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Accounting Policies of Dhoot Industrial Finance Ltd. Company
Mar 31, 2025
Note 2 : Significant Accounting Policies and Estimates
i) Basis of preparation of financial statements
Basis of Accounting:
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS)
under the historical cost convention on the accrual basis except for certain financial assets and
financial liabilities which are measured at fair values, the provisions of the Companies Act, 2013 (âthe
Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).
The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules,
2016.
Use of Estimates:
The preparation of the financial statements in conformity with Ind AS requires the management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the
application of accounting policies and the reported amounts of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of the financial statements and reported amounts of revenues
and expenses during the period. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in estimates are made as the Management
becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes are made and, if material, their
effects are disclosed in the notes to the financial statements.
CURRENT/NON CURRENT CLASSIFICATION:
The Company presents assets and liabilities in the Balance Sheet based on current/non-current
classification.
A. An asset is current when it is (a) expected to be realized or intended to be sold or consumed in the
normal operating cycle; or (b) held primarily for the purpose of trading; or (c) expected to be
realised within twelve months after the reporting period; or (d) Cash or cash equivalent unless
restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period.
B. All other assets are classified as non-current.
C. A liability is current when (a) it is expected to be settled in the normal operating cycle; or (b) it is held
primarily for the purpose of trading; or (c) it is due to be settled within twelve months after the
reporting period; or (d) there is no unconditional right to defer the settlement of the liability for at
least twelve months after the reporting period.
D. All other liabilities are classified as non-current.
E. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
F. The operating cycle is the time between the acquisition of assets for processing and their
realization in cash and cash equivalents. The Company has identified twelve months as its operating
cycle.
ii) Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company
and can be reliable measured, regardless of the timing of receipt of payment. Revenue is measured at
the fair value of the consideration received or receivable, net of returns, trade discounts and volume
rebates allowed by the Company. Taxes and duties are collected by the Company to be deposited with
the government and not received by the Company on its account accordingly, it is excluded from
revenue.
Sale of Goods
Revenue from sale of goods is recognised, when all significant risks and rewards are transferred to
the buyer, as per the terms of the contracts and no significant uncertainty exists regarding the amount
of consideration that will be derived from the sale of goods. It is measured at fair value of consideration
received or receivable, net returns and allowances, trade discounts and volume rebates. Taxes and
duties collected on behalf of the government is excluded from revenue.
Dividend Income
Dividend Income is recognised when the Company''s right to receive the same is established, which is
generally when shareholders approve the dividend.
Interest Income
Interest income is recognized using effective interest method.
Service Revenue
Services charges are recognized when the stage of completion can be measured reliably.
iii) Foreign Currency Transactions
These financial statements are presented in Indian rupees. Transactions in foreign currency are
recorded at the exchange rate prevailing on the date of the transaction.
Foreign Currency Translation
Initial Recognition:
On initial recognition, transactions in foreign currencies entered into by the Company are recorded in
the functional currency (i.e. Indian Rupees), by applying to the foreign currency amount, the spot
exchange rate between the functional currency and the foreign currency at the date of the transaction.
Exchange differences arising on foreign exchange transactions settled during the year are recognized
in the Statement of Profit and Loss.
iv) Tangible Assets
a. Property, Plant and Equipment.
Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment, if
any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment
are ready for use, as intended by the Management. The Company depreciates property, plant and
equipment using the diminishing balance method.The cost of assets not put to use before such
date are disclosed under âCapital work-in-progress''. Subsequent expenditures relating to property,
plant and equipment are capitalized only when it is probable that future economic benefits associated
with these will flow to the Company and the cost of the item can be measured reliably. Repairs and
maintenance costs are recognized in the Statement of Profit and Loss when incurred. The cost and
related accumulated depreciation are eliminated from the financial statements upon sale or retirement
of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.
Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost
to sell.
b. Depreciation and Amortization
Depreciation on each part of an item of property, plant and equipment is provided using the
reducing balance method based on the useful life of the asset as estimated by the management
and is charged to the Statement of Profit and Loss as per the requirement of Schedule II of the
Companies Act, 2013. The estimate of the useful life of the assets has been assessed based on
technical advice which considers the nature of the asset, the usage of the asset, expected
physical wear and tear, the operating conditions of the asset, anticipated technological changes,
manufacturers warranties and maintenance support, etc. The estimated useful life of items of
property, plant and equipment is mentioned below:
c. Derecognition:
The carrying amount of an item of property, plant and equipment is derecognized on disposal or
when no future economic benefits are expected from its use or disposal. The gain or loss arising
from the Derecognition of an item of property, plant and equipment is measured as the difference
between the net disposal proceeds and the carrying amount of the item and is recognized in the
Statement of Profit and Loss when the item is derecognized.
d. Impairment
Property, Plant and Equipment
An impairment loss is recognized whenever the carrying amount of an asset or its cash generating
unit (CGU) exceeds its recoverable amount. The recoverable amount of an asset is the greater of
its fair value less cost to sell and value in use. To calculate value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current
market rates and the risk specific to the asset. For an asset that does not generate largely
independent cash inflows, the recoverable amount is determined for the CGU to which the asset
belongs. Fair value less cost to sell is the best estimate of the amount obtainable from the sale of
an asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of
disposal.Impairment losses, if any, are recognized in the Statement of Profit and Loss and included
in depreciation and amortization expense. Impairment losses are reversed in the Statement of Profit
and Loss only to the extent that the asset''s carrying amount does not exceed the carrying amount
that would have been determined if no impairment loss had previously been recognized.
v) Non-Current Asset Held for Sale
The Company classifies non-current assets as held for sale if their carrying amounts will be recovered
principally through a sale rather than through continuing use of the assets and actions required to
complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or
that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the
management expects to complete the sale within one year from the date of classification.Non-current
assets classified as held for sale are measured at the lower of their carrying amount and the fair value
less cost to sell. Non-current assets held are not depreciated or amortized.
vi) Financial Assets
Initial recognition
The Company recognizes financial assets in its Balance Sheet when it becomes a party to the contractual
provisions of the instrument. As per Ind AS 109,
(a) for financial assets or financial liabilities not subsequently measured at fair value through profit or
loss, the company recognizes financial assets and financial liabilities at initial recognition at fair
value plus or minus the transaction costs that are directly attributable to the acquisition or issue of
the financial asset or financial liabilities.
(b) For financial assets or liabilities classified as at fair value through profit or loss, the company
recognizes financial assets and financial liabilities at initial recognition at fair value and the transaction
cost are recognised in profit or loss immediately on initial recognition.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the
difference between the fair value and the transaction price is recognized as a gain or loss in the
Statement of Profit and Loss at initial recognition if the fair value is evidenced by a quoted price in an
active market for an identical asset (i.e. a Level 1 input) or based on a valuation technique that uses only
data from observable markets (i.e. Level 2 input).
Subsequent measurement
For subsequent measurement, the Company classifies a financial asset in accordance with the below
criteria:
i) The Company''s business model for managing the financial asset and
ii) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Company classifies its financial assets into the following categories:
i) Financial assets measured at amortized cost
ii) Financial assets measured at fair value through other comprehensive income (FVTOCI)
iii) Financial assets measured at fair value through profit or loss (FVTPL)
Financial assets carried 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.
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.
Further, in cases where the Company has made an irrevocable election based on its business model,
for its investments which are classified as equity instruments, the subsequent changes in fair value are
recognized in other comprehensive income.
Financial assets at fair value through profit or loss
Any financial asset that does not meet the criteria for classification as at amortized cost or as financial
assets at fair value through other comprehensive income, is classified as financial assets at fair value
through profit or loss. Further, financial assets at fair value through profit or loss also include financial
assets held for trading and financial assets designated upon initial recognition at fair value through
profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Financial assets at fair value through profit or loss are fair
valued at each reporting date with all the changes recognized in the statement of profit and loss.
Impairment
An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable
amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means
the present value of future cash flows expected to arise from the continuing use of the asset and its
eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related
objectively to an event occuring after the impairment loss was recognized.Impairment applies to all
assets except the following:
1. Inventories (as per Ind AS 2 Inventories)
2. Financial assets that are within the scope of Ind AS 39 Financial Instruments.
3. Non-current Assets classified as held for sale in accordance with Ind AS 105 Non-current Assets
held for Sale and Discontinued Operations.Therefore it is not applicable in our financials.
b. Financial liabilities
Initial recognition
The Company recognizes a financial liability in its Balance Sheet when it becomes party to the
contractual provisions of the instrument. As per Ind AS 109 the company recognizes financial
assets and financial liabilities at initial recognition at fair value plus or minus , for financial assets or
financial liabilities not subsequently measured at fair value through profit or loss , transaction costs
that are directly attributable to the acquisition or issue of the financial asset or financial liabilities.
For financial assets or liabilities classified as at fair value through profit or loss , transaction cost
are recognised in profit or loss immediately on initial recognition.Where the fair value of a financial
liability at initial recognition is different from its transaction price, the difference between the fair
value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss
at initial recognition if the fair value is determined through a quoted market price in an active market
for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from
observable markets (i.e. level 2 input).
Subsequent measurement
Financial liabilities are subsequently carried at amortized cost. The interest expense on the amount
outstanding at the beginning of the period is recognized and included under finance cost in the
statement of profir & loss for the relevant period.
c. Derecognition of Financial Instruments.
The company derecognizes a financial asset when the contractual rights to the cash flow from the
financial asset expires or it transfers the financial asset and the transfer qualifies for derecognition
under Ind AS 109. A financial liability or a part of it is derecognized from the company''s Balance
sheet when the obligation specified in the contract is discharged or cancelled or expires. On
derecognition of a financial asset in its entirety, the difference between (a) the carrying amount
(measured at the date of derecognition) and (b) the consideration received (including any new
asset obtained less any new liability assumed) shall be recognised in profit or loss/other
comprehensive income.
Mar 31, 2024
Note 2 : Significant Accounting Policies and Estimates
i) Basis of preparation of financial statements Basis of Accounting:
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial assets and financial liabilities which are measured at fair values, the provisions of the Companies Act, 2013 (âthe Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
Use of Estimates:
The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
CURRENT/NON CURRENT CLASSIFICATION:
The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.
A. An asset is current when it is (a) expected to be realized or intended to be sold or consumed in the normal operating cycle; or (b) held primarily for the purpose of trading; or (c) expected to be realised within twelve months after the reporting period; or (d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
B. All other assets are classified as non-current.
C. A liability is current when (a) it is expected to be settled in the normal operating cycle; or (b) it is held primarily for the purpose of trading; or (c) it is due to be settled within twelve months after the reporting period; or (d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
D. All other liabilities are classified as non-current.
E. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
F. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.
ii) Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and can be reliable measured, regardless of the timing of receipt of payment. Revenue is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates allowed by the Company. Taxes and duties are collected by the Company to be deposited with the government and not received by the Company on its account accordingly, it is excluded from revenue.
Sale of Goods
Revenue from sale of goods is recognised, when all significant risks and rewards are transferred to the buyer, as per the terms of the contracts and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods. It is measured at fair value of consideration received or receivable, net returns and allowances, trade discounts and volume rebates. Taxes and duties collected on behalf of the government is excluded from revenue.
Dividend Income
Dividend Income is recognised when the Company''s right to receive the same is established, which is generally when shareholders approve the dividend.
Interest Income
Interest income is recognized using effective interest method.
Service Revenue
Services charges are recognized when the stage of completion can be measured reliably.
iii) Foreign Currency Transactions
These financial statements are presented in Indian rupees. Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.
Foreign Currency Translation Initial Recognition:
On initial recognition, transactions in foreign currencies entered into by the Company are recorded in the functional currency (i.e. Indian Rupees), by applying to the foreign currency amount, the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss.
iv) Tangible Assets
a. Property, Plant and Equipment.
Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the Management. The Company depreciates property, plant and equipment using the diminishing balance method.The cost of assets not put to use before such date are disclosed under âCapital work-in-progress''. Subsequent expenditures relating to property, plant and equipment are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the Statement of Profit and Loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell.
b. Depreciation and Amortization
Depreciation on each part of an item of property, plant and equipment is provided using the reducing balance method based on the useful life of the asset as estimated by the management and is charged to the Statement of Profit and Loss as per the requirement of Schedule II of the Companies Act, 2013. The estimate of the useful life of the assets has been assessed based on technical advice which considers the nature of the asset, the usage of the asset, expected physical wear and tear, the operating conditions of the asset, anticipated technological changes, manufacturers warranties and maintenance support, etc. The estimated useful life of items of property, plant and equipment is mentioned below:
c. Derecognition:
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the Derecognition of an item of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the Statement of Profit and Loss when the item is derecognized.
d. Impairment
Property, Plant and Equipment
An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit (CGU) exceeds its recoverable amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in use. To calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market rates and the risk specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the CGU to which the asset belongs. Fair value less cost to sell is the best estimate of the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.Impairment losses, if any, are recognized in the Statement of Profit and Loss and included in depreciation and amortization expense. Impairment losses are reversed in the Statement of Profit and Loss only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had previously been recognized.
v) Non-Current Asset Held for Sale
The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and actions required to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification.Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non-current assets held are not depreciated or amortized.
vi) Financial Assets Initial recognition
The Company recognizes financial assets in its Balance Sheet when it becomes a party to the contractual provisions of the instrument. As per Ind AS 109,
(a) for financial assets or financial liabilities not subsequently measured at fair value through profit or loss, the company recognizes financial assets and financial liabilities at initial recognition at fair value plus or minus the transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liabilities.
(b) For financial assets or liabilities classified as at fair value through profit or loss, the company recognizes financial assets and financial liabilities at initial recognition at fair value and the transaction cost are recognised in profit or loss immediately on initial recognition.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair value is evidenced by a quoted price in an active market for an identical asset (i.e. a Level 1 input) or based on a valuation technique that uses only data from observable markets (i.e. Level 2 input).
Subsequent measurement
For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria: i) The Company''s business model for managing the financial asset and ii) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Company classifies its financial assets into the following categories:
i) Financial assets measured at amortized cost
ii) Financial assets measured at fair value through other comprehensive income (FVTOCI)
iii) Financial assets measured at fair value through profit or loss (FVTPL)
Financial assets carried 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.
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. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.
Financial assets at fair value through profit or loss
Any financial asset that does not meet the criteria for classification as at amortized cost or as financial assets at fair value through other comprehensive income, is classified as financial assets at fair value through profit or loss. Further, financial assets at fair value through profit or loss also include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Financial assets at fair value through profit or loss are fair valued at each reporting date with all the changes recognized in the statement of profit and loss.
Impairment
An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occuring after the impairment loss was recognized.Impairment applies to all assets except the following:
1. Inventories (as per Ind AS 2 Inventories)
2. Financial assets that are within the scope of Ind AS 39 Financial Instruments.
3. Non-current Assets classified as held for sale in accordance with Ind AS 105 Non-current Assets held for Sale and Discontinued Operations.
Therefore it is not applicable in our financials.
b. Financial liabilities Initial recognition
The Company recognizes a financial liability in its Balance Sheet when it becomes party to the contractual provisions of the instrument. As per Ind AS 109 the company recognizes financial assets and financial liabilities at initial recognition at fair value plus or minus , for financial assets or financial liabilities not subsequently measured at fair value through profit or loss , transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liabilities. For financial assets or liabilities classified as at fair value through profit or loss , transaction cost are recognised in profit or loss immediately on initial recognition.
Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2 input).
Subsequent measurement
Financial liabilities are subsequently carried at amortized cost. The interest expense on the amount outstanding at the beginning of the period is recognized and included under finance cost in the statement of profir & loss for the relevant period.
c. Derecognition of Financial Instruments.
The company derecognizes a financial asset when the contractual rights to the cash flow from the financial asset expires or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability or a part of it is derecognized from the company''s Balance sheet when the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial asset in its entirety, the difference between (a) the carrying amount (measured at the date of derecognition) and (b) the consideration received (including any new asset obtained less any new liability assumed) shall be recognised in profit or loss/other comprehensive income.
Mar 31, 2023
Note 1 : Company Overview
i) General Information
Dhoot Industrial Finance Limited (the âCompany'') was incorporated as Public Limited Company under the laws of India on October 27, 1978 in Mumbai under Companies Act, 1956. The Company is engaged in trading activities of goods and share stocks, power generation. The Authorized Capital of the Company is Rs 6,40,00,000/- and Paid up capital of Rs 6,31,80,000/- divided into 63,18,000 Equity Shares of Rs. 10 each.
The registered office of the company is located at 504, Raheja Center, 214, Nariman Point, Mumbai. The Company is listed on Bombay Stock Exchange (BSE). The financial Statements of the Company are approved for issue by the Company''s Board of Directors on 18th May 2023.
Note 2 : Significant Accounting Policies and Estimates
i) Statement of Compliance
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as âInd Asâ) notified under the Companies (Indian Accounting Standards ) Rules 2015 with effect from April 01, 2016.
Further, in accordance with the notification issued by the Ministry of Corporate Affairs under the Companies Act, 2013 (18 of 2013), dated 24th, March 2021, the Company has adopted the amendments in Schedule III to the said Act, while preparing financial statements namely Balance Sheet, Statement of Profit and Loss, Statement of Change in Equity, Cash flow statement and Notes to the Stand alone financial statements with effect from April 01, 2021.
ii) Basis of preparation of financial statements Basis of Accounting:
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial assets and financial liabilities which are measured at fair values.
Use of Estimates:
The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
CURRENT/NON CURRENT CLASSIFICATION:
The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.
A. An asset is current when it is (a) expected to be realized or intended to be sold or consumed in the normal operating cycle; or (b) held primarily for the purpose of trading; or (c) expected to be realised within twelve months after the reporting period; or (d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
B. All other assets are classified as non-current.
C. A liability is current when (a) it is expected to be settled in the normal operating cycle; or (b) it is held primarily for the purpose of trading; or (c) it is due to be settled within twelve months after the
reporting period; or (d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
D. All other liabilities are classified as non-current.
E. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
F. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.
ii) Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and can be reliable measured, regardless of the timing of receipt of payment. Revenue is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates allowed by the Company. Taxes and duties are collected by the Company to be deposited with the government and not received by the Company on its account accordingly, it is excluded from revenue.
Revenue from sale of goods is recognised, when all significant risks and rewards are transferred to the buyer, as per the terms of the contracts and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods. It is measured at fair value of consideration received or receivable, net returns and allowances, trade discounts and volume rebates. Taxes and duties collected on behalf of the government is excluded from revenue.
Dividend Income is recognised when the Company''s right to receive the same is established, which is generally when shareholders approve the dividend.
Interest income is recognized using effective interest method.
Services charges are recognized when the stage of completion can be measured reliably.
iii) Tangible Assets
a. Property, Plant and Equipment.
Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the Management. The Company depreciates property, plant and equipment using the diminishing balance method.
The cost of assets not put to use before such date are disclosed under âCapital work-in-progress''. Subsequent expenditures relating to property, plant and equipment are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the Statement of Profit and Loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell.
b. Depreciation and Amortization
Depreciation on each part of an item of property, plant and equipment is provided using the reducing balance method based on the useful life of the asset as estimated by the management and is charged to the Statement of Profit and Loss as per the requirement of Schedule II of the
Companies Act, 2013. The estimate of the useful life of the assets has been assessed based on technical advice which considers the nature of the asset, the usage of the asset, expected physical wear and tear,the operating conditions of the asset, anticipated technological changes, manufacturers warranties and maintenance support, etc. The estimated useful life of items of property, plant and equipment is mentioned below:
|
Particulars |
Estimated Life(in years) |
|
Furniture & Fixures |
10 |
|
Vehicles |
8 |
|
Office equipment |
5 |
|
Office Premises |
60 |
|
Computers |
3 |
|
Air conditioners |
5 |
|
Electrical Installations and Equipments |
10 |
|
Wind Mills |
22 |
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the Derecognition of an item of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the Statement of Profit and Loss when the item is derecognized.
d. Impairment
Property. Plant and Equipment
An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit (CGU) exceeds its recoverable amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in use. To calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market rates and the risk specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the CGU to which the asset belongs. Fair value less cost to sell is the best estimate of the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.
Impairment losses, if any, are recognized in the Statement of Profit and Loss and included in depreciation and amortization expense. Impairment losses are reversed in the Statement of Profit and Loss only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had previously been recognized.
iv) Non-Current Asset Held for Sale
The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and actions required to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification.
Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non-current assets held are not depreciated or amortized.
v) Financial Assets Initial recognition
The Company recognizes financial assets in its Balance Sheet when it becomes a party to the contractual provisions of the instrument. As per Ind AS 109,
(a) for financial assets or financial liabilities not subsequently measured at fair value through profit or loss, the company recognizes financial assets and financial liabilities at initial recognition at fair value plus or minus the transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liabilities.
(b) For financial assets or liabilities classified as at fair value through profit or loss, the company recognizes financial assets and financial liabilities at initial recognition at fair value and the transaction cost are recognised in profit or loss immediately on initial recognition.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair value is evidenced by a quoted price in an active market for an identical asset (i.e. a Level 1 input) or based on a valuation technique that uses only data from observable markets (i.e. Level 2 input).
Subsequent measurement
For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:
i) The Company''s business model for managing the financial asset and
ii) The contractual cash flow characteristics of the financial asset.
Based on the above criteria, the Company classifies its financial assets into the following categories:
i) Financial assets measured at amortized cost
ii) Financial assets measured at fair value through other comprehensive income (FVTOCI)
iii) Financial assets measured at fair value through profit or loss (FVTPL)
Financial assets carried 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.
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. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.
Financial assets at fair value through profit or loss
Any financial asset that does not meet the criteria for classification as at amortized cost or as financial assets at fair value through other comprehensive income, is classified as financial assets at fair value through profit or loss. Further, financial assets at fair value through profit or loss also include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Financial assets at fair value through profit or loss are fair valued at each reporting date with all the changes recognized in the statement of profit and loss.
Impairment
An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occuring after the impairment loss was recognized.Impairment applies to all assets except the following:
1. Inventories (as per Ind AS 2 Inventories)
2. Financial assets that are within the scope of Ind AS 39 Financial Instruments.
3. Non-current Assets classified as held for sale in accordance with Ind AS 105 Non-current Assets held for Sale and Discontinued Operations.Therefore it is not applicable in our financials.
b. Financial liabilities Initial recognition
The Company recognizes a financial liability in its Balance Sheet when it becomes party to the contractual provisions of the instrument. As per Ind AS 109 the company recognizes financial assets and financial liabilities at initial recognition at fair value plus or minus , for financial assets or financial liabilities not subsequently measured at fair value through profit or loss , transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liabilities. For financial assets or liabilities classified as at fair value through profit or loss , transaction cost are recognised in profit or loss immediately on initial recognition.
Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2 input).
Subsequent measurement
Financial liabilities are subsequently carried at amortized cost. The interest expense on the amount outstanding at the beginning of the period is recognized and included under finance cost in the statement of profit & loss for the relevant period.
c. Derecognition of Financial Instruments.
The company derecognizes a financial asset when the contractual rights to the cash flow from the financial asset expires or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability or a part of it is derecognized from the company''s Balance sheet when the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial asset in its entirety, the difference between (a) the carrying amount (measured at the date of derecognition) and (b) the consideration received (including any new asset obtained less any new liability assumed) shall be recognised in profit or loss/other comprehensive income.
vi) Provisions. Contingencies and Commitments
Provisions: Provisions are recognised when there is a present obligation 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 there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
vii) Cash and Cash Equivalents
Cash and cash equivalents include cash & cheques in hand and bank balances. viii Income Tax
Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.
Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit differs from âprofit before tax'' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible under the Income Tax Act, 1961.
Current tax is measured using tax rates that have been enacted by the end of reporting period for the amounts expected to be recovered from or paid to the taxation authorities.
Deferred tax:
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit under Income Tax Act, 1961.
Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognized.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits will be available against which those deductible temporary difference can be utilized. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognized.
The carrying amount of deferred tax assets is reviewed at the end of each reporing period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits of part or all of such deferred tax assets to be utilized.Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
Presentation of current and deferred tax:
Current and deferred tax are recognized as income or an expense in the statement of Profit and Loss, except when they relate to items that are recognized in Other Comprehensive Income, in which case, the current and deferred tax income/expense are recognized in Other Comprehensive Income.
The company offsets current tax assets and current tax liabilities,where it has legally enforceable right to setoff the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. In case of deferred tax assets and deferred tax liabilites, the same are offset if the company has a legally enforceable right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.
ix) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
x) Lease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
The right to use assets are initially recognized at cost which comprises initial amount of the lease liability adjusted for any lease payment made at or prior to the date of the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-to- use assets are depreciated from the commencement date on straight line basis over lesser of the lease period or the useful life of the asset.
Lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable using the incremental borrowing rate for the Company.
The right-to-use assets and the lease liabilities are tested for impairment and re-measured annually to arrive at the current carrying value and if found required, adjustments are made to the right-to-use assets and/or lease liability.
xi) Cash flow statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
xii) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.
The Company has two operating and reporting segments namely, Trading, and Others (included Power Generation). Trading segments include all trading activities of Chemicals, Nickel and Copper. Segments have been identified in line with Indian Accounting Standard-108, taking into account quantitative thresholds
xiii) Employee Benefits
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service.
Post Employment Benefits like Provident Fund Scheme, Gratuity Scheme, Pension Scheme and PostRetirement Medical benefit plan; Other Long Term Employee Benefits like Long- Service leave, Longterm disability benefits & Termination benefits are not applicable to company.
xiv) Events after Reporting date
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.
xv) Capital WIP
Capital work in progress and Capital advances:Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress.
Advance given towards acquisition of fixed assets outstanding at each Balance Sheet date are disclosed as Other Non-Current Assets.
xvi) Fair Value
The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities
(Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).
Level 1 â quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 â inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3 â inputs that are unobservable for the asset or liability
xvii) Key accounting estimates
The preparation of the Company''s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The preparation of the Company''s financial statements required management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosures of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment in the future periods in the carrying amount of assets or liabilities affected.
The Company''s accounting policies, management has made judgements in respect of evaluation of recoverability of deferred tax assets, which has the most significant effect on the amounts recognized in the financial statements:
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within;
a) Useful life of property, plant and equipment and intangible assets: The Company has estimated useful life of the Property Plant and Equipment as specified in Schedule II to the Companies Act, 2013. However the actual useful life for individual equipments could turn out to be different, there could be technology changes, breakdown, unexpected failure leading to impairment or complete
discard. Alternately the equipment may continue to provide useful service well beyond the useful life assumed.
b) Fair value measurement of financial instruments: When the fair values of financial assets and financial liabilities cannot be measured based on quoted process in active market, the fair value is measured using valuation techniques including the discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not possible, a degree of judgement is required in establishing fair values.
c) Impairment of financial and non-financial assets: The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the input for the impairment calculations, based on Company''s past history, existing market conditions, technology, economic developments as well as forward looking estimates at the end of each reporting period.
d) Taxes: Taxes have been paid / provided, exemptions availed, allowances considered etc. are based on the extant laws and the Company''s interpretation of the same based on the legal advice received wherever required. These could differ in the view taken by the authorities, clarifications issued subsequently by the government and courts, amendments to statutes by the government etc.
e) Defined benefit plans: The cost of defined benefit plans and other post -employment benefits plans and the present value of such obligations are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future.
Mar 31, 2015
1. Basis of Accounting:- The financial statements are prepared on the
basis of going concern, under historical cost convention and on accrual
basis of accounting and in compliance with the Accounting Standards
referred to in section 133 of the Companies Act, 2013 ("the Act"), read
with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant
provisions of the Act. Claims against the company are recognized when
finally accepted by the company.
2. Use of Estimates:
The preparation of the financial statements, in conformity with
generally accepted accounting principles, requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, revenues and expenses and disclosure of contingent
liabilities at the date of the financial statements. Actual results
could differ from those estimates. Management believes that the
estimates used in the preparation of the financial statements are
prudent and reasonable. Any revision to the accounting estimates is
recognized prospectively.
3 Classification of Assets and Liabilities:-
Assets and Liabilities are classified as Current / Non-current
considering, inter alia, expected realization / settlement thereof in
the Company's normal Operating Cycle (of 5 months) or a period of 12
months from Balance Sheet date.
4 Fixed Assets:- (a) Fixed Assets are carried at cost of acquisition
less accumulated depreciation.
(b) Cost is inclusive of duties, taxes, erection / commissioning
expenses and incidental expenses and Sales Tax set off wherever
applicable.
5 Method of Depreciation:- Depreciation has been provided, considering
the lives as prescribed by Schedule II of the Act, on Written Down
Value Method in respect of Tangible Assets.
Assets costing less than Rs, 5000/- each, acquired during the financial
year, are being fully charged off to the Statement of Profit and Loss.
6 Valuation of Investments:- Long Term Investments are carried at cost.
The cost of investments includes brokerage, Security Transaction Tax
and stamp duty. Provision for diminution, if any, is made to recognize
a decline, other than temporary, in the value of investments. In case
of sale of investments or part thereof the purchase cost is allocated
as per weighted average method in accordance with Accounting Standard
13-Accounting for Investments.
7 Valuation of Stock in Trade:- Stock in trade (Quoted Shares) is
valued at cost or market price whichever is lower. In case of sale of
Stock in Trade (Quoted Shares) or part thereof the purchase cost is
allocated as per weighted average method in accordance with Accounting
Standard 13- Accounting for Investments.
8 Income Recognition:- (a) Sale of trading goods is recognized on the
date of invoice exclusive of sales tax/VAT and trade discount.
(b) Profit / Loss from trading in Shares are accounted on the date of
contract note received from the Broker.
9 Provision for Current Tax & Deferred Tax:-
(a) Current Tax:
Provision for Current Tax is made on the basis of taxable income for
the current year in accordance with the provisions of the Income Tax
Act, 1961.
(b) Deferred Tax:
Income tax expense is accrued in accordance with Accounting Standard 22
 Accounting for Taxes on Income, which includes current and deferred
taxes. Deferred Income Taxes reflect the impact of timing differences
between taxable income & accounting income for the year and
reversal/restatement of timing differences of earlier years.
Deferred tax assets and liabilities are measured using the tax rate and
tax laws that have been enacted or substantively enacted by the balance
sheet date.
Deferred tax assets are recognized for all reversible timing
differences, carry forward of unused tax assets and unused tax losses
subject to consideration of prudence. Carrying amount of deferred tax
assets is reviewed at each balance sheet date on the same
consideration.
10. Provisions, Contingent Liabilities and Contingent Assets:- (a) The
Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
(b) Contingent Liability is disclosed, unless the possibility of an
outflow of resources is remote.
(c) Contingent Assets are neither recognized nor disclosed.
11. Foreign Currency Transactions:-
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transactions. Foreign currency
denominated assets and liability at the balance sheet date is
translated at the exchange rate prevailing on the date of the Balance
Sheet.
Mar 31, 2014
1. Basis of Accounting-
The Financial Statements are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
2 Classification of Assets and Liabilities:-
Assets and Liabilities are classified as Current / Non-current
considering, inter alia, expected realization / settlement thereof in
the Company''s normal Operating Cycle (of 5 months) or a period of 12
months from Balance Sheet date.
3 Fixed Assets-
a) Fixed Assets are carried at cost of acquisition except office
premises revalued on 14th March, 1994 which is stated at a value
determined by the valuers, less accumulated depreciation.
b) Cost is inclusive of duties, taxes, erection / commissioning
expenses and incidental expenses and Sales Tax set off wherever
applicable.
4 Method of Depreciation-
Depreciation on assets has been provided on Written Down Value Method
in accordance with rates specified in notification no. GSR 756(E) dated
16th December 1993 and Circular no. 14/ 93 (No. 1/12/92-CL V) dated
20th December, 1993 issued by the Ministry of Law, Justice and Company
Affair, Department of Company Affairs and in the manner specified in
Schedule XIV of the Companies Act, 1956 read with the said Notification
and Circular.
5 Valuation of Investments-
Long Term Investments are carried at cost. The cost of investments
includes brokerage, Security Transaction Tax and stamp duty. Provision
for diminution, if any, is made to recognize a decline, other than
temporary, in the value of investments.
6 Valuation of Stock in Trade-
Stock in trade (Un-quoted shares) is valued at cost or net realisable
value whichever is lower. Stock in trade (Quoted Shares) is valued at
cost or market price whichever is lower.
7 Income Recognition-
a) Sale of trading goods is recognized on the date of invoice exclusive
of sales tax/VAT and trade discount.
b) Profit / Loss from trading in Shares are accounted on the date of
contract note received from the Broker.
8 Provision for Current & Deferred Tax-
a) Provision for Current Tax is made on the estimated taxable income,
at the rate applicable to the relevant assessment year.
b) In accordance with Accounting Standard 22 "Accounting for Taxes on
Income" issued by the ICAI, the deferred tax for timing differences is
accounted for, using the tax rates and laws that have been enacted or
substantially enacted by the balance sheet date.
c) Deferred tax assets arising from timing differences are recognized
only on the consideration of prudence.
9. Provisions, Contingent Liabilities and Contingent Assets-
a) The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
b) Contingent Liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
c) Contingent Assets are neither recognized nor disclosed.
10. Impairment of Assets:-
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
assets and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
assets net sales or present value as determined above.
11. Foreign Currency Transactions:-
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transactions. Foreign currency
denominated assets and liability at the balance sheet date is
translated at the exchange rate prevailing on the date of the Balance
Sheet.
Mar 31, 2013
1. Basis of Accounting:-
The Financial Statements are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
2. Classification of Assets and Liabilities:-
Assets and Liabilities are classified as Current / Non-current
considering, inter alia, expected realization / settlement thereof in
the Company''s normal Operating Cycle (of 5 months) or a period of 12
months from Balance Sheet date.
3. '' Fixed Assets:-
a) Fixed Assets are carried at cost of acquisition except office
premises revalued on 14th March, 1994 which is stated at a value
determined by the valuers, less accumulated depreciation.
b) Cost is inclusive of duties, taxes, erection / commissioning
expenses and incidental expenses and Sales Tax set off wherever
applicable.
4. Method of Depreciation:-
Depreciation on assets has been provided on Written Down Value Method
in accordance with rates specified in notification no. GSR 756(E) dated
16* December 1993 and Circular no. 14/93 (No. 1/12/92-CL V) dated
20*'' December, 1993 issued by the Ministry of Law, Justice and
Company Affair, Department of Company Affairs and in the manner
specified in Schedule XIV of the Companies Act, 1956 read with the said
Notification and Circular.
5. Valuation of Investments:-
Long Term Investments are carried at cost The cost of investments
includes brokerage, Security Transaction Tax and stamp duty. Provision
for diminution, if any, is made to recognize a decline, other than
temporary, in the value of investments.
6. Valuation of Stock in Trade:-
Stock in trade (Un-quoted shares) is valued at cost or net realizable
value whichever is lower. Stock in trade (Quoted Shares) is valued at
cost or market price whichever is lower.
7. Income Recognition:-
a) Sale of trading goods is recognized on the date of invoice exclusive
of sales tax/VAT and trade discount
b) Profit / Loss from trading in Shares are accounted on the date of
contract note received from the Broker.
8. Provision for Current & Deferred Tax:-
a) Provision for Current Tax is made on the estimated taxable income,
at the rate applicable to the relevant assessment year.
b) In accordance with Accounting Standard 22 "Accounting for Taxes on
Income'' issued by the ICAI, the deferred tax for timing differences
is accounted for, using the tax rates and laws that have been enacted
or substantially enacted by the balance sheet date.
c) Deferred tax assets arising from timing differences are recognized
only on the consideration of prudence. ,
9. Provisions, Contingent Liabilities and Contingent Assets:-
a) The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
b) Contingent Liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
c) Contingent Assets are neither recognized nor disclosed.
10. Impairment of Assets:-
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
assets and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
assets net sales or present value as determined above.
11. Foreign Currency Transactions:-
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transactions. Foreign currency
denominated assets and liability at the balance sheet date is
translated at the exchange rate prevailing on the date of the Balance
Sheet
Mar 31, 2012
1. Basis of Accounting-
The Financial Statements are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
2. Classification of Assets and Liabilities:-
Assets and Liabilities are classified as Current / Non-current
considering, inter alia, expected realization / settlement thereof in
the Company's normal Operating Cycle (of 5 months) or a period of 12
months from Balance Sheet date.
3. Fixed Assets:-
a) Fixed Assets are carried at cost of acquisition except office
premises revalued on 14th March, 1994 which is stated at a value
determined by the valuers, less accumulated depreciation.
b) Cost is inclusive of duties, taxes, erection / commissioning
expenses and incidental expenses and Sales Tax set off wherever
applicable.
4. Method of Depreciation:-
Depreciation on assets has been provided on Written Down Value Method
in accordance with rates specified in notification no. GSR 756(E) dated
16th December 1993 and Circular no. 14/93 (No. 1/12/92-CL V) dated 20th
December, 1993 issued by the Ministry of Law, Justice and Company
Affair, Department of Company Affairs and in the manner specified in
Schedule XIV of the Companies Act, 1956 read with the said Notification
and Circular.
5. Valuation of Investments:-
Long Term Investments are carried at cost. The cost of investments
includes brokerage, Security Transaction Tax and stamp duty. Provision
for diminution, if any, is made to recognize a decline, other than
temporary, in the value of investments.
6. Valuation of Stock in Trade:-
Stock in trade (Un-quoted shares) is valued at cost or net realisable
value whichever is lower. Stock in trade (Quoted Shares) is valued at
cost or market price whichever is lower.
7. Income Recognition:-
a) Sale of trading goods is recognized on the date of invoice exclusive
of sales tax/VAT and trade discount.
b) Profit / Loss from trading in Shares are accounted on the date of
contract note received from the Broker.
8. Provision for Current & Deferred Tax-
a) Provision for Current Tax is made on the estimated taxable income,
at the rate applicable to the relevant assessment year.
b) In accordance with Accounting Standard 22 ÃAccounting for Taxes on
Incomeà issued by the ICAI, the deferred tax for timing differences
is accounted for, using the tax rates and laws that have been enacted
or substantially enacted by the balance sheet date.
c) Deferred tax assets arising from timing differences are recognized
only on the consideration of prudence.
9. Provisions, Contingent Liabilities and Contingent Assets-
a) The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
b) Contingent Liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
c) Contingent Assets are neither recognized nor disclosed.
10. Impairment of Assets:-
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
assets and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
assets net sales or present value as determined above.
11. Foreign Currency Transactions:-
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transactions. Foreign currency
denominated assets and liability at the balance sheet date is
translated at the exchange rate prevailing on the date of the Balance
Sheet.
Mar 31, 2011
1. Basis of Accounting:-
The Financial Statements are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
2. Fixed Assets:-
a) Fixed Assets are carried at cost of acquisition except office
premises revalued on 14th March, 1994 which is stated at a value
determined by the valuers, less accumulated depreciation.
b) Cost is inclusive of duties, taxes, erection / commissioning
expenses and incidental expenses and Sales Tax set off wherever
applicable.
3. Method of Depreciation:-
Depreciation on assets has been provided on Written Down Value Method
in accordance with rates specified in notification no. GSR 756(E) dated
16th December 1993 and Circular no. 14/93 (No. 1/12/92-CL V) dated 20th
December, 1993 issued by the Ministry of Law, Justice and Company
Affair, Department of Company Affairs and in the manner specified in
Schedule XIV of the Companies Act, 1956 read with the said Notification
and Circular.
4. Valuation of Investments:-
Long Term Investments are valued on FIFO basis. The cost of investments
includes bro- kerage, Security Transaction Tax and stamp duty. A
provision for diminution, if any, is made to recognize a decline, other
than temporary, in the value of investments.
5. Valuation of Stock in Trade:-
Stock in trade (Un-quoted shares) is valued at cost or Net Realisable
Value whichever is lower. In case of Stock in trade (Quoted Shares) is
valued at cost or market price whichever is lower.
6. Income Recognition:-
a) Sale of trading goods is recognized on the date of invoice exclusive
of sales tax and trade discount.
b) Profit / Loss from trading in Shares are accounted on the date of
contract note received from the Broker.
7. Provision for Current & Deferred Tax:-
a) Provision for Current Tax is made on the estimated taxable income,
at the rate applicable to the relevant assessment year.
b) In accordance with Accounting Standard 22 "Accounting for Taxes on
Income" issued by the ICAI, the deferred tax for timing differences is
accounted for, using the tax rates and laws that have been enacted or
substantially enacted by the balance sheet date.
c) Deferred tax assets arising from timing differences are recognized
only on the consid- eration of prudence.
8. Provisions, Contingent Liabilities and Contingent Assets:-
a) The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
b) Contingent Liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
c) Contingent Assets are neither recognized nor disclosed.
9. Impairment of Assets:-
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
assets and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
assets net sales or present value as determined above.
10. Foreign Currency Transactions:-
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of the transactions. Foreign currency
denominated assets and liability at the balance sheet date is
translated at the exchange rate prevailing on the date of the Balance
Sheet.
11. Earnings per share:-
In determining the earnings per share, the Company considers the net
profit after tax and post tax effect of any extra-ordinary/exceptional
item is shown separately. The number of shares considered in computing
basic earnings per share is the weighted average number of shares
outstanding during the year.
Mar 31, 2010
1. Basis of Accounting:-
The Financial Statements are prepared under the historical cost
convention and are in accordance with applicable mandatory Accounting
Standards notified by the companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956.
2. Fixed Assets:-
a) Fixed Assets are carried at cost of acquisition except office
premises revalued on 14th March, 1994 which is stated at a value
determined by the valuers, less accumulated depreciation.
b) Cost is inclusive of duties, taxes, erection / commissioning
expenses and incidental expenses and Sales Tax set off wherever
applicable.
3. Method of Depreciation :-
Depreciation on assets has been provided on written down value method
in accordance with rates specified in notification no. GSR 756(E) dated
16th December 1993 and Circular no. 14/93 (No. 1 /12/92-CL V) dated
20th December, 1993 issued by the Ministry of Law, Justice and Company
Affair, Department of Company Affairs and in the manner specified in
Schedule XIV of the Companies Act, 1956 read with the said Notification
and Circular.
4. Valuation of Investments:-
Long Term Investments are valued on FIFO basis. The cost of investments
includes brokerage, Security Transaction Tax but does not include stamp
duty, which is charged to revenue. A provision for diminution, if any,
is made to recognize a decline, other than temporary, in the value of
investments.
5. Valuation of Stock in Trade: -
Stock in trade (Un-quoted shares) in absence of market price is carried
at cost. In case of Stock in trade (Quoted Shares) is valued at cost or
market price whichever is lower.
6. Income Recognition:-
a) Sales of trading goods is accounted for inclusive of sales tax, net
of trade discount and recognized on the date of invoice.
b) Profit / Loss from Trading in Shares are accounted on the date of
contract note received from the Broker.
7. Provision for Current & Deferred Tax:-
a) Provision for Current Tax is made on the estimated taxable income,
at the rate applicable to the relevant assessment year.
b) In accordance with Accounting Standard 22 "Accounting for Taxes on
Income" issued
by the ICAI, the deferred tax for timing differences is accounted for,
using the tax rates and laws that have been enacted or substantially
enacted by the balance sheet date.
c) Deferred tax assets arising from timing differences are recognized
only on the consideration of prudence.
8. Provisions, Contingent Liabilities and Contingent Assets:-
a) The Company recognizes as Provisions, the liabilities being present
obligations arising out of past events, the settlement of which is
expected to result in an outflow of resources and which can be measured
only by using a substantial degree of estimation.
b) Contingent Liabilities are disclosed by way of a note to the
financial statements after careful evaluation by the management of the
facts and legal aspects of the matter involved.
c) Contingent Assets are neither recognized nor disclosed.
9. Impairment of Assets:-
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
assets and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
assets net sales or present value as determined above.
10. Foreign Currency Transactions:-
Transactions in Foreign currency are recorded at the exchange rate
prevailing on the date of the transactions. Foreign currency
denominated assets and liability at the balance sheet date is
translated at the exchange rate prevailing on the date of the balance
sheet.
11. Earnings per share:-
In determining the earnings per share, the Company considers the net
profit after tax and post tax effect of any extra-ordinary/exceptional
item is shown separately. The number of shares considered in computing
basic earnings per share is the weighted average number of shares
outstanding during the year.
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