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Accounting Policies of Parker Agrochem Exports Ltd. Company

Mar 31, 2014

Company Overview: The Unit of the company is located at Plot No.3 & 4, Block ''H'' at Kandla Port, Kandla, Kutch District in the state of Gujarat. The Location of the unit is very Ideal as Kandla Port is Site Recognized by the Government authorities for Export. The Company has Developed Petroleum And Edible Oil storage tanks with Connecting Pipelines with Port jetty for directly Loading & Unloading ship. These Storage tanks are rented and the rental Income contributes to the Income of the Company. The company has in all fourteen Storage Tanks.

Company was involved in the business of Silver. However, the company continues to carry on the Business of renting of storage tank.

1. Significant Accounting Policies: The financial statements have been prepared in accordance with applicable accounting standards. A summary of the important accounting policies is set out below:-

(A) Basis of Accounting : The financial statements are prepared on accrual basis and are in accordance with the historical cost convention.

(B) Revenue Recognition : Sales are accounted for on dispatch of goods to the customers and are net of sales and returns.

Other income is accounted for on Accrual Basis.

(C) Fixed Assets : Fixed Assets are carried at cost less depreciation. The cost of assets includes original cost plus other incidental expenses incurred up to the date of installation / acquisition.

(D) Depreciation : Depreciation is provided under Straight line method at the rates specified under schedule- XIV to the Companies Act-1956 on single shift basis working as certified by Director. Depreciation on additions / deletions to / from fixed assets made during the year is provided on pro-rata basis from/upto the date of such addition / deletion as the case may be.

(E) Inventories : The Company does not hold any physical inventory as on 31st March, 2014.

(F) Treatment of Miscellaneous Expenditure : Preliminary Expenses are being written off over a period of 5 Years.

(G) Taxation : The current Income tax charged is determined in accordance with the relevant tax regulations applicable to the Company. Deferred tax charged or credit are recognized for the future tax consequences attributable to timing difference that result between the profit offered for Income taxes and the profit as per financial statements. The deferred tax charged or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such asset. Deferred tax asset are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized.

The Company off-sets, on a year to year basis, the current tax assets and liabilities, where it has legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

(H) Employees'' Benefit

Gratuity: Gratuity is a defined benefit scheme and is accrued based on actuarial valuation at the Balance Sheet date carried out by independent actuary. The Company has an employee gratuity fund. Actual gains and losses are charged to Profit and Loss account.

Provident Fund: As the Strength of the employees doesn''t exceed the prescribed limit under the Provident fund, company has not deducted and paid any provident fund amount.

Leave Encashment: The Company is not having any policy for payment of Leave Encashment so no provision for the same has been made.

(I) Investment : Long term Investments are valued at cost of acquisition and related expenses. Provision is made for diminution, if any, in the value of such investment.

(J) Earning Per Share : In determining earning per share, the company considers the net profit after tax and includes the post - tax effect of any extra -ordinary items. The number of equity shares used in computing basis earnings per share is the weighted average number of equity shares outstanding during the year. The number of equity shares used in computing diluted earnings per share comprises weighted average number of equity share considered for deriving basic earning per share and also weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity share.

(K) Lease : Asset which is subject to operating lease is shown under fixed assets in the balance sheet. Lease income from operating leases is recognized in the statement of profit and loss on a straight line basis over lease term. Costs including depreciation, incurred in earning the lease income are recognized as expense. Initial direct costs incurred specifically to earn revenues from an operating lease are expensed during the period.

(L) Other Accounting Policies : These are consistent with generally accepted accounting practices.


Mar 31, 2012

(A) Basis of Accounting : The financial statements are prepared on accrual basis and are in accordance with the historical cost convention.

(B) Revenue Recognition : Sales are accounted for on dispatch of goods to the customers and arc net of sahRs.s and returns. Other income is accounted for on Accrual Basis.

(C) Fixed Assets : Fixed Assets are tarried at cost less depreciation. The cost of assets includes original cost plus other incidental expenses incurred up to the date of installation / acquisition,

(D) Depreciation : Depreciation, is provided under Straight line inethod at the rates specified under schedule- XIV to the Companies Act-l9b6 Dn single shift basis working as certified by Director, Depreciation on additions / deletions tD / from fixed assets made during the year is provided on pro-rata basis From/upta the date of such addition / deletion as the case may be.

(E) Inventories : The Company does not hoLd any physical inventory as on 31* March, 2012.

(F) Treatment of Miscellaneous Expenditure : Preliminary Expenses are being written off over a period of 5 Years.

(G) Taxation : The current Income tax charged is determined in accordance with the relevant tax regulations applicable to the Company. Deterred tax charged or credit are recognized for the future tax consequences attributable to timing difference that result between the profit offered For Income taxes and the profit as per financial statements. The deferred tax charged or credit and tie co:respcnding deferred tax liabilities or assets are recognized using the tax rates thai have been enacted ot substantively enacted by the Balance Sheet date. Defened tax assets are recogni7ed only to the extent there is reasonable certainty that the assets can be realized in the future; however when there is a brought Forward Loss or unabsorbed depreciation under taxation iaws, deferred tax assets are recognized only if theie is virtual icrtainty of realization of such asset. Deferred tax asset are reviewed as at each Balance Sheet date and written down or written up Lo reflect the amount that is reasonably/ virtu ally certain to be reaLized.

The Company off-sets, on a year to year basis, the current tax assets and Liabilities, where it has legally enforceable right and where it intends to settle such assets and liabilities Dn a net basis.

(II) Employees' Benefit

Gratuity: Gratuity is a defined benefit scheme and is accrued based on actuarial valuation at the Balance Sheet date :arried out by independent actuary, [he Company has an employee gratuity fund. Actual gains and losses are charged to Profit and Loss account.

Provident Fund: As the Strength ol the employees doesn't exceed the prescribed limit under the Provident fund, company has not deducted and paid any provident fund amount.

Leave Encashment: The Company is not having any policy for payment of Leave Encashment so no provision for the same has been made.

(I) Investment : Long term Investments are valued at cost of acquisition and related expenses. Provision is made for diminution, if any, in the vaLue oF such investment.

(J) Earning Per Share : In determining earning per share, the company considers the net profit after tax and includes the post - tax effect of any extra -ordinary items, the number Df equity shares used in computing hasis earnings per share is the weighted average number of equity shares outstanding during the year, ihe number of equity shares used in computing diluted earnings per share comprises weighted average number of equity share considered for deriving basic earning per share and also weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity share.

(K) Lease : Asset which is subject to operating lease is shown under fixed assets in the balance sheet. Lease income from operating leases is recognized in the statement of profit and loss on a straight Line basis over lease term. Costs including depreciation, incurred in earning the lease income are recognized as expense. Initial direct costs incurred specifically to earn revenues from an operating leave are expensed during the period- ic

L) Other Accounting Policies : These are consistent with generally accepted accounting practices.


Mar 31, 2010

The financial statements have been prepared in accordance with applicable accountingstandards. A summary of the important accounting policies is set out below:-

(A) Basis Of Accounting

The financial statements are prepared on accrual basis and are in accordance with the historical cost convention.

(B) Revenue Recognition

Sales are accounted for on dispatch of goods to the customers and are net of sales and returns. Other income is accounted for on Accrual Basis.

{C) Fixed Assets

Fixed Assets are carried at cost less depreciation. The cost of assets includes original cost plus other incidental expenses incurred up to the date of installation / acquisition.

(D) Depreciation

Depreciation is provided under Straight line method at the rates specified under schedule- XIV to the Companies Act-1956 on single shift basis working as certified by Director. Depreciation on additions / deletions to / from fixed assets made during the year is provided on pro-rata basis from/upto the date of such addition / deletion as the case may be.

(E) Inventories

The Company does not hold any physical inventory as on 31s1 March, 2010.

(F) Treatment Of Miscellaneous Expenditure

Preliminary Expenses are being written off over a period of 5 Years.

(G) Taxation

The current Income tax charged is determined in accordance with the relevant tax regulations applicable to the Company, Deferred tax charged or credit are recognized for the future tax consequences attrihutable to timing difference that result between the profit offered for Income taxes and the profit as per financial statements. The deferred tax charged or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such asset. Deferred tax asset are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized. The Company off-sets, on a year to year basis, the current tax assets and liabilities, where it has legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

(H) Employees Benefit

Gratuity: Gratuity is a defined benefit scheme and is accrued based on actuarial valuation at the Balance Sheet date carried out by independent actuary. The Company has an employee gratuity fund. Actual gains and losses are charged to Profit and Loss account.

Provident Fund: As the Strength of the employees doesnt exceed the prescribed limit under the Provident fund, company has not deducted and paid any provident fund amount.

Leave Encashment: The Company is not having any policy for payment of Leave Encashment so no provision for the same has been made.

(I) Investment

Long term Investments are valued at cost of acquisition and related expenses. Provision is made for diminution, if any, in trie value of such investment.

Current Investments are valued at cost or market value whichever is lower.

(J) Earning Per Share

In determining earning per share, the company considers the net profit after tax and includes the post - tax effect of any extra-ordinary items. The number of equity shares used in computing basis earnings per share is the weighted average number of equity shares outstanding during the year. The number of equity shares used in computing diluted earnings per share comprises weighted average numher of equity share considered for deriving basic earning per share and also weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity share.

(K) Other Accounting Policies

Asset which is subject to operating lease is shown under fixed assets in the balance sheet. Lease income from operating leases is recognized in the statement of profit and loss on a straight line basis over lease term. Costs including depreciation, incurred in earning the lease income are recognized as expense. Initial direct costs incurred specifically to earn revenues from an operating lease are expensed during the period.

 
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