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Accounting Policies of Noble Explochem Ltd. Company

Mar 31, 2014

1. Basis of Preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets and Depreciation

a) Fixed Assets

Fixed Assets are stated at cost, net of CENVAT availed, less accumulated depreciation. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalized. All costs, including financing costs till the assets are ready to be put to use are capitalized.

b) Depreciation and Amortization

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to/ deletions from fixed assets is provided on pro-rata basis from/ up to the date of such additions/ deletions as the case may be. Assets costing less than Rs.5,000/- each are fully depreciated in the year of purchase. The value of Horticulture and Land Development expenses and the value of intangible assets are amortized at the rate of 10% and 20% per annum respectively.

4. Employees Retirement Benefits

The Company has a Employees'' Group Gratuity Policy with Life Insurance Corporation of India and benefit of leave encashment accumulation and provident fund contribution.

5. Taxes on Income

Tax on Income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals.

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified by using the tax rates and laws enacted or substantively enacted as on the Balance Sheet day.

Deferred Tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

6. Impairment of Assets

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Profit & Loss A/c in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate of recoverable amount.

7. Investments

Long-term investments are stated at cost. In case of long term investments, provision/ write down is made for permanent diminution in value.

8. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognized, but are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.

9. Earning Per Share

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.


Mar 31, 2013

1. Basis of Preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets and Depreciation

a) Fixed Assets Fixed Assets are stated at cost, net of CENVAT availed, less accumulated depreciation. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalized. All costs, including financing costs till the assets are ready to be put to use are capitalized. b) Depreciation and Amortization

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to/ deletions from fixed assets is provided on pro-rata basis from/ up to the date of such additions/ deletions as the case may be. Assets costing less than Rs.5,000/- each are fully depreciated in the year of purchase. The value of Horticulture and Land Development expenses and the value of intangible assets are amortized at the rate of 10% and 20% per annum respectively.

4. Employees Retirement Benefits

The Company has a Employees'' Group Gratuity Policy with Life Insurance Corporation of India and benefit of leave encashment accumulation and provident fund contribution.

5. Taxes on Income

Tax on Income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals.

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified by using the tax rates and laws enacted or substantively enacted as on the Balance Sheet day.

Deferred Tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

6. impairment of Assets

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Profit & Loss A/c in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate of recoverable amount.

7. Investments

Long-term investments are stated at cost. In case of long term investments, provision/ write down is made for permanent diminution in value.

8. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognized, but are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.

9. Earning Per Share

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.


Mar 31, 2012

1. Basis of Preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act' 1956.

2. Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actuai results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets and Depreciation

a) Fixed Assets

Fixed Assets are stated at cost' net of CENVAT availed' less accumulated depreciation. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalized. All costs' including financing costs till the assets are ready to be put to use are capitalized.

b) Depreciation and Amortization

Depreciation on fixed assets is provided on straight line method' at the rates and in the manner specified in schedule XIV of the Companies Act' 1956. Depreciations on additions to/ deletions from fixed assets is provided on pro-rata basis from/ up to the date of such additions/ deletions as the case may be. Assets costing less than Rs.5'000/- each are fully depreciated in the year of purchase. The value of Horticulture and Land Development expenses and the value of intangible assets are amortized at the rate of 10% and 20% per annum respectively.

4. Em ploy ees Reti rement Benefits

The Company has a Employees' Group Gratuity Policy with Life Insurance Corporation of India and benefit of leave encashment accumulation and provident fund contribution.

5. Taxes on Income

Tax on Income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of the Income Tax Act' 1961' and based on expected outcome of assessments / appeals.

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified by using the tax rates and laws enacted or substantively enacted as on the Balance Sheet day.

Deferred Tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

6. Impairment of Assets

At the end of each reporting period' the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Profit & Loss A/c in the period in which an asset is identified as impaired' when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed' if there has been a change in the estimate of recoverable amount.

7. Investments

Long-term investments are stated at cost. In case of long term investments' provision/ write down is made for permanent diminution in value.

8. Provisions' Contingent Liabilities and Contingent Assets

Aprovision is recognized if' as a result of a past event' the company has a present legal obligation that can be estimated reliably' and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made' a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may' but probably will not' require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote' no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements' it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation' in respect of which a reliable estimate can be made. Contingent liabilities are not recognized' but are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.

9. Earning Per Share

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.


Mar 31, 2011

1. Basis of Preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets and Depreciation

a) Fixed Assets

Fixed Assets are stated at cost, net of CEN VAT availed, less accumulated depreciation. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalized. All costs, including financing costs till the assets are ready to be put to use are capitalized.

b) Depreciation and Amortization

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to/ deletions from fixed assets is provided on pro-rata basis from/ up to the date of such additions/ deletions as the case may be. Assets costing less than Rs.5,000/- each are fully depreciated in the year of purchase. The value of Horticulture and Land Development expenses and the value of intangible assets are amortized at the rate of 10% and 20% per annum respectively.

4. Employees Retirement Benefits

The Company has a Employees' Group Gratuity Policy with Life Insurance Corporation of India and benefit of leave encashment accumulation and provident fund contribution.

5. Taxes on Income

Tax on Income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals. Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified by using the tax rates and laws enacted or substantively enacted as on the Balance Sheet day. Deferred Tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

6. Impairment of Assets

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Profit & Loss A/c in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate of recoverable amount.

7. Investments

Long-term investments are stated at cost. In case of long term investments, provision/ write down is made for permanent diminution in value.

8. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognized, but are disclosed in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in the accounts.

9. Earning Per Share

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.


Mar 31, 2010

1. Basis of Preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and in compliance with the provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known/ materialized.

3. Fixed Assets and Depreciation

a) Fixed Assets

Fixed Assets are stated at cost, net of cenvat availed, less accumulated depreciation. Exchange gain or loss on adjustments arising from exchange rate variations attributable to the fixed assets is capitalised. All costs, including financing costs till the assets are ready to be put to use are capitalized.

b) Depreciation and Amortization

Depreciation on fixed assets is provided on straight line method, at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. Depreciations on additions to/ deletions from fixed assets is provided on pro-rata basis from/ up to the date of such additions/ deletions as the case may be. Assets costing less than Rs.5,000/- each are fully depreciated in the year of purchase. The value of Horticulture and Land Development expenses and the value of intangible assets are amortized at the rate of 10% and 20% per annum respectively.

4. Employees Retirement Benefits

The Company has a Employees Group Gratuity Policy with Life Insurance Corporation of India and benefit of leave encashment accumulation and provident fund contribution.

5. Taxes on Income

Tax on Income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of the It ome Tax Act, 1961, and based on expected outcome of assessments / appeals.

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified by using the tax rates and laws enacted or substantively enacted as on the Balance Sheet day.

Deferred Tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

6. Impairment of Assets

At the end of each reporting period, the company determines whether the provision should be made for impairment loss to fixed assets by considering the indications that the impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by ICAI. The impairment loss is charged to Profit & Loss A/c in the period in which an asset is identified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognised in the earlier periods is reversed, if there has been a change in the estimate of recoverable amount.

7. Investments

Long-term investments are stated at cost. In case of long term investments, provision/ write down is made for permanent diminution in value.

8. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised if, as a result of a past event, the company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a

disclosure is made as a contingent liability. A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognised nor disclosed in the financial statements, it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liabilities are not recognised, but are disclosed in the Notes on Accounts. Contingent assets are neither recognised nor disclosed in the accounts. 9. Earning Per Share

Basic earning per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit after tax (by adjusting any tax benefits) by the weighted average number of equity shares considered for deriving basic earning per share and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

 
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