Accounting Policies of Continental Chemicals Ltd. Company

Mar 31, 2015

A. Significant Accounting Policies :

i. Basis of Accounting

The Company follows the Mercantile System of accounting and recognises Income and Expenditure on Accrual Basis. Th e financial statement are prepared under the historical cost convention and are In accordance with the requirements of the Companies Act, 2013 and accepted accounting principles.

ii- Fixed Assets and Depreciation

Fixed as sets are stated at cost, less accumulated depreciation/amortisatlon. Costs Include all expenses Incurred to bring the assets to Its present location and condition. Fixed assets exclude computers and other assets individually costing 5000 or less which are not capitalised except when they are part of a larger capital Investment programme. All Fixed Assets are stated at Historical Cost Less Depreciation.

Depreciation / Amortization In respect of fixed assets (other than freehold land and capital work-ln-progress) acquired during the period, depreciation/ amortization is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1. 2014 is depreciated over the remaining useful life as per the requirements of Schedule - II of the Companies Act 2013.

Type of asset Poriod

Buildings 60 years

Plant and machinery 15 years

Computer equipment 3 years

Vehicles 8years

Office equipment 5 years

Eloctrical installations 10 years

Furniture and fixtures 5 years

iii. Taxes on Income

a. Current tax is the amount of tax payable on the estimated taxable Income for the Current year as per the provisions of Income Tax Act. 1961.

b. Deferred tax asaets/lltibilitles is provided on significant timing differences arising from the different treatments in accounting and taxation of relevant item. Deferred tax assets/ liabilities shall be reviewed as at each Balance Sheet date, based on development during the year, to reassess realization/ liabilities.

c. Deferred Tax Assets in respect of accumulated Loss and unabsorbod Depreciation are recognized and carried forward only if there is virtual certainty of its realization.

IVt Contingent Liabilities

Contingent Liabilities are not provided for in the Accounts

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Mar 31, 2014

(A) Company Overview:

The Company was incorporated on 27.11.1984 presently having its Registered Office at A-7, Sector-7, Noida, U.P.-201301.

ACCOUNTING CONVENTION

The Accounts are prepared on Accrual Basis under the Historical Cost Convention in accordance with the applicable Accounting Standards and relevant provision of the Companies Act, 1956.

FIXED ASSETS

All Fixed Assets are stated at Historical Cost less Depreciation.

DEPRECIATION

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with & in the manner specified in amended Schedule XIV to the Companies Act,1956 , read with circular no. 14/93 dt. 20.12.1993 of the Department of Company Affairs.

TAX EXPENSES

Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred Tax Assets and Liabilities is recognized in respect of current year and prospective years.-

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Aug 31, 2011

A) BASIS OF PREPARATION

The Financial statements are prepared under the historical cost convention on the accruals basis of accounting and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India.

B) The Managing Director's remuneration has been provided only at the minimum remuneration as per the Companies Act. 1956.

C) The Company's refund claims for refund due under The Excise Act amounting to Rs. 1062137/- (Previous years Rs.1062137/-) are pending with excise authorities at various levels. This has not been taken in accounts.

D) Claims against the company not acknowledge as debt are as under:- In respect of electricity charges Rs.1210595.90 (Previous year Rs. 1210595.90).This has not been taken in account

E) EARNING PER SHARE

(i) Earning per share of the company has been calculated considering the Profit (Loss) after

Taxation, Rs 339552/- (Previous year Rs.(6991949/-) are the numerator,

(ii) The weighted average number of equity shares used as denominator is 994550

(iii) The nominal value of shares is Rs.9945500/- .The basic and diluted EPS for the year on the above mentioned basis comes to Rs. 0.34. Previous year Rs.7.0303).

F) Electricity charges paid Rs.67097/- was under protest and the matter of refund of the said amount is still pending with the court. This amount has not been taken in accounts.

G) Balance confirmation from sundry debtors, Loans & Advances, Sundry Creditors, Advances and Deposits from Customers has been obtained.

H) Provision has been made on account of Rs. 21000/- (previous year – 483450/-) in respect of gratuity for the amount due to employees who have completed service for Five years.

I) DEFERRED TAXATION

(i) Based on Accounting standard on accounting for Taxes on income (AS- 22) during the year deferred tax liability of Rs. 59482/- for the year ended 31.8.2011 has been adjusted.

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Aug 31, 2010

A) BASIS OF PREPARATION

The Financial statements are prepared under the historical cost convention on the accruals basis of accounting and comply with the mandatory accounting standards and statements issued by the Institute of Chartered Accountants of India.

B) The Managing Directors remuneration has been provided only at the minimum remuneration as per the Companies Act. 1956.

C) The Companys refund claims for refund due under The Excise Act amounting to Rs. 1062137/- (Previous years Rs. 1062137/-) are pending with excise authorities at various levels.

D) Claims against the company not acknowledge as debt are as under:-

i) In respect of electricity charges Rs. 1210595.90 (Previous year Rs. 1210595.90)

E) EARNING PER SHARE

(i) Earning per share of the company has been calculated considering the Profit (Loss) after Taxation, Rs. (6991949/-) (Previous year Rs. (330713/-) are the numerator,

(ii) The weighted average number of equity shares used as denominator is 994550

(iii) The nominal value of shares is Rs. 9945500/- The basic and diluted EPS for the year on the above mentioned basis comes to Rs. (7.0303). Previous year Rs. (0.3325).

F) Electricity charges paid Rs.67097/- was under protest and the matter of refund of the said amount is still pending with the court.

G) Balance confirmation from sundry debtors, Loans & Advances, Sundry Creditors, Advances and Deposits from Customers has not been obtained.