Note No. A A. Significant Accounting Policies 1 Basis of Accounting The Financial Statements are brpared under the historical cost convention, on the accrual basis of accounting and comply with the provisions of Companies Act, 2013, accounting principles generally accepted in India and Accounting Standards issued by The Institute of Chartered Accountants of India (ICAI) to the extent applicable. 2 Revenue Recognition a) Sales including export sales and trading sales are recognised when goods are dispatched from the factory and are recorded at net of shortages, claims settled, rate differences, rebate allowed to customers. b) Export Sales are booked at the rate on the date of transaction and the resultant gain or loss on realisation or on translation is accounted as "Foreign Exchange Rate Fluctuation" and is dealt with in the statement of Profit and Loss Account. 3 Fixed Assets and Debrciation Fixed assets, other than Plant & Machinery are valued and stated at cost less accumulated debrciation calculated on the basis of Written Down Value Method In case of Plant & Machinery, debrciation has been provided on Straight Line Method (SLM) basis. The Fixed Assets being Vehicles purchased during the current finacial year has been debrciated on Staright Line Method. Consequent to the enactment of Companies Act, 2013 and the applicability of accounting period commencing from 1st April, 2014, the company has reassessed the remaining useful life of fixed assets in accordance with the provisions brscribed under Schedule II of the Act. In case of assets which have completed their useful life, the carrying value (net of residual value) as at 1st April, 2014 amounting to Rs.92,618/- has been adjusted to Retained Earnings and Rs 41,416/- has been adjusted against Deffered Tax Liability, and in case of other assets the carrying value (net of residual value) is being debrciated over the remaining useful life. The Debrciation and Amortisation Expenses charge for the year ended 31st March, 2015 would have be higher by Rs 43,026/- , had the company continued with the brvious assessment of useful life of such assets. 4 Inventories Inventories of Raw Materials, , Packing material are stated at Cost, Finished goods are stated at Cost or Net Realisable Value whichever is lower, Coal, Goods in process, Stores and Spares, as certified and Valued by Management. Cost comprises of cost of purchases, cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition. Costing formula used is First-in-First-out (FIFO). 5 Investments Investments are classified as Long Term Investments. Long term investments are stated at Cost. Provision is made for diminution in the value of Long term Investments to recognise a decline, if any other than temporary in nature. 6 Use of Estimates The brparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements has been made relying on these estimates. 7 Impairment of Assets Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amounts of the Company's assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. 8 Employee Benefits a) Short term employee benefits are recognized as an expense at undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered. b) Post employment and other long term employee benefits are recognized as an expense in the Profit & Loss Account in the year of payment. B. Assets and Liabilities 1 All debit and credit balances and accounts squared up during the year are subject to confirmation from respective parties. 2 In the opinion of the Board of Directors the current assets, loans & advances are approximately of the value at which these are stated in the Balance Sheet if realised in the ordinary course of business. 3 Adequate provisions have been made for all known liabilities and the provision are not in excess of the amount reasonably necessary. C. Accounting for Taxes 1 As required by "Accounting Standard 22 - Accounting for Taxes on Income", the company has provided for Deferred Taxes. The tax effect of timing differences originating and reversing during the year has been reflected in the current year's Profit & Loss Ac D Segment Reporting The Company has a single business segment namely PETROLEUM PRODUCT. Hence, the company's business does not fall under different business segments as defined by AS - 17 " Segmental Reporting "issued by the ICAI. E Earning in Foreign Currency Rs. 1,51,14,352/- (Previous Year Rs. 1,93,93,780/-). F C.I.F. value of Imports Rs. NIL (Previous Year: Rs. 21,95,361/-). G Expenditure in Forign Currency Rs. 3,48,382/- (Previous Year: Rs. 1,33,205/-). H Previous Year figures have been rearranged / regrouped wherever necessary. As Per Our Report of Even Date For PIPARA & CO, CHARTERED ACCOUNTANTS (F. R. N. 107929W) GYAN PIPARA PARTNER M.No. 034289 For ADVANCE PETROCHEMICALS LTD. ASHOK GOENKA CHAIRMAN&MANAGING DIRECTOR ARVIND GONEKA DIRECTOR PLACE : AHMEDABAD. DATED : 29.05.2015 |