Accounting Policies of Paras Petrofils Ltd. Company

Mar 31, 2024

2 Significant Accounting Policies and Notes to Accounts

2.1 Basis of Preparation of Accounts

The financial statements have been prepared under the historical cost convention, in accordance with Indian Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

The preparation of financial statements is in conformity with Indian Accounting Standards which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP 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 due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Going Concern

The Company has stop all its activities since last year. The company has taken permission from the share holders to dispose of assets of the company relating to its Yarn Manufacturing Activity in response to postal ballet Notice dated 04/08/2014 and result of the same was already disclosed on 15/09/2014.

The board of directors has decided to enter into the business activity of construction, considering the land holding of the company at a prime location of National Highway No. 8, Palsana, Surat. The company carries on into its efforts to identify a strategic partner in the same line of construction business. However, the management is not able to give a probable date for commencement of its business activities of the new venture.

Considering that the company has a positive net worth and does not have any borrowing from financial institution to be repaid. The company can meet all its liabilities out of its assets and Surplus Fund which is currently parked as loan & advances and earning interest thereon. Therefore, all the Assets and liabilities had been stated at Historical cost on the assumption of Going Concern.

2.4 Property, Plant and Equipments (IND AS 16)

Property, Plant and Equipments are stated at the cost of acquisition and subsequent improvement thereto less accumulated depreciation. The cost of acquisition includes purchase price and taxes, duties, freight and other expenses incurred for bringing the fixed assets to the working condition for its intended use, but net of Goods and Service Tax (to the extent credit available) on Capital Goods.

2.5 Depreciation and amortisation

Depreciation has not provided during the year on any of the Property, Plant and Equipments as they are retire from active use and is held for disposal.

Accumulated depreciation on plant & machinery sold has been reversed and has been properly accounted in respective asset account.

2.6 Borrowing costs (IND AS 23)

Borrowing costs are charged to revenue during the year. However, the company has not borrowed any fund during the year and no interest cost has been incurred during the reporting period.

2.7 Classification of Current & Non-Current Assets and Liabilities :

The company presents its assets and liabilities based on current and non-current classification.

An assets is classified as current when it is :

(i) Expected to be realised or intended to be sold or consumed in normal operating cycle. (ii) Held primarily for the purpose of trading. (iii) Expected to be realised within twelve months after the reporting period. All the other assets are classified as non - current assets A liability is classified as current when it is :

(i) Expected to be settled in normal operating cycle. (ii) Held primarily for the purpose of trading. (iii) It is due to be settled within twelve months after the reporting period. All other liabilities are classified as non - current liabilities

Further, Deferred tax asset and liability are classified as non-current assets and liabilities

2.8 Revenue recognition (IND AS 115)

Sale of Goods

As the company has discontinue its business activity, there were no revenue from operations.

Other Income

Other income includes interest on fixed deposits and interest loans and advances from the funds which are parked by the company.

2.9 Impairment (IND AS 36)

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed, and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

2.10 Taxes on income (IND AS 12)

The company''s tax jurisdictions is only in India. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

For the purpose of quantifying deferred tax amount as on Balance Sheet date deferred tax is recognised on timing differences being difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2023

2 Significant Accounting Policies and Notes to Accounts

2.1 Basis of Preparation of Accounts

The financial statements have been prepared under the historical cost convention, in accordance with Indian Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

The preparation of financial statements is in conformity with Indian Accounting Standards which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP 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 due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Going Concern

The Company has stop all its activities since last year. The company has taken permission from the share holders to dispose of assets of the company relating to its Yarn Manufacturing Activity in response to postal ballet Notice dated 04/08/2014 and result of the same was already disclosed on 15/09/2014.

The board of directors has decided to enter into the business activity of construction, considering the land holding of the company at a prime location of National Highway No. 8, Palsana, Surat. The company carries on into its efforts to identify a strategic partner in the same line of construction business. However, the management is not able to give a probable date for commencement of its business activities of the new venture.

Considering that the company has a positive networth and does not have any borrowing from financial institution to be repaid. The company can meet all its liabilities out of its assets and Surplus Fund which is currently parked as loan & advances and earning interest thereon. Therefore, all the Assets and liabilities had been stated at Historical cost on the assumption of Going Concern.

2.4 Property, Plant and Equipments (IND AS 16)

Fixed assets are stated at the cost of acquisition and subsequent improvement thereto less accumulated depreciation. The cost of acquisition includes purchase price and taxes, duties, freight and other expenses incurred for bringing the fixed assets to the working condition for its intended use, but net of MODVAT & VAT (to the extent credit available) on Capital Goods.

2.5 Depreciation and amortisation

Depreciation has not provided during the year on any of the Fixed Assets as the are retire from active use and is held for disposal.

Accumulated depreciation on plant & machinery sold has been reversed and has been properly accounted in respective asset account.

2.6 In The Absence of necessary information with Company relating to the status of the suppliers under Micro, Small and Medium Enterprises Act. 2006, the information could not be complied and disclosed.

2.7 Borrowing costs (IND AS 23)

Borrowing costs are charged to revenue during the year. However, the company has not borrowed any fund during the year and no interest cost has been incurred during the reporting period.

2.8 Investments (IND AS 40)

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets.

2.9 Classification of Current & Non-Current Assets and Liabilities :

The company presents its assets and liabilities based on current and non-current classification.

An assets is classified as current when it is :

(i) Expected to be realised or intended to be sold or consumed in normal operating cycle. (ii) Held primarily for the purpose of trading. (iii) Expected to be realsied within twelve months after the reporting period. All the other assets are classified as non - current assets A liability is classified as current when it is :

(i) Expected to be settled in normal operating cycle. (ii) Held primarily for the purpose of trading. (iii) It is due to be settled within twelve months after the reporting period. All other liabilities are classified as non - current liabilities

Further, Deferred tax asset and liability are classified as non-current assets and liabilities

2.10 Revenue recognition (IND AS 115)

Sale of Goods

As the company has discontinue its busines activity, there were no revenue from operations.

Other Income

Other income includes interest on fixed deposits and loans and advances from the funds which are parked by the company.

2.11 Impairment (IND AS 36)

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed, and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

2.12 Taxes on income (IND AS 12)

The company''s tax jurisdictions is only in India. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

For the purpose of quantifying deferred tax amount as on Balance Sheet date deferred tax is recognised on timing differences being difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2014

1 SYSTEM OF ACCOUNTING

(i) The financial statements are prepared on a historical cost convention and as a going concern concept .

(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

(iii) The Company follows the mercantile System of accounting and recognizes Income and expenditure on accrual basis except otherwise referred.

2 FIXED ASSETS AND DEPRECIATION

(i) Expenditure which are of Capital nature are capitalized at a cost net of CENVAT and VAT which comprises purchase price (net of rebates and discount), levies and any directly attributable cost of bringing the assets to working condition for its intended use.

(ii) Depreciation is charged on straight line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 on pro rata basis except on Building and Plant & Machinery due to non utilisation of the same during the year.

3 INVENTORY

(i) Raw materials are stated at cost or net realizable value whichever is lower.

(ii) Stock of finished goods have been valued at cost or net realizable value whichever is lower.

(iii) Stock of work in progress have been valued at cost or net realizable value whichever is lower.

(iv) The cost includes manufacturing expenses and appropriate overheads. Excise duty on finished goods lying at the plant is provided and considered for valuation of stock.

(v) Stock of waste have been valued at net realisable value

(vi) Stores and Spares are stated at Cost or net realizable value whichever is lower.

4 INVESTMENT

Investments have been valued at cost. Provision for diminution in the value of long tern investment is made only when such a decline is other then temporary in the opinion of the management.

5 BORROWING COST

(i) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized as part of the cost of that asset.

(ii) All other borrowing costs are charged to revenue.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are normally recorded at the rates of exchange prevailing at the time of transactions. Monetary items at the end of the year are translated at the year end rate. The difference between the exchange rate prevailing on the date of transactions and on the date of settlement, as also on translation at the end of the year is recognised as income or expenses, as the case may be for the year.

7 IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFITS

Company''s contributions to provident fund and ESIC are charged to profit and loss account. Incremental liability of gratuity for the year is provided in the books of accounts and charged to the profit & loss account on the basic of actuarial valuation. The eligible benefit of privileged leave have been charged to Profit & loss Account as per policy of the company.

9 TAXATION

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for further tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements, subject to consideration of prudence. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

10 INCOME FROM OPERATIONS

Revenue from Operations includes Sales and Excise Duty and Value Added Tax on Sales but is net of discounts, claims and returns.

11 PROVISION, CONTINGENCIES

A provision is recognised where there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liability are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed.

12 MAT Credit Entitlement

The MAT Credit entitlement has been recognised as an assets in the previous year as there was certainty to utilise the MAT Credit within the specified period. However due to huge loss incurred by the company during the previous year and further to suspension of Manufacturing activity during the year, MAT credit entitlement have been reversed back as uncertainty of the utilisation of the same within the specified period.

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Mar 31, 2013

1 SYSTEM OF ACCOUNTING

(i) The financial statements are prepared on a historical cost convention and as a going concern concept .

(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

(iii) The Company follows the mercantile System of accounting and recognizes Income and expenditure on accrual basis except otherwise referred.

2 FIXED ASSETS AND DEPRECIATION

(i) Expenditure which are of Capital nature are capitalized at a cost net of CENVAT and VAT which comprises purchase price (net of rebates and discount), levies and any directly attributable cost of bringing the assets to working condition for its intended use.

(ii) Depreciation is charged on straight line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 on pro rata basis.

3 INVENTORY

(i) Raw materials are stated at cost or net realizable value whichever is lower.

(ii) Stock of finished goods have been valued at cost or net realizable value whichever is lower.

(iii) Stock of work in progress have been valued at cost or net realizable value whichever is lower.

(iv) The cost includes manufacturing expenses and appropriate overheads. Excise duty on finished goods lying at the plant is provided and considered for valuation of stock.

(v) Stock of waste have been valued at net realisable value

(vi) Stores and Spares are stated at Cost or net realizable value whichever is lower.

4 INVESTMENT

Investments have been valued at cost. Provision for diminution in the value of long tern investment is made only when such a decline is other then temporary in the opinion of the management.

5 BORROWING COST

(i) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized as part of the cost of that asset.

(ii) All other borrowing costs are charged to revenue.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are normally recorded at the rates of exchange prevailing at the time of transactions. Monetary items at the end of the year are translated at the year end rate. The difference between the exchange rate prevailing on the date of transactions and on the date of settlement, as also on translation at the end of the year is recognised as income or expenses, as the case may be for the year.

7 IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFITS

Company''s contributions to provident fund and ESIC are charged to profit and loss account. Incremental liability of gratuity for the year is provided in the books of accounts and charged to the profit & loss account on the basic of actuarial valuation. The eligible benefit of privileged leave have been charged to Profit & loss Account as per policy of the company.

9 TAXATION

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for further tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements, subject to consideration of prudence. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

10 INCOME FROM OPERATIONS

Revenue from Operations includes Sales and Excise Duty and Value Added Tax on Sales but is net of discounts, claims and returns.

11 PROVISION, CONTINGENCIES

A provision is recognised where there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liability are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed.

12 MAT Credit Entitlement

The MAT Credit entitlement has been recognised as an assets in the year when there is certainty to utilise the MAT Credit within the specified period

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Mar 31, 2012

1 SYSTEM OF ACCOUNTING

(i) The financial statements are prepared on a historical cost convention and as a going concern concept .

(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

(iii) The Company follows the mercantile System of accounting and recognizes Income and expenditure on accrual basis except otherwise referred.

2 FIXED ASSETS AND DEPRECIATION

(i) Expenditure which are of Capital nature are capitalized at a cost net of CENVAT and VAT which comprises purchase price (net of rebates and discount), levies and any directly attributable cost of bringing the assets to working condition for its intended use.

(ii) Depreciation is charged on straight line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 on pro rata basis.

3 INVENTORY

(i) Raw materials are stated at cost or net realizable value whichever is lower.

(ii) Stock of finished goods have been valued at cost or net realizable value whichever is lower.

(iii) Stock of work in progress have been valued at cost or net realizable value whichever is lower.

(iv) The cost includes manufacturing expenses and appropriate overheads. Excise duty on finished goods lying at the plant is provided and considered for valuation of stock.

(v) Stock of waste have been valued at net realizable value

(vi) Stores and Spares are stated at Cost or net realizable value whichever is lower.

4 INVESTMENT

Investments have been valued at cost. Provision for diminution in the value of long tern investment is made only when such a decline is other then temporary in the opinion of the management.

5 BORROWING COST

(i) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized as part of the cost of that asset.

(ii) All other borrowing costs are charged to revenue.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are normally recorded at the rates of exchange prevailing at the time of transactions. Monetary items at the end of the year are translated at the year end rate. The difference between the exchange rate prevailing on the date of transactions and on the date of settlement, as also on translation at the end of the year is recognized as income or expenses, as the case may be for the year.

7 IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFITS

Company's contributions to provident fund and ESIC are charged to profit and loss account. Incremental liability of gratuity for the year is provided in the books of accounts and charged to the profit & loss account on the basic of actuarial valuation. The eligible benefit of privileged leave have been charged to Profit & loss Account as per policy of the company.

9 TAXATION

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for further tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements, subject to consideration of prudence. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

10 INCOME FROM OPERATIONS

Revenue from Operations includes Sales and Excise Duty and Value Added Tax on Sales, Commission Income including Service Tax but is net of discounts, claims and returns.

11 PROVISION, CONTINGENCIES

A provision is recognized where there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liability are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed.

12 MAT Credit Entitlement

The MAT Credit entitlement has been recognized as an assets in the year when there is certainty to utilise the MAT Credit within the specified period

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Mar 31, 2010

1 SYSTEM OF ACCOUNTING

(i) The financial statements are prepared on a historical cost convention and as a going concern concept.

(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

(iii) The Company follows the mercantile System of accounting and recognizes Income and expenditure on accrual basis except otherwise referred.

2 FIXED ASSETS AND DEPRECIATION

(i) Expenditure which are of Capital nature are capitalized at a cost net of CENVAT and VAT which comprises purchase price (net of rebates and discount), levies and any directly attributable cost of bringing the assets to working condition for its intended use.

(ii) Depreciation is charged on straight line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 on pro rata basis.

3 INVENTORY

(i) Raw materials are stated at cost or net realizable value whichever is lower.

(ii) Stock of finished goods have been valued at cost or net realizable value whichever is lower.

(iii) Stock of work in progress have been valued at cost or net realizable value whichever is lower.

(iv) The cost includes manufacturing expenses and appropriate overheads. Excise duty on finished goods lying at the plant is provided and considered for valuation of stock.

(v) Stock of waste have been valued at net realisable value

(vi) Stores and Spares are stated at cost or net realizable value whichever is lower.

4 INVESTMENT

Investments have been valued at cost. Provision for dimination in the value of long tern investment is made only when such a decline is other then temporary in the opinion of management.

5 BORROWING COST

(i) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized as part of the cost of that asset.

(ii) All other borrowing costs are charged to revenue.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are normally recorded at the rates of exchange prevailing at the time of transactions. Monetary items at the end of the year are translated at the year end rate. The difference between the exchange rate prevailing on the date of transactions and on the date of settlement, as also on translation at the end of the year is recognised as income or expenses, as the case may be for the year.

7 IMPAIRMENT OF ASSETS

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amounts.An impairment loss is charged to the Profit and Loss Account in the year in which an assets is identified as impaired.

8 RETIREMENT BENEFITS

Companys contributions to provident fund and ESIC are charged to profit and loss account. Incremental liability of gratuity for the year is provided in the books of accounts and charged to the profit & loss account on the basic of actuarial valuation. The eligible benefit of privileged leave have been charged to Profit & loss Account as per policy of the company.

9 TAXATION

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for further tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements, subject to consideration of prudence. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

10 TURNOVER

Gross Turnover includes Excise Duty and Value Added Tax on Sales, Commission Income but is net of discounts, claims and returns.

11 PROVISION, CONTINGENCIES

A provision is recognised where there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Contingent liability are not recognised but are disclosed in the notes. Contingent Assets are neither recognised hence not disclosed.