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Accounting Policies of Paras Petrofils Ltd. Company

Mar 31, 2014

1 SYSTEM OF ACCOUNTING

(i) The financial statements are prepared on a historical cost convention and as a going concern concept .

(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

(iii) The Company follows the mercantile System of accounting and recognizes Income and expenditure on accrual basis except otherwise referred.

2 FIXED ASSETS AND DEPRECIATION

(i) Expenditure which are of Capital nature are capitalized at a cost net of CENVAT and VAT which comprises purchase price (net of rebates and discount), levies and any directly attributable cost of bringing the assets to working condition for its intended use.

(ii) Depreciation is charged on straight line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 on pro rata basis except on Building and Plant & Machinery due to non utilisation of the same during the year.

3 INVENTORY

(i) Raw materials are stated at cost or net realizable value whichever is lower.

(ii) Stock of finished goods have been valued at cost or net realizable value whichever is lower.

(iii) Stock of work in progress have been valued at cost or net realizable value whichever is lower.

(iv) The cost includes manufacturing expenses and appropriate overheads. Excise duty on finished goods lying at the plant is provided and considered for valuation of stock.

(v) Stock of waste have been valued at net realisable value

(vi) Stores and Spares are stated at Cost or net realizable value whichever is lower.

4 INVESTMENT

Investments have been valued at cost. Provision for diminution in the value of long tern investment is made only when such a decline is other then temporary in the opinion of the management.

5 BORROWING COST

(i) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized as part of the cost of that asset.

(ii) All other borrowing costs are charged to revenue.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are normally recorded at the rates of exchange prevailing at the time of transactions. Monetary items at the end of the year are translated at the year end rate. The difference between the exchange rate prevailing on the date of transactions and on the date of settlement, as also on translation at the end of the year is recognised as income or expenses, as the case may be for the year.

7 IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFITS

Company''s contributions to provident fund and ESIC are charged to profit and loss account. Incremental liability of gratuity for the year is provided in the books of accounts and charged to the profit & loss account on the basic of actuarial valuation. The eligible benefit of privileged leave have been charged to Profit & loss Account as per policy of the company.

9 TAXATION

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for further tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements, subject to consideration of prudence. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

10 INCOME FROM OPERATIONS

Revenue from Operations includes Sales and Excise Duty and Value Added Tax on Sales but is net of discounts, claims and returns.

11 PROVISION, CONTINGENCIES

A provision is recognised where there is present obligation as a result of past event and 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. Contingent liability are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed.

12 MAT Credit Entitlement

The MAT Credit entitlement has been recognised as an assets in the previous year as there was certainty to utilise the MAT Credit within the specified period. However due to huge loss incurred by the company during the previous year and further to suspension of Manufacturing activity during the year, MAT credit entitlement have been reversed back as uncertainty of the utilisation of the same within the specified period.


Mar 31, 2013

1 SYSTEM OF ACCOUNTING

(i) The financial statements are prepared on a historical cost convention and as a going concern concept .

(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

(iii) The Company follows the mercantile System of accounting and recognizes Income and expenditure on accrual basis except otherwise referred.

2 FIXED ASSETS AND DEPRECIATION

(i) Expenditure which are of Capital nature are capitalized at a cost net of CENVAT and VAT which comprises purchase price (net of rebates and discount), levies and any directly attributable cost of bringing the assets to working condition for its intended use.

(ii) Depreciation is charged on straight line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 on pro rata basis.

3 INVENTORY

(i) Raw materials are stated at cost or net realizable value whichever is lower.

(ii) Stock of finished goods have been valued at cost or net realizable value whichever is lower.

(iii) Stock of work in progress have been valued at cost or net realizable value whichever is lower.

(iv) The cost includes manufacturing expenses and appropriate overheads. Excise duty on finished goods lying at the plant is provided and considered for valuation of stock.

(v) Stock of waste have been valued at net realisable value

(vi) Stores and Spares are stated at Cost or net realizable value whichever is lower.

4 INVESTMENT

Investments have been valued at cost. Provision for diminution in the value of long tern investment is made only when such a decline is other then temporary in the opinion of the management.

5 BORROWING COST

(i) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized as part of the cost of that asset.

(ii) All other borrowing costs are charged to revenue.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are normally recorded at the rates of exchange prevailing at the time of transactions. Monetary items at the end of the year are translated at the year end rate. The difference between the exchange rate prevailing on the date of transactions and on the date of settlement, as also on translation at the end of the year is recognised as income or expenses, as the case may be for the year.

7 IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFITS

Company''s contributions to provident fund and ESIC are charged to profit and loss account. Incremental liability of gratuity for the year is provided in the books of accounts and charged to the profit & loss account on the basic of actuarial valuation. The eligible benefit of privileged leave have been charged to Profit & loss Account as per policy of the company.

9 TAXATION

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for further tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements, subject to consideration of prudence. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

10 INCOME FROM OPERATIONS

Revenue from Operations includes Sales and Excise Duty and Value Added Tax on Sales but is net of discounts, claims and returns.

11 PROVISION, CONTINGENCIES

A provision is recognised where there is present obligation as a result of past event and 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. Contingent liability are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed.

12 MAT Credit Entitlement

The MAT Credit entitlement has been recognised as an assets in the year when there is certainty to utilise the MAT Credit within the specified period


Mar 31, 2012

1 SYSTEM OF ACCOUNTING

(i) The financial statements are prepared on a historical cost convention and as a going concern concept .

(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

(iii) The Company follows the mercantile System of accounting and recognizes Income and expenditure on accrual basis except otherwise referred.

2 FIXED ASSETS AND DEPRECIATION

(i) Expenditure which are of Capital nature are capitalized at a cost net of CENVAT and VAT which comprises purchase price (net of rebates and discount), levies and any directly attributable cost of bringing the assets to working condition for its intended use.

(ii) Depreciation is charged on straight line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 on pro rata basis.

3 INVENTORY

(i) Raw materials are stated at cost or net realizable value whichever is lower.

(ii) Stock of finished goods have been valued at cost or net realizable value whichever is lower.

(iii) Stock of work in progress have been valued at cost or net realizable value whichever is lower.

(iv) The cost includes manufacturing expenses and appropriate overheads. Excise duty on finished goods lying at the plant is provided and considered for valuation of stock.

(v) Stock of waste have been valued at net realizable value

(vi) Stores and Spares are stated at Cost or net realizable value whichever is lower.

4 INVESTMENT

Investments have been valued at cost. Provision for diminution in the value of long tern investment is made only when such a decline is other then temporary in the opinion of the management.

5 BORROWING COST

(i) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized as part of the cost of that asset.

(ii) All other borrowing costs are charged to revenue.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are normally recorded at the rates of exchange prevailing at the time of transactions. Monetary items at the end of the year are translated at the year end rate. The difference between the exchange rate prevailing on the date of transactions and on the date of settlement, as also on translation at the end of the year is recognized as income or expenses, as the case may be for the year.

7 IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFITS

Company's contributions to provident fund and ESIC are charged to profit and loss account. Incremental liability of gratuity for the year is provided in the books of accounts and charged to the profit & loss account on the basic of actuarial valuation. The eligible benefit of privileged leave have been charged to Profit & loss Account as per policy of the company.

9 TAXATION

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for further tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements, subject to consideration of prudence. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

10 INCOME FROM OPERATIONS

Revenue from Operations includes Sales and Excise Duty and Value Added Tax on Sales, Commission Income including Service Tax but is net of discounts, claims and returns.

11 PROVISION, CONTINGENCIES

A provision is recognized where there is present obligation as a result of past event and 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. Contingent liability are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed.

12 MAT Credit Entitlement

The MAT Credit entitlement has been recognized as an assets in the year when there is certainty to utilise the MAT Credit within the specified period


Mar 31, 2010

1 SYSTEM OF ACCOUNTING

(i) The financial statements are prepared on a historical cost convention and as a going concern concept.

(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

(iii) The Company follows the mercantile System of accounting and recognizes Income and expenditure on accrual basis except otherwise referred.

2 FIXED ASSETS AND DEPRECIATION

(i) Expenditure which are of Capital nature are capitalized at a cost net of CENVAT and VAT which comprises purchase price (net of rebates and discount), levies and any directly attributable cost of bringing the assets to working condition for its intended use.

(ii) Depreciation is charged on straight line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 on pro rata basis.

3 INVENTORY

(i) Raw materials are stated at cost or net realizable value whichever is lower.

(ii) Stock of finished goods have been valued at cost or net realizable value whichever is lower.

(iii) Stock of work in progress have been valued at cost or net realizable value whichever is lower.

(iv) The cost includes manufacturing expenses and appropriate overheads. Excise duty on finished goods lying at the plant is provided and considered for valuation of stock.

(v) Stock of waste have been valued at net realisable value

(vi) Stores and Spares are stated at cost or net realizable value whichever is lower.

4 INVESTMENT

Investments have been valued at cost. Provision for dimination in the value of long tern investment is made only when such a decline is other then temporary in the opinion of management.

5 BORROWING COST

(i) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized as part of the cost of that asset.

(ii) All other borrowing costs are charged to revenue.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are normally recorded at the rates of exchange prevailing at the time of transactions. Monetary items at the end of the year are translated at the year end rate. The difference between the exchange rate prevailing on the date of transactions and on the date of settlement, as also on translation at the end of the year is recognised as income or expenses, as the case may be for the year.

7 IMPAIRMENT OF ASSETS

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amounts.An impairment loss is charged to the Profit and Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFITS

Companys contributions to provident fund and ESIC are charged to profit and loss account. Incremental liability of gratuity for the year is provided in the books of accounts and charged to the profit & loss account on the basic of actuarial valuation. The eligible benefit of privileged leave have been charged to Profit & loss Account as per policy of the company.

9 TAXATION

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for further tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements, subject to consideration of prudence. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

10 TURNOVER

Gross Turnover includes Excise Duty and Value Added Tax on Sales, Commission Income but is net of discounts, claims and returns.

11 PROVISION, CONTINGENCIES

A provision is recognised where there is present obligation as a result of past event and 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. Contingent liability are not recognised but are disclosed in the notes. Contingent Assets are neither recognised hence not disclosed.

 
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