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Accounting Policies of Ozone World Ltd. Company

Mar 31, 2015

2.01 Basis of preparation of Financial Statements :

The Financial statements are prepared to comply in all material respects with the Accounting Standards notified by the relevant provisions of Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting Standard requires a change in the accounting policy hitherto in use.

2.02 Use of Estimates :

The preparation of financial statement in conformity with generally accepted accounting principles requires management of the company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recog- nized in the period in which the results are known / materialized.

2.03 Segmental Reporting :

By applying the definitions of "business segment" and "geographical segment", contained in AS-17, it is concluded that there is neither more than one business segment nor more than one geographical segment and as such, segment information as per AS-17 is not required to be disclosed.

2.04 Revenue Recognition :

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue on sale of product is recognized on delivery of the product, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risk and reward of ownership have been transferred and no effective ownership control is retained. Interest income is recognized on time proportion basis.

2.05 Foreign Currency Transactions :

Transactions in foreign currency are accounted for at the exchange rates prevailing on the date of transactions. Exchange difference arising on foreign currency transactions settled during the year are recognized in the Profit and Loss Account for the year, other than exchange difference related to the liabilities for acquisition of fixed assets that are adjusted to the cost of the related fixed assets. All monetary items denominated in foreign currency are translated at exchange rates prevailing on the balance sheet date. The resultant exchange differ- ences are recognized in the Profit and Loss Account for the year, other than exchange differences related to the liabilities for acquisition of fixed assets that are adjusted to the cost of fixed assets.

In the case of forward contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized in the Profit and Loss Account over the life of the contract, except in case of liabilities relating to acquisition of fixed assets, which is adjusted to the carrying cost of the fixed asset.

Amount remitted in foreign currency Rs. NIL

Earning in foreign currency on FOB basis Rs. NIL

2.06 Borrowing Costs :

Borrowing costs directly attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such asset till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs, if any, are charged to Profit and Loss account as period cost.

2.07 Tangible Assets :

Tangible assets are stated at cost less accumulated depreciation and impairment losses, if any. Direct cost comprises of all expenditure of capital in nature attributable to bringing the fixed asset to working condition for its intended use and incidental expenses including interest relating to acquisition, until Tangible assets are ready to use be put to use.

As per Companies Act, 2013, the assets whose useful life has expired as on 1st April, 2014 are written off during the year against reserves and surplus account.

2.08 Depreciation :

Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, whenever applicable) less accumulated depreciation.

In respect of addition and sale of assets during the period, depreciation is provided on periodical basis.

The depreciation on the assets for the current financial year, is calculated on the basis of remaining useful life of the assets, as per Schedule II of the provisions of Companies Act' 2013.

2.09 Investments :

Non Current Investments are stated at cost. Provision for diminution in the value of non-current investments is made, only if, in the opinion of the management, such a decline is regarded as being other than temporary.

2.10 Inventories :

The company does not have any inventory as on 31st March 2015.

2.11 Cash and cash equivalent :

Cash and cash equivalents for the purpose of the cash flow statements comprise cash at bank and in hand and short term investments with an original maturity of three month or less.

2.12 Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognized when the company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. This are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclose in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

2.13 Taxes on Income :

Income tax expense comprises of current tax and deferred tax (charge or credit).

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Provision is made for income tax annually based on the tax liability computed, after considering tax allowances and exemp- tions under the Income Tax Act, 1961.

Deferred taxes measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carried forward tax losses all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

Deferred tax assets and deferred tax liability are reviewed for appropriateness of their respective carrying values at each balance sheet date.

(In Rupees)

Timing Difference Amount as per Amount as per Difference companies Act Income Tax Act

Depreciation 1082 662 420

Timing Difference DTA / (DTL)

Depreciation 126



2.14 Related Party Disclosures :

Related Party disclosures as required under the Accounting Standard (AS) - 18 on "Related Party Disclosures" notified in Companies (Accounting Standards) Rules, 2006 are given below:

(A) Name of the related parties and description of relationship :

S. Description of Relationship Name of the Related Party N. (With whom transactions has taken place during the year)

1 Enterprises having significant a) Ozone India Limited influence b) Advance Realty Developers

2. Relatives of Key Managerial Person a) Mrs. Indiraben Patel

2.15 General :

(1) Any other accounting policy not specifically referred to are consistent with generally accepted accounting principles.

(2) Debit/credit balances under the head "Current liabilities","Sundry debtors", "Unsecured loans" and "Loans and advances" are subject to confirmation from respective parties.

(3) On the basis of the information available with the company, there are no Micro, Small and Medium enterprise to whom the company owes dues, which are outstanding for more than 45 days at the balance sheet date.

(4) The Company does not have any Contingent liabilities in the nature of claims or guarantees.

(5) The assets whose useful life has been expired as on 31.03.2014 are written off during the year against general reserves.

(6) Previous year's figures have been regrouped, reclassified wherever necessary to correspond with the current year's classifications/disclosures.


Mar 31, 2014

1.01 Basis of preparation of Financial Statements :

The Financial Statements are prepared to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 . The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting Standard requires a change in the accounting policy hitherto in use.

1.02 Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.03 Tangible Assets :

Tangible Assets are stated at cost less accumulated depreciation and impairment losses, if any. Direct cost comprises of all expenditure of capital in nature attributable to bringing the fixed asset to working condition for its intended use and incidental expenses including interest relating to acquisition, until Tangible assets are ready to be put to use.

1.04 Accounting for Investments :

Non Current Investments are stated at cost. Provision for diminution in the value of non current investments is made, only if, in the opinion of the management, such a decline is regarded as being other than temporary

1.05 Segment Reporting :

By applying the definitions of "business segment" and "geographical segment", contained in AS-17, it is concluded that there is neither more than one business segment nor more than one geographical segment and as such segment information as per AS-17 is not required to be disclosed.

1.06 Depreciation :

a. Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, wherever applicable) less accumulated depreciation.

b. Depreciation on fixed assets is provided on WDV method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

c. In respect of addition and sales of assets during the period, depreciation is provided on periodical basis.

1.07 Revenue Recognition :

Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection. Revenue on sale of product is recongnised on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transfered for a price, significant risk and reward of ownership have been transfered and no effective ownership control is retained. Interest income is recognised on time proportion basis.

1.08 Borrowing Costs :

Borrowing costs directly attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs, if any, are charged to the Profit & Loss Account as period costs.

1.09 Taxes on Income :

Income Tax expense comprises of current tax and deferred tax (charge or credit).

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Provision is made for income tax annually based on the tax liability computed, after considering tax allowances and exemp- tions under the Income Tax Act, 1961.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

Deferred Tax Assets and Deferred Tax Liabilities are reviewed for appropriateness of their respective carrying values at each balance sheet date.

1.10 Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognised when the Company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.11 Cash and Cash Equivalent :

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

1.12 General :

Any other accounting policy not specifically referred to are consistent with generally accepted accounting principles.


Mar 31, 2013

1.01 Basis of preparation of Financial Statements :

The Financial Statements are prepared to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 . The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting Standard requires a change in the accounting policy hitherto in use.

1.02 Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.03 Tangible Assets :

Tangible Assets are stated at cost less accumulated depreciation and impairment losses, if any. Direct cost comprises of all expenditure of capital in nature attributable to bringing the fixed asset to working condition for its intended use and incidental expenses including interest relating to acquisition, until Tangible assets are ready to be put to use.

1.04 Accounting for Investments :

Non Current Investments are stated at cost. Provision for diminution in the value of noncurrent investments is made, only if, in the opining of the management, such a decline is regarded as being other than temporary.

1.05 Preliminary Expenses :

Preliminary Expenses are written off in 5 (five) equal installments.

1.06 Segment Reporting :

By applying the definitions of "business segment" and "geographical segment", contained in AS-17, it is concluded that there is neither more than one business segment nor more than one geographical segment and as such segment information as per AS-17 is not required to be disclosed.

1.07 Depreciation :

a. Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, wherever applicable) less accumulated depreciation.

b. Depreciation on fixed assets is provided on WDV method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

c. In respect of addition and sales of assets during the period, depreciation is provided on periodical basis.

1.08 Revenue Recognition :

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue on sale of product is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risk and reward of ownership have been transferred and no effective ownership control is retained. Interest income is recognized on time proportion basis.

1.09 Borrowing Costs :

Borrowing costs directly attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs, if any, are charged to the Profit & Loss Account as period costs.

1.10 Taxes on Income :

Income Tax expense comprises of current tax and deferred tax (charge or credit).

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Provision is made for income tax annually based on the tax liability computed, after considering tax allowances and exemptions under the Income Tax Act, 1961.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

Deferred Tax Assets and Deferred Tax Liabilities are reviewed for appropriateness of their respective carrying values at each balance sheet date.

1.11 Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.12 Cash and Cash Equivalent :

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

1.13 General :

Any other accounting policy not specifically referred to are consistent with generally accepted accounting principles.