Accounting Policies of Neil Industries Ltd. Company

Mar 31, 2018

1.1 Significant Accounting Policies :

The Financial statements are prepared to comply in all material aspects with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of "The Companies Act, 2013". The Significant Accounting Policies are as follows:-

(a ) Uses of Accounting Estimates:

The preparation of standalone Financial Statements in conformity with the Indian GAAP requires the management to make judgments, estimates and judgments that affect the reported amounts of revenue, 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, uncertainty about these assumptions and estimates could result in the outcome requiring a material adjustment to the carrying amounts of assets or liabilities in future periods -

(b) Impairment of Tangible and Intangible Assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash Generating Unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying amount of an assets or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In accessing value in use, the estimated future cash flow are discounted to their present value using a pre-tax discount rate the reflects current market assessments of the time value of money and the risk specific to the asset. In determining net selling price, recent market transactions are taken into account, if available If no such transaction can be identified, an appropriate valuation method is used There was no impairment loss on Fixed Assets on the basis of review carried out by the Management in accordance with the Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

(c) Depreciation:

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life, at the rates and in the manner as Described in Schedule II to the Companies Act. 2013.

(d) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Any inter class transfer should be with the approval of the Board and as per RBI regulation.

Current investments are carried at a lower rate of cost and fair value determined on an individual investment basis. Unquoted investments in the unit of Mutual Fund in the nature of current investment are also carried at lower of cost and fair value determined on an individual investment basis.

Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

(e) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. In a situation where management believes that the recovery of interest is uncertain .

Interest income on loans given is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Such interests, where installments are overdue in respect of non-performing assets are recognized on realization basis Any such income recognized and remaining unrealized after they become overdue in respect of secured and unsecured loans is reversed.

(f) Derivative Instruments and Hedge Accounting:

Derivative contracts are initially measured at fair value and re-measured at subsequent reporting dates. Change in fair value of these Derivative contracts are designated and effective as hedges of future cash flows are recognized directly in “Hedge Reserve Account" under Shareholders'' Funds and the ineffective portion is recognized immediately in Statement of Profit and Loss

Changes in fair value of Derivative Contracts that do not qualify for hedge accounting are recognized in Statement of Profit and Loss as they arise.

The amount recognized in the Hedge Reserve is transferred to the Statement of Profit and Loss when the hedged transaction crystallizes.

If the forecast transactions are no longer expected to occur, the cumulative gain or loss previously recognized in the hedge reserve is transferred to Statement of Profit and Loss.

Hedge Accounting is discontinued when the hedging instrument expires or sold, terminated or exercised or no longer qualifies for hedge accounting. If any of these events occur or if a hedge transaction is no longer expected to occur, the net cumulative gain or loss recognized under Shareholders’ Fund is transferred to the Statement of Profit and Loss for the /year.

(g) Inventories Valuation

Finished goods and Trading goods including equity shares are valued at cost or net realizable value which are lower and are arrived as per FIFO basis.

(h) Recognition of Expenditure:

a. Employee Benefits:

Short Term Employee Benefit is recognised as an expense in the Profit and Loss Account of the year in which related service is rendered.

Post employment and other Long term Benefit are not yet being provided for in the accounts These benefit scheme has not yet been framed by the company.

b. Taxes on Income:

Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act. 1961 enacted in India.

Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

(i) Provisions :

i) A provision is recognized when an enterprise has a present obligation as a result of past event 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 are not discounted to its present value and are determined based on management estimate required to settle the obligation on the balance sheet date. These are reviewed on each balance sheet date and adjusted to reflect the current management estimates.

(j) Contingent Liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

There is an outstanding demand with the Income Tax Authorities for the following years :

A.Y 2009-10 : 26,64,940

A.Y. 2014-15: 75,51,090

A.Y 2015-16 : 1,74,990

The Company has already filed an Appeal with the C I.T(Appeal) against the said Orders, which is pending for disposal as on 31.03.2018, and hence no Liability has been created.

(k) Cash and Cash Equivalents:

Cash and Cash Equivalents in the Balance Sheet comprise of Cash at Bank, Cash in Hand and Short-term investments with an original maturity of three months or less.

---

Mar 31, 2015

The Financial statements are prepared to comply in all material aspects with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of "The Companies Act, 2013". The Significant Accounting Policies are as follows:-

(a) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The company is following accrual basis of accounting on a going concern concept. Accounting policies are suitably disclosed as notes annexed to the Balance Sheet and Profit & Loss Account.

(b) Use of Accounting Estimates:

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting year.

(c) Fixed Assets:

Fixed Assets are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss if any.

(d) Depreciation :

Depreciation on fixed assets has been provided on a Written Down method at the rates and in the manner as prescribed in Schedule II to the Companies Act, 2013.

(e) Revenue Recognition:

Revenue on sale of goods is recognised when the company transfers to its buyer the property in the goods for a determined price along with all significant risks & rewards of the ownership in the goods without retaining any effective control of the goods. Sales are shown net of discount & sales return.

(f) Inventories Valuation

Finished goods are valued at cost or net realizable value which are lower and are arrived as per FIFO basis.

(g) Recognition of Expenditure:

a. Employee Benefits:

Short Term Employee Benefit is recognised as an expense in the Profit and Loss Account of the year in which related service is rendered.

Post employment and other Long term Benefit are not yet being provided for in the accounts. These benefit scheme has not yet been framed by the company.

b. Taxes on Income:

Provision for current taxation has been made in accordance with the Income Tax Laws prevailing for the relevant Assessment Year.

(h) Provisions :

Provisions are recognized when the company has legal and constructive obligation as a result of past event for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of obligation.

---

Mar 31, 2014

The Financial statements are prepared to comply in all material aspects with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of "The Companies Act, 1956". The Significant Accounting Policies are as follows:-

(a) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The company is following accrual basis of accounting on a going concern concept.

Accounting policies are suitably disclosed as notes annexed to the Balance Sheet and Profit & Loss Account.

(b) Use of Accounting Estimates:

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting year.

(c) Fixed Assets:

Fixed Assets are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss if any.

(d) Depreciation :

Depreciation on fixed assets has been provided on a Written Down method at the rates and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

(e) Revenue Recognition:

Revenue on sale of goods is recognised when the company transfers to its buyer the property in the goods for a determined price along with all significant risks & rewards of the ownership in the goods without retaining any effective control of the goods. Sales are shown net of discount & sales return.

(f) Inventories Valuation

Finished goods are valued at cost or net realizable value which are lower and are arrived as per FIFO basis.

(g) Recognition of Expenditure:

a. Employee Benefits:

Short Term Employee Benefit is recognised as an expense in the Profit and Loss Account of the year in which related service is rendered.

Post employment and other Long term Benefit are not yet being provided for in the accounts. These benefit scheme has not yet been framed by the company.

b. Taxes on Income:

Provision for current taxation has been made in accordance with the Income Tax Laws prevailing for the relevant Assessment Year.

(h) Provisions :

Provisions are recognized when the company has legal and constructive obligation as a result of past event for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of obligation.

The Company has not received any intimation from its suppliers regarding their status under The ( c) Micro, Small and Medium Enterprise Development Act, 2006 and hence no disclosure required under the said Act can be made.

There was no impairment loss on Fixed Assets on the basis of review carried out by the (d) Management in accordance with the Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

---

Mar 31, 2013

The Financial statements are prepared to comply in all material aspects with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of "The Companies Act, 1956". The Significant Accounting Policies are as follows:-

(a) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The company is following accrual basis of accounting on a going concern concept. Accounting policies are suitably disclosed as notes annexed to the Balance Sheet and Profit & Loss Account.

(b) Use of Accounting Estimates:

The presentation of finacial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting year.

(c) Fixed Assets & Depreciation:

Fixed Assete are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss if any.

Depreciation on fixed assets has been provided on a Written Down method at the rates and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

(d) Revenue Recognition:

On Sale of Goods

Revenue on sale of goods is recognised when the company transfers to its buyer the property in the goods for a determined price along with all significant risks & rewards of the ownership in the goods without retaining any effective control of the goods. Sales are shown net of discount & sales return.

(e) Inventories Valuation

Finished goods are valued at cost or net realizable value which are lower and are arrived as per FIFO basis.

(f) Recognition of Expenditure:

a. Employee Benefits:

Short Term Employee Benefit is recognised as an expense in the Profit and Loss Account of the year in which related service is rendered.

Post employment and other Long term Benefit are not yet being provided for in the accounts. These benefit scheme has not yet been framed by the company.

b. Taxes on Income:

Provision for current taxation has been made in accordance with the Income Tax Laws prevailing for the relevant Assessment Year.

(g) Provisions and Contingent Liabilities:

Provisions are recognized when the company has legal and constructive obligation as a result of past event for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of obligation.

Contingent Liabilities are disclosed when the company has possible or present obligation and it is probable that a cash outflow will not be required to settle that obligation.

(h) Contingencies and Events Occurring after the Balance Sheet Date:

There are no contingencies and events after the Balance Sheet dates that materially affect the financial position of the company.

(i) Net Profit or loss for the year, prior period items and changes in accounting policies:

Revenue statement does not contain any item materially affecting and having reference of prior period. Prior Period expenses/income are accounted under the respective heads.

---

Mar 31, 2012

1. Significant Accounting Policies:

(a) Basis of Accounting:

The Accounts are kept on the basis of historical cost convention.

(b) Method of Accounting:

The Accounts are prepared under accrual system of accounting.

(c) Fixed Assets:

Fixed Assets are stated at cost less depreciation, wherever applicable.

(d) Depreciation:

Depreciation is provided under written down value method at the rates prescribed in Schedule-XIV of the Companies Act, 1956.

(e) Investments:

Investments held by the company are in the nature of long term investment and are being stated at cost.

The Accounting policies not specifically referred to above are consistent and in accordance with the generally accepted accounting principles.

2. The Previous year''s figure has been regrouped/re-arranged, wherever found necessary.