Mar 31, 2015
I Basis of preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India (Indian GAAP) under
the historical cost convention on accrual basis. These financial
statements have been prepared to comply in all material aspects with
the accounting standards notified under Section 133 and other relevant
provisions of the Companies Act, 2013. The accounting policies adopted
in the preparation of the financial statements are consistent with
those followed in the previous year.
All assets and liabilities have been classified as current or
non-current as per the Company's operating cycle and other criteria set
out in the Schedule III to the Companies Act, 2013. Based on the nature
of products and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as twelve months for the
purpose of current-non current classification of assets and
liabilities.
ii Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known/materialise.
iii Tangible Assets
Tangible Assets are stated at cost net of accumulated depreciation and
accumulated impairment losses if any. Cost comprises cost of
acquisition, construction and subsequent improvements thereto including
taxes and duties (net of credits and drawbacks), freight and other
incidental expenses related to acquisition and installation.
Subsequent expenditure related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
Losses arising from the retirement of, and gains or losses arising from
disposal of tangible assets which are carried at cost are recognised in
the Statement of Profit and Loss.
iv Depreciation and amortization
Depreciation including amortization on fixed assets, is provided under
Written Down Value Method (WDV) in accordance with Schedule II to the
Companies Act, 2013.
v Borrowing Costs
Borrowing costs attributable to acquisition and / or construction of
qualifying assets are capitalised as a part of the cost of such assets
up to the date when such assets are ready for its intended use. Other
borrowing costs are charged to Statement of Profit and Loss.
vi Export incentives
Export benefits are accounted for in the year of exports based on
eligibility and when there is no uncertainty in receiving the same.
vii Inventories
Inventories are stated at cost or net realisable value, whichever is
lower. Cost is determined on weighted average method and comprises
expenditure incurred in the normal course of business in bringing such
inventories to their present location and condition and includes, where
applicable appropriate overheads. Obsolete, slow moving and defective
inventories are identified at the time of physical verification and
where necessary, provision is made for such inventories.
viii Foreign currency transactions and translations
Initial Recognition:
"On initial recognition, all foreign currencies transactions are
recorded at exchange rates prevailing on the date ofthe transaction."
Subsequent Recognition
"At the reporting date, foreign currency non-monetary items carried in
terms of historical cost are reported using the exchange rate at the
date of transactions."
All monetary assets and liabilities in foreign currency are restated at
the end of accounting period at the closing exchange rate. Foreign
exchange difference on account of a depreciable asset, is adjusted in
the cost of depreciable asset, which would be depreciated over the
balance life of the asset. Exchange differences on re- instatement of
all other monetary items are recognised in the Statement of Profit and
Loss.
Forward Exchange Contracts:
Premium/discount on forward exchange contracts, which are not intended
for trading/speculation purposes, are amortised over the period of the
contracts if such contracts relate to monetary items as at the Balance
Sheet date. Any profit or loss arising on cancellation or renewal of
such a forward exchange contract are recognised as income or as expense
for the period.
ix Revenue Recognition
Sale of Goods are recognised when the substantial risks and reward of
ownership in the goods are transferred to the buyer as per the terms of
the contract and are recognised net of trade discounts, rebates, sales
taxes and VAT.
x Other Income
Interest Income is generally recognised on a time proportion basis
taking into account the amount outstanding and the rate applicable,
when there is reasonable certainty as to realisation. All other items
are recognised on accrual basis.
xi Taxes on income
"Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961."
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets are recognised only if there is virtual certainty that there
will be sufficient future taxable income will be available against
which these can be realised. Deferred tax assets and liabilities are
offset if such items relate to taxes on income levied by the same
governing tax laws and the Company has a legally enforceable right for
such set off. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
xii Provisions, contingent liabilities and contingent assets
"Provisions are recognised when there is a present obligation as a
result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and there is a reliable estimate of the amount of the obligation can be
made. Provisions (excluding retirement benefits) are measured at the
best estimate of the expenditure required to settle the present
obligation at the Balance sheet date and are not discounted to its
present value. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates."
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be
confirmed only by the occurrence/non occurrence of one/more uncertain
future events not wholly within the control of the company or a present
obligation that arises from past events where it is either not probable
that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.
A contingent asset is neither recognised nor disclosed in the financial
statements.
xiii Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted
for events, such as bonus shares, other than the conversion of
potential equity shares, that have changed the number of equity shares
outstanding, without a corresponding change in resources. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
xiv Cash and cash equivalents
In the Cash Flow Statement, cash and cash equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
Mar 31, 2014
A Basis of preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and other relevant provisions of
the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s operating cycle and other criteria set
out in the Revised Schedule VI to the Companies Act, 1956. Based on the
nature of products and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current-non current classification of assets and
liabilities.
b Use of Estimates
The preparation of financial statements requires estimates 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.
c Tangible Assets
Tangible Assets are stated at acquisition cost, net of accumulated
depreciation and accumulated impairment losses.
Subsequent expenditures related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
d Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognised in
Statement of Profit and Loss in the period in which they are incurred.
e Inventories
Inventories are stated at lower of cost and net realisable value. Cost
is determined using the first-in, first-out (FIFO) method. Net
realisable value is the estimated selling price in the ordinary course
of business, less the estimated costs of completion and the estimated
costs necessary to make the sale.
f Foreign currency translation
Initial Recognition
On initial recognition, all foreign currency transactions are recorded
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
Subsequent Recognition
As at the reporting date, non-monetary items which are carried in terms
of historical cost denominated in a foreign currency are reported using
the exchange rate at the Balance Sheet date. All non-monetary items
which are carried at fair value or other similar valuation denominated
in a foreign currency are reported using the exchange rates that
existed when the values were determined.
g Revenue Recognition
Sales are recognised when the substantial risks and rewards of
ownership in the goods are transferred to the buyer as per the terms of
the contract and are recognised net of trade discounts, rebates, sales
taxes and excise duties.
h Other Income
Interest: Interest income is recognised on a time proportion basis
taking into account the amount outstanding and the rate applicable.
Income from duty drawback and premium of sale of import licences is
recognised on an accrual basis.
i Current and deferred tax
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period. Current tax is measured at the amount expected to be paid to
the tax authorities in accordance with the taxation laws prevailing in
the respective jurisdictions.
Deferred tax is recognised for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
Minimum Alternative Tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the company will pay
normal income tax during the specified period. Such asset is reviewed
at each Balance Sheet date and the carrying amount of the MAT credit
asset is written down to the extent there is no longer a convincing
evidence to the effect that the Company will pay normal income tax
during the specified period.
j Provisions and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made.
k Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
I Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares, that have changed the number of
equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
m Cash Flow Statement
Cash flows are reported using the indirect method, whereby loss before
extraordinary items and tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future cash
receipts or payments an item od income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the company are segregated.
n Amalgamation in the nature of merger
The company accounts for all amalgmations in the nature of merger using
the ''pooling of interest method'' as prescribed in AS 14: Accounting for
Amalgamtions. Assets and liabilities acquired of the transferor
company have been recognised at their respective book values. The
difference between the amount recorded as share capital issue (plus any
additional consideration in the form of cash or other assets) and the
amount of share capital of the transferor company is adjusted in
reserves.
Mar 31, 2012
1.1 Basis of accounting and preparation of financial statements
These financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended), the
relevant provisions of the Companies Act, 1956 and guidelines issued by
the Securities and Exchange Board of India(SEBI). The financial
statements have been prepared on accrual basis under the historical
cost convention except for categories of fixed assets acquired before 1
April, 2010, that are carried at revalued amounts.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realizable value after providing for obsolescence
and other losses, where considered necessary. Cost includes all charges
in bringing the goods to the point of sale, including octopi and other
levies, transit insurance and receiving charges. Work-in-progress and
finished goods include appropriate proportion of overheads and, where
applicable, excise duty.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.10 Investments
Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
1.11 Borrowing costs
Borrowing costs include interest, amortization of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, allocated to and utilized for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset up to the date of
capitalization of such asset is added to the cost of the assets.
Capitalization of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
1.12 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a late
1.13 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.Minimum Alternate Tax (MAT) paid in accordance with the tax
laws, which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognized as an asset in the Balance Sheet when it
is probable that future economic benefit associated with it will flow
to the Company. Deferred tax is recognized on timing differences, being
the differences between the taxable income and the accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured using the tax rates and
the tax laws enacted or substantially enacted as at the reporting date.
Deferred tax liabilities are recognized for all timing differences.
Deferred tax assets in respect of una Current and deferred tax relating
to items directly recognized in equity are recognized in equity and not
in the Statement of Profit and Loss.
1.14 Provisions and contingencies
A provision is recognized when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes.
1.15 Share issues expenses
Share issue expenses and redemption premium are adjusted against the
Securities Premium Account as permissible under Section 78(2) of the
Companies Act, 1956, to the extent balance is available for utilization
in the Securities Premium Account. The balance of share issue expenses
is carried as an asset and is amortized over a period of 5 years from
the date of the issue of shares.
Mar 31, 2011
A. ACCOUNTING CONVENTION:
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India ('Indian GAAP') and in compliance with the
Accounting Standards referred to in Section 211 (3C) and other
requirements of the Companies Act, 1956.
The company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual basis
except in the cases where there is significant uncertainty of
realization.
B. USE OF ESTIMATES:
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates 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 year. Difference
between the actual results and estimates are recognized in the year in
which the results are known/ materialized.
C. FIXED ASSETS:
Fixed Assets are stated at cost of acquisition, less accumulated
Depreciation. Cost comprises purchases price and attributable cost of
bringing the assets to its working condition for its intended use.
D. DEPRECIATION:
Depreciation on Fixed Assets is being provided under Straight Line
Method specified in Schedule XIV of the Companies Act, 1956.
E. BORROWING COST
Borrowing costs are attributable to the acquisition of qualifying asset
are capitalised as part of cost of such asset till such time as the
asset is ready for its intended use.
All Other borrowing costs are recognised as expense for the period in
which they are incurred.
F. TAXATION:
Income tax expenses comprise Current Tax, Tax and Deferred Tax charge
or credit.
Provision for current tax is made on the basis of assessable income at
the tax rate applicable to the relevant assessment year.
Deferred tax is recognized on timing difference between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on Balance Sheet
date.
Deferred tax assets are recognized and carried forward to the extent
that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized at the rates prevailing on the Balance Sheet date.
G. MISCELLANEOUS EXPENDITURE:
The Company follow AS 26 Intangible Assets prescribes as per the
Companies (Accounting Standard) Rules 2006
H. FOREIGN EXCHANGE TRANSACTIONS:
Transactions in Foreign Exchange, other than those covered by forward
contracts are accounted for at the exchange rate prevailing on the date
of transactions. Exchange differences arising on foreign currency
transactions settled during the year are recognised in the Profit and
Loss Account.
I. PROVISIONS AND CONTINGENT LIABILITIES:
Provisions are recognized in respect of present probable obligations,
the amount of which can be reliably estimated. Contingent liabilities
are disclosed in respect of possible obligations that arise from past
events but their existence is confirmed by the occurrence or
non-occurrence of one or more uncertain future events not wholly within
the control of Company.
Mar 31, 2010
A.) Basis of Preparation of Financial Statement:
The Financial statement are prepared under the historic cost convention
, on the accrual basis of accounting and in accordance with the
applicable accounting standards issue by the Institute of Chartered
Accountants of India.
The Preparation of financial statements in conformity with the
generally accepted accounting principal requires that management makes
estimates and assumptions that effects the reported income and expenses
during the reporting period. Management believes that the estimates
used in the preparation of financial statements are prudent and
reasonable. Actual results could differ from these estimates.
b.) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. The cost
of fixed assets includes incidental expenditure incurred until the
assets are ready to be put to use.
c.) Depreciation
Fixed assets have been depreciated on the written down value method at
the rates and in the manner specified in Schedule XIV of the Companies
Act, 1956.
d.) Investments
Investments made in Vamotiwala Chemical Ind. Ltd. Of Rs.3,00,000/- is
taken at cost the market value of the same is negligible.
e.) Revenue Recognition
Income is recognized on accrual basis of accounting.
f.) Provisions and contingent Liabilities
Provisions are recognized in the accounts in respect of present
obligations, the amounts of which can be reliably estimated.
Contingent Liability are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non occurrence of one or more uncertain future events not
wholly within the control of the company.
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