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Accounting Policies of Natura Hue Chem Ltd. Company

Mar 31, 2014

A. BASIS OF ACCOUNTING

The financial statements have been prepared under the historical cost conventional accrual basis of accounting, in conformity with accounting principles generally accepted in India and comply with the accounting standard referred to in Sec.211 (3c) of the Companies Act, 1956. The financial statements are presented in Indian rupees.

B. USE OF ESTIMATES

The preparation of financial statements are in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. Examples of such estimates include provisions for doubtful debts, provision for income taxes and the useful lives of fixed assets.

C. FIXED ASSETS:

(i) Fixed Assets are stated at cost less depreciation. Cost comprises the purchase price and any other applicable costs.

(ii) Borrowing costs in respect of loans acquired for acquisition and construction of fixed assets are capitalized upto the date the assets are ready for use.

D. DEPRECIATION:

The company provides depreciation on Fixed Assets on Written down Value method on Single shift basis at the rates and in the manner prescribed in schedule XIV to the Companies Act 1956.

E. INVESTMENTS:-

Long term investments are carried at cost less provision, if any for permanent diminution in value of such investments. Current investments are carried at lower of cost and fair value.

F. INVENTORIES:-

Trading products purchased by the Company are carried at lower of cost and net realisable value.

G. TAXES ON INCOME:-

Current tax is determined as the amount of tax payable in respect of taxable income for the years. Deferred tax is recognised, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward loss, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets, other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

H. REVENUE RECOGNITION:-

a. Sale of goods is recognised on transfer of property therein.

b. Insurance and other claims are recognised only on acceptance of claims by the appropriate authorities.

I. BORROWING COST

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 or sale. All other borrowings costs are charged to revenue.

J. EMPLOYEE BENEFITS

Short-term employee benefits (benefits which are payable within twelve months after the end of the period in which the employees render service) are measured at cost and are recognised as an expense at the undiscounted amount in the profit and loss account in the profit and loss account of the year in which the related service is rendered.

Contributions to Provident Fund, a defined contribution plan, are made in accordance with the statute and are recognized as an expense when employees have rendered service entitling them to the contributions.

Other long-term employee benefits (benefits which are payable after the end of twelve months from the end of the year in which the employees render service) are measured on a discounted basis by the Projected Unit Credit Method on the basis of actuarial valuation.

Actuarial gains and losses are recognized immediately in the Profit and Loss Account

K. IMPAIRMENT OF ASSETS

At each balance sheet date the company reviews whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor

L. LEASE

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalized.

If there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term, capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term.

M. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of transactions and in case of purchase of materials and sale of goods, the exchange gains / losses on settlements during the year, are charged to Profit and Loss Account.

Monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing on the date of Balance Sheet. Exchange gains / losses including those relating to fixed assets are dealt with in the Profit and Loss Account.

N. EARNINGS PER SHARE

The Company reports Basic and Diluted Earnings Per Share (EPS/DEPS) in accordance with Accounting Standard 20 on "Earnings Per Share". Basic EPS is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted EPS is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or present obligations that may, but probably will not, require an outflow of resources. Contingent assets are neither recognised nor disclosed in the financial statements.

P. TRADE RECIEVABLE & PAYABLES

Services rendered on credit are included in trade receivables at the balance sheet date & reduced by appropriate allowances for estimated doubtful amounts. Trade payables are stated at their nominal value.

Q. CASH AND CASH EQUIVALENTS

For the purpose of the cash flows, cash & cash equivalents comprise cash on hand, balances with bank and deposits with banks.

R. CASH FLOW STATEMENT

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.


Mar 31, 2013

I. CONVENTION:

The Financial Statements are prepared under the historical cost convention in accordance with the applicable Accounting standards and relevant requirements of the Companies Act, 1956.

ii. FIXED ASSETS: .

a. Fixed assets are stated at cost less depreciation. Cost comprises the purchase price and any other applicable costs.

b. Borrowing costs in respect of loans required for acquisition and construction of fixed assets are capitalized up to the date the assets are ready for use.

iii. DEPRECIATION:

Depreciation on the fixed assets has been charged on WDV Method as per rate prescribed in Schedule — XIV of Companies Act.

iv. EMPLOYEE BENEFITS:

a) The P.F. Act applicable to the Company but no deduction is made thereof because there was no any employee in the Company because of non operating of Business activity during the financial year.

b) The year - end liability on account of gratuity and leave encashment is not provided by the company because there was no any employee who is terminated after completing five years of completed services.

v. INVESTMENT:

Long term Investments are valued at cost less provision, if any for permanent diminution in value of such investments. Current Investments are carried at lower of cost and fair value.

vi. CONTINGENT LIABILITIES:

Contingent Liabilities are generally not accounted for in the accounts.

vii. BORROWING COSTS:

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

viii TAXES ON INCOME: . .

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Differed tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent period. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainly of realization of such assets, other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future.


Mar 31, 2012

I. CONVENTION:

The Financial Statements are prepared under the historical cost convention in accordance with the applicable Accounting standards and relevant -requirements of the Companies Act, 1956.

ii. FIXED ASSETS:

a. Fixed assets are stated at cost less depreciation. Cost comprises the purchase price and any other applicable costs.

b. Borrowing costs in respect of loans required for acquisition and construction of fixed assets are capitalized up to the date the assets are ready for use.

iii. DEPRECIATION:

Depreciation on the fixed assets has been charged on WDV Method as per rate prescribed in Schedule - XIV of Companies Act.

iv. EMPLOYEE BENEFITS:

a. Provident Fund is a defined contribution scheme and the contributions are charged to the Profit & Loss A/c of the year when the contributions to the Government Funds is due.

b. Gratuity Liability and pension liability are defined benefit obligations and are provided for on the basis of an actuarial valuation made at the end of each financial year.

c. Short Term Compensated absences are provided for based on estimates. Long Term compensated absences are provided for based on actuarial valuation.

d. Actuarial gains / losses are immediate taken to the profit & loss account and are not deferred. .

e. Payments made under the Voluntary Retirement Scheme are charged .to the profit & loss account over a five year period. /Iv

V. INVESTMENT:

Long term Investments are valued at cost less provision, if any for permanent diminution in value of such investments. Current Investments are carried at lower of cost and fair value.

vi. -CONTINGENT LIABILITIES:

Contingent Liabilities are generally not accounted for in the accounts.

vii. BORROWING COSTS:

Borrowing cost that is attributable to the acquisition or construction of qualifying assets is 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 or sale. All other borrowing costs are charged to revenue.

viii. TAXES ON INCOME:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Differed tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent period. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainly of realization of such assets, other deferred tax assets am- recognized only to the extent there is reasonable certainty of realization future.

IX. Deferred Tax: In accordance with the Accounting Standard - 22 "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India, which has become mandatory from 1st April'' 2002 -for non listed companies, the company has accounted for deferred tax during the year. Consequently, the cumulative net deferred tax assets / (liabilities) of Rs.l 119.98.00 as on 31st March'' 2012 has been recognized , and adjusted from Profit & Loss A/c.


Mar 31, 2011

I. CONVENTION:

The Financial Statement are prepared under the historical cost convention in accordance with the applicable Accounting standards and relevant requirements of the Companies Act, 1956.

ii. FIXED ASSETS:

a. Fixed assets' are stated at cost, less depreciation. Cost, comprises the purchase price and any other applicable costs.

b. Borrowing costs in respect of loans required for acquisition and construction of fixed assets are capitalized upto the date the assets are ready for use.

iii. DEPRECIATION: _

Depreciation on the fixed assets have been charged on WDV Method as per rate prescribed in Schedule -XIV of Companies Act.

iv. EMPLOYEE BENEFITS:

a. Provident Fund is a defined contribution scheme and the contributions are charged to Profit & Loss A/c of the year when the contributions to the Government Funds is duelling

b. Gratuity Liability and pension liability are defined benefit obligations and are provided for on the basis of an actuarial valuation made at the end of each financial year.

c. Short Term Compensated absences are provided for based on estimates. Long Term compensated absences are provided for based on actuarial valuation.

d. Actuarial gains / losses are immediate taken to the profit & loss account and are not deferred.

e. Payments made under the Voluntary Retirement Scheme are charged to the profit & loss account over a five year period.

v. INVESTMENT: .

Long term Investment are valued at cost less provision, if any for permanent diminution it-value 'of such investments.. Current Investments are. carried at lower of cost and fair value.

vi. CONTINGENT LIABILITIES:

Contingent Liabilities are generally not accounted for in the accounts.

vii. BORROWING COSTS:

Borrowing cost that is attributable to the acquisition or construction of qualifying assets is capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a standard period of time to get ready for its intended use or sale.

All other borrowing costs are charged to revenue.

viii. TAXES ON INCOME:

Current Tax 'is determined as- the amount of tax payable in respect of taxable income for the period. Differed tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent period. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainly of realization of such assets, other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future.


Mar 31, 2010

I. CONVENTION:

The Financial Statement are prepared under the historical cost convention in accordance with the applicable Accounting standards and relevant requirements of the Companies Act, 1956,

ii. FIXED ASSETS:

a. Fixed assets are stated at cost less depreciation. Cost comprises the purchase price and any other applicable costs,

b. Borrowing costs in respect of loans required for acquisition and construction of fixed assets are capitalized upto the date the assets are ready for use.

iii. DEPRECIATION:

Depreciation on the fixed assets have been charged on WDV Method as per rate prescribed in Schedule - XIV of Companies Act.

iv. EMPLOYEE BENEFITS:

a. Provident Fund is a defined contribution scheme and the contributions are charged to the Profit & Loss A/e of the year when the contributions to the Government Funds is due.

b. Gratuity Liability and pension liability are defined benefit obligations and are provided for on the basis of an actuarial valuation made at the end of each financial year.

c. Short Term Compensated absences are provided for based on estimates. Long Term compensated absences are provided for based on actuarial valuation.

d. Actuarial gains / losses are immediate taken to the profit &. loss account and are not deferred.

e. Payments made under the Voluntary Retirement Scheme are charged to the profit & loss account over a five year period.

v. INVESTMENT:

Long term Investment are valued at cost less provision, if any for permanent diminution in value of such investments. Current Investments are carried at lower of cost and fair value.

vi. CONTINGENT LIABILITIES:

Contingent Liabilities are generally not accounted for in the accounts.

vii. BORROWING COSTS:

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

viii. TAXES ON INCOME:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Differed tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent period. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainly of realization of such assets, other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future.

 
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