Accounting Policies of Unitech International Ltd. Company

Mar 31, 2015

1.1 Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis.Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013 (the 'Act'). All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle as twelve months for the purpose of current/non-current classification of assets and liabilities.

1.2 Use of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles in India requires, the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are The preparation of the financial statements in conformity with the generally accepted accounting principles in India requires, the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates and the differences between the actual and the estimates are recognised in the periods in which the actuals are known/materialise.

1.3 Fixed Assets - Depreciation and Amortisation

i. Fixed assets are stated at acquisition cost less accumulated depreciation/amortisation and accumulated impairment, if any. All direct costs are capitalised including freight, duties, taxes and expenses incidental to acquisition and installation of fixed assets. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the Financial Statements. Any expected loss is recognised immediately in the Statement of Profit and Loss. Losses arising from the retirement of, and gains and losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.

ii. Tangible Assets

Leasehold land is being amortised over the primary period of the lease. The useful lives of the assets are based on technical estimates approved by the Management, and are lower than or same as the useful lives prescribed under Schedule II to the Companies Act, 2013 in order to reflect the period over which depreciable assets are expected to be used by the Company. Depreciation is provided on a prorate basis on the straight line method based on the estimated useful lives of the assets. Since the machineries have not been put to use has not been taken into consideration for the purpose of Deprecation.

iii. Assets Useful Life

The assets of the Company are disputed with the banks for which the matter is in dispute and hence the same has not been taken into consideration and the life of the assets has not been estimated for the purpose of depreciation.

iv. Intangible Assets

Intangible Assets comprise of Goodwill, Trademarks, Copyrights and Technical Knowhow. Goodwill and other Intangible Assets are amortised over the useful life of the assets, not exceeding 10 years. All the Intangibles Assets of the Company have been fully amortised as at the Balance Sheet date.

1.4 Investments

There is no investment made by the Company as on the date of the Balance sheet. Therefore, no specific comment has been made as required by the specific Act.

1.5 Inventories

Inventories of trading items and finished goods are valued at lower of cost and net realisable value. Cost is determined using standard cost method that approximates actual cost. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

1.6 Revenue Recognition

Sales are recognized when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract which usually coincide with the delivery of goods and are recorded net of trade discounts, rebates, sales tax/value added tax and excise duty on own manufactured and outsourced products.

1.7 Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure as specified in Accounting Standard 29 - 'Provisions, Contingent Liabilities and Contingent Assets' is made.

1.8 Employee Benefits

Defined Contribution Plans: The Company does not have Defined Contribution Plans for its employees such as Provident Fund, Superannuation Fund, Employee's State Insurance etc. and hence are not charged to the Statement of Profit & Loss. Since there are no permanent employees, the Company does not provide for retirement/ post retirement benefits on the form of gratuity.

Shared Based Compensation: The Company does not provide any equity - based compensation to its employees.

1.9 Foreign Currency Transactions

Transactions in foreign currencies are recognized at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss. Foreign currency denominated monetary assets and liabilities at the year end are translated at the year-end exchange rates, and the resultant exchange difference is recognised in the Statement of Profit and Loss. Non-monetary foreign currency items are carried at cost.

1.10 Taxation

In view of completion of assessment under MAT provision the MAT Tax shall be adjusted and hence Current tax has not been provided. The current tax is determined as the amount of tax payable in respect of taxable income for the year using the tax rates and tax laws that have been enacted or subsidiary enacted at the Balance sheet date.

1.11 Earnings Per share

Basic earnings per share (EPS) is calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.12 Cash and Cash Equivalents

In the cash flow statement, cash and cash equivalents include cash in hand, fixed deposits and short term with banks.

1.13 Contingent liability

As reported by the Company there is no contingent liability against the Company.

1.14 Related Party disclosure

During the year there is no transaction with related party. All purchase and sales have been done in regular course of business and none of the Directors or their relatives are directly or indirectly related with the parties with whom the Company has transacted during the year.

1.15 Earnings per Share as per Accounting Standard 20

31.03.2015 31.03.2014

Numerator for basic and diluted earning per share Net Profit / Loss after tax for the year (a) 841258 (4183954)

Denominator for basic and diluted earning per share Weighted Average number of shares (b) 9988200 9988200

Basic and Diluted Earning per shar (a/ b) 0.08 (0.41)

Face value of share 10 10

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Mar 31, 2014

1. Accounting Concepts

The financial statements are prepared under the Historical Cost Convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets:

Fixed assets are recorded at cost less depreciation. The company capitalizes all direct costs relating to the acquisition and installation of fixed assets, interest, if any, on borrowed funds used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use.

3. Depreciation:

Depreciation on fixed assets is provided under written down value method and at the rates specified in Schedule XIV to the Companies Act,1956, as amended vide notification GSR.No. 756(E) dated 16th December,1993 of Government of India. During the year depreciation has not been provided on Plant & Machinery as the Plant has not commenced production due to non-receipt of Pollution Certificate from the Pollution Board.

4. Capital Work in Progress:

Projects under commissioning are carried at cost comprising direct cost, related incidental expenses and interest on borrowing there against. The same policy has also been adopted for other assets purchased by the company during the year.

5. Inventories:

(Per Valued, Verified and Certified by the Management) Stock-in-trade is valued at cost or net realizable value whichever lower basis.

6. Investments

Long Term Investments are stated at cost. The diminution in the market value of investments is not considered unless such diminution is considered permanent. No investment made by the company during the year.

7 Contingent liabilities:

Contingent Liabilities, which are not provided, are disclosed by way of notes.

Events occurring after the Balance Sheet Date:

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Mar 31, 2013

1. Accounting Concepts The financial statements are prepared under the Historical Cost Convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets : Fixed assets are recorded at cost less depreciation. The company capitalizes all direct costs relating to the acquisition and installation of fixed assets, interest, if any, on borrowed funds used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use.

3. Depreciation : Depreciation on fixed assets is provided under written down value method and at the rates specified in Schedule XIV to the Companies Act, 1956, as amended vide notification GSR.No. 756(E) dated 16th December 1993 of Government of India. During the year no depreciation has been provided as the assets are not in use due to non-receipt of Pollution Certificate from the Pollution Board.

4. Capital Work in Progress : Projects under commissioning are carried at cost comprising direct cost, related incidental expenses and interest on borrowing there against. The Company has purchased Plant & Machinery which has been imported from Malaysia and the same has been installed but not put to use and therefore no depreciation has been provided during the year. The same policy has also been adopted for other assets purchased by the Company during the year.

5. Inventories : (Per Valued, Verified and Certified by the Management)Stock-in-trade is valued at cost or net realizable value whichever lower basis.

6. Investments : Long Term Investments are stated at cost. The diminution in the market value of investments is not considered unless such diminution is considered permanent. No investment made by the Company during the year.

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Mar 31, 2012

1. Accounting Concepts

The financial statements are prepared under the Historical Cost Convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets:

Fixed assets are recorded at cost less depreciation. The company capitalizes all direct costs relating to the acquisition and installation of fixed assets, interest, if any, on borrowed funds used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use.

3. Depreciation:

Depreciation on fixed assets is provided under written the down value method and at rates specified in schedule XIV to the Companies Act, 1956,as amended vide notification GSR. No.756(E) dated 16th December 1993 of Government of India. During the year no depreciation has been provided as the assets are not in use.

4. Capital Work in Progress:

Proiects under commissioning are carried at cost comprising direct cost, related incidental expenses and interest on borrowing there against.

The company has purchased Plant & Machinery which has been imported from Malaysia and the same has not been put to use and therefore no depreciation has been provided during the year. The same policy has also been adopted for other assets purchased by the company during the year.

5. Inventories:

(Per Valued, Verified and Certified by the Management)

Stock-in-trade is valued at cost or net realizable value whichever is lower basis.

6. Investments:

Long Term Investments are stated at cost. The diminution in the market value of investments is not considered unless such diminution is considered permanent.

7. Contingent liabilities:

Contingent Liabilities, which are not provided, are disclosed by way of notes.

8. Events occurring after the Balance Sheet Date:

Significant events occurring after the Balance Sheet date are taken into consideration.

9. Outstanding balances in respect of Debtors, Creditors, Deposits and Advances, are subject to Confirmation and reconciliation thereof from the respective parties.

10. In the opinion of the Board of Directors, save as otherwise stated, the Current Assets, Loans and Advances have been stated at values realizable in the course of business and provision has been made for all known liabilities.

11. In absence of proper information and inadequacy of data of past years, the company is not able to comply with the requirements of AS-22 i.e. "Accounting for Taxes on Income" issued by ICAI relevant to Provision for Deferred Tax while preparing the financial statements for the year.

12. There are some Pending Cases against the company and its Directors which are listed below:

a) The management has decided to transfer the amount not payable in Case No: 705/706/05 the matter has not been admitted by the respective Court and accordingly the same has been transferred to Capital Reserve.

b) The case filed by Doljo Chem. Pvt Ltd vide Case No: 603/SS05/Mazgaon Court has been settled by the Company and there remains no liability.

13. a) Particulars in respect of Licensed and Installed Capacity and Actual Production (as Certified by Management)

Figures in Bracket Pertain to previous year.

Production was very negligible hence separate figures are not given.

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Mar 31, 2011

1. Accounting Concepts

The financial statements are prepared under the Historical Cost Convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets:

Fixed assets are recorded at cost less depreciation. The company capitalizes all direct costs relating to the acquisition and installation of fixed assets, interest, if any, on borrowed funds used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use.

3. Depreciation:

Depreciation on fixed assets is provided under written down value method and at the rates specified in Schedule XIV to the Companies Act, 1956, as amended vide notification GSR. No. 756(E) dated 16th December 1993 of Government of India.

4. Capital Work in Progress:

Projects under commissioning are carried at cost comprising direct cost, related incidental expenses and interest on borrowing there against.

5. Inventories:

(Per Valued, Verified and Certified by the Management)

Stock-in-trade is valued at cost or net realizable value whichever is lower basis.

6. Investments:

Long Term Investments are stated at cost. The diminution in the market value of investments is not considered unless such diminution is considered permanent.

7. Contingent liabilities:

Contingent Liabilities, which are not provided, are disclosed by way of notes.

8. Events occurring after the Balance Sheet Date:

Significant events occurring after the Balance Sheet date are taken into consideration.

9. Outstanding balances in respect of Debtors, Creditors, Deposits and Advances, are subject to Confirmation and reconciliation thereof from the respective parties.

10. In the opinion of the Board of Directors, save as otherwise stated, the Current Assets, Loans and Advances have been stated at values realizable in the course of business and provision has been made for all known liabilities.

11. In absence of proper information and inadequacy of data of past years, the company is not able to comply with the requirements of AS-22 i.e. "Accounting for Taxes on Income" issued by ICAI relevant to Provision for Deferred Tax while preparing the financial statements for the year.

12. There are some Pending Cases against the company and its Directors which are listed below:

a) Against the Loan taken from ABAD Co-op Bank of Ahmadabad and the amount involved is Rs. 1,85,32,801.86 /- which has not been accepted by The DRAT and order has been passed by the honorable DRAT vide Case No: 705/706/05 at DRAT Mumbai.

b) Against Doljo Chem. Pvt Ltd and the amount involved is Rs. 5,11,323/- vide Case No: 603/SS05/Mazgaon Court.

13. Schedules and notes form an integral part of Accounts and have been duly Authenticated.

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Mar 31, 2010

1. Accounting Concepts The financial statements are prepared under the Historical Cost Convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets:Fixed assets are recorded at cost less depreciation. The company capitalizes all direct costs relating to the acquisition and installation of fixed assets, interest, if any, on borrowed funds used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use.

3. Depreciation:Depreciation on fixed assets is provided under written down value method and at the rates specified in Schedule XIV to the Companies Act, 1956, as amended vide notification GSR.No. 756(E) dated 16th December 1993 of Government of India.

4. Capital Work in Progress:Projects under commissioning are carried at cost comprising direct cost, related incidental expenses and interest on borrowing there against.

5. Inventories:(Per Valued, Verified and Certified by the Management)Stock-in-trade is valued at cost or net realizable value whichever is lower basis.

6. InvestmentsrLongTerm Investments are stated at cost. The diminution in the market value of investments is not considered unless such diminution is considered permanent.

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Mar 31, 2009

1. Accounting Concepts The financial statements are prepared under the Historical Cost Convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets:Fixed assets are recorded at cost less depreciation. The company capitalizes all direct costs relating to the acquisition and installation of fixed assets, interest, if any, on borrowed funds used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use.

3. Depreciation:Depreciation on fixed assets is provided under written down value method and at the rates specified in Schedule XIV to the Companies Act, 1956, as amended vide notification GSR.No. 756(E) dated 16th December 1993 of Government of India.

4. Capital Work in Progress:Projects under commissioning are carried at cost comprising direct cost, related incidental expenses and interest on borrowing there against.

5. lnventories:(Per Valued, Verified and Certified by the Management)Stock-in-trade is valued at cost or net realizable value whichever is lower basis.

6. lnvestments:Long Term Investments are stated at cost. The diminution in the market value of investments is not considered unless such diminution is considered permanent.