Notes forming Integral part of financial statement for the year ended on 31st March, 2015 Note A Corporate Information Camex Limited (the company) is a public limited (Listed) company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in business of manufacturing and trading of Dyes & Chemicals, MS Products, and Wellness related Products. Note B a) Basis of Preparation of Financial Statements These financial statements have been brpared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards under the relevant provisions of the Companies Act, 2013. The financial statements are brpared on accrual basis under the historical cost and convention. The financial statements are brsented in Indian Rupees rounded off to the nearest rupee. a) Use of Estimates The brparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. c) Tangible Fixed Assets - Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated debrciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets. - Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its brviously assessed standard of performance. - Assets which are not ready for their intended use are disclosed under Capital Work-in-Progress. d) Debrciation: - Debrciation on tangible fixed assets is provided on the straight-line method over the useful lives of assets as brscribed in the schedule II of the Companies Act, 2013. Debrciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use. - Debrciation and Amortization methods, useful lives and residential values are reviewed periodically, at each financial year end. - Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being debrciated over the revised remaining useful life. The written down value of fixed assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of profit and loss account amounting to Rs. 0.57 lakhs. e) Change in Accounting policy and Estimates Pursuant to the enactment of Companies Act 2013, Company has adopted component wise debrciation policy as per the schedule II of the Companies Act and accordingly amended the accounting policy to that extent. The company is using written down method for one of its division and now the company has change the method of debrciation from written down to the straight line method and accordingly has adopted the useful life of the assets as brscribed in the schedule II of the Companies Act, 2013 This change of method is resulted in excess debrciation written back in the books of accounts amounting to Rs. 22.27 lakhs. f) Impairment of Tangible and Intangible Assets An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. g) Transaction in Foreign Currencies - Transactions denominated in foreign currencies are recorded at the exchange rates brvailing on the date of the transaction or that approximates the actual rate at the date of the transaction. - Monetary items denominated in foreign currencies at the year end are rested at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the brmium paid on forward contracts is recognized over the life of the contract. - Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss Statement, except in case of long term liabilities, where they relate to acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such assets. h) Investments Current Investments are carried at lower of cost or fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary. i) Inventory - Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective brsent location and condition. - Cost of Raw Materials, Stores and Spares, Packing Materials, Trading and other products are determined at lower of Cost or Net Realizable Value whichever is lower. - It is not possible to identify net realizable value of Work-in-progress and thus valued at cost. j) Revenue Recognition - Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts. - Dividend income is recognised when the right to receive payment is established. - Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable. - All other income and Expenditure are recognized and accounted for on accrual basis. k) Retirement Benefits: - Company provides for Retirement Benefits in the form of Gratuity. Company has taken Group Gratuity Policy of LIC of India and Premium paid is recognized as expenses when it is incurred. - Provident fund is accrued on monthly basis in accordance with the terms of contract with the employees and is deposited with the Statutory Provided Fund. The Company's contribution is charged to profit and loss account. l) Borrowing Costs Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of such asset. All others borrowing cost are charged to revenue. m) Financial Derivatives and Commodity Hedging Transactions In respect of derivative contracts, brmium paid, gains/losses on settlement and losses on restatement are recognized in the profit and loss statement except in case where they relate to the acquisition or construction of Fixed Assets, in that case they are adjusted to the carrying cost of such assets. n) Income Taxes - Tax expense comprises of current and deferred taxes. Current Income Tax is measured at the amount expected to be paid to the tax authorities using the applicable tax rates. - Deferred income taxes reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/ period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed debrciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same. - Provision for Current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. o) Segment Reporting The company is engaged mainly in two reportable segments "Manufacturing & Trading of Dyes, Chemical and others" and "Trading of Coal and Minerals". Accordingly the company has made disclosure of separate segment reporting as required in terms of Accounting Standard AS-17. Segment Reporting is disclosed in notes to accounts. p) Excise Duty/Service Tax Excise Duty/Service Tax is accounted on the basis of both, payments made in respect of the goods cleared/services rendered and provisions made for the goods which are lying in stock/warehouses. q) Contingent Liabilities & Contingent Assets: - A provision is recognized when the company has a brsent obligation as a result of past event(s), and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. - Contingent liabilities are disclosed in the financial statement unless the possibility of outflow is remote. - Contingent Liabilities are not provided for and are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements. NOTE 2: ADDITIONAL INFORMATION:- a) Balances of Sundry Creditors / Trade Payables, Debtors / Trade Receivables from / to various parties / authorities, Unsecured Loans and Loans and Advances are subject to confirmation from parties and necessary adjustments if any, will be made on its reconciliation. b) In the opinion of the Board of Directors the aggregate value of current assets, loans and advances on realization in ordinary course of business will not be less than the amount at which this are stated in the balance sheet. c) Previous year figures have been re-grouped or re-classified wherever necessary to make them comparable with those of the current year brsentation. As per our report of even date, For Surana Maloo & Co (Chartered Accountants) FRN : 112171W sd/- Per, Vidhan Surana Partner Membership No: 041841 For, and on behalf of Camex Limited sd/- CA. Anand M. Jain (CFO) sd/- Ramya H Pandya (Company Secretary) M. No. A28491 sd/- C.B. Chopra (Managing Director) DIN : 00375421 sd/- Jitendra Chopra (Whole Time Director) DIN : 00374945 Place : Ahmedabad Date : 30th May, 2015 |