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Accounting Policies of Transchem Ltd. Company

Mar 31, 2015

A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India, the relevant provisions of the Companies Act, 2013 and guidelines issued by the Securities and Exchange Board of India.

B) BASIS OF ACCOUNTING

The financial statements have been prepared under the historical cost convention in accordance with applicable accounting standards.

C) SYSTEMS OF ACCOUNTING

The Company adopts the accrual basis in preparing the accounts, except payment of Bonus on Cash Basis.

D) FIXED ASSETS

Fixed assets are stated at cost of acquisition, purchase or construction less accumulated depreciation thereon.

E) DEPRECIATION

Depreciation on fixed assets is provided on straight line method over the useful life of the Fixed Assets as per Schedule II of the Companies Act, 2013. However, in the case of the following Fixed Assets, the useful life is considered as certified by a Government Approved Valuer.

F) INVESTMENTS

Long Term Investments are stated at cost and provision is made to recognise any diminution, other than that of a temporary nature.

G) INVENTORIES

Items of inventory are valued on the following basis.

i) Raw Materials, if any, at cost on FIFO basis.

ii) Finished Goods and stock of Shares & Securities are at cost as certified by the management.

H) REVENUE RECOGNATION

Other Income

i) Dividend are recorded when the right to receive the payment is established.

ii) Capital Gains are recorded as & when materialised.

iii) Income from Investments are recorded on accrual basis.

I) RETIREMENT BENEFITS

i) Provision for Gratuity liability is made on actuarial valuation as at the balance sheet date

ii) Provision for Leave Encashment liability is made on actuarial valuation as at the balance sheet date

iii) Contribution to Providend Fund, a defined contribution plan is charged to the statement of Profit & Loss.

J) TAXES ON INCOME

Provision of Income Tax is made according to Income Tax 1961.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. During the year Deferred Ta x Assets are not provided as there is no virtual certainty as to the further earning of the company. The Core business of the company is shut down since many years.

L) PROVISIONS AND CONTINGENT LIABILITIES

i) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and that probability requires an outflow of resources.

ii) A disclosure for a 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.


Mar 31, 2014

A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India, the relevant provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

B) BASIS OF ACCOUNTING

The financial statements have been prepared under the historical cost convention in accordance with applicable accounting standards.

C) SYSTEMS OF ACCOUNTING

The Company adopts the accrual basis in preparing the accounts, except payment of Bonus on Cash Basis.

D) FIXED ASSETS

Fixed assets are stated at cost of acquisition, purchase or construction less accumulated depreciation thereon.

E) DEPRECIATION

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

F) INVESTMENTS

Long Term Investments are stated at cost and provision is made to recognise any diminution, other than that of a temporary nature.

G) INVENTORIES

Items of inventory are valued on the following basis.

i) Raw Materials at cost on FIFO basis.

ii) Finished Goods and stock of Shares & Securities are at cost as certified by the management.

H) REVENUE RECOGNATION

Other Income

i) Dividend are recorded when the right to receive the payment is established.

ii) Capital Gains are recorded as & when materialised.

I) RETIREMENT BENEFITS

i) Provision for Gratuity liability is made on actuarial valuation as at the balance sheet date

ii) Provision for Leave Encashment liability is made on actuarial valuation as at the balance sheet date

iii) Contribution to Providend Fund, a defined contribution plan is charged to the statement of Profit & Loss.

J) BORROWING COST

Borrowing cost on intercorporate deposits is recognised as expenses during the year.

K) TAXES ON INCOME

Provision of Income Tax is made according to Income Tax 1961.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. During the year Deferred Tax Assets are not provided as there is no virtual certainty as to the further earning of the company. It has been seen that the company incurring losses for many years. The Core business of the company is shut down since many years.

L) PROVISIONS AND CONTINGENT LIABILITIES

i) Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and that probability requires an outflow of resources.

ii) A disclosure for a 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.


Mar 31, 2013

A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India, the relevant provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

B) BASIS OF ACCOUNTING

The financial statements have been prepared under the historical cost convention in accordance with applicable accounting standards.

C) SYSTEMS OF ACCOUNTING

The Company adopts the accrual basis in preparing the accounts, except payment of Bonus on Cash Basis.

D) FIXED ASSETS

Fixed assets are stated at cost of acquisition, purchase or construction less accumulated depreciation thereon.

E) DEPRECIATION

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

F) INVESTMENTS

Long Term Investments are stated at cost and provision is made to recognize any diminution, other than that of a temporary nature.

G) INVENTORIES

Items of inventory are valued on the following basis.

i) Raw Materials at cost on FIFO basis.

ii) Finished Goods (stock of Dyes) and stock of Shares & Securities are at cost as certified by the management.

H) REVENUE RECOGNATION Other Income

i) Dividend are recorded when the right to receive the payment is established.

ii) Capital Gains are recorded as & when materialized.

I) RETIREMENT BENEFITS

i) Provision for Gratuity liability is made on actuarial valuation as at the balance sheet date

ii) Provision for Leave Encashment liability is made on actuarial valuation as at the balance sheet date

iii) Contribution to Provided Fund, a defined contribution plan is charged to the statement of Profit & Loss.

J) BORROWING COST

Borrowing cost on interoperate deposits is recognized as expenses during the year.

K) TAXES ON INCOME

No provision of Income Tax is made since there is a loss during the year.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. During the year Deferred Tax Assets are not provided as there is no virtual certainty as to the further earning of the company. It has been seen that the company incurring losses for many years. The Core business of the company is shut down since many years.

L) PROVISIONS AND CONTINGENT LIALIBILIES

i) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and that probability requires an outflow of resources.

ii) A disclosure for a 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.


Mar 31, 2012

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India, the relevant provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

(B) BASIS OF ACCOUNTING :

The financial statements have been prepared under the historical cost convention in accordance with applicable accounting standards.

(C) SYSTEMS OF ACCOUNTING :

The Company adopts the accrual basis in preparing the accounts, except Bonus Payment.

(D) FIXED ASSETS :

Fixed Assets are stated at cost of acquisition, purchase or construction less accumulated depreciation thereon.

(E) DEPRECIATION :

Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

(F) INVESTMENTS :

Long Term Investments are stated at cost and provision is made to recognise any diminution, other than that of a temporary nature.

(G) INVENTORIES :

Items of inventory are valued on the following basis :

(i) Raw Materials, Packing Materials and Fuel at cost on FIFO basis.

(ii) Finished Goods, stores & spares, work in process and intermediates are at cost or net realisable value, whichever is lower.

(H) ACCOUNTING FOR TAXES ON INCOME :

Tax expenses comprises of current, deferred tax. Provision for Current Income Tax as per the provisions of Income Tax Act, 1961 and the relevant Finance Act.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.


Mar 31, 2010

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India, the relevant provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

(B) BASIS OF ACCOUNTING :

The financial statements have been prepared under the historical cost convention in accordance with applicable accounting standards.

(C) SYSTEMS OF ACCOUNTING :

The Company adopts the accrual basis in preparing the accounts, except Bonus Payment.

(D) FIXED ASSETS :

Fixed Assets are stated at cost of acquisition, purchase or construction less accumulated depreciation thereon.

(E) DEPRECIATION :

Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

(F) INVESTMENTS :

Long Term Investments are stated at cost and provision is made to recognise any diminution, other than that of a temporary nature.

(G) INVENTORIES :

Items of inventory are valued on the following basis :

(i) Raw Materials, Packing Materials and Fuel at cost on FIFO basis.

(ii) Finished Goods, stores & spares, work in process and intermediates are at cost or net realisable value, whichever is lower.

(H) ACCOUNTING FOR TAXES ON INCOME :

Tax expenses comprises of current, deferred and fringe benefit tax. Provision for Current Income Tax and Fringe Benefits as per the provisions of Income Tax Act, 1961 and the relevant Finance Act.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

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