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Accounting Policies of Kemistar Corporation Ltd. Company

Mar 31, 2018

NOTES FORMING PART OF THE FINANCIAL STATEMENTS A. CORPORATE INFORMATION

Kemistar Corporation Limited is a listed entity incorporated in India.

The address of the registered office and principal place of business is 604, Manas Complex, Nr. Jodhpur Cross Road, Satelite, Ahmedabad-380015.

B. SIGNIFICANT ACCOUNTING POLICIES

(1). BASIS OF PREPARATION AND PRESENTATION

The financial statements have been prepared on the historical cost.

The financial statements of the Company have been prepared to comply with the Indian Accounting standards (''Ind AS''), including the rules notified under the relevant provisions of the Companies Act, 2013.

Up to the year ended March 31, 2017, the Company has prepared its financial statements in accordance with the requirement of Indian Generally Accepted Accounting Principles (GAAP), which includes Standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as “Previous GAAP".

These financial statements are the Company''s first Ind AS standalone financial statements.

(2). SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a). Property, plant and equipment (Ind AS 16)

Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, and any cost directly attributable to bringing the assets to its working condition for its intended use.

Depreciation on property, Plant and Equipment is provided using Straight Line Method. Depreciation is provided based on useful life of assets as prescribed in schedule II to The Companies Act 2013.

Carrying value of computer is nil as on 01.04.2017 hence no depreciation has been provided.

(b). Inventories (Ind AS 2)

There are no inventories as on 31.03.2018 however in the previous year Inventory has been measured at the lower of cost or net realizable value. Cost of inventories comprises of cost of purchase net of recoverable taxes incurred in bringing them to their respective present location and condition.

(c ). Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

(d). Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss.

- Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

- Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.

(e). Impairment of non financial assets - property, plant and equipment and intangible assets.

The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment and intangible assets or group of assets, called cash generating units (CGU) may be impaired. However the company did not find any such impairment of assets.

(f). Revenue Recognition

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.

Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

(g). Financial Instruments

(i). Financial Assets

(A). Initial Reorganization and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are booked to the fair value.

(B). Investment in Subsidiaries, Associates and Joint Ventures

The company has accounted for its investments in subsidiaries, associates and joint ventures at cost.

(C ). Other Investments

All other equity investments are measured at fair value, with value changes recognized in Statement of Profit and Loss.

(D). Impairment of Financial Assets

As per respective Ind AS the company did not find any impairment of Financial Assets.

(ii). Financial Liabilities

(A). Initial Reorganization and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.

(h). Employee Benefits Expenses

The company has not initiated to contribute in defined benefit plans or defined contribution plans.

Whenever company will decide to contribute to such plans the company will disclose general description of plan and other disclosure requirements as per Ind As 19.

C. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINITY

The preparation of the Company''s financial statements requires management to make judgment, estimates and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a). Recoverability of trade receivables

Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. The company considered trade receivables to be good on the basis of their track record, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

b). Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

E. FIRST TIME ADOPTION OF IND AS

The Company has adopted Ind AS with effect from 1st April 2016 with comparatives being

restated. Accordingly the impact of transition has been provided in the Opening Reserves as a 1st April 2016 if required. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

F. OTHER NOTES

(a) Section 212(1) of the Companies Act 1956 requires presentation of financial Statements of its Subsidiary Company, if the relationship Holding Company and Subsidiary Company persists as at the end of the accounting year concerned. Since there was no such Subsidiary as at the end of accounting year, i.e. as on 31st March 2018; no such presentation has been made.

(b) Balances of all the parties are subject to confirmations and reconciliations.

(c) Previous Year''s figures have been re-grouped and re-arranged wherever considered necessary.

(d) Immaterial items have been ignored on making disclosure.

(e) Wherever external evidences were not available, reliance had been made on internal evidences and/or explanation provided by the management.

G. PREFERENTIAL ALLOTMENT

(a) As per information and explanation provided to me The company has issued 11,95,000 Equity Shares at Rs. 16.50/- Per Share which contains Rs. 10/- as Face Value and Rs. 6.5/- as premium, on preferential basis.

(b) Further As per information and explanation provided to me The company has passed necessary resolution and had gone through necessary formalities as required by respective section and rules of SEBI and The companies Act 2013.

(c) As per information and explanation provided to me The company have decided the price of the shares in accordance with Regulation 76(1) of The SEBI ICDR Regulations.

(d) As per information and explanation provided to me infusion of capital through preferential allotment has been undertaken by the company for the purpose of business expansion, Funding Current and Future Activities of the company, for growth plan of the company or to fulfill general corporate purpose including incurring of capital expenditure.

(e) Accounts have been updated as per information and explanation provided to me in accordance with the accounting standard issued by ICAI.

(f) Further As per information and explanation provided to me no Promoters/Directors/Key Management Persons have been allotted on preferential basis.

There is no change in figures as per Indian GAAP and Ind As as reflected in reconciliation as the company adopted method as per Indian GAAP in earlier years however they are compatible with Ind AS.

Further there is no change in equity due to first time adoption of Ind AS hence no reconciliation has been stated.


Mar 31, 2012

(a). Basis of Accounting :-

The Financial Statements are prepared in accordance with the requirements of the companies Act, 1956 under the historical cost convention on an accrual basis unless otherwise stated and/ or immaterial.

(b). Revenue Recognition ;-

(i) Revenue is recognized when it is reasonably certain that it will be received.

(ii) Revenue from redemption of mutual funds has been recognized on realization basis.

(c) Fixed Assets :-

(i) Fixed assets are shown at cost less depreciation amount.

(ii) Capital work In progress has been shown at actual cost.

(d) Depreciation :-

(i) Depreciation is calculated on all the assets on Straight Line Method at the rates and manner specified under the Companies Act, 1956.

(ii) No deprecation has been provided on capital work in progress.

(e) Retirement Benefits ( AS 15 ) :-

All retirement benefits including Gratuity and Leave encashment will be recognized on cash basis. No actuarial valuations has been made

(f) Accounting for taxes on Income (AS 22):-

(a) On account of losses, the company has not made provision for income tax for the current accounting year.

(b) The Company has made accounting for Deferred tax Assets / Liabilities are Required as per AS 22.

(g) Unamortized Expenses :-

Preliminary and Pre-Operative Expenses as well as Public Issue Expenses are kem pending allocation.

(h). Contingent Liabilities ;-

These are contained under Revised Schedule VI , as presented through Annexure- 1 hereto.

(i) Prior Period Items ,and Extra-Ordinary Items :-

These are contained under Revised Schedule VI , as presented through Annexure- 1 hereto.


Mar 31, 2011

(1). Basis of Accounting:-

The Financial Statements are prepared in accordance with the requirements of the Companies Act , 1956 under the historical cost convention on an accrual basis unless otherwise stated and / or immaterial .

(2). Revenue Recognition :-

(a). Revenue is recognized when it is reasonably certain that it will be received .

(bi). Revenue from Redemption of Mutual Funds has been recognized on realization Basis.

(3). Fixed Assets :-

(a). Fixed Assets are shown at Cost less Depreciation amount.

(bi). Capital Work In Progress has been shown at actual costs.

(4). Depreciation :-

(a). Depreciation is calculated on all the fixed assets on Straight Line Method at the rates and manner specified under the Companies Act, 1956, subject to Notes provided below the relevant Schedule "G".

(b). No depreciation has been provided on Capital Work In Progress.

(5). Retirement Benefits ( AS 15 ) :-

All Retirement benefits including Gratuity will be recognized on cash basis. No actuarial valuations has been made as required under AS 15.

(6). Deferred Tax Liability /Asset(AS 22) :-

The Company has made accounting for Deferred tax Assets as per AS 22.

(7). Provision for Income Tax :-

Provision for Income tax has been made as per the calculations made by the Company.

(8). Miscellaneous Expenditure :-

Preliminary and Pre-Operative Expenses as well as Public Issue Expenses are kept pending allocation.

(9). Contingent Liabilities :-

Contingent Liabilities will be shown under Notes forming Part of Accounts.

(10). Prior- Period Items and Extra-Ordinary Items :-

These are shown directly in the Profit & Loss Account.


Mar 31, 2010

(1). Basis of Accounting :-

The Financial Statements are prepared in accordance with the requirements of the Companies Act , 1956 under the historical cost convention on an accrual basis unless otherwise stated and / or immaterial .

(2). Revenue Recognition :-

(a). Revenue is recognized when it is reasonably certain that it will be received .

(b). Revenue from Redemption of Mutual Funds has been recognized on realization basis.

(3). Fixed Assets :-

(a). Fixed Assets are shown at Cost less Depreciation .

(b). Capital Work In Progress has been shown at actual costs.

(4) Depreciation :-

(a). Depreciation is calculated on all the fixed assets on Straight Line Method at the rates and manner specified under the Companies Act, 1956. (b). No depreciation has been provided on Capital Work In Progress.

(5). Retirement Benefits ( AS 15 ) :-

All Retirement benefits including Gratuity will be recognized on cash basis. No actuarial valuations has been made as required under AS 15.

(6). Deferred Tax Liability ( AS 22 ) ;-

During the current year, the Company has made accounting for deferred tax assets as required under Accounting Standard 22. Earlier, it had no practice of making accounting for Deferred tax Assets/ Liabilities. Thus, there is change in Accounting Policy. However, it has been made for more appropriate presentation of operational results.

(7) Provision for Income Tax :-

Provision for Income tax has been made as per the calculations made by the Company,

(8). Miscellaneous Expenditure :-

Preliminary and Pre-Operative Expenses as well as Public Issue Expenses are kept pending allocation.

(9). Contingent Liabilities :-

Contingent Liabilities will be shown under Notes forming Part of Accounts.

(10). Prior- Period Items and Extra-Ordinary Items ;-

(a). Prior- Period Items are shown under Notes forming Part of Accounts. (b). Extra-Ordinary Items will be shown directly in the Profit & loss Account.

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