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Accounting Policies of Overseas Synthetics Ltd. Company

Mar 31, 2015

A Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprise mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and the provision of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing accounting standards requires a change in the accounting policy hitherto in use.

B Fixed Assets

Fixed Assets if any are stated at cost, net of CENVAT credit, if any, after reducing accumulated depreciation until the date of the Balance Sheet. Direct costs are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition.

C Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are materialised.

D Employee Benefits

The benefits like leave encashment and if any gratuity are accounted for on cash basis. Provisions of Provident Fund is not applicable and hence no provision for PF is made.

E Borrowing Costs

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets. A Qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to Profit & Loss Account.

F Provision for Current and Deferred tax

i) Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. ii) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

G Provision, Contingent Liabilities and Contingent Assets

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

H Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

I Cash and cash equivalent

Cash and cash equivalents for the purposes of financial statement comprise cash at bank and in hand.


Mar 31, 2014

A Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention on accrual basis of accounting and in'' accordance with applicable Accounting Standards and relevant presentational requirement of the Companies Act, 1956 read with the General Circular 8/2014 dated 4th April, 2014 issued by Ministry of Corporate Affairs regarding various Provisions / Schedules / Rules.

B Fixed Assets

Fixed Assets are stated at cost, net of CEN VAT credit, if any, after reducing accumulated depreciation until the date of the Balance Sheet. Direct costs are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition.

C Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are materialised. .

D Employee Benefits

The benefits like leave encashment and gratutiy are accounted for on cash basis. Provisions of Provident Fund is not applicable and hence no provision for PF is made.

E Borrowing Costs

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets. A Qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to Profit & Loss Account.

F Provision for Current and Deferred tax

i) Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961.

ii) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

G Provision, Contingent Liabilities and Contingent Assets

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

H Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

I Cash and cash equivalent

Cash and cash equivalents for the purposes of financial statement comprise cash at bank and in hand.


Mar 31, 2013

A Basis of Preparation of Financial Statements

The Financial statements and books of accounts are prepared under historical cost convention and accrual basis (unless otherwise specified) and in accordance with generally accepted accounting principles in India, the accounting standard issued by The Institute of Chartered Accountants of India and in accordance with the requirement of Companies Act, 1956.

B Fixed Assets

Fixed Assets are stated at cost, net of CENVAT credit, if any, after reducing accumulated depreciation until the date of the Balance Sheet. Direct costs are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition.

C Depreciation

Depreciation on fixed assets has been provided on Written Down Value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions to the Fixed Assets is provided on pro- rata basis from the date of its use.

D Employee Benefits

The benefits like salaries, wages, bonus, leave-salary ex-gratia are recognised in the period in which employee renders the specified service

E Borrowing Costs

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets. A Qualifying assets is one that necessdrily takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to Profit & Loss Account.

F Provision for Current and Deferred tax

i) Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961.

ii) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

G Prior Period Adjustments

All identifiable items of income and expenditure pertaining to prior period are accounted through "Prior Period Adjustments Account"

H Provision, Contingent Liabilities and Contingent Assets

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

Significant accounting policies adopted in the preparation and presentation of the accounts are as under:

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention on an accrual basis except Gratuity, which is accounted on cash basis.

(b) Fixed Assets:

Company has disposed all fixed asset. However Fixed Assets are stated at cost of acquisition or construction, net of CENVAT available less accumulated depreciation. Cost comprises of the purchase price and any other attributable cost of bringing the assets to its working conditions for its intended use.

(c) Depreciation:

Depreciation on all depreciable fixed assets is provided under Straight Line Method as per rates specified in Schedule XIV to the Companies Act, 1956. Except computer on which depreciation provided after deducting scrap value. Depreciation on addition or deduction is provided on pro-rata basis.

(d) Investments:

Long Term Investments are stated at cost of acquisition.

(e) Inventories:

Company does not hold any Inventory during the year. However as per the policy of the company, inventories are valued applying FIFO method as under:

(i) Raw materials are valued at cost or NRV whichever is lower.

(ii) Finished Goods are valued at cost or net realizable value whichever is lower.

(f) Retirement Benefits:

i. Short term Employee Benefits:

All employee benefits falling due within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, bonus, leave salary ex-gratia are recognized in the period in which employee renders the related services.

ii. Defined Contribution Plans:

Contributions to Defined Contribution Plans are recognized as expense in the Profit and Loss Account, as they are incurred.

iii. Defined Benefit Plans:

Gratuity is accounted by the entity as and when paid.

(g) Revenue Recognition:

- As per policy of the company, Income from sales is recognized net of discount etc.

- Income from rent is recognized on accrual basis based on the agreement with the parties.

- Income from interest is recognized on accrual basis where dividend on shares recognized at time of receipt.

- Income from shares investment is recognized at time of physical delivery of shares.

(h) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.


Mar 31, 2010

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention on an accrual basis except Gratuity, which is accounted on cash basis.

(b) Fixed Assets;

Fixed Assets are stated at cost of acquisition or construction, net of CENVAT available less accumulated depreciation. Cost comprises of the purchase price and any other attributable cost of bringing the assets to its working conditions for its intended use.

(c) Depreciation:

Depreciation on all depreciable fixed assets is provided under Straight Line Method as per rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on addition or deduction is provided on pro-rata basis.

No depreciation is provided on the unused assets.

(d) Investments:

Long Term Investments are stated at cost of acquisition.

(e) Inventories:

Company does not hold any Inventory during the year. However as per the policy of the company, inventories are valued applying FIFO method as under:

(i) Raw materials are valued at cost.

(ii) Finished Goods are valued at cost or net realisable value whichever is lower.

(f) Retirement Benefits:

i. Short term Employee Benefits:

All employee benefits falling due within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, bonus, leave salary ex-gratia are recognized in the period in which employee renders the related services.

ii. Defined Contribution Plans:

Contributions to Defined Contribution Plans are recognized as expense in the Profit and Loss Account, as they are incurred.

iii. Defined Benefit Plans:

Gratuity is accounted by. the entity as and when paid.

(g) Revenue Recognition:

As per policy of the company, Income from sales is being recognized net of discount etc.

Income from Speculation business related to derivatives instruments are recognized on mark-to-market basis.

Income from speculative business resulting from intraday transactions are recognized based on the outcome of those transactions.

(h) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

 
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