NGL Fine - Chem Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்
Mar 31, 2018
1. SIGNIFICANT ACCOUNTING POLICIES
1.01 Basis of preparation
Financial statements for the year ended March 31, 2018 are prepared in accordance with Indian Accounting Standards notified under the Companies (Indian Accounting Standards) Rules, 2015 together with comparative period data as at and for the year ended March 31, 2017. Further the company has prepared the opening balance sheet as at April 01, 2016 (the transition date) in accordance with Ind AS.
For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (âIndian GAAPâ)
These financial statements are the first financial statements of the Company under Ind AS. Refer note 45 for an explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows.
2.02 Functional currency and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (âthe functional currencyâ). Indian Rupee is the functional currency of the Company.
The financial statements are presented in Indian Rupees.
Transactions and balances
Transactions in foreign currency are translated into Indian rupees at the exchange rates at the date of the transaction.
Monetary assets and liabilities denominated in foreign currency are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in the statement of profit or loss.
Non-monetary items that are measured in terms of historical cost in foreign currency are translated using the exchange rates at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation difference on items whose fair value gain or loss is recognized in the statement of Other Comprehensive Income (OCI) or the statement of profit or loss is also recognized in the statement of OCI or the statement of profit or loss, respectively).
2.03 Use of estimates
The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements, and the income and expenses during the reporting period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected.
Application of accounting policies that require critical accounting estimates and the assumptions having the most significant effect on the amounts recognized in the financial statements are:
- Valuation of financial instruments
- Useful life of property, plant and equipment
- Useful life of intangible assets
- Provisions
2.04 Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:
- Expected to be realized or intended to be sold or consumed in normal operating cycle
- Held primarily for trading
- Expected to be realized within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when
- It is expected to be settled in normal operating cycle
- It is held primarily for trading
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities
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.
2.05 Fair value measurement
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:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, if market participants act in their economic best interest.
A fair value measurement of a non-financial asset considers a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
- Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Companyâs Management determines the policies and procedures for both; recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations.
At each reporting date, the Management analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the Companyâs accounting policies. For this analysis, the Management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.
The Management also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.
2.06 Inventories
Stock of raw materials, consumable stores and fuel and oil are valued at lower of cost or market value, on FIFO basis. Finished goods and work in progress are valued at cost of production or market value whichever is lower.
2.07 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, considering contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
The specific recognition criteria described below must also be met before revenue is recognised.
Revenue from sale of goods
Revenue is recognized when it is probable that economic benefits associated with a transaction flows to the Company in the ordinary course of its activities and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, net of returns & trade discounts.
Revenue includes only the gross inflows of economic benefits, including excise duty, received and receivable by the Company, on its own account. Amounts collected on behalf of third parties such as sales tax, value added tax and goods and service tax are excluded from revenue.
Revenue from sale of goods is recognized when the following conditions are satisfied:
- The Company has transferred the significant risks and rewards of ownership of the goods to the buyer.
- The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over goods sold.
- The amount of revenue can be measured reliably.
- It is probable that the economic benefits associated with the transaction will flow to the Company.
- The costs incurred or to be incurred in respect of the transaction can be measured reliably.
Other income
- Dividend income is accounted for when the right to receive dividend is established.
- Interest is recognized only when no uncertainty as to measurability or collectability exists. Interest on fixed deposits is recognized on time proportion basis considering the amount outstanding and the rate applicable.
- Export Duty Drawback and MEIS Incentives are accounted on accrual basis when the certainty to receive is established.
2.08 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and where applicable accumulated impairment losses. Property, plant and equipment and capital work in progress cost include expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials, direct labor and any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located.
Gains and losses on disposal are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized net within âother income/other expensesâ in the statement of profit and loss.
Depreciation in accounts is charged on Straight Line Method based on the managementâs estimate of useful life of each class of assets and considering the useful life prescribed by Schedule II of the Companies Act, 2013 on the cost, as reduced by the amount of Excise Cenvat, GST and VAT setoff claimed
Subsequent cost
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is de-recognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in the statement of profit and loss.
Transition to Ind AS
The Company has implemented Ind AS reporting standard during the year and on transition, the management has elected to continue with the carrying value of all its property, plant and equipment recognized as at April 01, 2016 measured as per Indian GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
Depreciation is provided on Straight Line Method (SLM) basis, based on the estimated useful life of the assets.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
2.09 Intangible assets
Intangible assets acquired by the Company and having finite useful lives, are measured at cost less accumulated amortization and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the intangible asset.
All revenue expenses pertaining to research are charged to the profit and loss account in the year in which they are incurred.
Expenditure of capital nature is capitalized as fixed assets and depreciated as per the companyâs policy.
Subsequent expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, are recognized in profit or loss as incurred.
Amortization of intangible assets with finite useful lives:
Amortization is recognized in profit and loss on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use.
2.10 Earning per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
2.11 Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The Company determines the tax as per the provisions of Income Tax Act 1961 and other rules specified thereunder.
Current income tax relating to items recognized outside the statement of profit and loss is recognized either in other comprehensive income or in equity. Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Minimum Alternate Tax (MAT) is accounted as current tax when the Company is subjected to such provisions of the Income Tax Act. However, credit of such MAT paid is available when the Company is subjected to tax as per normal provisions in the future. Credit because of MAT is recognized as an asset based on the managementâs estimate of its recoverability in the future.
Deferred tax
Deferred tax is measured using the balance sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:
- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction. affects neither the accounting profit nor taxable profit or loss.
- The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
- Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised, or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
- Deferred tax relating to items recognised outside the statement of profit and loss is recognised either in other comprehensive income or in equity. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
- Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same tax authority.
2.12 Borrowing costs
Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds are charged to statement of profit and loss. Capitalization of borrowing costs is suspended and charged to statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.
2.13 Provisions and contingent liabilities
The Company recognizes a provision when there is a present legal or constructive obligation as a result of a past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.
2.14 Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or Companyâs assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
2.15 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial asset
Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the assets.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories;
- at amortised cost through profit or loss
- at amortised cost through other comprehensive income
- at fair value through other comprehensive income
- at fair value through profit or loss Financial assets at amortized cost
A financial asset is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
This category is the most relevant to the Company. All the Loans and other receivables under financial assets (except investments) are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables do not carry any interest and are stated at their nominal value as reduced by impairment amount.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.
Financial assets at fair value through the statement of profit and loss/other comprehensive income
Instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss.
If the Company decides to classify an instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the statement of OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial assets) is primarily derecognised (i.e. removed from the Companyâs balance sheet) when:
- The rights to receive cash flows from the asset have expired, or
- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material lay to a third party under a âpass-throughâ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Companyâs continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Impairment of financials assets
The Management has evaluated the impairment provision requirement under IND AS 109 and has listed below major facts for trade and other receivables impairment provisioning:
The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial assets which are credit impaired on purchase/ origination.
Expected Credit Loss (ECL) impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss. This amount is reflected under the head âother expensesâ in the P&L. The balance sheet presentation for various financial instruments is described below:
Financial assets measured as at amortized cost and other contractual revenue receivables- ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.
Financial assets measured at FVTOCI- Since financial assets are already reflected at fair value, impairment allowance is not further reduced from its value. Rather, ECL amount is presented as âaccumulated impairment amountâ in the OCI.
Financial liabilities Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through the statement of profit or loss, loans and borrowings, trade payables and other payables.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Companyâs financial liabilities include trade and other payables, loans and borrowings including other payables.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.
This category generally applies to interest-bearing loans and borrowings.
De-recognition
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or it expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Embedded derivatives
Embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract - with the effect that some of the cash flows of the combined instrument vary in a way like a stand- alone derivative. Embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through the statement of profit and loss.
If the hybrid contract contains a host that is a financial asset within the scope of lnd AS 109, the Company does not separate embedded derivatives. Rather, it applies the classification requirements contained in lnd AS 109 to the entire hybrid contract Derivatives embedded in all other host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value though profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss, unless designated as effective hedging instruments.
Compound instruments
Reclassification of financial assets
The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Companyâs senior management determines change in the business model as a result of external or internal changes which are significant to the Companyâs operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
2.16 Cash and cash equivalents
For presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts and cash credits are shown within borrowings in current liabilities in the balance sheet.
2.17 Employee benefits
i) Defined contribution plans (Provident Fund)
In accordance with Indian Law, eligible employees receive benefits from Provident Fund, which is defined contribution plan. Both the employee and employer make monthly contributions to the plan, which is administrated by the Government authorities, each equal to the specific percentage of employeeâs basic salary. The Company has no further obligation under the plan beyond its monthly contributions. Obligation for contributions to the plan is recognized as an employee benefit expense in the Statement of Profit and Loss when incurred.
ii) Defined benefit plans (Gratuity)
In accordance with applicable Indian Law, the Company provides for gratuity, a defined benefit retirement plan (the Gratuity Plan) covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, and amount based on respective last drawn salary and the years of employment with the Company. The Companyâs net obligation in respect of the Gratuity Plan is calculated by estimating the amount of future benefits that the employees have earned in return of their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service cost and the fair value of plan assets are deducted. The discount rate is the yield at reporting date on risk free government bonds that have maturity dates approximating the terms of the Companyâs obligation. The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company, the recognized asset is limited to the total of any unrecognized past service cost and the present value of the economic benefits available in the form of any future refunds from the plan or reduction in future contribution to the plan. The Company recognizes all remeasurements of net defined benefit liability/asset directly in other comprehensive income and presented within equity.
iii) Compensated absences
The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the unutilized accrued absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence. The Company recognizes an obligation for compensated absences in the period in which the employee renders the services. The Company provides for the expected cost of compensated absence in the statement of profit and loss as the additional amount that the company expects to pay as a result of the unused entitlement that has accumulated based on actuarial valuations carried out by an independent actuary at the balance sheet date.
2.18 Segment reporting
As the Companyâs business activities fall within a single primary business segment of pharmaceuticals, the disclosure requirements of Ind AS 108 in this regard are not applicable.
2.19 Leases
A lease that transfers substantially all the risks and rewards incidental to ownership to the lessee is classified as a finance lease. All other leases are classified as operating leases
Company as a lessee
Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in profit or loss as finance costs, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Companyâs general policy on the borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.
Operating lease payments are generally recognised as an expense in the profit or loss on a straight-line basis over the lease term. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessorâs expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue.
Mar 31, 2017
1 Corporate information
NGL Fine-Chem Limited (CIN L24110MH1981PLC025884) is a public company domiciled in India and incorporated under the provisions of the Companies Act,1956. Its Shares are listed on Bombay Stock Exchange in India. The Company is engaged in pharmaceutical business. It undertakes manufacturing of wide range of products.
2 Significant accounting policies
2.01 Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the standard on accounting issued by the Institute of Chartered Accountants of India and referred to in Section 143 (10) of the Companies Act, 2013. Accounting Policies not specifically referred to otherwise are consistent with generally accepted accounting principles.
2.02 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 recognized in the periods in which the results are known / materialize.
2.03 Tangible fixed assets
Fixed assets are stated at cost. Attributable expenditure of bringing the respective assets to working condition for their intended use is capitalized.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses.
2.04 Impairment of assets
The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal or external factors. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value by using weighted average cost of capital. A previously recognized impairment loss is increased or reversed depending on changes in circumstances.
2.05 Investments
Investments are stated at cost or market value whichever is lower. Where investments have diminished in value the provision is made to the extent of diminution.
2.06 Inventories
Stock of raw materials, consumable stores and fuel & oil are valued at lower of cost or market value on FIFO basis. Finished goods and work in process are valued at cost of production or market value whichever is lower.
2.07 Foreign currency transactions and translations
(i) Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions or the applicable forward contracts.
(ii) Foreign currency liabilities & assets are re-stated at the rate prevailing on the last day of the accounting year or the applicable forward contracts. Gains and losses arising out of such fluctuations are duly dealt with in the profit and loss account.
2.08 Provisions and contingencies
Provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions except in respect of employee benefits are not discounted to its present value and are determined based on best estimate of the expenditure required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit is removed.
2.09 Revenue recognition Sale of goods
Export Sales are recognized as per the date of the shipping bill. Local Sales are recognized on dispatch of goods to the customers. Sales include excise duty and taxes and are shown net of returns.
Other income
Dividend income is accounted for when the right to receive dividend is established.
Interest income is accounted on accrual basis.
Export Duty Drawback and DEPB Incentives are accounted on accrual basis when the certainty to receive is established.
2.10 Employee benefits
(a) Short term employee benefit obligations are estimated and provided for.
(b) Post employment benefits and other long term employee benefits
- Defined contribution plans:
Company''s contribution to provident fund and state employee insurance are determined under the relevant schemes and/or statute and charged to revenue.
- Defined benefit plans:
Gratuity:
Company''s liability towards gratuity is actuarially determined at each renewal date using the projected unit credit method. Actuarial gains and losses are recognized in revenue.
Short term benefits (accumulated leave benefit):
The expected cost of accumulating compensated absences (leave encashment) that the company expects to pay as a result of unused entitlement that has accumulated as at the Balance Sheet date is provided for on the basis of current salary payable to employees.
Long term benefits:
The company does not offer any long term benefits such as pension, long service leave, sabbatical leave, long term disability benefits, profit sharing, bonuses and deferred compensation, etc. These are hence not quantified nor provided for.
2.11 Borrowing costs
Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds are charged to the Statement of Profit and Loss. Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.
2.12 Depreciation and amortization
Depreciation in the accounts is charged on the Straight Line Method based on the management''s estimate of useful life of each class of assets and considering the useful life prescribed by Schedule II of the Companies Act, 2013 on the cost, as reduced by the amount of Excise Cenvat & VAT claimed.
2.13 Research & Development
All revenue expenses pertaining to research and development are charged to the profit and loss account in the year in which they are incurred and expenditure of capital nature is capitalized as fixed assets, and depreciated as per the company''s policy.
2.14 Insurance claims
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.
2.15 Service tax input credit
Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilizing the credits.
2.16 Taxes on income
Income taxes are accounted for in accordance with Accounting Standard 22 âAccounting for Taxes on Incomeâ issued by the Institute of Chartered Accountants of India. Tax expense comprises both current & deferred tax. Current tax is measured at the amount expected to be paid to/recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversing in one or more subsequent periods and are measured using the relevant enacted tax rates. At each Balance Sheet date the company reassesses the unrecognized deferred tax assets to the extent they have become reasonably certain or virtually certain of realization, as the case may be.
2.17 Segment reporting
Based on the guiding principles given by the Accounting Standard - 17 âSegment Reportingâ issued by the Institute of Chartered Accountants of India, the company''s business comprises of only one segment - pharmaceuticals. Hence segment wise analysis is not given as the same is not applicable.
2.18 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
2.19 Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
2.20 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand & fixed deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition).
(i) Segment Reporting
Based on the guiding principles given by the Accounting Standard - 17, "Segment Reporting" issued by the Institute of Chartered Accountants of India, the company''s business comprises of only one segment - pharmaceuticals. Hence segment wise analysis is not given as the same is not applicable.
(j) MSMED Act
The company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act 2006" (MSMED Act). Therefore it is not possible to give the information required under the Act.
(k) Previous yearâs figures have been recast, regrouped and rearranged wherever necessary
Mar 31, 2016
1 Corporate information
NGL Fine-Chem Limited (CIN L24110MH1981PLC025884) is a public company domiciled in India and incorporated under the provisions of the Companies Act,1956. Its Shares are listed on Bombay Stock Exchange in India. The Company is engaged in pharmaceutical business. It undertakes manufacturing of wide range of products.
2 Significant accounting policies
2.01 Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost convention on accrual basis and in accordance with the standard on accounting issued by the Institute of Chartered Accountants of India and referred to in Section 143 (10) of the Companies Act, 2013. Accounting Policies not specifically referred to otherwise are consistent with generally accepted accounting principles.
2.02 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 recognized in the periods in which the results are known / materialize.
2.03 Tangible fixed assets
Fixed assets are stated at cost. Attributable expenditure of bringing the respective assets to working condition for their intended use is capitalized.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses.
2.04 Impairment of assets
The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal or external factors. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value by using weighted average cost of capital. A previously recognized impairment loss is increased or reversed depending on changes in circumstances.
2.05 Investments
Investments are stated at cost or market value whichever is lower. Where investments have diminished in value the provision is made to the extent of diminution.
2.06 Inventories
Stock of raw materials, consumable stores and fuel & oil are valued at lower of cost or market value on FIFO basis. Finished goods and work in process are valued at cost of production or market value which ever is lower.
2.07 Foreign currency transactions and translations
(i) Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions or the applicable forward contracts.
(ii) Foreign currency liabilities & assets are re-stated at the rate prevailing on the last day of the accounting year or the applicable forward contracts. Gains and losses arising out of such fluctuations are duly dealt with in the profit and loss account.
2.08 Provisions and contingencies
Provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions except in respect of employee benefits are not discounted to its present value and are determined based on best estimate of the expenditure required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit is removed.
2.09 Revenue recognition Sale of goods
Export Sales are recognized as per the date of the shipping bill. Local Sales are recognized on dispatch of goods to the customers. Sales include excise duty and taxes and are shown net of returns.
Other income
Dividend income is accounted for when the right to receive dividend is established.
Interest income is accounted on accrual basis.
Export Duty Drawback and DEPB Incentives are accounted on accrual basis when the certainty to receive is established.
2.10 Employee benefits
(a) Short term employee benefit obligations are estimated and provided for.
(b) Post employment benefits and other long term employee benefits
- Defined contribution plans:
Company''s contribution to provident fund and state employee insurance are determined under the relevant schemes and/or statute and charged to revenue.
* Defined benefit plans:
Gratuity:
Company''s liability towards gratuity is actuarially determined at each renewal date using the projected unit credit method. Actuarial gains and losses are recognized in revenue.
Short term benefits (accumulated leave benefit):
The expected cost of accumulating compensated absences (leave encashment) that the company expects to pay as a result of unused entitlement that has accumulated as at the Balance Sheet date is provided for on the basis of current salary payable to employees.
Long term benefits:
The company does not offer any long term benefits such as pension, long service leave, sabbatical leave, long term disability benefits, profit sharing, bonuses and deferred compensation, etc. These are hence not quantified nor provided for.
2.11 Borrowing costs
Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds are charged to the Statement of Profit and Loss. Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.
2.12 Depreciation and amortization
Depreciation in the accounts is charged on the Straight Line Method based on the management''s estimate of useful life of each class of assets and considering the useful life prescribed by Schedule II of the Companies Act, 2013 on the cost, as reduced by the amount of Excise Cenvat & VAT claimed.
2.13 Research & Development
All revenue expenses pertaining to research and development are charged to the profit and loss account in the year in which they are incurred and expenditure of capital nature is capitalized as fixed assets, and depreciated as per the company''s policy.
2.14 Insurance claims
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.
2.15 Service tax input credit
Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilizing the credits.
2.16 Taxes on income
Income taxes are accounted for in accordance with Accounting Standard 22 âAccounting for Taxes on Incomeâ issued by the Institute of Chartered Accountants of India. Tax expense comprises both current & deferred tax. Current tax is measured at the amount expected to be paid to/recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognized for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversing in one or more subsequent periods and are measured using the relevant enacted tax rates. At each Balance Sheet date the company reassesses the unrecognized deferred tax assets to the extent they have become reasonably certain or virtually certain of realization, as the case may be.
2.17 Segment reporting
Based on the guiding principles given by the Accounting Standard - 17 âSegment Reportingâ issued by the Institute of Chartered Accountants of India, the company''s business comprises of only one segment - pharmaceuticals. Hence segment wise analysis is not given as the same is not applicable.
2.18 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
2.19 Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
2.20 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand & fixed deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition).
Mar 31, 2015
1.01 Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost
convention on accrual basis and in accordance with the standard on
accounting issued by the Institute of Chartered Accountants of India
and referred to in Section 143 (10) of the Companies Act, 2013.
Accounting Policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
2.02 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.
2.03 Tangible fixed assets
Fixed assets are stated at cost. Attributable expenditure of bringing
the respective assets to working condition for their intended use is
capitalized.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses.
2.04 Impairment of assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal or external
factors. An impairment loss is recognized whenever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to the
present value by using weighted average cost of capital. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances.
2.05 Investments
Investments are stated at cost or market value whichever is lower.
Where investments have diminished in value the provision is made to the
extent of diminution.
2.06 Inventories
Stock of raw materials, consumable stores and fuel & oil are valued at
lower of cost or market value on FIFO basis. Finished goods and work in
process are valued at cost of production or market value which ever is
lower.
2.07 Foreign currency transactions and translations
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rates prevailing at the time of the
transactions or the applicable forward contracts.
(ii) Foreign currency liabilities & assets are re-stated at the rate
prevailing on the last day of the accounting year or the applicable
forward contracts. Gains and losses arising out of such fluctuations
are duly dealt with in the profit and loss account.
2.08 Provisions and contingencies
Provision is recognized when the company has a present obligation as a
result of past event, it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions except
in respect of employee benefits are not discounted to its present value
and are determined based on best estimate of the expenditure required
to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best
estimate. A contingent liability is disclosed, unless the possibility
of an outflow of resources embodying the economic benefit is removed.
2.09 Revenue recognition Sale of goods
Export Sales are recognized as per the date of the shipping bill. Local
Sales are recognized on dispatch of goods to the customers. Sales
include excise duty and taxes and are shown net of returns.
Other income
Dividend income is accounted for when the right to receive dividend is
established.
Interest income is accounted on accrual basis.
Export Duty Drawback and DEPB Incentives are accounted on accrual basis
when the certainity to receive is established.
2.10 Employee benefits
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits
- Defined contribution plans:
Company''s contribution to provident fund and state employee insurance
are determined under the relevant schemes and/or statute and charged to
revenue.
- Defined benefit plans:
Gratuity:
"Company''s liability towards gratuity is actuarially determined at
each renewal date using the projected unit credit method. Actuarial
gains and losses are recognized in revenue.
Short term benefits (accumulated leave benefit):
"The expected cost of accumulating compensated absences (leave
encashment) that the company expects to pay as a result of unused
entitlement that has accumulated as at the Balance Sheet date is
provided for on the basis of current salary payable to employees.
Long term benefits:
"The company does not offer any long term benefits such as pension,
long service leave, sabbatical leave, long term disability benefits,
profit sharing, bonuses and deferred compensation, etc. These are hence
not quantified nor provided for.
2.11 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds are
charged to the Statement of Profit and Loss. Capitalisation of
borrowing costs is suspended and charged to the Statement of Profit and
Loss during extended periods when active development activity on the
qualifying assets is interrupted.
2.12 Depreciation and amortisation
Depreciation in the accounts is charged on the Straight Line Method
based on the management''s estimate of useful life of each class of
assets and considering the useful life precribed by Schedule II of the
Companies Act, 2013 on the cost, as reduced by the amount of Excise
Cenvat & VAT claimed.
As per Accounting Standard 15, "Employee Benefits", the disclosures
as defined in the Accouting Standard are given below.
(a) Long Term Retirement Benefits
Long term retirement benefits comprise of contributions to the
Provident Fund and Gratuity Fund
(i) Contribution to Provident Fund: Contributions to the Provident Fund
is made by the company to the Employees Provident Fund Organization,
Government of India
(ii) Contribution to Gratuity Fund: Contributions to the Gratuity Fund
is made by the company to the Employees Group Gratuity Scheme operated
by the Life Insurance Corporation of India. The basis of actuarial
valuation is given below Actuarial Valuations
Mortality Rate As per 1994-96 LIC Mortality Rate
Withdrawal Rate 1% to 3% depending on age
Salary Escalation Rate 4% for each year
Discouting Rate LIC discouting rate (presently 8%)
Gratuity Benefits As per the Gratuity Act 1972 as amended from time to
time
Actuarial Results (Funded)
Mar 31, 2014
1.01 Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost
convention on accrual basis and in accordance with the standard on
accounting issued by the Institute of Chartered Accountants of India
and referred to in Section 211 (3C) of the Companies Act, 1956.
Accounting Policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
1.02 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.accounting income that are capable
of reversing in one or more subsequent periods and are measured using
the relevant enacted tax rates. At each Balance Sheet date the company
reassesses the unrecognized deferred tax assets to the extent they have
become reasonably certain or virtually certain of realization, as the
case may be.
1.03 Tangible fixed assets
Fixed assets are stated at cost. Attributable expenditure of bringing
the respective assets to working condition for their intended use is
capitalized.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses.
1.04 Impairment of assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal or external
factors. An impairment loss is recognized whenever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to the
present value by using weighted average cost of capital. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances.
1.05 Investments
Investments are stated at cost or market value whichever is lower.
Where investments have diminished in value the provision is made to the
extent of diminution. Quoted, non traded shares are fully written off
and not reflected in the investment schedule.
1.06 Inventories
Stock of raw materials, consumable stores and fuel & oil are valued at
lower of cost or market value on FIFO basis. Finished goods and work in
process are valued at cost of production.
1.07 Foreign currency transactions and translations
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rates prevailing at the time of the
transactions or the applicable forward contracts.
(ii) Foreign currency liabilities & assets are re-stated at the rate
prevailing on the last day of the accounting year or the applicable
forward contracts. Gains and losses arising out of such fluctuations
are duly dealt with in the profit and loss account.
1.08 Provisions and contingencies
Provision is recognized when the company has a present obligation as a
result of past event, it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions except
in respect of employee benefits are not discounted to its present value
and are determined based on best estimate of the expenditure required
to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best
estimate. A contingent liability is disclosed, unless the possibility
of an outflow of resources embodying the economic benefit is removed.
1.09 Revenue recognition Sale of goods
Export Sales are recognized as per the date of the shipping bill. Local
Sales are recognized on dispatch of goods to the customers. Sales are
shown net of returns and include excise duty.
Other income
Dividend income is accounted for when the right to receive dividend is
established.
Interest income is accounted on accrual basis.
Export Duty Drawback and DEPB Incentives are accounted on cash receipt
basis.
1.10 Employee benefits
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits.
* Defined contribution plans:
Company''s contribution to provident fund and state employee insurance
are determined under the relevant schemes and/or statute and charged to
revenue.
* Defined benefit plans:
Gratuity:
Company''s liability towards gratuity is actuarially determined at each
renewal date using the projected unit credit method. Actuarial gains
and losses are recognized in revenue.
Short term benefits (accumulated leave benefit):
The expected cost of accumulating compensated absences (leave
encashment) that the company expects to pay as a result of unused
entitlement that has accumulated as at the Balance Sheet date is
provided for on the basis of current salary payable to employees.
Long term benefits:
The company does not offer any long term benefits such as pension, long
service leave, sabbatical leave, long term disability benefits, profit
sharing, bonuses and deferred compensation, etc. These are hence not
quantified nor provided for.
1.11 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
1.12 Depreciation and amortisation
Depreciation in the accounts is charged on the Straight Line Method at
the rates and in the manner prescribed by Schedule XIV of the Companies
Act, 1956 on the cost, as reduced by the amount of Excise Cenvat & VAT
claimed.
Intangible assets are amortized over a period of 3 years.
1.13 Research & Development
All revenue expenses pertaining to research and development are charged
to the profit and loss account in the year in which they are incurred
and expenditure of capital nature is capitalized as fixed assets, and
depreciated as per the company''s policy.
1.14 Insurance claims
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
1.15 Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilising the credits.
1.16 Taxes on income
Income taxes are accounted for in accordance with Accounting Standard
22 " Accounting for Taxes on Income" issued by the Institute of
Chartered Accountants of India. Tax expense comprises both current &
deferred tax. Current tax is measured at the amount expected to be paid
to/recovered from the tax authorities using the applicable tax rates.
Deferred tax assets and liabilities are recognized for future tax
consequences attributable to timing differences between taxable income
and accounting income that are capable of reversing in one or more
subsequent periods and are measured using the relevant enacted tax
rates. At each Balance Sheet date the company reassesses the
unrecognized deferred tax assets to the extent they have become
reasonably certain or virtually certain of realization, as the case may
be.
1.17 Segment reporting
Based on the guiding principles given by the Accounting Standard - 17
"Segment Reporting" issued by the Institute of Chartered Accountants of
India, the company''s business comprises of only one segment -
pharmaceuticals. Hence segment wise analysis is not given as the same
is not applicable.
1.18 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
1.19 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.20 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand & fixed deposits with banks.
Cash equivalents are short-term balances (with an original maturity of
three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and
which are subject to insignificant risk of changes in value.
Mar 31, 2013
1.01 Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost
convention on accrual basis and in accordance with the standard on
accounting issued by the Institute of Chartered Accountants of India
and referred to in Section 211 (3C) of the Companies Act, 1956.
Accounting Policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
1.02 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.
1.03 Inventories
Stock of raw materials, consumable stores and fuel & oil are valued at
lower of cost or market value on FIFO basis. Finished goods and work in
process are valued at cost of production.
1.04 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.05 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.06 Depreciation and amortisation
Fixed assets are stated at cost. Attributable expenditure of bringing
the respective assets to working condition for their intended use is
capitalized. Depreciation in the accounts is charged on the Straight
Line Method at the rates and in the manner prescribed by Schedule XIV
of the Companies Act, 1956 on the cost, as reduced by the amount of
Excise Cenvat & VAT claimed.
Intangible assets are amortized over a period of 3 years.
1.07 Revenue recognition
Sale of goods
Export Sales are recognized as per the date of the shipping bill. Local
Sales are recognized on dispatch of goods to the customers. Sales are
shown net of returns and include excise duty.
Other income
Dividend income is accounted for when the right to receive dividend is
established.
Interest income is accounted on accrual basis.
Export Duty Drawback and DEPB Incentives are accounted on cash receipt
basis.
1.08 Tangible fixed assets
Fixed assets are stated at cost. Attributable expenditure of bringing
the respective assets to working condition for their intended use is
capitalized. Depreciation in the accounts is charged on the Straight
Line Method at the rates and in the manner prescribed by Schedule XIV
of the Companies Act, 1956 on the cost, as reduced by the amount of
Excise Cenvat & VAT claimed.
Intangible assets are amortized over a period of 3 years.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses.
1.09 Foreign currency transactions and translations
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rates prevailing at the time of the
transactions or the applicable forward contracts.
(ii) Foreign currency liabilities & assets are re-stated at the rate
prevailing on the last day of the accounting year or the applicable
forward contracts. Gains and losses arising out of such fluctuations
are duly dealt with in the profit and loss account.
1.10 Investments
Investments are stated at cost or market value whichever is lower.
Where investments have diminished in value the provision is made to the
extent of diminution. Quoted, non traded shares are fully written off
and not reflected in the investment schedule.
1.11 Employee benefits
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits.
- Defined contribution plans:
Company''s contribution to provident fund and state employee insurance
are determined under the relevant schemes and/or statute and charged to
revenue.
- Defined benefit plans:
Gratuity:
Company''s liability towards gratuity is actuarially determined at each
renewal date using the projected unit credit method. Actuarial gains
and losses are recognized in revenue.
Short term benefits (accumulated leave benefit):
The expected cost of accumulating compensated absences (leave
encashment) that the company expects to pay as a result of unused
entitlement that has accumulated as at the Balance Sheet date is
provided for on the basis of current salary payable to employees.
Long term benefits:
The company does not offer any long term benefits such as pension, long
service leave, sabbatical leave, long term disability benefits, profit
sharing, bonuses and deferred compensation, etc. These are hence not
quantified nor provided for.
1.12 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
1.13 Segment reporting
Based on the guiding principles given by the Accounting Standard  17
"Segment Reporting" issued by the Institute of Chartered Accountants of
India, the company''s business comprises of only one segment -
pharmaceuticals. Hence segment wise analysis is not given as the same
is not applicable.
1.14 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
1.15 Taxes on income
Income taxes are accounted for in accordance with Accounting Standard
22 " Accounting for Taxes on Income" issued by the Institute of
Chartered Accountants of India. Tax expense comprises both current &
deferred tax. Current tax is measured at the amount expected to be paid
to/recovered from the tax authorities using the applicable tax rates.
Deferred tax assets and liabilities are recognized for future tax
consequences attributable to timing differences between taxable income
and accounting income that are capable of reversing in one or more
subsequent periods and are measured using the relevant enacted tax
rates. At each Balance Sheet date the company reassesses the
unrecognized deferred tax assets to the extent they have become
reasonably certain or virtually certain of realization, as the case may
be.
1.16 Impairment of assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal external
factors. An impairment loss is recognized whenever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to the
present value by using weighted average cost of capital. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances.
1.17 Provisions and contingencies
Provision is recognized when the company has a present obligation as a
result of past event, it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions except
in respect of employee benefits are not discounted to its present value
and are determined based on best estimate of the expenditure required
to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best
estimate. A contingent liability is disclosed, unless the possibility
of an outflow of resources embodying the economic benefit is removed.
1.18 Research & Development
All revenue expenses pertaining to research and development are charged
to the profit and loss account in the year in which they are incurred
and expenditure of capital nature is capitalized as fixed assets, and
depreciated as per the company''s policy.
1.19 Insurance claims
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
1.20 Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilising the credits.
Mar 31, 2012
1.01 Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost
convention on accrual basis and in accordance with the standard on
accounting issued by the Institute of Chartered Accountants of India
and referred to in Section 211 (3C) of the Companies Act, 1956.
Accounting Policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
1.02 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.
1.03 Inventories
Stock of raw materials, consumable stores and fuel & oil are valued at
lower of cost or market value on FIFO basis. Finished goods and work in
process are valued at cost of production.
1.04 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.05 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.06 Depreciation and amortisation
Fixed assets are stated at cost. Attributable expenditure of bringing
the respective assets to working condition for their intended use is
capitalized. Depreciation in the accounts is charged on the Straight
Line Method at the rates and in the manner prescribed by Schedule XIV
of the Companies Act, 1956 on the cost, as reduced by the amount of
Excise Cenvat & VAT claimed. Intangible assets are amortized over a
period of 3 years.
1.07 Revenue recognition Sale of goods
Export Sales are recognized as per the date of the shipping bill. Local
Sales are recognized on dispatch of goods to the customers. Sales are
shown net of returns and include excise duty.
Other income
Dividend income is accounted for when the right to receive dividend is
established.
Interest income is accounted on accrual basis.
Export Duty Drawback is accounted on cash receipt basis.
1.08 Tangible fixed assets
Fixed assets are stated at cost. Attributable expenditure of bringing
the respective assets to working condition for their intended use is
capitalized. Depreciation in the accounts is charged on the Straight
Line Method at the rates and in the manner prescribed by Schedule XIV
of the Companies Act, 1956 on the cost, as reduced by the amount of
Excise Cenvat & VAT claimed.
Intangible assets are amortized over a period of 3 years.
Capital work-in-proaress:
Projects under which assets are not ready for their intended use and
other capital work-in-progress are carried at cost, comprising direct
cost, related incidental expenses.
1.09 Foreign currency transactions and translations
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rates prevailing at the time of the
transactions or the applicable forward contracts.
(ii) Foreign currency liabilities & assets are re-stated at the rate
prevailing on the last day of the accounting year or the applicable
forward contracts. Gains and losses arising out of such fluctuations
are duly dealt with in the profit and loss account.
1.10 Investments
Investments are stated at cost or market value whichever is lower.
Where investments have diminished in value the provision is made to the
extent of diminution. Quoted, non traded shares are fully written off
and not reflected in the investment schedule.
1.11 Employee benefits
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits
- Defined contribution plans:
Company's contribution to provident fund and state employee insurance
are determined under the relevant schemes and/or statute and charged to
revenue.
- Defined benefit plans:
Gratuity:
Company's liability towards gratuity is actuarially determined at
each renewal date using the projected unit credit method. Actuarial
gains and losses are recognized in revenue.
Short term benefits (accumulated leave benefit):
The expected cost of accumulating compensated absences (leave
encashment) that the company expects to pay as a result of unused
entitlement that has accumulated as at the Balance Sheet date is
provided for on the basis of current salary payable to employees.
Long term benefits:
The company does not offer any long term benefits such as pension, long
service leave, sabbatical leave, long term disability benefits, profit
sharing, bonuses and deferred compensation, etc. These are hence not
quantified nor provided for.
1.12 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs
incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods when active
development activity on the qualifying assets is interrupted.
1.13 Segment reporting
Based on the guiding principles given by the Accounting Standard - 17
"Segment Reporting" issued by the Institute of Chartered
Accountants of India, the company's business comprises of only one
segment - pharmaceuticals. Hence segment wise analysis is not given as
the same is not applicable.
1.14 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair v
1.15 Taxes on income
Income taxes are accounted for in accordance with Accounting Standard
22 " Accounting for Taxes on Income" issued by the Institute of
Chartered Accountants of India. Tax expense comprises both current &
deferred tax. Current tax is measured at the amount expected to be paid
to/recovered from the tax authorities using the applicable tax rates.
Deferred tax assets and liabilities are recognized for future tax
consequences attributable to timing differences between taxable income
and accounting income that are capable of reversing in one or more
subsequent periods and are measured using the relevant enacted tax
rates. At each Balance Sheet date the company reassesses the
unrecognized deferred tax assets to the extent they have become
reasonably certain or virtually certain of realization, as the case may
be.
1.16 Impairment of assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal external
factors. An impairment loss is recognized whenever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to the
present value by using weighted average cost of capital. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances.
1.17 Provisions and contingencies
Provision is recognized when the company has a present obligation as a
result of past event, it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions except
in respect of employee benefits are not discounted to its present value
and are determined based on best estimate of the expenditure required
to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best
estimate. A contingent liability is disclosed, unless the possibility
of an outflow of resources embodying the economic benefit is removed.
1.18 Research & Development
All revenue expenses pertaining to research and development are charged
to the profit and loss account in the year in which they are incurred
and expenditure of capital nature is capitalized as fixed assets, and
depreciated as per the company's policy.
1.19 Insurance claims
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
1.20 Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilising the credits.
Mar 31, 2011
Basis of preparation of financial statements.
The financial statements are prepared under the historical cost
convention on accrual basis and in accordance with the standard on
accounting issued by the Institute of Chartered Accountants of India
and referred to in Section 211 (3C) of the Companies Act, 1956.
Accounting Policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
i) Fixed Assets and Depreciation.
Fixed assets are stated at cost. Attributable expenditure of bringing
the respective assets to working condition for their intended use is
capitalized. Depreciation in the accounts is charged on the Straight
Line Method at the rates and in the manner prescribed by Schedule XIV
of the Companies Act, 1956 on the cost, as reduced by the amount of
Excise Cenvat & VAT claimed.
Intangible assets are amortized over a period of 3 years.
ii) Investments.
Investments are stated at cost or market value whichever is lower.
Where investments have diminished in value the provision is made to the
extent of diminution. Quoted, non traded shares are fully written off
and not reflected in the investment schedule.
iii) Inventories.
Stock of raw materials, consumable stores and fuel & oil are valued at
lower of cost or market value on FIFO basis. Finished goods and work in
process are valued at cost of production.
iv) Sales & Other Income.
Export Sales are recognized as per the date of the shipping bill.
Local Sales are recognized on dispatch of goods to the customers.
Sales are shown net of returns and include VAT and excise duty.
Dividend income is accounted for when the right to receive dividend is
established.
Export Duty Drawback is accounted on cash receipt basis.
v) Foreign Exchange Transactions.
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rates prevailing at the time of the
transactions or the applicable forward contracts.
(ii) Foreign currency liabilities & assets are re-stated at the rate
prevailing on the last day of the accounting year or the applicable
forward contracts. Gains and losses arising out of such fluctuations
are duly dealt with in the profit and loss account.
vi) Retirement Benefits.
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits
- Defined contribution plans:
Companys contribution to provident fund and state employee insurance
are determined under the relevant schemes and/or statute and charged to
revenue.
- Defined benefit plans: Gratuity:
Companys liability towards gratuity is actuarially determined at each
renewal date using the projected unit credit method. Actuarial gains
and losses are recognized in revenue.
Short term benefits (accumulated leave benefit): The expected cost of
accumulating compensated absences (leave encashment) that the company
expects to pay as a result of unused entitlement that has accumulated
as at the Balance Sheet date is provided for on the basis of current
salary payable to employees. Long term benefits:
The company does not offer any long term benefits such as pension, long
service leave, sabbatical leave, long term disability benefits, profit
sharing, bonuses and deferred compensation, etc. These are hence not
quantified nor provided for.
vii) Taxation
Income taxes are accounted for in accordance with Accounting Standard
22 " Accounting for Taxes on Income" issued by the Institute of
Chartered Accountants of India. Tax expense comprises both current &
deferred tax. Current tax is measured at the amount expected to be paid
to/recovered from the tax authorities using the applicable tax rates.
Deferred tax assets and liabilities are recognized for future tax
consequences attributable to timing differences between taxable income
and accounting income that are capable of reversing in one or more
subsequent periods and are measured using the relevant enacted tax
rates. At each Balance Sheet date the company reassesses the
unrecognized deferred tax assets to the extent they have become
reasonably certain or virtually certain of realization, as the case may
be.
viii) Research & Development
All revenue expenses pertaining to research and development are charged
to the profit and loss account in the year in which they are incurred
and expenditure of capital nature is capitalized as fixed assets, and
depreciated as per the companys policy.
ix) Contingencies/Provisions
Provision is recognized when the company has a present obligation as a
result of past event, it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions except
in respect of employee benefits are not discounted to its present value
and are determined based on best estimate of the expenditure required
to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best
estimate. A contingent liability is disclosed, unless the possibility
of an outflow of resources embodying the economic benefit is removed.
x) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal external
factors. An impairment loss is recognized whenever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to the
present value by using weighted average cost of capital. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances.
Mar 31, 2010
Basis of preparation of financial statements.
The financial statements are prepared under the historical cost
convention on accrual basis and in accordance with the standard on
accounting issued by the Institute of Chartered Accountants of India
and referred to in Section 211 (3C) of the Companies Act, 1956.
Accounting Policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.
i) Fixed Assets and Depreciation.
Fixed assets are stated at cost. Attributable expenditure of bringing
the respective assets to working condition for their intended use is
capitalized. Depreciation in the accounts is charged on the Straight
Line Method at the rates and in the manner prescribed by Schedule XIV
of the Companies Act, 1956 on the cost, as reduced by the amount of
Excise Cenvat & VAT claimed.
Intangible assets are amortized over a period of 3 years.
ii) Investments.
Investments are stated at cost or market value whichever is lower.
Where investments have diminished in value the provision is made to the
extent of diminution. Quoted, non traded shares are fully written off
and not reflected in the investment schedule.
iii) Inventories.
Stock of raw materials, consumable stores and fuel & oil are valued at
lower of cost or market value on FIFO basis. Finished goods and work
in process are valued at cost of production.
iv) Sales & Other Income.
Export Sales are recognized as per the date of the shipping bill. Local
Sales are recognized on dispatch of goods to the customers. Sales are
shown net of returns and include VAT and excise duty.
Dividend income is accounted for when the right to receive dividend is
established.
Export Duty Drawback is accounted on cash receipt basis.
v) Foreign Exchange Transactions.
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rates prevailing at the time of the
transactions or the applicable forward contracts.
(ii) Foreign currency liabilities & assets are re-stated at the rate
prevailing on the last day of the accounting year or the applicable
forward contracts. Gains and losses arising out of such fluctuations
are duly dealt with in the profit and loss account.
vi) Retirement Benefits.
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits
- Defined contribution plans:
Companys contribution to provident fund and state employee insurance
are determined under the relevant schemes and/or statute and charged to
revenue.
- Defined benefit plans: Gratuity:
Companys liability towards gratuity is actuarially determined at each
renewal date using the projected unit credit method. Actuarial gains
and losses are recognized in revenue. Short term benefits (accumulated
leave benefit): The expected cost of accumulating compensated absences
(leave encashment) that the company expects to pay as a result of
unused entitlement that has accumulated as at the Balance Sheet date is
provided for on the basis of current salary payable to employees. Long
term benefits:
The company does not offer any long term benefits such as pension, long
service leave, sabbatical leave, long term disability benefits, profit
sharing, bonuses and deferred compensation, etc. These are hence not
quantified nor provided for.
vii) Taxation
Income taxes are accounted for in accordance with Accounting Standard
22 "Accounting for Taxes on Income" issued by the Institute of
Chartered Accountants of India. Tax expense comprises both current &
deferred tax. Current tax is measured at the amount expected to be
paid to/recovered from the tax authorities using the applicable tax
rates. Deferred tax assets and liabilities are recognized for future
tax consequences attributable to timing differences between taxable
income and accounting income that are capable of reversing in one or
more subsequent periods and are measured using the relevant enacted tax
rates. At each Balance Sheet date the company reassesses the
unrecognized deferred tax assets to the extent they have become
reasonably certain or virtually certain of realization, as the case.may
be.
viii) Research & Development
All revenue expenses pertaining to research and development are charged
to the profit and loss account in the year in which they are incurred
and expenditure of capital nature is capitalized as fixed assets, and
depreciated as per the companys policy.
ix) Contingencies/Provisions
Provision is recognized when the company has a present obligation as a
result of past event, it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions except
in respect of employee benefits are not discounted to its present value
and are determined based on best estimate of the expenditure required
to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best
estimate. A contingent liability is disclosed, unless the possibility
of an outflow of resources embodying the economic benefit is removed.
x) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal external
factors. An impairment loss is recognized whenever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to the
present value by used weighted average cost of capital. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances.
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NGL Fine - Chem Ltd. குறித்த கூடுதல் தகவல்களை
-
NGL Fine - Chem Ltd. டூல்ஸ்
- பல்க் டீல்ஸ்
-
NGL Fine - Chem Ltd. நிறுவன தகவல்கள்
- நிறுவன சுயவிவரம்
- நிறுவன வரலாறு
- நிர்வாக குழு
- மூலதன வடிவம்
- புராடெக்ட் மிக்ஸ்
- வங்கியாளர்/தணிக்கையாளர்/பதிவாளர்
-
நிறுவன வரலாறு
- மும்பை பங்குச் சந்தையில் விலை வரலாறு
- என்எஸ்இ விலை வரலாறு
-
NGL Fine - Chem Ltd. முக்கிய நிதியில் விகிதங்கள்
- விகிதங்கள்
-
NGL Fine - Chem Ltd. முடிவுகள்
- காலாண்டு முடிவுகள்
- அரையாண்டு முடிவுகள்
- 9 மாத முடிவுகள்
- வருடாந்திர முடிவுகள்
-
NGL Fine - Chem Ltd. நிதியியல் தகவல்கள்
- தணிக்கை முடிவுகள்
- பணப்பாய்வு
- இருப்பு நிலைக்குறிப்பு
-
NGL Fine - Chem Ltd. அறிக்கை
- கணக்கியல் கோட்பாடுகள்
- தணிக்கையாளர்கள் அறிக்கை
- இயக்குநர்கள் அறிக்கை
- கணக்கு குறிப்புகள்
-
NGL Fine - Chem Ltd. கார்ப்பரேட் அறிவிப்புகள்
- புத்தக முடிவு
- ஈவுத்தொகை
- நிர்வாகக் குழுக் கூட்டங்கள்
