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Accounting Policies of Trans Asia Corporation Ltd. Company

Mar 31, 2014

I. Accounting Convention

The financial statements have been prepared under the historical cost convention, on the accrual basis and in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and relevant provisions thereof.

ii. Use of Estimates

The preparation of financial statements require estimation and assumptions to be made that affect the reported amount of assets and liabilities on the date of the 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.

iv. Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

v. Depreciation

Depreciation on Fixed Assets has been provided for on Straight Line Method at the rates and manner prescribed under Schedule XIV to the Companies Act, 1956.

vi. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

vii. Borrowing Costs

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of the asset. Other borrowing costs are recognized as expense in the year in which incurred.

viii. Investment

Non-current investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than temporary, in the value of the investments.

ix. Inventories

Inventory of finished goods is valued at cost or market values, which ever is lower. However, the company had no stock during the year.

x. Employee Benefits

Employee benefits of short term nature are recognized as expense as and when it occurs. Long term employee benefits and post employment benefits (e.g. gratuity), both funded and unfunded, are recognized as expenses based on actuarial valuation at year end which takes into account actuarial gain and/or losses.

xi. Revenue Recognition

From Sales of Plastic & Other Commodities

Sales revenue is recognized on transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of trade discount and rebates.

Other Income

Dividend income on investments is accounted for when the right to receive the payment is established. Insurance and other claims where quantum of accruals cannot be ascertained with reasonable certainty are accounted for on receipt basis.

Interest Income is recognized only when no significant uncertainty as to measurability or collectability exists after taking into accounting amount outstanding and rates applicable.

xii. Segment Reporting

The Company has only one Reporting Segment i.e. Trading of Plastic & Other Commodities.

xiii. Foreign Currency Transaction

Revenue, expenses and cash flow item denominated in foreign currencies are translated into domestic reporting currency i.e. ^ using exchange rate in effect on the date of transaction. Transaction gain or loss realized upon settlement of foreign currency transactions are included in determining Net profit for the period in which the transaction is settled.

xiv. Leases

Leases under which the company assumes substantially all the risk and rewards of ownership are classified as finance lease. Such assets acquired are capitalized as per the AS - 19 "Accounting for Leases". Lease payments under operating lease i.e. which is not a finance lease is a operating lease, are recognized as an expenses on straight line basis in the financial statement over the lease term.

xv. Cash Flow Statement

Cash Flow Statement has been prepared in accordance with the indirect method prescribed in Accounting Standard: 3 "Cash Flow Statement" issued under the Companies (Accounting Standard) Rules, 2006 and as required by SEBI.

xvi. Cash & Cash Equivalents

Cash & Cash Equivalents for the purpose of Cash Flow Statement comprises cash at bank, cash on hand and short term investments with an original maturity of three months or less.

xvii. Taxation Current Tax

Income tax is accrued in the same period that the related revenue and expenses arises. A provision is made for income tax annually, based on the tax liability computed, after considering relevant provision of Income Tax Act, 1961. However, the company has no taxable income during the current year.

Deferred Tax

Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. However where there is unabsorbed depreciation or carried forward loss under taxation loss, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

xviii. Earnings Per Share (EPS)

In arriving at the EPS, the company''s net profit after tax is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as ''Basic EPS''. To arrive at the diluted EPS, the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares.

xix. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent asset is neither recognized nor disclosed in the financial statements.


Mar 31, 2013

I. Corporate Information

Trans Asia Corporation Limited (formerly known as Gujarat Overseas Drugs Limited) was incorporated in 1993. The company is primarily engaged in plastic products and other commodities.

ii. Accounting Convention

The financial statements have been prepared under the historical cost convention, on the accrual basis and in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and relevant provisions thereof.

iii. Use of Estimates

The preparation of financial statements require estimation and assumptions to be made that affect the reported amount of assets and liabilities on the date of the 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.

iv. Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

v. Depreciation

Depreciation on Fixed Assets has been provided for on Straight Line Method at the rates and manner prescribed under Schedule XIV to the Companies Act, 1956.

vi. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

vii. Borrowing Costs

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of the asset. Other borrowing costs are recognized as expense in the year in which incurred.

viii. Investment

Non-current investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than temporary, in the value of the investments.

ix. Inventories

Inventory of finished goods is valued at cost or market values, which ever is lower. However, the company has no closing stock at the end of the Financial Year.

x. Employee Benefits

Employee benefits of short term nature are recognized as expense as and when it occurs. Long term employee benefits and post employment benefits (e.g. gratuity), both funded and unfunded, are recognized as expenses based on actuarial valuation at year end which takes into account actuarial gain and/or losses.

xi. Revenue Recognition

From Sales of Plastic & Other Commodities

Sales revenue is recognized on transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of trade discount and rebates.

Other Income

Dividend income on investments is accounted for when the right to receive the payment is established. Insurance and other claims where quantum of accruals cannot be ascertained with reasonable certainty are accounted for on receipt basis.

Interest Income is recognized only when no significant uncertainty as to measurability or collectability exists after taking into accounting amount outstanding and rates applicable.

xii. Segment Reporting

The Company has only one Reporting Segment i.e. Trading of Plastic & Other Commodities.

xiii. Foreign Currency Transaction

Revenue, expenses and cash flow item denominated in foreign currencies are translated into domestic reporting currency i.e. using exchange rate in effect on the date of transaction. Transaction gain or loss realized upon settlement of foreign currency transactions are included in determining Net profit for the period in which the transaction is settled.

xiv. Leases

- Leases under which the company assumes substantially all the risk and rewards of ownership are classified as finance lease. Such assets acquired are capitalized as per the AS - 19 "Accounting for Leases". Lease payments under operating lease i.e. which is not a finance lease is a operating lease, are recognized as an expenses on straight line basis in the financial statement over the lease term.

xv. Cash Flow Statement

Cash Flow Statement has been prepared in accordance with the indirect method prescribed in Accounting Standard: 3 "Cash Flow Statement" issued under the Companies (Accounting Standard) Rules, 2006 and as required by SEBI.

xvi. Cash & Cash Equivalents

Cash & Cash Equivalents for the purpose of Cash Flow Statement comprises cash at bank, cash on hand and short term investments with an original maturity of three months or less.

xvii. Taxation Current Tax

Income tax is accrued in the same period that the related revenue and expenses arises. A provision is made for income tax annually, based on the tax liability computed, after considering relevant provision of Income Tax Act, 1961 However, the company has no taxable income during the current year.

Deferred Tax

Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. However where there is unabsorbed depreciation or carried forward loss under taxation loss, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

xviii. Earnings Per Share (EPS)

In arriving at the EPS, the company''s net profit after tax is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as ''Basic EPS''. To arrive at the diluted EPS, the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares.

xix. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent asset is neither recognized nor disclosed in the financial statements.


Mar 31, 2012

I. Corporate Information

Trans Asia Corporation Limited (formerly known as Gujarat Overseas Drugs Limited) was incorporated in 1993. The company is primarily engaged in plastic products and other commodities.

ii. Accounting Convention

The financial statements have been prepared under the historical cost convention, on the accrual basis and in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the Accounting Standards notified u/s 211(3C) of the Companies Act, 1956 and relevant provisions thereof.

iii. Use of Estimates

The preparation of financial statements require estimation and assumptions to be made that affect the reported amount of assets and liabilities on the date of the 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.

iv. Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

v. Depreciation

Depreciation on Fixed Assets has been provided for on Straight Line Method at the rates and manner prescribed under Schedule XIV to the Companies Act, 1956.

vi. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

vii. Borrowing Costs

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of the asset. Other borrowing costs are recognized as expense in the year in which incurred.

viii. Investment

Non-current investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than temporary, in the value of the investments.

ix. Inventories

Inventory of finished goods is valued at cost or market values, which ever is lower. However, the company has no closing stock at the end of the Financial Year.

x. Employee Benefits

Employee benefits of short term nature are recognized as expense as and when it occurs. Long term employee benefits and post employment benefits (e.g. gratuity), both funded and unfunded, are recognized as expenses based on actuarial valuation at year end which takes into account actuarial gain and/or losses.

xi. Revenue Recognition

From Sales of Plastic & Other Commodities

Sales revenue is recognized on transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of trade discount and rebates.

Other Income

Dividend income on investments is accounted for when the right to receive the payment is established. Insurance and other claims where quantum of accruals cannot be ascertained with reasonable certainty are accounted for on receipt basis.

Interest Income is recognized only when no significant uncertainty as to measurability or collectability exists after taking into accounting amount outstanding and rates applicable.

xii. Segment Reporting

The Company has only one Reporting Segment i.e. Trading of Plastic & Other Commodities

xiii. Foreign Currency Transaction

Revenue, expenses and cash flow item denominated in foreign currencies are translated into domestic reporting currency i.e. using exchange rate in effect on the date of transaction. Transaction gain or loss realized upon settlement of foreign currency transactions are included in determining Net profit for the period in which the transaction is settled.

xiv. Leases

Leases under which the company assumes substantially all the risk and rewards of ownership are classified as finance lease. Such assets acquired are capitalized as per the AS - 19 "Accounting for Leases". Lease payments under operating lease i.e. which is not a finance lease is a operating lease, are recognized as an expenses on straight line basis in the financial statement over the lease term.

xv. Cash Flow Statement

Cash Flow Statement has been prepared in accordance with the indirect method prescribed in Accounting Standard: 3 "Cash Flow Statement" issued under the Companies (Accounting Standard) Rules, 2006 and as required by SEBI.

xvi. Cash & Cash Equivalents

Cash & Cash Equivalents for the purpose of Cash Flow Statement comprises cash at bank, cash on hand and short term investments with an original maturity of three months or less.

xvii. Taxation

Current Tax

Income tax is accrued in the same period that the related revenue and expenses arises. A provision is made for income tax annually, based on the tax liability computed, after considering relevant provision of Income Tax Act, 1961 However, the company has no taxable income during the current year.

Deferred Tax

Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. However where there is unabsorbed depreciation or carried forward loss under taxation loss, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

xviii. Earnings Per Share (EPS)

In arriving at the EPS, the company's net profit after tax is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as 'Basic EPS'. To arrive at the diluted EPS, the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares.

xix. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent asset is neither recognized nor disclosed in the financial statements.


Mar 31, 2011

1. Accounting Convention

The financial statements have been prepared under the historical cost convention, on the accrual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements require estimation and assumptions to be made that affect the reported amount of assets and liabilities on the date of the 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.

3. Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

4. Depreciation and Amortization

a. Depreciation on Fixed Assets has been provided for on Straight Line Method at the rates and manner prescribed under Schedule XIV to the Companies Act, 1956.

b. Preliminary and public issue expenses are written off over a period of ten years.

5. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

6. Borrowing Costs

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of the asset. Other borrowing costs are recognized as expense in the year in which incurred.

7. Investment

Long-term investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than temporary, in the value of the investments.

8. Inventories

Inventory of finished goods is valued at cost or market values, which ever is lower.

9. Employee Benefits

Employee benefits of short term nature are recognized as expense as and when it occurs. Long term employee benefits and post employment benefits (e.g. gratuity), both funded and unfunded, are recognized as expenses based on actuarial valuation at year end which takes into account actuarial gain and/or losses.

8. Revenue Recognition

Sales revenue is recognized on transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of trade discount and rebates. Dividend income on investments is accounted for when the right to receive the payment is established. Insurance and other claims where quantum of accruals cannot be ascertained with reasonable certainty are accounted for on receipt basis.

9. Taxation Current Tax

Provision for current income tax is made in accordance with the Income Tax Act, 1961 Deferred Tax Deferred Tax liabilities and assets are recognized at substantively enacted tax rates, 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 periods.

10. Earnings Per Share (EPS)

In arriving at the EPS, the company's net profit after tax is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as 'Basic EPS'. To arrive at the diluted EPS, the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares.

11. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent asset is neither recognized nor disclosed in the financial statements.


Mar 31, 2010

1. Accounting Convention

The financial statements have been prepared under the historical cost convention, on the accrual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements require estimation and assumptions to bemade that affect the reported amount of assets and liabilities on the date of the 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.

3. Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

4. Depreciation and Amortization

a. Depreciation on Fixed Assets has been provided for on Straight Line Method at the rates and manner prescribed under Schedule XIV to the Companies Act, 1956.

b. Preliminary and public issue expenses are written off over a period of ten years.

5. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

6. Borrowing Costs

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of the asset. Other borrowing costs are recognized as expense in the year in which incurred.

7. Investment

Long-term investments are stated at cost. Provision, where necessary, is made to recognize a decline, other than temporary, in the value of the investments.

8. Inventories

Inventory of finished goods is valued at cost or market values, which ever is lower.

9. Employee Benefits

Employee benefits of short term nature are recognized as expense as and when it occurs. Long term employee benefits and post employment benefits (e.g. gratuity), both funded and unfunded, are recognized as expenses based on actuarial valuation at year end which takes into account actuarial gain and/or losses.

10. Revenue Recognition

Sales revenue is recognized on transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of trade discount and rebates. Dividend income on investments is accounted for when the right to receive the payment is established. Insurance and other claims where quantum of accruals cannot be ascertained with reasonable certainty are accounted for on receipt basis.

11. Taxation Current Tax

Provision for current income tax is made in accordance with the Income Tax Act, 1961 Deferred Tax

Deferred Tax liabilities and assets are recognized at substantively enacted tax rates, 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 periods.

Fringe Benefit Tax

Fringe Benefit Tax (FBT) is accounted for on the estimated value of fringe benefits for the period as per the related provisions of the Income Tax Act, 1961.

12. Earnings Per Share (EPS)

In arriving at the EPS, the companys net profit after tax is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as Basic EPS. To arrive at the diluted EPS, the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares.

13. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision

is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent asset is neither recognized nor disclosed in the financial statements.

 
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