Accounting Policies of Alchemist Corporation Ltd. Company

Mar 31, 2015

1. SIGNIFICANT ACCOUNTING POLICIES:

The financial statements have been prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles (GAAP) in India and comply with the Accounting standards prescribed under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). The accounting policies have been consistently applied by the Company.

All assets and liabilities have been classified as current and non- current as per the Company's normal operating cycle and other criteria set out in the Schedule III of the Act. Based on the nature of business and the time between the acquisition of assets and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities

2. Use of Estimate

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.

Fixed assets are carried at the cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

Depreciation/ amortization

Depreciation / amortization on fixed assets is provided pro rata to the period of use, based on written down value method at rates specified in Schedule II of the Companies Act, 2013 except in case of intangible assets and leasehold improvements. In view of the management such rates represents the useful life of such assets.

Assets costing less than Rs 5,000 each, are depreciated in full excluding residual value as per Schedule II, in year of purchase.

Asset category Rate of depreciation/ amortization

Intangible assets 33.33% on written down value basis

Leasehold improvements Over the lease term or useful life whichever is lower

3. Investments

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment.

Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investment.

4. Inventories

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

5. Service Income

Service income is recognized as per the terms of contracts with customers when the related services are performed, or the agreed milestones are achieved.

6. Recognition of Income and Expense:

Items of income and expenditure are recognized on accrual basis.

9. Events occurring after balance sheet date:

Events occurring after balance sheet date which affect the financial position to a material extent are taken into cognizance, if any.

10 Contingent Liabilities:

Contingent Liabilities are generally not provided for in the accounts are shown separately under notes to the accounts if any.

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Mar 31, 2014

A) The financial statements have been prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles comprising the Accounting Standards issued by the Institute of Chartered Accountants of India and provisions of the companies Act, 1956 as adopted consistently by the company.

b) The company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis except claims, and dividend on investments which are accounted for on cash basis.

c) The preparation of financial statements in conformity with GAAP requires that the management of the company make estimates and assumptions that affect the reported amount of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as on the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

Fixed Assets and Depreciation

Fixed assets are accounted for at cost and include cost of installation wherever incurred and incidental expenses related to acquisition/installation wherever applicable.

Depreciation is provided at the rates specified in schedule XIV of the Companies Act 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time wherever applicable.

Foreign Currency Transactions

There is no foreign currency transaction during the year.

Investments

Long-term Investments are stated at cost. No provision for diminution in the value of long-term investments has been made as in the opinion of the management; such decline is temporary in nature.

Retirement Benefits - Gratuity -Gratuity

Provisions for gratuity has been made on accrual basis and are charged to the revenue.

Other retirement benefits arc provided as per Company rules and arc accounted for in the year of payment.

Revenue recognition

Revenue from sales is recognized when it is completed in accordance with the terms of the contract with the customer. Sales return arc adjusted from the sales of the year in which the return takes place.

Miscellaneous Expenditure

Preliminary, Public issue, Preoperative and Capital issue expenses incurred were amortized according to Accounting Standard 26, "intangible Assets" Issued by the Institute of Chartered Accountants of India.

Claims

Claims against / by the company arising on any account are provided in the books of account on acceptance / receipt basis.

Events occurring after Balance Sheet date

Events occurring after the Balance Sheet date, which are material in nature, have been considered in the preparation of financial statements.

Taxation

The Income Tax liability is ascertained based on assessable profit computed in accordance with the provisions of Income Tax Act, 1961.

Deferred income tax reflects the impact of current year timing difference between taxable income / losses and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet data. Deferred tax assets arc recognized only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized. In respect of carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainly that sufficient future taxable income will be available against which such losses can be set off.

Contingent Liabilities

Depending on facts of each case and after due evaluation of relevant legal aspects, claims against the Company not acknowledged as debts are regarded as contingent liabilities. In respect of statutory matters, contingent liabilities arc recognized based on demand(s) that are contested by the Company.

Impairment of Fixed Assets:

At each balance Sheet date, the company reviews the carrying amounts of its Fixed Assets to determine whether there is any indication that these assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Accordingly the carrying amount is reduced to its recoverable amount by treating tbe difference between them as impairment loss and is charged to the Profit and Loss account.

Cash Flow Statement:

The Cash flow statement is prepared by the indirect method set out in AS 3 on "Cash Flow Statement and presents Cash flows by operating, investing and financing activities of the company.

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Mar 31, 2013

Basis of preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles comprising the Accounting Standards issued by the Institute of Chartered Accountants of India and provisions of the companies Act, 1956 as adopted consistently by the company.

b) The company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis except claims, and dividend on investments which are accounted for on cash basis.

c) The preparation of financial statements in conformity with GAAP requires that the management of the company make estimates and assumptions that affect the reported amount of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as on the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

Fixed Assets and Depreciation

Fixed assets are accounted for at cost and include cost of installation wherever incurred and incidental expenses related lo acquisition/installation wherever applicable.

Depreciation is provided at the rates specified in schedule XIV of the Companies Act 1956 read with the relevant circulars issued by the Department of Company Affairs from time to lime wherever applicable.

Foreign Currency Transactions

There is no foreign currency transaction during the year.

Investments

Long-term Investments are stated at cost. No provision for diminution in the value of long-term investments has been made as in the opinion of the management; such decline is temporary in nature.

Retirement Benefits - Gratuity -Gratuity

Provisions for gratuity has been made on accrual basis and are charged to the revenue.

Other retirement benefits are provided as per Company rules and are accounted for in the year of payment.

Revenue recognition

Revenue from sales is recognized when it is completed in accordance with the terms of the contract with the customer. Sales return are adjusted from the sales of the year in which the return takes place.

Miscellaneous Expenditure

Preliminary, Public issue, Preoperative and Capital issue expenses incurred were amortized according to Accounting Standard 26, "intangible Assets" Issued by the Institute of Chartered Accountants of India.

Claims

Claims against / by the company arising on any account are provided in the books of account on acceptance / receipt basis.

Events occurring after Balance Sheet date

Events occurring after the Balance Sheet date, which are material in nature, have been considered in the preparation of financial statements.

Taxation

The Income Tax liability is ascertained based on assessable profit computed in accordance with the provisions of Income Tax Act, 1961.

Deferred income tax reflects the impact of current year timing difference between taxable income / losses and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet data. Deferred tax assets are recognized only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized. In respect of carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainly that sufficient future taxable income will be available against which such losses can be set off.

Contingent Liabilities

Depending on facts of each case and after due evaluation of relevant legal aspects, claims against the Company not acknowledged as debts are regarded as contingent liabilities. In respect of statutory matters, contingent liabilities are recognized based on demand(s) that are contested by the Company.

Impairment of Fixed Assets:

At each balance Sheet date, the company reviews the carrying amounts of its Fixed Assets to detennine whether there is any indication that these assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Accordingly the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and is charged to the Profit and Loss account.

Cash Flow Statement:

The Cash flow statement is prepared by the indirect method set out in AS 3 on "Cash Flow Statement and presents Cash flows by operating, investing and financing activities of the company.

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Mar 31, 2011

Basis of preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles comprising the Accounting Standards issued by the Institute of Chartered Accountants of India and provi sions of the companies Act, 1956 as adopted consistently by the company.

b) The company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis except claims, and dividend on investments which are accounted for on cash basis.

c) The preparation of financial statements in conformity with GAAP requires that the management of the company make estimates and assumptions that affect the reported amount of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as on the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

Fixed Assets and Depreciation

Fixed assets are accounted for at cost and include cost of installation wherever incurred and incidental expenses related to acqui- sition/installation wherever applicable.

Depreciation is provided at the rates specified in schedule XIV of the Companies Act 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time wherever applicable.

Foreign Currency Transactions

There is no foreign currency transaction during the year.

Investments

Long-term Investments are stated at cost. No provision for diminution in the value of long-term investments has been made as in the opinion of the management; such decline is temporary in nature.

Retirement Benefits - Gratuity - Gratuity

Provisions for gratuity has been made on accrual basis and are charged to the revenue. Other retirement benefits are provided as per Company rules and are accounted for in the year of payment.

Revenue recognition

Revenue from sales is recognized when it is completed in accordance with the terms of the contract with the customer. Sales return are adjusted from the sales of the year in which the return takes place.

Miscellaneous Expenditure

Preliminary, Public issue, Preoperative and Capital issue expenses incurred were amortized according to Accounting Standard 26, "intangible Assets" Issued by the Institute of Chartered Accountants of India.

Claims

Claims against / by the company arising on any account are provided in the books of account on acceptance / receipt basis.

Events occurring after Balance Sheet date

Events occurring after the Balance Sheet date, which are material in nature, have been considered in the preparation of financial statements.

Taxation

The Income Tax liability is ascertained based on assessable profit computed in accordance with the provisions of Income Tax Act, 1961.

Deferred income tax reflects the impact of current year timing difference between taxable income / losses and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet data. Deferred tax assets are recognized only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized. In respect of carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainly that sufficient future taxable income will be available against which such losses can be set off.

Contingent Liabilities

Depending on facts of each case and after due evaluation of relevant legal aspects, claims against the Company not acknowledged as debts are regarded as contingent liabilities. In respect of statutory matters, contingent liabilities are recognized based on demand(s) that are contested by the Company.

Impairment of Fixed Assets:

At each balance Sheet date, the company reviews the carrying amounts of its Fixed Assets to determine whether there is any indication that these assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Accordingly the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and is charged to the Profit and Loss account.

Cash Flow Statement

The Cash flow statement is prepared by the indirect method set out in AS 3 on "Cash Flow Statement and presents Cash flows by operating, investing and financing activities of the company.

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Mar 31, 2010

Basis of preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles comprising the Accounting Standards issued by the Institute of Chartered Accountants of India and provisions of the companies Act, 1956 as adopted consistently by the company.

b) The company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis except claims, and dividend on investments which are accounted for on cash basis.

c) The preparation of financial statements in conformity with GAAP requires that the management of the company make estimates and assumptions that affect the reported amount of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as on the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

Fixed Assets and Depreciation

Fixed assets are accounted for at cost and include cost of installation wherever incurred and incidental expenses related to acquisition/installation wherever applicable.

Depreciation is provided at the rates specified in schedule XIV of the Companies Act 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time wherever applicable.

Foreign Currency Transactions

There is no foreign currency transaction during the year.

Investments

Long-term Investments are stated at cost. No provision for diminution in the value of long-term investments has been made as in the opinion of the management; such decline is temporary in nature.

Retirement Benefits - Gratuity

- Gratuity

Provisions for gratuity has been made on accrual basis and are charged to the revenue.

Other retirement benefits are provided as per Company rules and are accounted for in the year of payment.

Revenue recognition

Revenue from sales is recognized when it is completed in accordance with the terms of the contract with the customer. Sales return are adjusted from the sales of the year in which the return takes place.

Miscellaneous Expenditure

Preliminary, Public issue, Preoperative and Capital issue expenses incurred were amortized according to Accounting Standard 26, “intangible Assets” Issued by the Institute of Chartered Accountants of India.

Claims

Claims against / by the company arising on any account are provided in the books of account on acceptance / receipt basis.

Events occurring after Balance Sheet date

Events occurring after the Balance Sheet date, which are material in nature, have been considered in the preparation of financial statements.

Taxation

The Income Tax liability is ascertained based on assessable profit computed in accordance with the provisions of Income Tax Act, 1961.

Deferred income tax reflects the impact of current year timing difference between taxable income / losses and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet data. Deferred tax assets are recognized only to the extent that there is reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized. In respect of carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainly that sufficient future taxable income will be available against which such losses can be set off.

Contingent Liabilities

Depending on facts of each case and after due evaluation of relevant legal aspects, claims against the Company not acknowledged as debts are regarded as contingent liabilities. In respect of statutory matters, contingent liabilities are recognized based on demand(s) that are contested by the Company.

Impairment of Fixed Assets:

At each balance Sheet date, the company reviews the carrying amounts of its Fixed Assets to determine whether there is any indication that these assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Accordingly the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and is charged to the Profit and Loss account.