Mar 31, 2014
1.1.1 Basis of accounting and preparation of financial statements
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
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
2.1.2 In spite of the fact that the about 50% of the accumulated
surplus is lost during one single year, the going concern assumption
used in the preparation of the financial statements is appropriate and
justified in the opinion of the management, because according to the
management, the valuation and realisibility / payability of all assets
and liabilities do not change materially with the change of the
assumption.
2.2 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 recognised in the periods in which
the results are known / materialise.
2.3 Inventories
Raw Materials are valued at lower of cost price on FIFO basis or net
realisable value.
Finished Goods are valued at cost or net realisable value whichever is
lower.
Work in Process is treated as respective raw materials since they are
in a mixed state and it is impracticable to assess its cost as well as
the realisable value.
The quantities of Raw Materials and Finished Goods including valuation
thereof, are as certified by the management.
2.4 Cash and Cash Equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are term-deposits with banks '' since these are readily
convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
2.5 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.6 Fixed Assets
Tangible Assets are stated at cost of acquisition or cost of
construction less depreciation. All costs, relating to the acquisition
and installation of fixed assets have been capitalised and include
financing costs relating to borrowed funds upto the date the assets are
ready and put to use. The said expenditure is capitalised by allocating
the same to the various Fixed Assets, except land, on the basis of cost
of the assets before such allocation.
Accounting Standard (AS) 28, ''Impairment of Assets'' has not been
followed by the Company. Its impact on the profits is not known.
There are no intangible assets.
2.7 Depreciation & Amortisation
Depreciation has been provided for on Straight-Line-Method (SLM) at the
rates and in the manner prescribed in schedule XIV of the Companies
Act, 1956.
Premium paid on leasehold land is amortised equally over the period of
lease.
2.8 Impairment of Assets
Accounting Standard (AS) 28, ''Impairment of Assets'' has not been
followed by the Company. Its impact on the profits is not known.
2.9 Revenue Recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax.
There is no income from services
2.10 Other Income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
2.11 Foreign Currency Transactions
Transactions in foreign currency are accounted for at exchange rates
prevailing at the time of the transactions. All exchange gains/losses
arising out of such transaction are taken to Profit and Loss Account.
Foreign currency monetary Assets and Liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year. There were no forward exchange contracts during the year.
2.12 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.
2.13 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.
2.14 Employee Benefits
Please refer note number 20 below.
2.15 Segment Reporting
The Company operates in single segment of manufacturing and saie of dye
intermediates.
2.16 Leases
There are no transactions where the Company is a lessor.
Premium paid on leasehold land is amortised equally over the period of
lease.
In case of other assets taken on lease where lease arrangements are
such that the risks and rewards incidental to ownership of an asset
substantially vest with the lessor are recognised as operating leases.
Lease rentals under operating leases are recognised in the Statement of
Profit and Loss on accrual basis.
2.17 Taxes on Income
Tax expense for the year comprises of current tax and deferred tax.
Current taxes are measured at the amounts expected to be paid using the
applicable tax rates and tax laws. Deferred tax assets and liabilities
are measured using tax rates and tax laws that have been or
substantively enacted as of balance sheet date. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in
the profit and loss account in the year of change. Deferred tax assets
and liabilities are recognized for the future tax consequences
attributable to differences between the financial statements carrying
amounts of existing assets and liabilities and their respective tax
bases and operating loss carry forwards.
2.18 Provisions and Contingencies
A provision is recognised 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 (including 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.
2.19 Service Tax Input Credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilising the credits.
Mar 31, 2013
1.1 Basis of accounting and preparation of financial statements 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 the
Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
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 recognised in the periods in which
the results are known / materialise.
1.3 Inventories
Raw Materials are valued at lower of cost price on FIFO basis or net
realisable value.
Finished Goods are valued at cost or net realisable value whichever is
lower.
Work in Process is treated as respective raw materials since they are
in a mixed state and it is impracticable to assess its cost as well as
the realisable value.
The quantities of Raw Materials and Finished Goods including valuation
thereof, are as certified by the management.
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 term-deposits with banks since these are readily
convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
1.5 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.6 Fixed Assets
Tangible Assets are stated at cost of acquisition or cost of
construction less depreciation. All costs, relating to the acquisition
and installation of fixed assets have been capitalised and include
financing costs relating to borrowed funds upto the date the assets are
ready and put to use. The said expenditure is capitalised by allocating
the same to the various Fixed Assets, except land, on the basis of cost
of the assets before such allocation.
Accounting Standard (AS) 28, ''Impairment of Assets'' has not been
followed by the Company. Its impact on the profits is not known.
There are no intangible assets.
1.7 Depreciation & Amortisation
Depreciation has been provided for on Straight-Line-Method (SLM) at the
rates and in the manner prescribed in schedule XIV of the Companies
Act, 1956.
Premium paid on leasehold land is amortised equally over the period of
lease.
1.8 Impairment of Assets
Accounting Standard (AS) 28, ''Impairment of Assets'' has not been
followed by the Company. Its impact on the profits is not known.
1.9 Revenue Recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
include Excise Duty but exclude Sales Tax and Value Added Tax.
There is no income from services
1.10 Other Income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.11 Foreign Currency Transactions
Transactions in foreign currency are accounted for at exchange rates
prevailing at the time of the transactions. All exchange gains/losses
arising out of such transaction are taken to profit and Loss account.
Foreign currency monetary Assets and Liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year. There were no forward exchange contracts during the year.
1.12 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.
1.13 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.
1.14 Employee Benefits
Please refer note number 28 below.
1.15 Segment Reporting
The Company identifies primary segments based on the geographical
source as domestic and export sale.
No secondary segment is identified as the Company operates in a single
business segment of manufacturing of dye intermediates.
Segment revenue and segment results have been identified to segments on
the basis of their relationship to the sale in domestic or export
markets respectively.
Revenue, expenses, Assets and Liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue/expenses/Assets/Liabilities.
1.16 Leases
There are no transactions where the Company is a lessor. Premium paid
on leasehold land is amortised equally over the period of lease.
In case of other assets taken on lease where lease arrangements are
such that the risks and rewards incidental to ownership of an asset
substantially vest with the lessor are recognised as operating leases.
Lease rentals under operating leases are recognised in the Statement of
Profit and Loss on accrual basis.
1.17 Taxes on Income
Tax expense for the year comprises of current tax and deferred tax.
Current taxes are measured at the amounts expected to be paid using the
applicable tax rates and tax laws. Deferred tax assets and liabilities
are measured using tax rates and tax laws that have been or
substantively enacted as of Balance Sheet date. The effect on deferred
tax Assets and Liabilities of a change in tax rates is recognized in
the Profit and Loss Account in the year of change. Deferred tax assets
and liabilities are recognized for the future tax consequences
attributable to differences between the financial statements carrying
amounts of existing Assets and Liabilities and their respective tax
bases and operating loss carry forwards.
1.18 Provisions and Contingencies
A provision is recognised 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 (including 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.
1.19 Service Tax Input Credit
Service Tax Input Credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilising the credits.
Mar 31, 2012
1.1 Basis of accounting and preparation of financial statements
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
the Companies (Accounting Standards) Rules' 2006 (as amended) and the
relevant provisions of the Companies Act' 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
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 recognised in the periods in which
the results are known / materialise.
1.3 Inventories
Raw Materials are valued at lower of cost price on FIFO basis or net
realisable value. Finished Goods are valued at cost or net realisable
value whichever is lower.
Work in Process is treated as respective raw materials since they are
in a mixed state and it is impracticable to assess its cost as well as
the realisable value.
The quantities of Raw Materials and Finished Goods including valuation
thereof' are as certified by the management.
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 term-deposits with banks since these are readily
convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
1.5 Cash Flow Statement
Cash flows are reported using the indirect method' whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating' investing and financing activities of the Company are
segregated based on the available information.
1.6 Fixed Assets
Tangible Assets are stated at cost of acquisition or cost of
construction less depreciation. All costs' relating to the acquisition
and installation of fixed assets have been capitalised and include
financing costs relating to borrowed funds upto the date the assets are
ready and put to use. The said expenditure is capitalised by allocating
the same to the various Fixed Assets' except land' on the basis of cost
of the assets before such allocation.
Accounting Standard (AS) 28' 'Impairment of Assets' has not been
followed by the Company. Its impact on the profits is not known.
There are no intangible assets.
1.7 Depreciation & Amortisation
Depreciation has been provided for on Straight-Line-Method (SLM) at the
rates and in the manner prescribed in schedule XIV of the Companies
Act' 1956.
Premium paid on leasehold land is amortised equally over the period of
lease.
1.8 Impairment of Assets
Accounting Standard (AS) 28' 'Impairment of Assets' has not been
followed by the Company.
1.9 Revenue Recognition
Sale of goods
Sales are recognised' net of returns and trade discounts' on transfer
of significant risks and rewards of ownership to the buyer' which
generally coincides with the delivery of goods to customers. Sales
include excise duty but exclude sales tax and value added tax.
There is no income from services
1.10 Other Income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.11 Foreign Currency Transactions
Transactions in foreign currency are accounted for at exchange rates
prevailing at the time of the transactions. All exchange gains/losses
arising out of such transaction are taken to profit and Loss account.
Foreign currency monetary assets and liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year. There were no forward exchange contracts during the year.
1.12 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.
1.13 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.
1.14 Employee Benefits
Please refer note number 28 below.
1.15 Segment Reporting
The Company identifies primary segments based on the geographical
source as domestic and export sale.
No secondary segment is identified as the company operates in a single
business segment of manufacturing of dye intermediates.
Segment revenue and segment results have been identified to segments on
the basis of their relationship to the sale in domestic or export
markets respectively.
Revenue' expenses' assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue / expenses / assets /
liabilities.
1.16 Leases
There are no transactions where the Company is a lessor. Premium paid
on leasehold land is amortised equally over the period of lease.
In case of other assets taken on lease where lease arrangements are
such that the risks and rewards incidental to ownership of an asset
substantially vest with the lessor are recognised as operating leases.
Lease rentals under operating leases are recognised in the Statement of
Profit and Loss on accrual basis.
1.17 Taxes on Income
Tax expense for the year comprises of current tax and deferred tax.
Current taxes are measured at the amounts expected to be paid using the
applicable tax rates and tax laws. Deferred tax assets and liabilities
are measured using tax rates and tax laws that have been or
substantively enacted as of balance sheet date. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in
the profit and loss account in the year of change. Deferred tax assets
and liabilities are recognized for the future tax consequences
attributable to differences between the financial statements carrying
amounts of existing assets and liabilities and their respective tax
bases and operating loss carry forwards.
1.18 Provisions and Contingencies
A provision is recognised 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 (including 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.
1.19 Service Tax Input Credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilizing the credits.
Mar 31, 2011
1.1. Revenue Recognition of Income and Expenditure
All income and expenditure are accounted for on accrual basis except
where stated otherwise.
Sales, other Income & Purchases
Sales are net of taxes. Duty Draw Back, if any, is classified under the
head other Income. Purchases are net of taxes.
1.2. Inventories
Raw Materials are valued at lower of cost price on FIFO basis or net
realisable value. Finished Goods are valued at cost or net realisable
value whichever is lower.
Work in Process is treated as respective raw materials since they are
in a mixed state and it is impracticable to assess its cost as well as
the realisable value.
1.3. Foreign Currency Transactions
Transactions in foreign currency are accounted for at exchange rates
prevailing at the time of the transactions. All exchange gains/Losses
arising out of such transactions are taken to profit and Loss account.
Foreign currency monetary assets and liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year. There were to forward exchange contracts during the year.
1.4. Fixed Assets
Fixed Assets are stated at cost of acquisition or cost of construction
less depreciation. All costs, relating to the acquisition and
installation of fixed assets have been capitalised and include
financing costs relating to borrowed funds upto the date the assets are
ready and put to use. The said expenditure is capitalised by allocating
the same to the various Fixed Assets, except land, on the basis of cost
of the assets before such allocation.
Accounting Standard (AS) 28, 'Impairment of Assets' has not been
followed by the Company. It's impact on Profits is not known.
1.5. Depreciation & Amortisation
Depreciation has been provided for on Straight-Line-Method (SLM) at the
rates and in the manner prescribed in schedule XIV of the Companies
Act, 1956.
Premium paid on leasehold land is amortised equally over the period of
lease.
1.6. Impairment of Assets
Accounting Standard (AS) 28, 'Impairment of Assets' has not been
followed by the company.
1.7. Employee Benefits
Refer Note No. 17 below.
1.8. Bonus
Bonus has been provided for.
1.9. Excise Duty
Provision has been made on Finished Goods in stock on the year end
date.
1.10. Contingent Liabilities
Contingent Liabilities are not provided for but are disclosed in the
Notes to Accounts giving nature of liability and its quantum, if
ascertained.
1.11. Taxes on Income
1.11.1 Tax expense for the year comprises of current tax, fringe
benefit tax and deferred tax. Current taxes are measured at the amounts
expected to be paid using the applicable tax rates and tax laws.
Deferred tax assets and liabilities are measured using tax rates and
tax laws that have been or substantively enacted as of balance sheet
date. The effect on deferred tax assets and liabilities of a change in
tax rates is recognized in the profit and loss account in the year of
change. Deferred tax assets and liabilities are recognized for the
future tax consequences attributable to differences between the
financial statements carrying amounts of existing assets and
liabilities and their respective tax bases and operating loss carry
forwards.
Mar 31, 2010
1.1. Revenue Recognition of Income and Expenditure
All income and expenditure are accounted for on accrual basis except
where stated otherwise. Sales, other Income & Purchases
Sales are net of taxes. Duty Draw Back, if any, is classified under the
head other Income. Purchases are net of taxes.
1.2. Inventories
Raw Materials are valued at lower of cost price on FIFO basis or net
realisable value. Finished Goods are valued at cost or net realisable
value whichever is lower.
Work in Process is treated as respective raw materials since they are
in a mixed state and it is impracticable to assess its cost as well as
the realisable value.
1.3. Foreign Currency Transactions
Transactions in foreign currency are accounted for at exchange rates
prevailing at the time of the transactions. All exchange gains/Losses
arising out of such transactions are taken to profit and Loss account.
Foreign currency monetary assets and liabilities are translated at the
exchange rates prevailing on the last working day of the accounting
year. There were to forward exchange contracts during the year.
1.4. Fixed Assets
Fixed Assets are stated at cost of acquisition or cost of construction
less depreciation. All costs, relating to the acquisition and
installation of fixed assets have been capitalised and include
financing costs relating to borrowed funds upto the date the assets are
ready and put to use. The said expenditure is capitalised by allocating
the same to the various Fixed Assets, except land, on the basis of cost
of the assets before such allocation.
Accounting Standard (AS) 28, Impairment of Assets has not been
followed by the Company. Its impact on Profits is not known.
1.5. Depreciation & Amortisation
Depreciation has been provided for on Straight-Line-Method (SLM) at the
rates and in the manner prescribed in schedule XIV of the Companies
Act, 1956.
Premium paid on leasehold land is amortised equally over the period of
lease.
1.6. Impairment of Assets
Accounting Standard (AS) 28, Impairment of Assets has not been
followed by the company.
1.7. Employee Benefits Refer Note No. 17 below.
1.8. Bonus
Bonus has been provided for.
1.9. Excise Duty
Provision has been made on Finished Goods in stock on the year end
date.
1.10. Contingent Liabilities
Contingent Liabilities are not provided for but are disclosed in the
Notes to Accounts giving nature of liability and its quantum, if
ascertained.
1.11. Taxes on Income
1.11.1 Tax expense for the year comprises of current tax, fringe
benefit tax and deferred tax. Current taxes are measured at the amounts
expected to be paid using the applicable tax rates and tax laws.
Deferred tax assets and liabilities are measured using tax rates and
tax laws that have been or substantively enacted as of balance sheet
date. The effect on deferred tax assets and liabilities of a change in
tax rates is recognized in the profit and loss account in the year of
change. Deferred tax assets and Labilities are recognized for the
future tax consequences attributable to differences between the
financial statements carrying amounts of existing assets and
liabilities and their respective tax bases and operating loss carry
forwards.
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