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Accounting Policies of Triochem Products Ltd. Company

Mar 31, 2015

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards and the relevant provisions of the Companies Act, 2013.

(b) USE OF ESTIMATES

The preparation and 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 that date of the financial statements and the reported amounts revenue and expenses during the reporting period. Difference between the actual result and the estimates are recognized in the period in which the results are known / materialized.

(c) INVENTORY VALUATION

Inventories of Raw Material, Packing Material, Stores & Spares, Traded Goods, Finished Goods and Work in Progress are valued at Lower of Cost and Net Realizable Value. The Cost is arrived at FIFO basis for Raw Material, Packing Material, Stores & Spares and Traded Finished Goods, Cost for Work in Process and Finished Goods is arrived at on estimated cost basis.

(d) REVENUE RECOGNITION

1 Revenue from sale of goods is recognized when ownership in goods is transferred to the customers, which is at the point of dispatch, Sales are accounted net of sales return and Value Added Tax wherever applicable.

2 Dividend income is recognised when the company's right to receive dividend is established by the reporting date.

3 Interest income is recognised on^a time propprtion basis taking in to account the amount invested and the rate of interest.

(e) FIXED ASSETS AND DEPRECIATION

1 Fixed assets are stated at cost less accumulated depreciation / amortisation

2 Depreciation on tangible fixed assets is provided on written down value method at the rates and manner specified in the schedule II to Companies Act, 2013.

3 Intangible assets are identified when the assets are expected to provide future enduring economic benefits. The assets are identified in the year in which the relevant asset is put to use in the production or supply of goods or services, The assets are amortised over a period of estimated useful life as determined by the management.

* Expenditure on Computer Software is amortised over a period of three years on straight line method,

(f) FOREIGN CURRENCY TRANSACTION

1 All transaction in foreign currency is recorded at the exchange rate prevailing on the date of transaction, All foreign currency Assets and Liabilities not covered by forward contract are reinstated at the exchange rates prevailing at the year end, gain or loss on this are recognised to the Statement of Profit and Loss as exchange rate difference. Inrespect of transaction covered by forward contract the difference between the contract rate and the spot rate on the date of transaction is charged to statement of profit and loss over the period of contract.

(g) INVESTMENTS

1 Investments are either classified as Current or Long Term based on Management's intention at the time of purchase. Long Term Investments are stated at cost of acquisition. Provision for diminution in value of Investments is made only if such decline is other than temporary in the opinion of the management. Current Investments are valued at lower of cost or fair value of the investments.

(h) EMPLOYEE BENEFIT

1 Liabilities in respect of defined benefit plans other than Provident Fund are determined based on actuarial valuation made by an independent actuary as at the balance sheet date. The actuarial gains or losses are recognised immediately in the Statement of Profit and Loss.

2 Contribution payable to the recommended Provident Fund and ESIC payments have been charged to revenue.

3 Short term employee benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

(i) LEASE

1 Lease rental in respect of assets acquired under operating leases are charged of to the statement of profit and loss.

2 Leases, where the lesser effectively retains substantially all the risk and benefits of owership of leased item, are classified as operating leases

3 Leases in which the company does not transfer substantially all the risk and benefits of ownership of the assets are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an operating lease is recognised in the statement of profit and loss on a straightline basis over the lease term. Costs, including depreciation, are recognised as an expense in the statement of profit and loss. Initial direct costs such as legal cost, brokerage cost, etc, are recognised immediately in the statement of profit and loss.

(j) EARNING PER SHARE

1 Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of share outstanding during the year. Diluted earnings per share amounts are computed after adjusting the effects of all dilutive potential equity shares except where the result would be anti-dilutive. The number of shares used in computing diluted earning per share comprises the weighted average number of shares considered for deriving basis earning per share, and also the weighted average number of equity share, which could hVye been issued on the conversion of all dilutive potential equity share.

(k) TAXATION

1 Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961.

2 Provision for Deferred Tax is made for ail timing differences arising between taxable income and accounting income at rates that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognised only if there is a certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

(l) IMPAIRMENT OF ASSETS

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the assets. If such recoverable amount of the assets is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recongnized in the Statement of Profit and Loss. If at the balance sheet date there is an indication that if previously assets impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverble amount subject to a maximum amount depredated historical cost.

(m) PROVISION & CONTINGENT LIABILITY

The Company creates a provision when there is a present obligaton as a result of a past event that probably requires an outflow of resources and a realiable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligatin that may, but probably will not, require and outflow of resources.Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote no provision or disclosure is made.


Mar 31, 2014

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements are prepared under the historical cost convention on an accrual basis and In accordance with the applicable accounting standards and the relevant provisions of the Companies Act, 1956 and Companies Act, 2013 wherever applicable

(b) USE OF ESTIMATES

The preparation and presentation of financial statements in conformity with the Generally Accepted Accounting Principies requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on that date of the financial statements and the reported amounts revenue and expenses during the reporting period. Difference between the actual result and the estimates are recognized in the period in which the results are known / materialized.

(c) INVENTORY VALUATION

Inventories are valued at Lower of Cost and Net Realizable Value. The Cost is arrived at FIFO basis for Raw Material, Packing Material, Stores and Spares. Cost for Work in Process and Finished Goods is arrived at on estimated cost basis.

(d) REVENUE RECOGNISATION

Revenue from sale of goods is recognized when ownership in goods is transferred to the customers, which is at the point of dispatch. Sales are accounted net of sales return and Value Added Tax wherever applicable.

Triochem Products Limited

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2014

(e) FIXED ASSETS AND DEPRECIATION

1 Fixed assets are stated at cost less accumulated depreciation

2 Depreciation is provided on written down value method at the rates and manner specified in the schedule XIV of Companies Act, 1956, on the originat cost of the asset. Depreciation on additions of fixed assets costing less than Rs.5000/- have been provided at 100% on pro-rata basis and depreciation on assets Costing more than Rs.5000/- have been provided on pro-rata basis from the date of put to use of such additions.

{f) FOREIGN CURRENCY TRANSACTION

1 All transaction in foreign currency is recorded at the exchange rate prevailing on the date of transaction. All foreign ; currency Assets and Liabilities are reinstated at the exchange rates prevailing at the year end, gain or loss on this are recognised to the Statement of Profit and Loss as exchange rate difference.

(g) INVESTMENTS

1 Investments are either classified as Current or Long Term based on Management''s intention at the time of purchase.

LongTerm Investments are stated at cost of acquisition. Provision for diminution in value of Investments is made only if suchde clinet is other than temporary in the opinion of the management.

2 Dividend are accounted for as and when received (h) EMPLOYEE BENEFIT

1 Liabilities in respect of defined benefit plans other than Provident Fund are determined based on actuarial valuation made by an independent actuary as at the balance sheet date.

The acturial pins or losses are recognised immediately in the Statement of Profit and Loss. ;

2 Contribution payable to the recommended Provident Fund and ESIC payments have been charged to revenue.

3 Short term employee benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered

(i) EARNING PER SHARE

1 The earning considered in ascertaining the company''s EPS comprises the net profit after tax. The number of shares | used in computing Basic EPS is the weighted average number of shares outstanding during the year. The Earning per share is calculated by dividing the Net Profit after tax by the weighted average number of Equity Shares outstanding during the year.

0) TAXATION

1 Provision for current tax is made on the basis of estimated taxable income for the current accounting year in

1 accordance with the provisions of the income TaxAct, 1961.

2 Provision for Deferred Tax is made for all timing differences arising between taxable income and accounting income at rates that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognised only if there is a certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

(k) IMPAIRMENT OF ASSETS

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the assets, If such recoverable amount of the assets is less than its carrying amount, the carrying amount is reduced to its recoverable amount.

The reduction is treated as an impairment loss and is recongnized in the Statement of Profit and Loss. If at the balance sheet date there is an indication that if previously assets impairment loss no longer exists, the recoverable amount is reassessed and the assets is

reflected at the recoverble amount subject to a maximum amount depreciated historical cost.

(I) PROVISION & CONTINGENT LIABILITY

The Company creates a provision when there is a present obligaton as a result of a past event that probably requires an i outflow of resources and a realiable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligatin that may, but probably will not, require and outflow of resources.Where there Is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote no provision or disclosure is made.


Mar 31, 2012

1.01 BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards and the relevant provisions of the Companies Act, 1956.

1.02 USE OF ESTIMATES

The preparation and presentation of financial statements in confirmity with the Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on that date of the financial statements and the reported amounts revenue and expenses during the reporting period. Difference between the actual result and the estimates are recognized in the period in which the results are known/materialized.

1.03 FOREIGN CURRENCY TRANSACTION

All transaction in foreign currency is recorded at the exchange rate prevailing on the date of transaction. All foreign currency Assets and Liabilities are reinstated at the exchange rates prevailing at the year end, gain or loss on this are recognised to the Profit and Loss account as exchange rate difference.

1.04 TAXATION

1 Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961.

2 Provision for Deferred Tax is made for ail timing differences arising between taxable income and accounting income at rates that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognised only if there is a certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.05 IMPAIRMENT OF ASSETS

The Company assesses at each balance sheet date, whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates there coverable amount of the assets, If such recoverable amount of the assets is less than its carrying amount, the carrying amount Is reduced to its recoverable amount The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the balance sheet date there is an indication that if previously assets impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount subject to a maximum amount depreciated historical cost.

1.06 PROVISION & CONTINGENT LIABILITY

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a readable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require and outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote no provision or disclosure is made.


Mar 31, 2011

A BASIS OF PREPARATION:

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards and the relevant provisions of the Companies Act, 1956 B FIXED ASSETS & DEPRECIATION: The Company has provided depreciation on all the fixed assets on the written down value basis adopting the rates and the manner prescribed in Schedule XIV of the Companies Act, 1956.

C REVENUE RECOGNITION:

Revenue from sale of goods is recognised when ownership in goods is transferred to the customers, which is at the point of despatch. Sales are accounted net of sales return.

D VALUATION OF INVENTORIES:

All inventories are valued at lower of cost and net realisable value. The cost is arrived at FIFO basis for all inventories.

E INVESTMENTS:

Long Term Investments are stated at cost of acquisition. Provision for diminution in value of Long Term Investments is made only if such decline is other than temporary in the opinion of the management. Dividends are accounted for as and when received.

F EMPLOYEE BENEFITS:

1 Liabilities in respect of defined benefit plans other than Provident Fund Schemes are determined based on actuarial valuation made by an independent actuary as at the balance sheet date. The actuarial gains or losses are recognised immediately in the Profit and Loss account.

2 Defined Contribution to Provident Fund and ESIC payments have been charged to revenue.

3 Short term employee benefits are recognised as an expense at the undiscounted amounts in the Profit and Loss account of the year in which the related services is rendered.

G FOREIGN CURRENCY TRANSACTIONS: All foreign exchange transactions are recorded at the exchange rate prevailing on the date of transaction. All foreign currency Assets / Liabilities are reinstated at the exchange rates prevailing at the year end, gains or loss on this are recognised to the Profit and Loss account as exchange rate difference.

H TAXATION:

1 Provision for current tax is made on the basis of the estimated taxable Income for the current accounting year in accordance with the provisions of Income Tax Act, 1961.

2 The deferred tax for timing difference between the book profits and tax profits for the year is accounted for using the tax rate and laws that have been enacted or substantially enacted as of the Balance Sheet date Deferred Tax assets arising from timing differences are recognized to the extent there is a virtual certainty that these would be realized in future and are review for the appropriateness of their respective carrying values at each Balance Sheet date.

3 Fringe Benefit Tax is determined at current applicable rates on expenses falling within the ambit of "Fringe Benefit Tax" as defined in the Income Tax Act, 1961.

I LEASE:

Lease rentals in respect of assets given under operating leases are credited to the Profit and Loss account J IMPAIRMENT OF ASSETS: The Company assesses at each balance sheet date whether there is any indication that an asset may be imparied. If any such indication exits, the management estimats the recoverable amount of the assets If such recoverable amount of the assets is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that is a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount subject to a maximum of depreciated histrocial cost

K Provision and Contingent Liabilities: The Company creates a provision 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. 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. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2010

A BASIS OF PREPARATION:

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards and the relevant provisions of the Companies Act, 1956

B FIXED ASSETS & DEPRECIATION:

The Company has provided depreciation on all the fixed assets on the written down value basis adopting the rates and the manner prescribed in Schedule XIV of the Companies Act, 1956.

C REVENUE RECOGNITION:

Revenue from sale of goods is recognised when ownership in goods is transferred to the customers, which is at the point of despatch. Sales are accounted net of sales return.

D VALUATION OF INVENTORIES:

All inventories are valued at lower of cost and net realisable value. The cost is arrived at FIFO basis for all inventories.

E INVESTMENTS:

Long Term Investments are stated at cost of acquisition. Provision for diminution in value of Long Term Investments is made only if such decline is other than temporary in the opinion of the management. Dividends are accounted for as and when received.

F EMPLOYEE BENEFITS:

1 Liabilities in respect of defined benefit plans other than Provident Fund Schemes are determined based on actuarial valuation made by an independent actuary as at the balance sheet date. The actuarial gains or losses are recognised immediately in the Profit and Loss account.

2 Defined Contribution to Provident Fund and ESIC payments have been charged to revenue.

3 Short term employee benefits are recognised as an expense at the undiscounted amounts in the Profit and Loss account of the year in which the related services is rendered.

G FOREIGN CURRENCY TRANSACTIONS:

All foreign exchange transactions are recorded at the exchange rate prevailing on the date of transaction. Ail foreign currency Assets / Liabilities are reinstated at the exchange rates prevailing at the year end, gains or loss on this are recognised to the Profit and Loss account as exchange rate difference.

H TAXATION:

1 Provision for current tax is made on the basis of the estimated taxable Income for the current accounting year in accordance with the provisions of Income Tax Act, 1961.

2 The deferred tax for timing difference between the book profits and tax profits for the year is accounted for using the tax rate and laws that have been enacted or substantially enacted as of the Balance Sheet date Deferred Tax assets arising from timing differences are recognized to the extent there is a virtual certainty that these would be realized in future and are review for the appropriateness of their respective carrying values at each Balance Sheet date.

3 Fringe Benefit Tax is determined at current applicable rates on expenses falling within the ambit of "Fringe Benefit Tax" as defined in the Income Tax Act, 1961.

I LEASE: Lease rentals in respect of assets given under operating leases are credited to the Profit and Loss account.

J IMPAIRMENT OF ASSETS:

The Company assesses at each balance sheet date whether there is any indication that an asset may be imparled. If any such indication exits, the management estimats the recoverable amount of the assets If such recoverable amount of the assets is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit ans loss account. If at the balance sheet date there is an indication that is a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount subject to a mximum of depreciated histrocial cost.

K Provision and Contingent Liabilities:

The Company creates a provision 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. 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. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.