Accounting Policies of Paushak Ltd. Company
Mar 31, 2022
1 Company Overview and Significant Accounting Policies:1.1 Description of business
The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act, 1956. Its shares are listed on one recognised stock exchange in India. The registered office of the Company is located at Alembic Road, Vadodara 390003, Gujarat. The Company is dealing in Speciality Chemicals Business.
1.2 Basis of preparation of Financial Statements
The Financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Act to be read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
The financial statements have been prepared on the historical cost basis except for certain financial instruments and plan assets of defined benefit plans, which are measured at fair value in accordance with Ind AS.
1.3 Composition of financial statements
The financial statements are drawn up in INR, the functional currency of the Company, and in accordance with Ind AS presentation. The financial statements comprise:
- Balance Sheet
- Statement of Profit and Loss
- Statement of Cash Flow
- Statement of Changes in Equity
- Notes to Financial Statements
1.4 Key accounting judgments, estimates and assumptions
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.
Estimates are often based on complex judgments and assumptions that management believe to be reasonable, but estimates and underlying assumptions are reviewed on an ongoing basis. Any change in these estimates and assumptions will generally be reflected in the financial statements in current period or prospectively, unless they are required to be treated retrospectively under relevant accounting standards.
1.5 Significant Accounting Policies and other explanatory notes
a) Revenue recognition
Sales are disclosed net of sales returns and GST.
Revenue from the sale of goods or service is recognised when (or as) the entity satisfies a performance obligation by transferring a promised good or service to a customer. The ownership is transferred when (or as) the customer obtains control of that goods or service.
Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Income from operations includes revenue earned on account of job work income which is accounted as per the due terms agreed with the customers.
Other income is comprised primarily of interest income, dividend income, export benefits, sale of wind generated power and gain/loss on investments. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established. Export benefits available under prevalent schemes are accounted on entitlement basis. Income from sale of wind generated power is accounted on accrual basis on confirmation of units generated and supplied to the State Electricity Board as per the agreement.
b) Foreign Currency Transactions
Transactions in foreign currencies are initially recorded by the Company at the rate of exchange prevailing on the date of the transaction.
Monetary assets and monetary liabilities denominated in foreign currencies remaining unsettled at the end of the year are converted at the exchange rate prevailing on the reporting date.
Differences arising on settlement or conversion of monetary items are recognised in Statement of Profit or Loss.
Effective April 1,2018, the Company has adopted Appendix B to Ind AS 21 - âForeign Currency Transactions and Advance Consideration'' which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) when an entity has received or paid advance consideration in foreign currency.
c) Employee benefits
i) Defined Benefit Obligation Plans Gratuity
The Company operates a defined benefit gratuity plan which requires contributions to be made to a fund separately administered by the Life Insurance Corporation of India (LIC). The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. The service cost and the net interest cost are charged to the Statement of Profit and Loss. Actuarial gains and losses arise due to re-measurement as result of the actual experience and the assumed parameters and changes in the assumptions used for valuation are recognised in the Other Comprehensive Income (OCI).
The Company''s contribution to provident fund, administered through a Company managed trust, is recognised as an expense in the Statement of Profit and Loss.
Compensated absences
The Company has a policy to allow accumulation of leave by employees up to certain days. The excess leave will either be encashed or funded by the Company to LIC for and on behalf of employees. Accordingly, the excess leave liability is discharged by the Company upon such funding to LIC. Remaining accumulated leave liability (other than sick leave) as at the year-end is provided as per actuarial valuation. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. Actuarial gains and losses arise due to difference in the actual experience and the assumed parameters and also due to changes in the assumptions used for valuation. The Company recognizes these actuarial gains and losses in the Statement of Profit and Loss, as income or expense.
Accumulated sick leave, if any, is provided for at actual in the Statement of Profit and Loss.
ii) Defined Contribution plan
Superannuation fund is administered by the LIC. The contribution to Superannuation fund, Pension fund, ESIC and Labour Welfare fund are recognised as an expense in the Statement of Profit and Loss.
d) Property, plant and equipment
Property, plant and equipment were carried on historical cost in the balance sheet as on 31st March, 2016 prepared in accordance with Indian GAAP. The Company has elected to regard those net values as deemed cost at the date of the transition i.e 1st April, 2016 as permitted under Ind AS 101.
Property, plant and equipment are recorded at cost of acquisition / construction less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price net of creditable Goods and Services Tax, creditable customs duty, if any, and any attributable cost of bringing the assets to its working condition for its intended use.
Components of an asset are separated where their value is significant in relation to the total value of the asset and where those components have different useful lives to the remainder of the asset. Where a component is replaced or restored, the carrying amount of the old component will be derecognised and value of new component / restoration cost will be added. Where the carrying value of the derecognised/replaced component is not known, a best estimate will be determined by reference to the current cost.
The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement or impairment of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.
Intangible assets are stated at cost less provisions for amortisation and impairments. Software licenses fees are charged to statement of profit and loss when incurred.
Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between disposal proceeds and carrying amount of the asset and are recognised as income or expense in the Statement of Profit and Loss.
f) Depreciation / Amortisation on Property, Plant & Equipment and Investment Properties
Depreciation / Amortisation on Property, Plant & Equipment and Investment Properties (other than freehold land and capital work-in-progress) is charged on a Straight Line Basis so as to write off the original cost of the assets over the useful lives. The useful life of the Property, Plant & Equipment has been adopted based on Technical Evaluation and in other cases, as prescribed under the Companies Act, 2013. Details for the same are as under:
|
Class of Assets |
Range of Useful Life |
|
Building |
05 - 60 Years |
|
Plant & Machinery |
03 - 15 Years |
|
Windmill |
22 Years |
|
Furniture & Fixtures |
03 - 10 Years |
|
Office Machinery |
10 Years |
|
Vehicles |
08 Years |
|
Intangible Assets |
03 - 04 Years |
g) Capital Work-in-Progress
Assets under construction wherein assets are not ready for use in the manner as intended by the management are shown as Capital Work-In-Progress.
h) Leases
i) Company as a lessee
Right-of-use assets and Lease Liabilities for leases where the lease term ends within 12 months of the lease commencement date i.e. Short Term Leases are not recognised in Balance sheet. The Company has elected to recognise the lease payments associated with Short Term Leases as an expense on straight-line basis.
ii) Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
Lease income from operating lease is recognised in the statement of profit and loss on straight line basis over the lease term.
i) Fair value measurement
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
j) Impairments of non-current assets
Non-financial assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
k) Inventories
All Inventories are valued at the lower of cost and net realisable value.
Raw materials, Packing Material and Stores and consumables are valued at lower of cost determined on weighted average basis and net realisable value.
Work in Process includes material lying at reactors/tanks on which process is continued as on date. Work in Process are valued at raw materials cost as calculated, which is estimated and certified by the management using moving weighted average method.
Semi-Finished goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Semi-Finished goods are valued at raw materials cost as calculated above plus weighted average cost of production including appropriate proportion of cost of conversion to the extent of process, which is estimated and certified by the management.
Finished Goods are valued at lower of cost and net realisable value.
l) Trade receivables
Trade receivables are carried at original invoice amount less any provisions for doubtful debts. Provisions are made where there is evidence of a risk of non-payment, taking into account ageing, previous experience and general economic conditions. When a trade receivable is determined to be uncollectable it is written off, firstly against any provision available and then to the Statement of Profit and Loss.
m) Cash and Cash equivalents
Cash and cash equivalents include cash at bank and cash in hand and highly liquid interest-bearing securities with maturities of three months or less from the date of inception/acquisition.
In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.
n) Borrowing Costs
Borrowing costs directly attributable to the acquisition and/or construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they are incurred.
o) Taxation
i) Current income tax
Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to items recognized directly in equity/OCI, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted on the reporting date. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
ii) Deferred tax
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted on the reporting date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date.
Minimum Alternate Tax (MAT) for the earlier years is available in accordance with the provisions of the section 115J(AA) of Income Tax, 1961 over the period of subsequent 15 assessment years and it is recognised to the extent of Deferred Tax Liabilities in view of certainty involved of its realisation against reversal of Deferred Tax Liability.
p) Financial instruments
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the financial instrument.
i) Financial Assets
a. Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date i.e. the date that the Company commits to purchase or sell the asset.
b. Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
i) Financials Assets at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, debt instruments are subsequently measured at amortised cost using the effective interest rate method, less impairment, if any.
ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Company has made an irrevocable election for its investments which are classified as equity / debt instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.
The fair value is measured adopting valuation techniques as per prevailing valuation guidelines, to the extent applicable, as at the reporting date.
iii) Financial assets at fair value through profit or loss
Financial assets which are not classified in any of the above categories are subsequently fair valued through profit or loss.
ii) Financial Liabilities
a. Initial recognition and measurement
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Financial liabilities are classified, at initial recognition, as at fair value through profit and loss or as those measured at amortised cost.
The subsequent measurement of financial liabilities depends on their classification as follows:
i) Financial liabilities at fair value through profit and loss
Financial liabilities at fair value through profit and loss include financial liabilities held for trading. The Company has not designated any financial liabilities upon initial recognition at fair value through profit and loss.
ii) Financial liabilities measured at amortised cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method except for those designated in an effective hedging relationship.
q) Provisions, Contingent liabilities and Assets
i) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.
ii) Contingent Liabilities
Contingent Liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
iii) Contingent Assets
Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are disclosed in the notes to the financial statements.
r) Operating cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
s) Earnings Per Share
Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.
1.6 Recent Accounting Pronouncements:
The following standards / amendments to standards have been issued and will be effective from 1st April, 2022. The Company is evaluating the requirements of these standards, improvements and amendments and has not yet determined the impact on the financial statements.
a) Indian Accounting Standard (Ind AS) 16 - Property, Plant and Equipment - Modification in treatment of excess of net sale proceeds of items produced over the cost of testing as part of cost of an item of property, plant, and equipment.
b) Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent Liabilities and Contingent Assets -
Modifications in application of recognition and measurement principles relating to onerous contracts.
Mar 31, 2019
NOTES TO FINANCIAL STATEMENTS
1 Company Overview and Significant Accounting Policies:
1.1 Description of business
The company is a public company domiciled in India and is incorporated under the provisions of the Companies Act 1956. Its shares are listed on one recognized stock exchange in India. The registered office of the company is located at Alembic Road, Vadodara 390003, Gujarat. The company is dealing in Specialty Chemicals Business.
1.2 Basis of preparation of Financial Statements
The Financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Act to be read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
The financial statements have been prepared on the historical cost basis except for certain financial instruments and plan assets of defined benefit plans, which are measured at fair value in accordance with Ind AS.
1.3 Composition of financial statements
The financial statements are drawn up in INR, the functional currency of the company, and in accordance with Ind AS presentation. The financial statements comprise:
- Balance Sheet
- Statement of Profit and Loss
- Statement of Cash Flow
- Statement of Changes in Equity
- Notes to Financial Statements
1.4 Significant Accounting Policies and other explanatory notes
I Significant Accounting Policies
a) Revenue recognition
Effective from 1st April, 2018, the Company has adopted Ind AS 115 âRevenue from Contract with Customersâ using the cumulative effect method. Accordingly, the comparative information i.e. information for the year ended 31 March 2018, has not been restated. The effect of adoption of the standard did not have any significant impact on the financial statements of the Company. Revenue is recognized when a customer obtains control of goods or services.
Sales are disclosed net of sales returns and GST.
Revenue from the sale of goods is recognized when (or as) the entity satisfies a performance obligation by transferring a promised good or service to a customer. The ownership is transferred when (or as) the customer obtains control of that goods.
Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Income from operations includes revenue earned on account of job work income which is accounted as per the due terms agreed with the customers.
Other income is comprised primarily of interest income, dividend income, export benefits, sale of wind mill operated power and gain/loss on investments. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established. Export benefits available under prevalent schemes are accounted on entitlement basis. Income from sale of wind mill operated power is accounted on accrual basis on confirmation of units generated and supplied to the State Electricity Board as per the agreement.
b) Foreign Currency Transactions
Transactions in foreign currencies are initially recorded by the Company at the rate of exchange prevailing on the date of the transaction.
Monetary assets and monetary liabilities denominated in foreign currencies remaining unsettled at the end of the year are converted at the exchange rate prevailing on the reporting date.
Differences arising on settlement or conversion of monetary items are recognized in Statement of Profit or Loss.
Effective April 1, 2018, the Company has adopted Appendix B to Ind AS 21 - âForeign Currency Transactions and Advance Considerationâ which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) when an entity has received or paid advance consideration in foreign currency. The effect on account of adoption of this amendment is insignificant.
c) Employee benefits
i) Defined Benefit Obligation Plans:
Gratuity
The Company operates a defined benefit gratuity plan which requires contributions to be made to a separately administered fund by the Life Insurance Corporation of India (LIC). The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. The service cost and the net interest cost are charged to the Statement of Profit and Loss. Actuarial gains and losses arise due to re-measurement as result of the actual experience and the assumed parameters and changes in the assumptions used for valuation are recognized in the Other Comprehensive Income (OCI).
Provident Fund
The Companyâs contribution to the provident fund, administered through a Company managed trust, is recognized as an expense in the Statement of Profit and Loss. The trust pays interest to its beneficiaries based on the minimum rate of return specified by the Government, from time to time. If there is any shortfall in the fund assets of the said trust, then the same is contributed by the Company to the trust and is charged to Statement of Profit and Loss. As on 31st March, 2019, there is no shortfall in the fund assets of the said trust.
Compensated absences
The Company has a policy to allow accumulation of leave by employees up to certain days. The excess leave will either be encased or funded by the Company to LIC for and on behalf of employees. Accordingly, the excess leave liability is discharged by the Company upon such funding to LIC. Remaining accumulated leave liability (other than sick leave) as at the year-end is provided as per actuarial valuation. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. Actuarial gains and losses arise due to difference in the actual experience and the assumed parameters and also due to changes in the assumptions used for valuation. The Company recognizes these actuarial gains and losses in the Statement of Profit and Loss, as income or expense.
Sick Leave
Accumulated sick leave is provided for at actual in the Statement of Profit and Loss.
ii) Defined Contribution plan
Superannuation fund is administered by the LIC. The contribution to Superannuation fund, Contribution to pension fund, ESIC and Labour Welfare Fund are recognized as an expense in the Statement of Profit and Loss.
d) Property, plant and equipment
Property, plant and equipment were carried on historical cost in the balance sheet as on 31st March, 2016 prepared in accordance with Indian GAAP. The Company has elected to regard those net values as deemed cost at the date of the transition i.e 1st April, 2016 as permitted under Ind AS 101.
Property, plant and equipment are recorded at cost of acquisition / construction less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price net of creditable Goods and Services Tax, creditable customs duty, if any, and any attributable cost of bringing the assets to its working condition for its intended use.
Components of an asset are separated where their value is significant in relation to the total value of the asset and where those components have different useful lives to the remainder of the asset. Where a component is replaced or restored, the carrying amount of the old component will be derecognized and value of new component / restoration cost will be added. Where the carrying value of the derecognized /replaced component is not known, a best estimate will be determined by reference to the current cost.
The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement or impairment of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.
e) Intangible Assets
Intangible assets are stated at cost less provisions for amortization and impairments. Software licenses fees are charged to statement of profit and loss when incurred.
Gains or losses arising from the retirement or disposal of an intangible asset, are determined as the difference between disposal proceeds and carrying amount of the asset and are recognized as income or expense in the Statement of Profit and Loss.
f) Investment properties
Property that is held for long-term rental yields or for capital appreciation or both, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to the assetâs carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by the management applying reasonable valuation standards.
h) Capital Work-in-Progress
Assets under construction wherein assets are not ready for use in the manner as intended by the management are shown as Capital Work-ln-Progress.
i) Leases
i As a lessee
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss.
ii As a lessor
Lease income from operating leases where the Company is a lessor is recognized in income on transaction value. The respective leased assets are included in the balance sheet as investment property other than operating assets.
j) Fair value measurement
A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
k) Impairments of non-current assets
Non-financial assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
l) Inventories
All Inventories are valued at the lower of cost and net realizable value.
Raw materials, Packing Material and Stores and consumables are valued at lower of cost determined on weighted average basis and net realizable value.
Work in Process includes material lying at reactors/tanks on which process is continued as on date. Work in Process are valued at raw materials cost as calculated, which is estimated and certified by the management using moving weighted average method.
Semi-Finished goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Semi-Finished goods are valued at raw materials cost as calculated above plus weighted average cost of production including appropriate proportion of cost of conversion to the extent of process, which is estimated and certified by the management.
Finished Goods are valued at lower of cost and net realizable value.
Slow moving inventories are valued at estimated net realizable value.
m) Trade receivables
Trade receivables are carried at original invoice amount less any provisions for doubtful debts. Provisions are made where there is evidence of a risk of non-payment, taking into account ageing, previous experience and general economic conditions. When a trade receivable is determined to be uncollectable it is written off, firstly against any provision available and then to the Statement of Profit and Loss.
n) Cash and Cash equivalents
Cash and cash equivalents include cash at bank and cash in hand and highly liquid interest-bearing securities with maturities of three months or less from the date of inception/acquisition.
In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.
o) Borrowing Costs
Borrowing costs directly attributable to the acquisition and/or construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they are incurred.
p) Taxation
i Current income tax
Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to items recognized directly in equity/OCI, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted on the reporting date. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
ii Deferred tax
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted on the reporting date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date.
Minimum Alernate Tax (MAT) for the earlier years is available in accordance with the provisions of the section 115J(AA) of Income Tax, 1961 over the period of subsequent 15 assessment years and it is recognized to the extent of Deferred Tax Liabilities in view of certainty involved of its realization against reversal of Deferred Tax Liability.
q) Financial instruments
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the financial instrument.
i Financial Assets
a. Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date i.e, the date that the Company commits to purchase or sell the asset.
b. Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
i) Financials Assets at amortized cost:
A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, debt instruments are subsequently measured at amortized cost using the effective interest rate method, less impairment, if any.
ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Company has made an irrevocable election for its investments which are classified as equity / debt instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.
The fair value is measured adopting valuation techniques as per prevailing valuation guidelines, to the extent applicable, as at the reporting date.
iii) Financial assets at fair value through profit or loss
Financial assets which are not classified in any of the above categories are subsequently fair valued through profit or loss.
ii Financial Liabilities:
a. Initial recognition and measurement
The Companyâs financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Financial liabilities are classified, at initial recognition, as at fair value through profit and loss or as those measured at amortized cost.
b. Subsequent measurement
The subsequent measurement of financial liabilities depends on their classification as follows:
i) Financial liabilities at fair value through profit and loss
Financial liabilities at fair value through profit and loss include financial liabilities held for trading. The Company has not designated any financial liabilities upon initial recognition at fair value through profit and loss.
ii) Financial liabilities measured at amortized cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method except for those designated in an effective hedging relationship.
r) Provisions, Contingent liabilities and Assets
i Provisions:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.
ii Contingent Liabilities
Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
iii Contingent Assets
Contingent Assets are not recognized in the financial statements. Contingent Assets if any, are disclosed in the notes to the financial statements.
s) Earnings Per Share
Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares).
Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.
II Key accounting judgments, estimates and assumptions
In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.
Estimates are often based on complex judgments and assumptions that management believe to be reasonable, but estimates and underlying assumptions are reviewed on an ongoing basis. Any change in these estimates and assumptions will generally be reflected in the financial statements in current period or prospectively, unless they are required to be treated retrospectively under relevant accounting standards.
2 Recent Accounting Pronouncementâs:
Ind AS 116: Lease
On 30th March, 2019, Ministry of Corporate Affairs (MCA) has notified Ind AS 116 âLeasesâ, effective from 1st April,
2019. Ind AS 116 will supersede Ind AS 17 âLeasesâ. The Company will adopt Ind AS 116 wef 1st April, 2019. The effects on adoption of lnd AS 116on the operation of the Company are being assessed by the Company.
Note 1: During the previous year, 33,333 Equity Shares of Rs. 100/- each have been allotted by Shreno Limited on 16.11.2017 upon conversion of the 99,999; 1% Optionally Convertible Preference Shares (OCPS) of Rs. 400/- each held by the Company into Equity shares of Rs. 100/- each in the ratio of 1 Equity Share for every 3 OCPS.
Note 2: During the previous year, upon the amalgamation of Whitefield Chemtech Pvt. Ltd. (WCPL) and Sierra Investments Pvt. Ltd. (SIPL), with Nirayu Private Limited (NPL), 9,919 and 1,27,134 Preference Shares of Rs. 100/- each at a premium of Rs. 900/- each, have been allotted by NPL in exchange of 1,150 equity shares of Rs. 10/- each held in WCPL and 28,252 equity shares of Rs. 10/- each held in SIPL, respectively, by the Company as on the record date. The shares held in WCPL and SIPL stood cancelled.
Mar 31, 2018
1.1 Significant Accounting Policies and other explanatory notes
I Significant Accounting Policies
a) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
Sales are disclosed inclusive of excise duty upto its applicability, but net of sales returns, service tax, value added tax, CST and GST.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Income from operations includes revenue earned on account of job work income which is accounted as per the due terms agreed with the customers.
Export benefits available under prevalent schemes are accounted to the extent considered receivable.
Income from Sale of Wind Operated Power is accounted on accrual basis on confirmation of units generated and supplied to the State Electricity Board as per the agreement.
Other income is comprised primarily of interest income, dividend income and gain/loss on investments. Interest income is recognized using the effective interest method. Dividend income is recognized when the right to receive payment is established.
b) Foreign Currency Transactions
Transactions in foreign currencies are initially recorded by the Company at the rate of exchange prevailing on the date of the transaction.
Monetary assets and monetary liabilities denominated in foreign currencies remaining unsettled at the end of the year are converted at the exchange rate prevailing on the reporting date.
Differences arising on settlement or conversion of monetary items are recognised in Statement of Profit or Loss.
c) Employee benefits
i) Defined Benefit Obligation Plans:
Gratuity
The Company operates a defined benefit gratuity plan which requires contributions to be made to a separately administered fund by the Life Insurance Corporation of India (LIC). The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. The service cost and the net interest cost are charged to the Statement of Profit and Loss. Actuarial gains and losses arise due to re-measurement as result of the actual experience and the assumed parameters and changes in the assumptions used for valuation are recognised in the Other Comprehensive Income (OCI).
Provident Fund
The Companyâs contribution to provident fund, administered through a Company managed trust, is recognised as an expense in the Statement of Profit and Loss.
Compensated absences
The Company has a policy to allow accumulation of leave by employees up to certain days. The excess leave will either be encashed or funded by the Company to LIC for and on behalf of employees. Accordingly, the excess leave liability is discharged by the Company upon such funding to LIC. Remaining accumulated leave liability (other than sick leave) as at the year-end is provided as per actuarial valuation. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. Actuarial gains and losses arise due to difference in the actual experience and the assumed parameters and also due to changes in the assumptions used for valuation. The Company recognizes these actuarial gains and losses in the Statement of Profit and Loss, as income or expense.
Sick Leave
Accumulated sick leave is provided for at actual in the Statement of Profit and Loss.
ii) Defined Contribution plan
Superannuation fund is administered by the LIC. The contribution to Superannuation fund, Contribution to pension fund, ESIC and Labour Welfare Fund are recognised as an expense in the Statement of Profit and Loss.
d) Property, plant and equipment
Property, plant and equipment were carried on historical cost in the balance sheet as on 31st March, 2016 prepared in accordance with Indian GAAP. The Company has elected to regard those net values as deemed cost at the date of the transition i.e 1st April, 2016 as permitted under Ind AS 101.
Property, plant and equipment are recorded at cost of acquisition / construction less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price net of creditable Cenvat, Service Tax, Value Added Tax and Goods and Services Tax, if any, and any attributable cost of bringing the assets to its working condition for its intended use.
Components of an asset are separated where their value is significant in relation to the total value of the asset and where those components have different useful lives to the remainder of the asset. Where a component is replaced or restored, the carrying amount of the old component will be derecognised and value of new component / restoration cost will be added. Where the carrying value of the derecognised/replaced component is not known, a best estimate will be determined by reference to the current cost.
The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement or impairment of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.
e) Investment properties
Property that is held for long-term rental yields or for capital appreciation or both, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the assetâs carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. Though the company measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by the management applying reasonable valuation standards.
f) Depreciation / Amortisation on Property, Plant & Equipment and Investment Properties
Depreciation / Amortisation on Property, Plant & Equipment and Investment Properties (other than freehold land and capital work-in-progress) is charged on a Straight Line Basis so as to write off the orignial cost of the assets over the useful lives. The useful life of the fixed assets has been adopted based on Technical Evaluation and in other cases, as prescribed under the Companies Act, 2013. Details for the same are as under:
g) Capital Work-in-Progress
Assets under construction wherein assets are not ready for use in the manner as intended by the management are shown as Capital Work-In-Progress.
h) Leases
i As a lessee
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss.
ii As a lessor
Lease income from operating leases where the company is a lessor is recognised in income on transaction value. The respective leased assets are included in the balance sheet as investment property.
i) Fair value measurement
A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
j) Impairments of non-current assets
Non-financial assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
k) Inventories
All Inventories are valued at the lower of cost and net realisable value.
Raw materials, Packing Material and Stores and consumables are valued at lower of cost determined on weighted average basis and net realisable value.
Work in Process includes material lying at reactors/tanks on which process is continued as on date. Work in Process are valued at raw materials cost as calculated, which is estimated and certified by the management using moving weighted average method.
Semi-Finished goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Semi-Finished goods are valued at raw materials cost as calculated above plus weighted average cost of production including appropriate proportion of cost of conversion to the extent of process, which is estimated and certified by the management.
Finished Goods are valued at lower of cost and net realisable value.
Traded Goods are valued at lower of purchase price and net realisable value.
Slow moving inventories are valued at estimated net realizable value.
l) Trade receivables
Trade receivables are carried at original invoice amount less any provisions for doubtful debts. Provisions are made where there is evidence of a risk of non-payment, taking into account ageing, previous experience and general economic conditions. When a trade receivable is determined to be uncollectable it is written off, firstly against any provision available and then to the Statement of Profit and Loss.
m) Cash and Cash equivalents
Cash and cash equivalents include cash at bank and cash in hand and highly liquid interest-bearing securities with maturities of three months or less from the date of inception/acquisition.
In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.
n) Borrowing Costs
Borrowing costs directly attributable to the acquisition and/or construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they are incurred.
o) Taxation
i Current income tax
Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to items recognized directly in equity/OCI, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted on the reporting date. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
ii Deferred tax
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted on the reporting date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date.
p) Financial instruments
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the financial instrument.
i Financial Assets
a. Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date i.e, the date that the Company commits to purchase or sell the asset.
b. Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
i) Financials Assets at amortised cost:
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, debt instruments are subsequently measured at amortised cost using the effective interest rate method, less impairment, if any.
ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Company has made an irrevocable election for its investments which are classified as equity / debt instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.
iii) Financial assets at fair value through profit or loss
Financial assets which are not classified in any of the above categories are subsequently fair valued through profit or loss.
ii Financial Liabilities:
a. Initial recognition and measurement
The Companyâs financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Financial liabilities are classified, at initial recognition, as at fair value through profit and loss or as those measured at amortised cost.
b. Subsequent measurement
The subsequent measurement of financial liabilities depends on their classification as follows:
i) Financial liabilities at fair value through profit and loss
Financial liabilities at fair value through profit and loss include financial liabilities held for trading. The Company has not designated any financial liabilities upon initial recognition at fair value through profit and loss.
ii) Financial liabilities measured at amortised cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method except for those designated in an effective hedging relationship.
q) Provisions, Contingent liabilities and Assets
i Provisions:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.
ii Contingent Liabilities
Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
iii Contingent Assets
Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are disclosed in the notes to the financial statements.
r) Earnings Per Share
Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.
Mar 31, 2017
1. SIGNIFICANT ACCOUNTING POLICIES:
(A) Basis of Accounting:
The financial statements are prepared as per historical cost convention and ongoing concern basis and comply with the applicable accounting standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies (Accounts) Rules 2014.
(B) Property, Plant and Equipment:
i) Property, Plant and Equipment are recorded at cost of acquisition / construction less accumulated depreciation & impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use, but excluding CENVAT / Service Tax / VAT credit availed.
ii) In respect of fixed assets (other than freehold land and capital work-in-progress) acquired during the year, depreciation is charged on a Straight Line Basis so as to write off the cost of the assets over the useful lives. In respect of fixed assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life. The useful life of the fixed assets has been adopted based on Technical Evaluation and in other cases, as prescribed under the Companies Act, 2013. Details for the same areas under:
(C) Investments:
Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than temporary, in which case a provision is made to the carrying value to recognize the diminution.
(D) Inventories:
All Inventories are valued at lower of cost and net realizable value.
i) Raw materials, Packing materials, Stores and consumables are valued at cost using moving weighted average method. The cost of Raw materials, stores and consumables includes cost of purchases after adjusting for CENVAT / VAT, direct expenses and other cost incurred in bringing the inventories to their present location and condition.
ii) Work in Process includes material lying at reactors/tanks on which process is continued as on date. Work in Process are valued at raw materials cost as calculated, which is estimated and certified by the management using moving weighted average method.
iii) Semi-Finished goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Semi-Finished goods are valued at raw materials cost as calculated above plus weighted average cost of production including appropriate proportion of cost of conversion to the extent of process, which is estimated and certified by the management.
iv) Finished goods are valued at lower of cost or net realizable value. Finished goods are valued based on weighted average cost of production, including appropriate proportion of cost of conversion. Excise duty is included in the value of finished goods inventory.
v) Slow moving inventories are valued at estimated net realizable value.
(E) Revenue from Operations:
i) Sale of products are recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. Sales are inclusive of excise duty, but net of sales return, Service tax and Sales Tax.
ii) Export sales are recognized on the date of bill of lading / airway bill.
iii) Export benefits available under prevalent schemes are accounted on entitlement basis.
iv) Interest on investments is booked on a time proportion basis taking into account the amounts invested and the rate of interest.
v) Dividend income is recognized when the right to receive payment is established.
(F) Excise Duty:
Excise duty is accounted on the basis of both, payment made in respect of goods cleared as also provision made for goods lying in bonded warehouse.
(G) Research and Development:
All revenue expenses related to R&D including expenses in relation to development of product/ processes are charged to the Statement of Profit & Loss in the year in which it is incurred. Capital Expenditure incurred on Research and Development is capitalized.
(H) Foreign Currency Transactions:
i) Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
iii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are recognized in the Profit and Loss Account.
iv) In respect of transactions covered by forward contracts, the difference between the contract rate and the rate on the date of the transaction is charged to the Profit and Loss Account over the period of the contract.
(I) Employee Benefits:
(a) Short term employee benefits:
All employee Benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as Salaries, wages, and short term compensated absences etc. is recognized in the period in which the employee renders the related service.
(b) Post Employment Benefits:
i. Defined Contribution Plans:
Define contribution plans are post employment benefit plans under which the company pays fixed contributions into separate entities (fund) or to financial institutions or state managed benefit schemes. The Company operates defined contribution plans pertaining to Provident Fund, Employees state Insurance, Pension Fund Scheme for eligible employees. The Company contribution to defined contribution plans are recognized in the profit and loss account in the financial year to which they relate.
ii. Defined Benefit Plans:
The Company made annual contribution to Employees Group Gratuity Cash Accumulation Scheme of Life Insurance Corporation of India. The gratuity liabilities are funded with the Life Insurance Corporation of India and with a recognized fund, which is administered by the trustees. The amounts paid /provided under the scheme are charged to profit and loss account under head Employees Cost.
Superannuation payable as per superannuation scheme is provided by payment to superannuation trust fund.
The Company provides for accumulated leave liability payable on retirement on the basis of Actuarial Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost.
(J) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.
(K) Earnings per share:
Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year.
(L) Taxes on Income:
i) Provision for taxation is made on the basis of the estimated taxable income for the current Accounting period in accordance with provision of the Income Tax Act, 1961.
ii) The benefit of credit against the payment made towards MAT for the earlier years is available in accordance with the provisions of section 115J (AA) of income tax act 1961 over a period of subsequent 10 assessment year and it is recognized to the extent of deferred tax liability in view of the certainty involved of its realization against reversal of deferred tax liability.
iii) In accordance with Accounting Standard - 22 â Accounting for Taxes on Income'', issued by the Institute of Chartered Accountants of India, the Deferred Tax for timing differences between the book profit and tax profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.
iv) Deferred tax assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets will be realized in future.
(M) Segment Reporting:
There is no separate reportable primary segment as per Accounting Standards 17, as most of the operations are related to only one Segment viz. Specialty Chemicals.
(N) Impairment of Assets:
A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its recoverable value. An Impairment Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
(O) Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized only when there is a present obligation as a result of past event and when a reliable estimate of the amount of the obligation can be made. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent Assets are not recognized in the financial statements.
2. Capital & Other Commitment:
Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) '' 61.53 lacs (Previous year for Rs, 569.78 lacs).
Mar 31, 2016
Notes forming part of Accounts:
1. SIGNIFICANT ACCOUNTING POLICIES:
(A) Basis of Accounting:
The financial statements are prepared as per historical cost convention and on going concern basis and comply with the applicable accounting standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies(Accounts) Rules 2014.
(B) Fixed Assets & Capital Work in Progress:
Fixed Assets are recorded at cost of acquisition / construction less accumulated depreciation & impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use, but excluding CENVAT / Service Tax / VAT credit availed.
(C) Depreciation:
In respect of fixed assets (other than freehold land and capital work-in-progress) acquired during the year, depreciation is charged on a Straight Line Basis so as to write off the cost of the assets over the useful lives. In respect of fixed assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life. The useful life of the fixed assets has been adopted based on Technical Evaluation. Details for the same areas under:
(D) Investments:
Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than temporary, in which case a provision is made to the carrying value to recognize the diminution.
(E) Inventories:
All Inventories are valued at lower of cost and net realizable value.
i) Raw materials, Packing materials, Stores and consumables are valued at cost using moving weighted average method. The cost of Raw materials, stores and consumables includes cost of purchases, direct expenses and other cost incurred in bringing the inventories to their present location and condition.
ii) Work in Process includes material lying at reactors/tanks on which process is continued as on date. Work in Process are valued at raw materials cost as calculated, which is estimated and certified by the management using moving weighted average method.
iii) Semi-Finished goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Semi-Finished goods are valued at raw materials cost as calculated above plus weighted average cost of production including appropriate proportion of cost of conversion to the extent of process, which is estimated and certified by the management.
iv) Finished goods are valued at lower of cost or net realizable value. Finished goods are valued based on weighted average cost of production, including appropriate proportion of cost of conversion. Excise duty is included in the value of finished goods inventory.
v) Slow moving inventories are valued at estimated net realizable value
(F) Revenue from Operations:
i) Sale of products are recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. Sales are inclusive of excise duty, but net of sales return, Service tax and Sales Tax.
ii) Export sales are recognized on the date of bill of lading / airway bill.
iii) Export benefits available under prevalent schemes are accounted to the extent considered receivable.
iv) Interest on investments is booked on a time proportion basis taking into account the amounts invested and the rate of interest.
v) Dividend income is recognized when the right to receive payment is established.
(G) Excise Duty:
Excise duty is accounted on the basis of both, payment made in respect of goods cleared as also provision made for goods lying in bonded warehouse.
(H) Research and Development:
All revenue expenses related to R & D including expenses in relation to development of product/ processes are charged to the Statement of Profit & Loss in the year in which it is incurred. Capital Expenditure incurred on Research and Development is capitalized.
(I) Foreign Currency Transactions:
i) Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.
iii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are recognized in the Profit and Loss Account.
iv) In respect of transactions covered by forward contracts, the difference between the contract rate and the rate on the date of the transaction is charged to the Profit and Loss Account over the period of the contract.
(J) Employee Benefits:
(a) Short term employee benefits:
All employee Benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as Salaries, wages, and short term compensated absences etc. is recognized in the period in which the employee renders the related service.
(b) Post Employment Benefits:
i. Defined Contribution Plans:
Define contribution plans are post employment benefit plans under which the company pays fixed contributions into separate entities (fund) or to financial institutions or state managed benefit schemes. The Company operates defined contribution plans pertaining to Provident Fund, Employees state Insurance, Pension Fund Scheme for eligible employees. The Company contribution to defined contribution plans are recognized in the profit and loss account in the financial year to which they relate.
ii. Defined Benefit Plans:
The Company made annual contribution to Employees Group Gratuity Cash Accumulation Scheme of Life Insurance Corporation of India. The gratuity liabilities are funded with the Life Insurance Corporation of India and with a recognized fund, which is administered by the trustees. The amounts paid /provided under the scheme are charged to profit and loss account under head Employees Cost.
Superannuation payable as per superannuation scheme is provided by payment to superannuation trust fund.
The Company provides for accumulated leave liability payable on retirement on the basis of Actuarial Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost.
(K) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.
(L) Earnings per share:
Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year.
(M) Taxes on Income:
i) Provision for taxation is made on the basis of the estimated taxable income for the current Accounting period in accordance with provision of the Income Tax Act, 1961.
ii) In accordance with Accounting Standard - 22 âAccounting for Taxes on Income'', issued by the Institute of Chartered Accountants of India, the Deferred Tax for timing differences between the book profit and tax profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.
iii) Deferred tax assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets will be realized in future.
(N) Segment Reporting:
There is no separate reportable primary segment as per Accounting Standards 17, as most of the operations are related to only one Segment viz. Specialty Chemicals.
(O) Impairment of Assets:
An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An Impairment Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
(P) Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized only when there is a present obligation as a result of past event and when a reliable estimate of the amount of the obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent Assets are not recognized in the financial statements.
Mar 31, 2013
(A) Basis of Accounting:
The financial statements are prepared as per historical cost convention
and on going concern basis and comply with the applicable accounting
standards issued by the Institute of Chartered Accountants of India
(ICAI) and relevant statutory provisions of The Companies Act, 1956.
(B) Fixed Assets & Capital Work in Progress:
i) Fixed Assets are recorded at cost of acquisition / construction less
accumulated depreciation & impairment loss, if any. Cost comprises of
the purchase price and any attributable cost of bringing the assets to
its working condition for its intended use, but excluding CENVAT /
Service Tax / VAT credit availed.
ii) All expenditure including advances given to suppliers and
contractors for supply and installation of Plant and Machinery and
other capital Assets, including interest during the construction period
if any, are accumulated and shown as capital work in Progress.
(C) Depreciation:
Depreciation on fixed assets is provided on straight line method at the
rates specified in schedule XIV of the Companies Act, 1956, as amended
on shift basis. Depreciation on addition to Fixed Assets (except those
of Rs. 5,000/- and below) is charged on prorata basis. Depreciation on
assets disposed off/discarded during the year is charged upto the date
of disposal/discard.
(D) Investments :
Investments are Long-term, unless stated otherwise and are stated at
cost except where there is diminution in value other than temporary, in
which case a provision is made to the carrying value to recognise the
diminution.
(E) Inventories:
i) Raw materials, Stores and consumables are valued at cost using
moving weighted average method. The cost of Raw materials, stores and
consumables includes cost of purchases, direct expenses and other cost
incurred in bringing the inventories to their present location and
condition.
ii) Work in Process includes material lying at reactors/tanks on which
process is continued as on date. Work in Process are valued at raw
materials cost as calculated above plus labour and appropriate
proportion of overhead to the extent of process, which is estimated and
certified by the management using moving weighted average method.
iii) Semi-Finished goods has been identified as such depending upon
stage of completion of finished goods technically determined by the
management. Semi-Finished goods are valued at raw materials cost as
calculated above plus weighted average cost of production including
appropriate proportion of cost of conversion to the extent of process,
which is estimated and certified by the management.
iv) Finished goods are valued at lower of cost or net realisable value.
Finished goods are valued based on weighted average cost of production,
including appropriate proportion of cost of conversion. Excise duty is
included in the value of finished goods inventory. Net Realisable value
is the estimated selling price in the ordinary course of business.
(F) Sales:
i) Sale of products are recognised when risk and rewards of ownership
of the products are passed on to the customers, which is generally on
dispatch of goods. Sales are inclusive of excise duty, but net of sales
return, Service tax and Sales Tax.
ii) Export sales are recognised on the date of bill of lading / airway
bill.
(G) Excise Duty :
Excise duty is accounted on the basis of both, payment made in respect
of goods cleared as also provision made for goods lying in bonded
warehouse.
(H) Research and Development :
Revenue Expenditure on Research and Development is charged to Profit
and Loss Account and Capital Expenditure incurred on Research and
Development is capitalised.
(I) Foreign Currency Transactions :
i) Foreign currency transactions are recorded in the reporting
currency, by applying to the foreign currency amount the exchange rate
between the reporting currency and the foreign currency at the date of
the transaction.
ii) Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end rates.
iii) The difference in translation of monetary assets and liabilities
and realized gains and losses on foreign exchange transactions are
recognised in the Profit and Loss Account.
iv) In respect of transactions covered by forward contracts, the
difference between the contract rate and the rate on the date of the
transaction is charged to the Profit and Loss Account over the period
of the contract.
(J) Employee Benefits:
(a) Short term employee benefits
All employee Benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as Salaries, wages, and short term compensated absences etc. is
recognised in the period in which the employee renders the related
service.
(b) Post Employment Benefits:
i. Defined Contribution Plans :
Define contribution plans are post employment benefit plans under which
the company pays fixed contributions into separate entities (fund) or
to financial institutions or state managed benefit schemes. The Company
operates defined contribution plans pertaining to Provident Fund,
Employees state Insurance, Pension Fund Scheme for eligible employees.
The Company contribution to defined contribution plans are recognised
in the profit and loss account in the financial year to which they
relate.
ii. Defined Benefit Plans:
The Company made annual contribution to Employees Group Gratuity Cash
Accumulation Scheme of Life Insurance Corporation of India. The
gratuity liabilities are funded with the Life Insurance Corporation of
India and with a recognized fund, which is administered by the
trustees. The amounts paid /provided under the scheme are charged to
profit and loss account under head Employees Cost.
Superannuation payable as per superannuation scheme is provided by
payment to superannuation trust fund.
The Company provides for accumulated leave liability payable on
retirement on the basis of Actuarial Valuation as at the year end and
the same is charged to profit and loss account under head Employees
Cost.
(K) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(L) Earnings per share :
Basic and diluted earnings per share are computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
(M) Taxes on Income:
i) Provision for taxation is made on the basis of the estimated taxable
income for the current Accounting period in accordance with provision
of the Income Tax Act, 1961.
ii) In accordance with Accounting Standard  22 '' Accounting for Taxes
on Income'', issued by the Institute of Chartered Accountants of India,
the Deferred Tax for timing differences between the book profit and tax
profit for the year is accounted for using the tax rates and laws that
have been enacted or substantively enacted as of the balance sheet
date.
iii) Deferred tax assets arising from temporary timing differences are
recognised to the extent there is reasonable certainty that the assets
will be realized in future.
(N) Segment Reporting :
There is no separate reportable primary segment as per Accounting
Standards 17, as most of the operations are related to only one Segment
viz. Speciality Chemicals.
(O) Impairment of Assets :
An Asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An Impairment Loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The Impairment Loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
(P) Provisions, Contingent Liabilities and Contingent Assets :
Provisions are recognised only when there is a present obligation as a
result of past event and when a reliable estimate of the amount of the
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by the future events
not wholly within the control of the company or (ii) Present
obligations arising from past events where it is not probable that an
outflow of resources will be required to settle the obligation or a
reliable estimate of the amount of the obligation can not be made.
Contingent Assets are not recognised in the financial statements.
Mar 31, 2012
(A) Basis of Accounting:
The financial statements are prepared as per historical cost convention
and on going concern basis and comply with the applicable accounting
standards issued by the Institute of Chartered Accountants of India
(ICAI) and relevant statutory provisions of The Companies Act, 1956.
(B) Fixed Assets & Capital Work in Progress:
i) Fixed Assets are recorded at cost of acquisition / construction less
accumulated depreciation & impairment loss, if any. Cost comprises of
the purchase price and any attributable cost of bringing the assets to
its working condition for its intended use, but excluding CENVAT /
Service Tax / VAT credit availed.
ii) All expenditure including advances given to suppliers and
contractors for supply and installation of Plant and Machinery and
other capital Assets, including interest during the construction period
if any, are accumulated and shown as capital work in Progress.
(C) Depreciation:
Depreciation on fixed assets is provided on straight line method at the
rates specified in schedule XIV of the Companies Act, 1956, as amended
on shift basis. Depreciation on addition to Fixed Assets (except those
of Rs5,000/- and below) is charged on prorata basis. Depreciation on
assets disposed off/discarded during the year is charged upto the date
of disposal/discard.
(D) Investments :
Investments are Long-term, unless stated otherwise and are stated at
cost except where there is diminution in value other than temporary, in
which case a provision is made to the carrying value to recognise the
diminution.
(E) Inventories:
i) Raw materials, Stores and consumables are valued at cost using
moving weighted average method. The cost of Raw materials, stores and
consumables includes cost of purchases, direct expenses and other cost
incurred in bringing the inventories to their present location and
condition.
ii) Work in Process includes material lying at reactors/tanks on which
process is continued as on date. Work in Process are valued at raw
materials cost as calculated above plus labour and appropriate
proportion of overhead to the extent of process, which is estimated and
certified by the management using moving weighted average method.
iii) Semi-Finished goods has been identified as such depending upon
stage of completion of finished goods technically determined by the
management. Semi-Finished goods are valued at raw materials cost as
calculated above plus weighted average cost of production including
appropriate proportion of cost of conversion to the extent of process,
which is estimated and certified by the management.
iv) Finished goods are valued at lower of cost or net realisable value.
Finished goods are valued based on weighted average cost of production,
including appropriate proportion of cost of conversion. Excise duty is
included in the value of finished goods inventory.
Net Realisable value is the estimated selling price in the ordinary
course of business.
(F) Sales:
i) Sale of products are recognised when risk and rewards of ownership
of the products are passed on to the customers, which is generally on
dispatch of goods. Sales are inclusive of excise duty, but net of sales
return, service tax and sales tax.
ii) Export sales are recognised on the date of bill of lading / airway
bill.
(G) Excise Duty :
Excise duty is accounted on the basis of both, payment made in respect
of goods cleared as also provision made for goods lying in bonded
warehouse.
(H) Research and Development:
Revenue Expenditure on Research and Development is charged to Profit
and Loss Account and Capital Expenditure incurred on Research and
Development is capitalised.
(I) Foreign Currency Transactions:
i) Foreign currency transactions are recorded in the reporting
currency, by applying to the foreign currency amount the exchange rate
between the reporting currency and the foreign currency at the date of
the transaction.
ii) Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end rates.
iii) The difference in translation of monetary assets and liabilities
and realized gains and losses on foreign exchange transactions are
recognised in the Profit and Loss Account.
iv) In respect of transactions covered by forward contracts, the
difference between the contract rate and the rate on the date of the
transaction is charged to the Profit and Loss Account over the period
of the contract.
(J) Employee Benefits:
(a) Short term employee benefits
All employee Benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as Salaries, wages, and short term compensated absences etc. is
recognised in the period in which the employee renders the related
service.
(b) Post Employment Benefits:
i. Defined Contribution Plans :
Define contribution plans are post employment benefit plans under which
the company pays fixed contributions into separate entities (fund) or
to financial institutions or state managed benefit schemes. The Company
operates defined contribution plans pertaining to Provident Fund,
Employees state Insurance, Pension Fund Scheme for eligible employees.
The Company contribution to defined contribution plans are recognised
in the profit and loss account in the financial year to which they
relate.
ii. Defined Benefit Plans:
The Company made annual contribution to Employees Group Gratuity Cash
Accumulation Scheme of Life Insurance Corporation of India. The
gratuity liabilities are funded with the Life Insurance Corporation of
India and with a recognized fund, which is administered by the
trustees. The amounts paid /provided under the scheme are charged to
profit and loss account under head Employees Cost.
Superannuation payable as per superannuation scheme is provided by
payment to superannuation trust fund.
The Company provides for accumulated leave liability payable on
retirement on the basis of Actuarial Valuation as at the year end and
the same is charged to profit and loss account under head Employees
Cost.
(K) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(L) Earnings per share :
Basic and diluted earnings per share are computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
(M) Taxes on Income:
i) Provision for taxation is made on the basis of the estimated taxable
income for the current Accounting period in accordance with provision
of the Income Tax Act, 1961.
ii) In accordance with Accounting Standard - 22 ' Accounting for Taxes
on Income', issued by the Institute of Chartered Accountants of India,
the Deferred Tax for timing differences between the book profit and tax
profit for the year is accounted for using the tax rates and laws that
have been enacted or substantively enacted as of the balance sheet
date.
iii) Deferred tax assets arising from temporary timing differences are
recognised to the extent there is reasonable certainty that the assets
will be realized in future.
(N) Segment Reporting :
There is no separate reportable primary segment as per Accounting
Standards 17, as most of the operations are related to only one Segment
viz. Speciality Chemicals.
(O) Impairment of Assets :
An Asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An Impairment Loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The Impairment Loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
(P) Provisions, Contingent Liabilities and Contingent Assets :
Provisions are recognised only when there is a present obligation as a
result of past event and when a reliable estimate of the amount of the
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by the future events
not wholly within the control of the company or (ii) Present
obligations arising from past events where it is not probable that an
outflow of resources will be required to settle the obligation or a
reliable estimate of the amount of the obligation can not be made.
Contingent Assets are not recognised in the financial statements.
Mar 31, 2011
(A) Basis of Accounting:
The fnancial statements are prepared as per historical cost convention
and on going concern basis and comply with the applicable accounting
standards issued by the Institute of Chartered Accountants of India
(ICAI) and relevant statutory provisions of The Companies Act, 1956.
(B) Fixed Assets & Capital Work in Progress:
i) Fixed Assets are recorded at cost of acquisition / construction less
accumulated depreciation & impairment loss, if any. Cost comprises of
the purchase price and any attributable cost of bringing the assets to
its working condition for its intended use, but excluding CENVAT /
Service Tax / VAT credit availed.
ii) All expenditure including advances given to suppliers and
contractors for supply and installation of Plant and Machinery and
other capital Assets, including interest during the construction period
if any, are accumulated and shown as capital work in Progress.
(C) Depreciation:
Depreciation on fxed assets is provided on straight line method at the
rates specifed in schedule XIV of the Companies Act, 1956, as amended
on shift basis. Depreciation on addition to Fixed Assets (except those
of Rs.5,000/- and below) is charged on prorata basis. Depreciation on
assets disposed off/discarded during the year is charged upto the date
of disposal/discard.
(D) Investments :
Long term investments are stated at cost except where there is
diminution in value other than temporary, in which case a provision is
made to the carrying value to recognise the diminution.
(E) Inventories:
i) Raw materials, Stores and consumables are valued at cost using
moving weighted average method. The cost of Raw materials, stores and
consumables includes cost of purchases, direct expenses and other cost
incurred in bringing the inventories to their present location and
condition.
ii) Work in Process includes material lying at reactors/tanks on which
process is continued as on date. Work in Process are valued at raw
materials cost as calculated above plus labour and appropriate
proportion of overhead to the extent of process, which is estimated and
certifed by the management using moving weighted average method.
iii) Semi-Finished goods has been identifed as such depending upon
stage of completion of fnished goods technically determined by the
management. Semi-Finished goods are valued at raw materials cost as
calculated above plus weighted average cost of production including
appropriate proportion of cost of conversion to the extent of process,
which is estimated and certifed by the management.
iv) Finished goods are valued at lower of cost or net realisable value.
Finished goods are valued based on weighted average cost of production,
including appropriate proportion of cost of conversion. Excise duty is
included in the value of fnished goods inventory.
Net Realisable value is the estimated selling price in the ordinary
course of business.
(F) Sales:
i) Sale of products are recognised when risk and rewards of ownership
of the products are passed on to the customers, which is generally on
dispatch of goods. Sales are inclusive of excise duty, but net of sales
return, Service tax and Sales Tax.
ii) Export sales are recognised on the date of bill of lading / airway
bill.
(G) Excise Duty :
Excise duty is accounted on the basis of both, payment made in respect
of goods cleared as also provision made for goods lying in bonded
warehouse.
(H) Research and Development :
Revenue Expenditure on Research and Development is charged to Proft and
Loss Account and Capital Expenditure incurred on Research and
Development is capitalised.
SCHEDULES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH,
2011
(I) Foreign Currency Transactions :
i) Foreign currency transactions are recorded in the reporting
currency, by applying to the foreign currency amount the exchange rate
between the reporting currency and the foreign currency at the date of
the transaction.
ii) Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end rates.
iii) The difference in translation of monetary assets and liabilities
and realized gains and losses on foreign exchange transactions are
recognised in the Proft and Loss Account.
iv) In respect of transactions covered by forward contracts, the
difference between the contract rate and the rate on the date of the
transaction is charged to the Proft and Loss Account over the period of
the contract.
(J) Employee Benefts:
(a) Short term employee benefts
All employee Benefts payable wholly within twelve months of rendering
the service are classifed as short term employee benefts. Benefts such
as Salaries, wages, and short term compensated absences etc. is
recognised in the period in which the employee renders the related
service.
(b) Post Employment Benefts:
i. Defned Contribution Plans :
Defne contribution plans are post employment beneft plans under which
the company pays fxed contributions into separate entities (fund) or to
fnancial institutions or state managed beneft schemes. The Company
operates defned contribution plans pertaining to Provident Fund,
Employees state Insurance, Pension Fund Scheme for eligible employees.
The Company contribution to defned contribution plans are recognised in
the proft and loss account in the fnancial year to which they relate.
ii. Defned Beneft Plans:
The Company made annual contribution to Employees Group Gratuity Cash
Accumulation Scheme of Life Insurance Corporation of India. The
gratuity liabilities are funded with the Life Insurance Corporation of
India and with a recognized fund, which is administered by the
trustees. The amounts paid /provided under the scheme are charged to
proft and loss account under head Employees Cost.
Superannuation payable as per superannuation scheme is provided by
payment to superannuation trust fund.
The Company provides for accumulated leave liability payable on
retirement on the basis of Actuarial Valuation as at the year end and
the same is charged to proft and loss account under head Employees
Cost.
(K) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(L) Earnings per share :
Basic and diluted earnings per share are computed by dividing the net
proft attributable to equity shareholders for the year, by the weighted
average number of equity shares outstanding during the year.
(M) Income Taxes:
i) Provision for taxation is made on the basis of the estimated taxable
income for the current Accounting period in accordance with provision
of the Income Tax Act, 1961.
ii) In accordance with Accounting Standard à 22 ÃAccounting for Taxes
on IncomeÃ, issued by the Institute of Chartered Accountants of India,
the Deferred Tax for timing differences between the book proft and tax
proft for the year is accounted for using the tax rates and laws that
have been enacted or substantively enacted as of the balance sheet
date.
iii) Deferred tax assets arising from temporary timing differences are
recognised to the extent there is reasonable certainty that the assets
will be realized in future.
(N) Segment Reporting :
There is no separate reportable primary segment as per Accounting
Standards 17, as most of the operations are related to only one Segment
viz. Speciality Chemicals.
(O) Impairment of Assets :
An Asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An Impairment Loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The Impairment Loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
(P) Provisions, Contingent Liabilities and Contingent Assets :
Provisions are recognised only when there is a present obligation as a
result of past event and when a reliable estimate of the amount of the
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by the future events
not wholly within the control of the company or (ii) Present
obligations arising from past events where it is not probable that an
outflow of resources will be required to settle the obligation or a
reliable estimate of the amount of the obligation can not be made.
Contingent Assets are not recognised in the financial statements.
Mar 31, 2010
(A) Basis of Accounting:
The financial statements are prepared as per historical cost convention
and on going concern basis and comply with the applicable accounting
standards issued by the Institute of Chartered Accountants of India
(ICAI) and relevant statutory provisions of The Companies Act, 1956.
(B) Fixed Assets & Capital Work in Progress:
i) Fixed Assets are recorded at cost of acquisition / construction less
accumulated depreciation & impairment loss, if any. Cost comprises of
the purchase price and any attributable cost of bringing the assets to
its working condition for its intended use, but excluding CENVAT /
Service Tax / VAT credit availed.
ii) All expenditure including advances given to suppliers and
contractors for supply and installation of Plant and Machinery and
other capital Assets, including interest during the construction period
if any, are accumulated and shown as capital work in progress.
(C) Depreciation:
Depreciation on fixed assets is provided on straight line method at the
rates specified in schedule XIV of the Companies Act, 1956, as amended
on shift basis. Depreciation on addition to Fixed Assets (except those
of Rs.5,000/- and below) is charged on prorata basis. Depreciation on
assets disposed off/discarded during the year is charged upto the date
of disposal/discard.
(D) Investments :
Long term investments are stated at cost except where there is
diminution in value other than temporary, in which case a provision is
made to the carrying value to recognise the diminution.
(E) Inventories:
i) Raw materials, Stores and consumables are valued at cost using
moving weighted average method. The cost of raw materials, stores and
consumables includes cost of purchases, direct expenses and other cost
incurred in bringing the inventories to their present location and
condition.
ii) Work in Process includes material lying at reactors/tanks on which
process is continued as on date. Work in Process are valued at raw
materials cost as calculated above plus labour and appropriate
proportion of overhead to the extent of process, which is estimated and
certified by the management using moving weighted average method.
iii) Semi-Finished goods has been identified as such depending upon
stage of completion of finished goods technically determined by the
management. Semi-Finished goods are valued at raw materials cost as
calculated above plus weighted average cost of production including
appropriate proportion of cost of conversion to the extent of process,
which is estimated and certified by the management.
iv) Finished goods are valued at lower of cost or net realisable value.
Finished goods are valued based on weighted average cost of production,
including appropriate proportion of cost of conversion. Excise duty is
included in the value of finished goods inventory.
Net Realisable value is the estimated selling price in the ordinary
course of business.
(F) Sales:
i) Sale of products are recognised when risk and rewards of ownership
of the products are passed on to the customers, which is generally on
dispatch of goods. Sales are inclusive of excise duty, but net of sales
return, Service tax and Sales Tax.
ii) Export sales are recognised on the date of bill of lading / airway
bill.
(G) Excise Duty :
Excise duty is accounted on the basis of both, payment made in respect
of goods cleared as also provision made for goods lying in bonded
warehouse.
(H) Research and Development:
Revenue Expenditure on Research and Development is charged to Profit
and Loss Account and Capital Expenditure incurred on Research and
Development is capitalised.
(I) Foreign Currency Transactions :
i) Foreign currency transactions are recorded in the reporting
currency, by applying to the foreign currency amount the exchange rate
between the reporting currency and the foreign currency at the date of
the transaction.
ii) Monetary assets and liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at year end rates.
iii) The difference in translation of monetary assets and liabilities
and realized gains and losses on foreign exchange transactions are
recognised in the Profit and Loss Account.
iv) In respect of transactions covered by forward contracts, the
difference between the contract rate and the rate on the date of the
transaction is charged to the Profit and Loss Account over the period
of the contract.
(J) Employee Benefits:
(a) Short term employee benefits
All employee Benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages, and short term compensated absences etc. is
recognised in the period in which the employee renders the related
service.
(b) Post Employment Benefits:
i. Defined Contribution Plans :
Define contribution plans are post employment benefit plans under which
the company pays fixed contributions into separate entities (fund) orto
financial institutions or state managed benefit schemes. The Company
operates defined contribution plans pertaining to Provident Fund,
Employees state Insurance, Pension Fund Scheme for eligible employees.
The Company contribution to defined contribution plans are recognised
in the profit and loss account in the financial year to which they
relate.
ii. Defined Benefit Plans:
The Company made annual contribution to Employees Group Gratuity Cash
Accumulation Scheme of Life Insurance Corporation of India. The
gratuity liabilities are funded with the Life Insurance Corporation of
India and with a recognized fund, which is administered by the
trustees. The amounts paid /provided under the scheme are charged to
profit and loss account under head Employees Cost.
Superannuation payable as per superannuation scheme is provided by
payment to superannuation trust fund.
The Company provides for accumulated leave liability payable on
retirement on the basis of Actuarial Valuation as at the year end and
the same is charged to profit and loss account under head Employees
Cost.
(K) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(L) Earnings per share :
Basic and diluted earnings per share are computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
(M) Income Taxes:
i) Provision for taxation is made on the basis of the estimated taxable
income for the current Accounting period in accordance with provision
of the Income Tax Act, 1961.
ii) In accordance with Accounting Standard - 22 "Accounting for Taxes
on Income", issued by the Institute of Chartered Accountants of India,
the Deferred Tax for timing differences between the book profit and tax
profit for the year is accounted for using the tax rates and laws that
have been enacted or substantively enacted as of the balance sheet
date.
iii) Deferred tax assets arising from temporary timing differences are
recognised to the extent there is reasonable certainty that the assets
will be realized in future.
(N) Segment Reporting :
There is no separate reportable primary segment as per Accounting
Standard -17, as most of the operations are related to only one Segment
viz. Speciality Chemicals.
(O) impairment of Assets :
An Asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An Impairment Loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The Impairment Loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
(P) Provisions, Contingent Liabilities and Contingent Assets :
Provisions are recognised only when there is a present obligation as a
result of past event and when a reliable estimate of the amount of the
obligation can be made. Contingent liability is disclosed for (i)
Possible obligations which will be confirmed only by the future events
not wholly within the control of the company or (ii) Present
obligations arising from past events where it is not probable that an
outflow of resources will be required to settle the obligation or a
reliable estimate of the amount of the obligation can not be made.
Contingent Assets are not recognised in the financial statements.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Paushak Ltd.
-
Paushak Ltd. Tools
- Bulk Deals
-
Paushak Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Rights
- BSE Price History
-
Paushak Ltd. Key Financial Ratios
- Ratios
-
Paushak Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Paushak Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Paushak Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Paushak Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
