Pratiksha Chemicals Ltd.
You can view the entire text of Accounting Policy of the company for the latest year.
ISIN No INE530D01012 52Wk High (Rs.) 9 BV (Rs.) 4.92 FV (Rs.) 10.00
Bookclosure 30/09/2016 52Wk Low (Rs.) 4 EPS (Rs.) 0.05 P/E (X) 176.27
Mkt Cap. (Rs. Cr.) 5.01 P/BV (X) 1.83 Div Yield (%) 0.00 Mkt Lot 1
2014-03 (a) Basis of preparation of financial statements:

These financial statements have been prepared on the accrual basis of accounting, under the historical cost convention, and in accordance with the Companies Act, 1956 and the applicable accounting standards issued by The Institute of Chartered Accountants of India.

(b) Use of estimates:

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Differences between the actual result and estimates are recognised in the period in which the results are known/ determined.

(c) Fixed Assets:

(i) Fixed Assets are stated at their original cost including incidental expenses related to acquisition and installation, less accumulated depreciation. Cost comprises of the purchase price and any other attributable cost of bringing the assets to its working condition for its intended use.

(ii) Capital Work in Progress is stated at cost.

(d) Impairment of Assets

An asset is treated as impaired when its carrying cost exceeds its recoverable value. An

impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

(e) Borrowing Costs:

Borrowing Costs that are directly attributable to acquisition of qualifying assets are capitalized for the period until the asset is ready for intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing

costs are recognized as an expense in the period in which they are incurred. No borrowing costs are eligible for capitalization during the year.

(f) Depreciation:

Depreciation on assets is provided on the Straight Line Method at rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

(g) Investments:

Investments are valued at cost. Provision for diminution in the value of Long Term investment is made only if, such decline is not temporary in nature in the opinion of the management.

(h) Inventories:

(i) Stock in trade comprising of raw materials (including goods in transit), packing material, stock in process and finished goods are valued at the lower of cost and net realizable value after making such provisions as required on account of damage, unserviceable and obsolete stocks

(ii) Stocks of stores, spares and consumable are valued at cost.

(i") Value of raw material and packing material does not include excise duty, counter veiling duty paid to the extent of which CENVAT credit is available.

(iv) Excise duty on goods manufactured by the company and remaining in inventory is included as a part of valuation of finished goods.

(i) Retirement Benefits:

(i) Contributions to provident fund are made at predetermined rates to Government Authority and charged to profit and loss account.

(ii) The Company is accounting for gratuity and leave encashment on cash basis.

(j) Revenue Recognition:

(i) Sales are recognized when the seller has transferred to the buyer, the property in the goods, for a price, or all significant risks and rewards of ownership have been transferred to the buyer without the seller retaining any effective control over the goods. Sales are stated at contractual realizable values, net of excise duty, sales tax and trade discounts.

(ii) Commission income is recognized as per contracts/receipt of credit note.

(iii) Job work Income is recognized when the goods are transferred to buyer and where no uncertainty exists regarding realization of revenue.

(k) Foreign Currency Transactions:

(i) Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction.

(ii) In respect of monetary items denominated in foreign currencies, exchange differences arising out of settlement or on conversion at the closing rate are recognized in the Profit and Loss Account, other than exchange differences on acquisition of fixed assets, which are adjusted in the carrying amount of fixed assets.

(l) Stores and Spares:

Items of stores and spares are charged to the revenue at the stage of purchase and stocks of such items as at the end of the year is accounted at cost.

(m) Research and Development Expenditure:

Revenue Expenditure in respect of Research and Development is charged to the Profit and Loss Account and Capital Expenditure is added to the cost of Fixed Assets in the year in which it is incurred.

(n) Taxation:

Provision for income-tax is based on the taxable income computed in accordance with the provision of the Income-tax Act, 1961. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

(o) Provisions. Contingent Liabilities and Contingent AssPts:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(p) Amortization of Deferred Revenue Expenditure:

The Company is amortizing l/5th of Deferred Revenue Expenditure every year.