible fixed assets are stated at cost of acquisition ( net of Cenvat credit / Value added tax). All costs relating to the acquisition and installation, up to the date of such assets are put to use, are capitalized as part of cost of the asset.

Fixed assets retired from use and held for sale are disclosed separately in the Balance Sheet.

Intangible Assets

Intangible assets are carried at cost.

Foreign currency transactions .

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the transaction takes place.

Monetary assets and liabilities in foreign currency outstanding at the close of the year are converted in Indian currency at the appropriate rate of exchange prevailing on the date of Balance Sheet. The resultant gain/loss pertaining to revenue is recognized in the Statement of profit / loss for the year and that of pertaining to capital is adjusted to the cost of fixed asset.

Borrowing costs

Borrowing costs are recognized in the Statement of profit and loss in the year in which they are incurred. Investments

Long Term Investments are stated at cost.

Employees' Retirement Benefits Short-term Employee Benefits

All Employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment I Retirement Benefits

Contribution to Defined Contribution Plans such as Provident Funds etc. are charged to the Profit and Loss Account as incurred. Defined Benefit Plans - The present value of the obligation under such Plans is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. In the absence of any Plan Assets, the Present Value Obligation is recognized on gross basis.

Termination Benefits

Termination Benefits are recognized as and when incurred.

For Taxes on Income

Provision for current tax is made based on the tax payable for the year under the Income Tax Act, 1961. Deferred tax is recognized for all timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Provision for Contingencies

In the opinion of the management provisions for contingencies in pursuance of AS 29 issued by the Institute of Chartered Accountants of India is not required as there exist no such liabilities unprovided for.

Goodwill

The goodwill is amortized over a period of five years commencing from the year in which it arises.

Amalgamation Expenses

Amalgamation expenses incurred during the year are amortised over a period of five successive previous years commencing from the year in which the amalgamation expenses are incurred. The balance amount of amalgamation expenses is shown under the head Miscellaneous Expenditure to the extent not written off or adjusted.

Earning per share

The basic and diluted earnings per share is computed by dividing the net profit/loss attributable to equity shareholders for the year, by the weighted average number of Equity shares outstanding during the year. The Company did not have any dilutive potential equity shares outstanding as at year end.


Mar 31, 2010

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