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Accounting Policies of Suncity Synthetics Ltd. Company

Mar 31, 2015

A. Basis of preparation of financial statements:

* These financial statements have been prepared to comply with the Accounting Principles generally accepted in India (India GAAP), the Accounting Standards notified under the companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 2013.

B. Use of Estimates:

* The preparation of financial statements in conformity with generally accepted accounting principles requires estimates, judgements and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expense during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/materialise.

C. Fixed Assets:

Tangible Assets

Depreciation on fixed assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided based on the useful life of the assets as prescribed in the schedule II of the companies Act, 2013. In respect of additions or extensions forming an integral part of existing assets and insurance spares, including incremental cost arising on account of translation of foreign currency liabilities for acquisition of fixed assets, depreciation is provided from the date of such addition is put to use by the company.

Assets having opening balance as on the last day of previous year and useful life thereof has been "Nil" as per the provisions of the schedule II of the companies Act, 2013 has been written off during the year to the extent of "salvage Value" or "Opening Balance" whichever is lower and adjusted to "Reserve and Surplus" of the Company.

D. Investments:

Long term Investments are stated at cost and where there is permanent diminution in the value of investments a provision is made wherever applicable. Current Investments are carried at lower of cost or quoted/fair value, computed category wise. Dividend is accounted for as and when received.

E. Impairment:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount. However, No Impairment loss is charged to Profit and loss for the current reporting period.

F. Inventories:

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products are determined on FIFO Method.

G. Revenue Recognition:

Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

Interest income is recognised on a time proportion basis taking into account outstanding and the interest rate applicable.

EXCISE DUTY/SERVICE TAX

Excise duty/Service Tax is accounted on the basis of both, payment made in respect of goods cleared / services provided and provisions made for goods lying in bonded warehouses.

H. Earnings per Share:

Basic earning per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

I. Employee Benefits

The undiscounted amount of short -term benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when employees render the services. These benefits include performance incentive and compensated absences. Post-employment benefits are not being treated as expenditure in the year in which the amount is liable to be paid by the company. No provision is made for such post-employment benefits.

J. Borrowing Cost

Borrowing cost related to acquisition or construction of qualifying specific Fixed Assets have been capitalised. A qualifying asset is one that takes substantial period of time to get ready for intended use or sale. However, if the cost is not bifurcable to specific Fixed assets, such costs have been treated as pre operative expenses and such expenses to write off within next five years. All other borrowing costs are charged to revenue.

K. Income Taxes:

Tax expense comprises of Current tax as well as deferred Tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax asset are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same. However, due to depreciation losses during the current financial year, no provision for Income Tax is made for the year.

In accordance with Accounting Standard 22 - Taxes on income, deferred tax is recognised, subject to consideration of prudence, being the difference between accounting and taxable income that originate in one year and are capable of reversal in a subsequent year. Deferred Tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet Date.

L. Impairment of Assets:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amounts, an impairment loss is recognised in the statement of profit and loss to the extent that carrying amount exceeds the recoverable amount. There is no impairment loss during the year.

M. Provisions and Contingencies:

The Company creates a provision when there is a present obligation as result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that will probably not require outflow of resources or where a reliable estimate of the obligation cannot be made. The Provisions, Contingent Liabilities and Contingent Asset are reviewed at each balance sheet date.

N. PRELIMINARY AND PRE-OPERATIVE EXPENSES

Expenditures regarding incorporation of the company including business establishment expenses are treated as pre-operative expenditure. Any Expenditures recurring in nature incurred for commencement of production and are treated as Pre-operative Expenses. Such kind of expenses are capitalised and charged to profit and loss account in such a way that the same get written off within Five Financial year.

O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

Not Available.


Mar 31, 2012

1.1 Nil Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium and Reserves.

1.2 Nil Shares out of the issued, subscribed and paid up share capital were allotted in the last five years pursuant to the various Schemes of amalgamation without payment being received in cash.

1.3 Nil Shares out of the issued, subscribed and paid up share capital were allotted on conversion / surrender of Debentures and Bonds, conversion of Term Loans, exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited equity shares, since inception.

1.4 NIL Shares out of the issued, subscribed and paid up share capital held by Subsidiaries do not have Voting Rights and are not eligible for Bonus Shares.

1.5 375,000 Shares out of the issued, subscribed and paid up share capital were alloted as fully paidup Bonus Shares by way of capitalisation of reserves.


Mar 31, 2011

Basis of Accounting:The accounts are prepared on accrual basis under the historical cost convention in accordance with mandatory accounting standards and relevant presentation requirments of the Companies Act, 1956.

Fixed Assets: Fixed assets are stated at cost of acquisition or construction including indirect cost related to construction.

Depreciation: Depreciation is provided on Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956, on pro rata basis.

Inventories : Stocks are valued at cost or net realisable value whichever is lower.

Revenue Recognition:Revenue is recognised when no significant uncertainty as to determination or realisation exit.

Foreign Exchange Transactions:Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the reminttance.Current assets, current liabilities and loans denominated in foreign currencies are recorded on the date of transaction.

Borrowing Costs:Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

Investments: Long term assets are stated at cost. However diminution in value other than temporary is provided. The profit/loss arising on account of sales is recognised in the Profit & Loss A/c.

Taxation:

i) Current year charge The provision for taxation is made based on an estimate of assessable income determined by the company under the Income Tax Act, 1961.

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

Treatment of Contingent Liability Contingent Liabilities are disclosed by way of Notes to Accounts.


Mar 31, 2010

Basis of Accounting: The accounts are prepared on accrual basis under the historical cost convention in accordance with mandatory accounting standards and relevant presentation requirments of the Companies Act, 1956.

Fixed Assets: Fixed assets are stated at cost of acquisition or construction including indirect cost related to construction.

Depreciation: Depreciation is provided on Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956, on pro rata basis.

Inventories: Stocks are valued at cost or net realisable value whichever is lower.

Revenue Recognition: Revenue is recognised when no significant uncertainty as to determination or realisation exit.

Foreign Exchange Transactions: Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the remittance. Current assets, current liabilities and loans denominated in foreign currencies are recorded on the date of transaction.

Borrowing Costs: Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

Investments: Long term assets are stated at cost. However diminution in value other than temporary is provided. The profit/loss arising on account of sales is recognised in the Profit & Loss A/c.

Taxation:

i) Current year charge: The provision for taxation is made based on an estimate of assessable income determined by the company under the lncome Tax Act, 1961.

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

Treatment of Contingent Liability

Contingent Liabilities are disclosed by way of Notes to Accounts.