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Accounting Policies of Vinyl Chemicals (I) Ltd. Company

Mar 31, 2015

1 The 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 specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention on a going concern basis. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year.

2 The preparation of financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the Management's best knowledge of current events and actions, 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/ materialised.

3. i. Tangible assets are stated at cost.

ii. Depreciation has been provided on straight line method on fixed assets, as per the rates specified in Schedule II of the Companies Act, 2013.

4. Long-term investments 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.

5. Inventory of Traded Goods is valued at actual cost or net realisable value,whichever is lower.

6. Accounting for Taxes on Income:

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

ii. 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 and carried forward only if there is a virtual /reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

7. Foreign Currency transactions are recorded at the exchange rates prevailing on the date of transaction. Foreign currency designated assets and liabilities are restated at year end rates or at contract rates and the resultant gain or loss is taken to the Statement of Profit and Loss.

8. Employees' Benefits:

i. Contribution to Provident and Family Pension Fund are funded as a percentage of salary.

ii. Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India.

iii. Leave encashment liability is provided for on the basis of actuarial valuation as at the year end.

9. Revenue Recognition:

i. Income from sale of goods is recognised upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold. Sales are net of Sales tax/ VAT, returns , rebates and discounts.

ii. Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.

iii. Negotiated price reduction obtained from supplier is accounted for as a part of 'Other operating revenue'.

10. Provisions,Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.

ii. Disclosure for a contingent liability is made,without a provision in books,when there is an obligation that may,but probably will not, require outflow of resources.

iii. Contingent Assets are neither recognised nor disclosed in the financial statement.

11. Earnings Per Share:

In determining the earnings per share,the Company considers the net profit after tax and post tax effect of any extra-ordinary/exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.




Mar 31, 2014

1.1. The 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 Section 211(3C) of the Companies Act, 1956 ("the 1956 Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act/2013 Act, as applicable. The financial statements have been prepared on accrual basis under the historical cost convention on a going concern basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2. i. Tangible assets are stated at cost.

ii. Depreciation has been provided on Straight Line Method on assets, as per the rates specified in Schedule XIV of the Companies Act, 1956.

1.3. Long-term investments 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.

1.4 . Inventory of Traded Goods is valued at actual cost or net realisable value, whichever is lower.

1.5 . Accounting for Taxes on Income:

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

ii. 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 and carried forward only if there is a virtual /reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.6. Foreign Currency transactions are recorded at the exchange rates prevailing on the date of transaction. Foreign currency designated assets and liabilities are restated at year end rates or at contract rates and the resultant gain or loss is taken to the Statement of Profit and Loss except in respect of fixed assets where the gain/loss is capitalized.

1.7. Employees'' Benefits:

i . Contribution to Provident and Family Pension Fund are funded as a percentage of salary.

ii . Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India.

iii. Leave encashment liability is provided for on the basis of actuarial valuation as at the year end.

1.8. Revenue Recognition:

i. Income from sale of goods is recognised upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold.

ii . Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.

iii. Negotiated price reduction obtained from supplier is accounted for as a part of ''Other operating revenue''.

1.9. Provisions, Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.

ii. Disclosure for a contingent liability is made, without a provision in books, when there is an obligation that may, but probably will not, require outflow of resources.

iii. Contingent Assets are neither recognised nor disclosed in the financial statement.


Mar 31, 2013

1.1. The Company maintains its accounts on accrual basis following the historical cost convention, in compliance with the Accounting Standards specified to be mandatory by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

1.2. i. Tangible assets are stated at cost.

ii. Depreciation has been provided on Straight Line Method on assets, as per the rates specified in Schedule XIV of the Companies Act, 1956.

1.3. Traded Goods are valued at actual cost or net realisable value, whichever is lower.

1.4. Long Term Investment is stated at cost. Provision where necessary, is made to recognize a decline.otherthan temporary, in the value of investment.

1.5. Accounting for Taxes on Income:

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

ii. 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 and carried forward only if there is a virtual /reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.6. Foreign currency transactions are recorded at the exchange rates prevailing on the date of transaction. Foreign currency designated assets and liabilities are restated at year end rates or at contract rate and the resultant gain or loss is taken to the Statement of Profit and Loss except in respect of fixed assets where the gain/loss is capitalized.

1.7. Employees'' Benefits:

i. Contribution to Provident and Family Pension Fund are funded as a percentage of salary. ii. Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India. iii. Leave encashment liability is provided for on the basis of actuarial valuation as at the year end.

1.8. Revenue Recognition:

i. Income from sale of goods is recognised upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold.

ii. Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.

iii. Negotiated price reduction obtained from supplier is accounted for as a part of ''other operating revenue ''.

1.9. Provisions.Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.

ii. Disclosures for a contingent liability is made.without a provision in books,when there is an obligation that may.but probably will not, require outflow of resources.

iii. Contingent Assets are neither recognised nor disclosed in the financial statement.

1.10. Earnings Per Share:

In determining the earnings per share, the Company considers the net profit after tax and post tax effect of any extra-ordinary/ exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.


Mar 31, 2012

1.1. The Company maintains its accounts on accrual basis following the historical cost convention, in compliance with the Accounting Standards specified to be mandatory by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

1.2. During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. The Company has also reclassified the previous year's figures in accordance with the requirements applicable in the current year.

1.3. i. Tangible assets are stated at cost.

ii. Depreciation has been provided on Straight Line Method on assets, as per the rates specified in Schedule XIV of the Companies Act, 1956.

1.4. Traded Goods are valued at actual cost or net realizable value, whichever is lower.

1.5. Long Term Investment is stated at cost. Provision where necessary, is made to recognize a decline, other than temporary, in the value of investment.

1.6. Accounting for Taxes on Income:

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

ii. 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 and carried forward only if there is a virtual /reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.7. Foreign currency transactions are recorded at the exchange rates prevailing on the date of transaction. Foreign currency designated assets and liabilities are restated at year end rates or at contract rate and the resultant gain or loss is taken to Statement of Profit and Loss except in respect of fixed assets where the gain/loss is capitalized.

1.8. Employees' Benefits:

i. Contribution to Provident and Family Pension Fund are funded as a percentage of salary.

ii. Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India.

iii. Leave encashment liability is provided for on the basis of actuarial valuation as at the year end.

1.9. Revenue Recognition:

i. Income from sale of goods is recognized upon transfer of significant risks and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold.

ii. Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.

iii. Negotiated price reduction obtained from supplier is accounted for as a part of 'Miscellaneous Income'.

1.10. Provisions, Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.

ii. Disclosures for a contingent liability is made, without a provision in books, when there is an obligation that may, but probably will not, require outflow of resources.

iii. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.11. Earnings per share:

In determining the earnings per share, the Company considers the net profit after tax and post tax effect of any extra-ordinary/ exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.

* Out of a sum of Rs42,100 lying to the credit of 'Forfeited Share Account1, the Company has transferred a sum of Rs35,227 representing the surplus amount received on 6,873 forfeited equity shares under 'Share Capital Account' to 'Capital Reserve Account' under 'Reserves & Surplus'. Hence, the figures appearing in the said accounts for the current year and the previous year are regrouped accordingly, a. There was no change in number of shares at the beginning and at the end of the reporting period.

a. Details of shareholders holding more than 5% shares in the Company

No shareholder other than stated above in Note 2(b) was holding more than 5% shares in the Company as at 31 st March, 2012 and as at 31 st March, 2011.


Mar 31, 2011

1. The Company maintains its accounts on accrual basis following the historical cost convention, in compliance with the Accounting Standards specified to be mandatory by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

2. a. Tangible assets are stated at cost.

b. Depreciation has been provided on straight line method on Assets, as per the Rates specified in Schedule XIV of the Companies Act, 1956.

3. Traded Goods are valued at actual cost or net realisable value, whichever is lower.

4. Long Term Investment is stated at cost. Provision where necessary, is made to recognize a decline.other than temporary, in the value of investment.

5. Accounting for Taxes on Income:

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

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 and carried forward only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

6. Foreign Currency transactions are recorded at the exchange rates prevailing on the date of transaction. Foreign currency designated assets and liabilities are restated at year end rates or at contract rate and the resultant gain or loss is taken to Profit and Loss Account except in respect of fixed assets where the gain/loss is capitalized.

7. Employees Benefits:

a. Contribution to Provident and Family Pension Fund are funded as a percentage of salary.

b. Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India.

c. Leave encashment liability is provided for on the basis of actuarial valuation as at the year end.

8. Revenue Recognition:

i) Income from sale of goods is recognised upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold.

ii) Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.

iii) Negotiated price reduction obtained from supplier is accounted for as a part of Miscellaneous Income.

9. Provisions, Contingent Liabilities and Contingent Assets:

i) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.

ii) Disclosures for a contingent liability is made, without a provision in books, when there is an obligation that may, but probably will not, require outflow of resources.

iii) Contingent Assets are neither recognised nor disclosed in the financial statement.

10. Earnings per share:

In determining the earnings per share, the Company considers the net profit after tax and post tax effect of any extra-ordinary/exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.


Mar 31, 2010

1. The Company maintains its accounts on accrual basis following the historical cost convention, in compliance with the Accounting Standards specified to be mandatory by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

2. a. Tangible assets are stated at cost.

b. Depreciation has been provided on straight line method on Assets, as per the Rates specified in Schedule XIV of the Companies Act, 1956.

3. Traded Goods are valued at actual cost or net realisable value, whichever is lower.

4. Long Term Investment is stated at cost.provision where necessary, is made to recognize a decline.other than temporary in the value of investment.

5. Accounting for Taxes on Income:

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

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 and carried forward only if there is a virtual /reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

6. Foreign Currency transactions are recorded at the exchange rates prevailing on the date of transaction. Foreign currency designated assets and liabilities are restated at year end rates or at contract rate and the resultant gain or loss is taken to Profit and Loss Account except in respect of fixed assets where the gain/loss is capitalized.

7. Employees Benefits:

a. Contribution to Provident and Family Pension Fund are funded as a percentage of salary.

b. Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India.

c. Leave encashment liability is provided for on the basis of actuarial valuation as at the year end.

8. Revenue Recognition:

i) Income from sale of goods is recognised upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold.

ii) Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.

iii) Negotiated price reduction obtained from supplier is accounted for as a part of Miscellaneous Income.

9. Provisions, Contingent Liabilities and Contingent Assets:

i) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.

ii) Disclosures for a contingent liability is made.without a provision in books.when there is an obligation that may.but probably will not, require outflow of resources.

iii) Contingent Assets are neither recognised nor disclosed in the financial statement.

10. Earnings per share:

In determining the earnings per share, the Company considers the net profit after tax and post tax effect of any extra-ordinary/ exceptional item is shown separately. The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.

 
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