Accounting Policies of Shreyas Intermediates Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Accounts

The financial statements have been prepared covering for the period of six months from 1st of October 2014 to 31st of March 2015.

The accounts have been prepared on historical cost basis ignoring changes, if any, in the purchasing power of money and on accounting principles of going concern.

All revenues and expenses are accounted on accrual basis, except Sale Tax setoff benefit, which is accounted on cash basis. Accounting policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

2. Fixed Assets & Depreciation

Fixed Assets are shown at cost less accumulated depreciation.

Depreciation on all assets is provided on straight-line method at the rate and in the manner specified in schedule XIV of the Companies Act, 1956 on single shift basis. The financial statements have been prepared for six months ended March 2015, and as per the advice of the technical evaluation team, the company has preferred to charge depreciation for this six months period at the rates specified in schedule XIV of the Companies Act, 1956 to present comparable figures for the financial statements pursuant to MCA Notification dated 29th August, 2014.

Depreciation is provided on pro-rata basis, from the month in which assets have been put to use.

3. Inventory

Finished goods and work in progress are stated at cost or net realizable value whichever is lower.

Raw materials and stores & spare parts are valued at cost

4. Revenue Recognition

Sales are recognized at when goods are dispatched and are recorded net of trade discounts, rebates. All sales have been shown inclusive of Excise & Other Duties but excluding Sales Tax. Revenue in respect of Overdue interests, insurance claims etc in recognized to the extent company has realized or is reasonably certain of its ultimate realization. Expenses are accounted for on accrual basis except medical reimbursement and LTA for employees, which are accounted for in cash basis.

5. Employee Benefits

a) Salary, Wages & Compensated Absences

Short-term employee benefits Including accumulated compensated absences determined by company's policy are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the employee has rendered services.

b) Gratuity

The company has conducted an actuarial valuation using the Projected Unit Credit method in respect of its liabilities with regard to the gratuity benefits payable in future and has made an annual provision towards the same however no contributions have been made to any Gratuity Funds by the company during the year.

c) Provident fund

The Company contributes to the Provident Fund, a defined contribution scheme, which is administered by the Government. The rate at which the contributions are made are as per the statutory requirements and is recognized as expense in the Statement of Profit and Loss, of the period in which the services are rendered by employees.

6. Contingent Liability

Contingent Liabilities are not accounted for but are disclosed in the Notes to Accounts.

8. Current & Deferred Tax

The company is eligible for substantial set off of carried forward Business Losses under the provisions of the Income Tax Act, 1961 in the earlier and current year, and the same is estimated to be eligible for setoff in the forth coming years and considering the same, the management has provided for the deferred tax during the year. The same remains based upon realistic estimates and are considered adequate.

9. Related Party Disclosure

i) Related Party Relationship

(a) Key Management Personnel :Mr. Ram chandra Ghanekar.

ii) Transaction with related Parties:

Nature of Transactions Key Management Personnel

Managerial Remuneration (Including Rs.4,80,000/- Value of Perquisites)

10. Segment Reporting

The company is engaged in the manufacture of pigments and pigment intermediates which are single reportable business segment.

11. Contingent Liabilities As on

31 st March 30th Septe 2015 mber 2014 Rs.in Lacs Rs.in Lacs

a. Guarantee given by the company's Bankers And Counter guaranteed by - 26.00 the company

b. Claims against the company not 1600.00 1600.00 acknowledged As Debts*

c. Liability towards Sales Tax Assessment - 382.00

d. Liability towards Central Excise Dues 456.01 540.00

* A claim has been filed during the earlier year by a creditor for Rs. 1600.00 Lacs which is over & above its claims.

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Sep 30, 2014

1. Basis of Preparation of Accounts

The accounts have been prepared on historical cost basis ignoring changes, if any, in the purchasing power of money and on accounting principles of going concern.

All revenues and expenses are accounted on accrual basis, except Sale Tax setoff benefit and encashment of leave salary and gratuity, which is accounted on cash basis and as mentioned elsewhere in the report. The same is not in consonance with the provisions of AS-15 "Accounting for Retirement Benefits in Financial Statements" issued by the Institute of Chartered Accountants of India or with the generally accepted accounting principles.

Accounting policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

2. Fixed Assets & Depreciation

Fixed Assets are shown at cost less accumulated depreciation.

Depreciation on all assets is provided on straight-line method at the rate and in the manner specified in schedule XIV of the Companies Act, 1956 on single shift basis.

Depreciation is provided on pro-rata basis, from the month in which assets have been put to use.

3. Inventory

Finished goods and work in progress are stated at cost or net realizable value whichever is lower.

Raw materials and stores & spare parts are valued at cost

4. Revenue Recognition

Sales are recognized at when goods are dispatched and are recorded net of trade discounts, rebates. All sales have been shown inclusive of Excise & Other Duties but excluding Sales Tax. Revenue in respect of Overdue interests, insurance claims etc in recognized to the extent company has realized or is reasonably certain of its ultimate realization. Expenses are accounted for on accrual basis except medical reimbursement and LTA for employees, which are accounted for in cash basis.

5. Retirement Benefits

No provisions have been made by the company for liability towards Gratuity and Leave Encashments payable to employees on retirement since the same are accounted for on cash basis. The same is not in consonance with the provisions of AS-15 "Accounting for Retirement Benefits in Financial Statements" issued by the Institute of Chartered Accountants of India.

6. Contingent Liability

Contingent Liabilities are not accounted for but are disclosed in the Notes to Accounts.

8. Current & Deferred Tax

The company is eligible for substantial set off of carried forward Business Losses under the provisions of the Income Tax Act, 1961 in the current year, however the same is estimated to be eligible for setoff in the forthcoming years and considering the same the management is of the opinion that no provisions shall be required in respect of the same during the current year.

The management has not made any provision towards Deferred Tax Liability during the year. The same remains based upon realistic estimates and are considered adequate for the year.

9. Related Party Disclosure

i) Related Party Relationship

(a) Key Management Personnel: Mr. Ramchandra Ghanekar.

ii) Transaction with related Parties:

Nature of Transactions Key Management Personnel

Managerial Remuneration (Including Value of Perquisites) Rs. 4,80,000/-

10. Segment Reporting

The company is engaged in the manufacture of pigments and pigment intermediates which are single reportable business segment.

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Sep 30, 2012

1. Basis of Preparation of Accounts

The accounts have been prepared on historical cost basis ignoring changes, if, any, in the purchasing power of money and on accounting principles of going concern. All revenues and expenses are accounted on accrual basis, except Sale Tax setoff benefit and encashment of leave salary and gratuity, which is accounted on cash basis and as mentioned elsewhere in the report. The same is not in consonance with the provisions of AS-15 "Accounting for Retirement Benefits in Financial Statements" issued by the Institute of Chartered Accountants of India or with the generally accepted accounting principles. Accounting policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

2. Fixed Assets & Depreciation

Fixed Assets are shown at cost less accumulated depreciation.

Depreciation on all assets is provided on straight-line method at the rate and in the manner specified in schedule XIV of the Companies Act, 1956 on single shift basis.

Depreciation is provided on pro-rata basis, from the month in which assets have been put to use.

3. Inventory

Finished goods and work in progress are stated at cost or net realizable value whichever is lower.

Raw materials and stores & spare parts are valued at cost

The management has not initiated any process to identify nor has provided for any losses on account of devaluations in the stocks which have occurred due to Production Trials undertaken in earlier years. In the opinion of the management, the stocks do not conform to optimal quality levels expected and have been thus rendered to slow movement, however as explained by the management the stocks shall be subjected to further processing and the quality shall be duly optimized.

4. Revenue Recognition

Sales are recognized at when goods are dispatched and are recorded net of trade discounts, rebates. All sales have been shown inclusive of Excise & Other Duties but excluding Sales Tax. Revenue in respect of Overdue interests, insurance claims etc in recognized to the extent company has realized or is reasonably certain of its ultimate realization. Expenses are accounted for on accrual basis except medical reimbursement and LTA for employees, which are accounted for in cash basis.

5. Retirement Benefits

No provisions have been made by the company for liability towards Gratuity and Leave Encashment payable to employees on retirement since the same are accounted for on cash basis. The same is not in consonance with the provisions of AS-15 "Accounting for Retirement Benefits in Financial Statements" issued by the Institute of Chartered Accountants of India.

6. Contingent Liability

Contingent Liabilities are not accounted are disclosed in the Notes to Accounts.

7. Current & Deferred Tax

The company is eligible for substantial set off of carried forward Business Losses under the provisions of the Income Tax Act, 1961 in the current year, however the same is estimated to be eligible for setoff in the forthcoming years and considering the same the management is of the opinion that no provisions shall be required in respect of the same during the current year.

The management has not made any provision towards Deferred Tax Liability during the year The same remains based upon realistic estimates and are considered adequate for the year.

8. Related Party Disclosure

i) Related Party Relationship

(a) Key Management Personnel : Mr. Ramchandra Ghanekar.

9. Segment Reporting

The company is engaged in the manufacture of pigments and pigment intermediates which are single reportable business segment.

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Sep 30, 2011

General

The accounts have been prepared on historical cost basis ignoring changes, if any, in the purchasing power of money and on accounting principles of going concern.

All revenues and expenses are accounted on accrual basis, except Sale Tax setoff benefit, which is accounted on cash basis and as mentioned elsewhere in the report.

Accounting policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

Fixed Assets

Fixed Assets are shown at cost less accumulated depreciation.

Depreciation on all assets is provided on straight-line method at the rate and in the manner specified in schedule XIV of the Companies Act, 1956 on single shift basis.

Depreciation is provided on pro-rata basis, from the month in which assets have been put to use.

During the year the company has completed construction of a Unit at Lote, Parshuram, Tal Khed. The company has availed a Term Loan towards financing of the Capital outlay and the Interests provisions have been duly capitalized.

Inventory

Finished goods and work in progress are stated at cost or net realizable value whichever is lower. Raw materials and stores & spare parts are valued at cost

Revenue Recognition

Sales are recognized at when goods are dispatched and are recorded net of trade discounts, rebates. All sales have been shown inclusive of Excise & Other Duties but excluding Sales Tax. Revenue in respect of Overdue interests, insurance claims etc in recognized to the extent company has realized or is reasonably certain of its ultimate realization. Expenses are accounted for on accrual basis except medical reimbursement and LTA for employees, which are accounted for in cash basis.

Retirement Benefits

No provisions have been made by the company for liability towards Gratuity and Leave Encashments payable to employees on retirement since the same are accounted for on cash basis. The same is not in consonance with the provisions of AS-15 "Accounting for Retirement Benefits in Financial Statements" issued by the Institute of Chartered Accountants of India.

Contingent Liability

Contingent Liabilities are not accounted for but are disclosed in the Notes to Accounts.

Current & Deferred Tax

The company is eligible for set off of carried forward Business Losses under the provisions of the Income Tax Act, 1961 in the current year, however the same is estimated to be utilized in the forthcoming years and considering the same the management is of the opinion that no provisions shall be required in respect of the same during the current year.

The management has not made any provision towards Deferred Tax Liability during the year The same remains based upon realistic estimates and are considered adequate for the year.

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Sep 30, 2010

General

The accounts have been prepared on historical cost basis ignoring changes, if any, in the purchasing power of money and on accounting principles of going concern.

All revenues and expenses are accounted on accrual basis, except Sale Tax setoff benefit, which is accounted on cash basis and as mentioned elsewhere in the report.

Accounting policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

Fixed Assets

Fixed Assets are shown at cost less accumulated depreciation.

Depreciation on all assets is provided on straight-line method at the rate and in the manner specified in schedule XIV of the Companies Act, 1956 on single shift basis.

Depreciation is provided on pro-rata basis, from the month in which assets have been put to use.

During the year the company has completed construction of a Unit at Lote, Parshuram, Tal Khed. The company has availed a Term Loan towards financing of the Capital outlay and the Interests provisions have been duly capitalized.

Inventory

Finished goods and work in progress are stated at cost or net realizable value whichever is lower. Raw materials and stores & spare parts are valued at cost

Revenue Recognition

Sales are recognized at when goods are dispatched and are recorded net of trade discounts, rebates. All sales have been shown inclusive of Excise & Other Duties. Revenue in respect of Overdue interests, insurance claims etc in recognized to the extent company has realized or is reasonably certain of its ultimate realization. Expenses are accounted for on accrual basis except medical reimbursement and LTA for employees, which are accounted for in cash basis.

Retirement Benefits

Liability in respect of gratuity and leave encashment benefit on retirement is accounted for as and When paid.

Contingent Liability

Contingent Liabilities are not accounted for but are disclosed in the Notes to Accounts.

Current & Deferred Tax

The company is eligible for set off of carried forward Business Losses under the provisions of the Income Tax Act, 1961 in the current year, however the same is estimated to be utilized in the forthcoming years and considering the same the management is of the opinion that no provisions shall be required in respect of the same during the current year.

The management has not made any provision towards Deferred Tax Liability during the, year The same is based upon realistic estimates and are considered adequate for the year.

Related Part Disclosure

i) Related Party Relationship

(a) Key Management Personnel : Mr. Govind Krishna Sharma.

(b) Key Management Personnel : Mr. Gopal Krishna Sharma.

Transaction with related Parties:

Nature of Transactions Key Management Personnel

Managerial Remuneration Rs. 7,64,500/-

Segment Reporting

The company is engaged in the manufacture of pigments and pigment intermediates which are single reportable business segment.

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Sep 30, 2009

General

The accounts have been prepared on historical cost basis ignoring changes, if any, in the purchasing power of money and on accounting principles of going concern.

All revenues and expenses are accounted on accrual basis, except Sale Tax setoff benefit, which is accounted on cash basis and as mentioned elsewhere in the report.

Accounting policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

Fixed Assets

Fixed Assets are shown at cost less accumulated depreciation.

Depreciation on all assets is provided on straight-line method at the rate and in the manner specified in schedule XIV of the Companies Act, 1956 on single shift basis.

Depreciation is provided on pro-rata basis, from the month in which assets have been put to use.

During the year the company has completed construction of a Unit at Lote, Parshuram, Tai Khed. The company has availed a Term Loan towards financing of the Capital outlay and the Interests provisions have been duly capitalized.

Inventory

Finished goods and work in progress are stated at cost or net realizable value whichever is lower. Raw materials and stores & spare parts are valued at cost

Revenue Recognition

Sales are recognized at when goods are dispatched and are recorded net of trade discounts, rebates. All sales have been shown inclusive of Excise & Other Duties. Revenue in respect of Overdue interests, insurance claims etc in recognized to the extent company has realized or is reasonably certain of its ultimate realization. Expenses are accounted for on accrual basis except medical reimbursement and LTAfor employees, which are accounted for in cash basis.

Retirement Benefits

Liability in respect of gratuity and leave encashment benefit on retirement is accounted for as and when paid,

Contingent Liability

Contingent Liabilities are not accounted for but are disclosed in the Notes to Accounts.

Current & Deferred Tax

The company is eligible for set off of carried forward Business Losses under the provisions of the I ncome Tax Act, 1961 in the current year, however the same is estimated to be utilized in the forthcoming years and considering the same themanagement is of the opinion that the provision for current tax of Rs. 2.20 Lacs shall prove adequate in respect of the same.

The management has made a provision of Rs. 3.16 Lacs during the year towards Deferred Tax Liability towards the difference in the Depreciation methods and Carried forward loss allowances available under the Income Tax Act, 1961 and the rules framed thereunder in the preparation of the accounts. The same is based upon realistic estimates and are considered adequate for the year.

Related Part Disclosure

i) Related Party Relationship

(a) Key Management Personnel Mr.NazeerM.S.Sayyad.

(b) Key Management Personnel Mr. Govind Krishna Sharma.

Segment Reporting

The company is engaged in the manufacture of pigments and pigment intermediates which are single reportable business segment.