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Moneycontrol.com India | Accounting Policy > Miscellaneous > Accounting Policy followed by ELF Trading And Chemicals Manufacturing - BSE: 504387, NSE: N.A
ELF Trading And Chemicals Manufacturing
BSE: 504387|SECTOR: Miscellaneous
ELF Trading And Chemicals Manufacturing is not traded in the last 30 days
ELF Trading And Chemicals Manufacturing is not listed on NSE
Mar 12
Accounting Policy Year : Mar '13
1.1 Basis of accounting and preparation of financial statements:
 These financial statements have been prepared in accordance wilh the
 generally accepted accounting principles In India under the historical
 cost convention on accual basis. These financial statements have been
 prepared to comply all material aspects with the accounting standards
 notified under Section 111 (3d [Companies (Accounting Standards) rules,
 2006, as amended and the other relevant provisions of the Companies Act
 The accounting policies adopted In the preparation of the said
 financial statements are consistent with those of previous year except
 for the change In accounting policies arising out of revision of
 Schedule VI
 1.2 Use of estimates:
 The preparation of the financial statements In conformity with Indian
 GAAP requires the Management to make estimates and assumptions
 considered In the reported amounts of assets and liabilities (including
 contingent liabilities! and the reported Income and expenses during the
 year. The Management believes that the estimates used In preparation of
 the financial statements are prudent and reasonable, future results
 could differ due to these estimates and the differences between the
 actual results and the estimates are recognised in the periods In which
 Ifte results are known/ materialise.
 1.3 Tangible Fined Assets: .
 The Fixed Assets are stated at cost of acquisition minus the
 accumulated depreciation. Cost ts inclusive of Incidental expenses.
 1.4 Depreciation and Amortization:
 Depreciation on fixed assets is provided on Written Down Value Method
 and using the rates specified in Schedule KIV of the Companies Act,
 1956. In respect of assets purchased during the year, depreciation is
 charged on a pro-rata basis from the date of acquisition..
 1.5 Impairment of Assets:
 The carrying values of assets at each Balance Sheet date are reviewed
 for impairment. If any lndlcation_of Impairment exists, the recoverable
 amount of such assets Is estimated and impairment Is recognised In the
 Statement of Statement of Profit and Loss, If the carrying amount of
 these assets exceeds their recoverable amount. The impairment toss
 recognized in prior accounting period is reversed if there has been a
 change in the estimate of recoverable amount.
 1.6 Revenue Recognition:
 All Income and expenses are accounted on accrual basis except In case
 of dividend, which Is accounted when the owner''s right to receive
 payment is established I.e. usually when It is received. Interest
 income Including Interest on securities Is accounted on time proportion
 basis and wherever It Is not ascertainable, it is accounted as and when
 it Is received.
 1.7 expenditure:
 Expense: are accounted on accrual basis and provisions are made for all
 known losses & liabilities.
 1.8 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, il any) as adjusted for dividend, Interest and
 other charges to expense or Income relating to the dilutive potential
 equity sharps, by the weighted average number of equity shares
 considered for deriving basic earnings per share and Ihe weighted
 average number of equity shares which could have been Issued an the
 conversion of all dilutive potential equity shares.
 1.9 Taxes on Income:
 Tax expense comprises current and deferred tax. Current tax is the
 amount of tax payable on the taxable Income Tor the year as determined
 In according with the provisions of the Income Tax Act, 1961.
 Minimum Alternate Tax (MAT) paid In a year Is charged to the Statement
 of Profit and Loss as current tax. MAT paid In accordance with the tax
 laws, which gives future economic benefits In the form of adjustment to
 future Income tax liability. Is considered as an asset (I there is
 convincing evidence that the Company will pay normal Income tax during
 the specified period. I.e., the period for which MAT credit is allowed
 to be carried forward in the year in which the company recognises MAT
 credit as an asset In accordance with the Guidance Note on accounting
 for credit available In respect of Minimum Alternative Tax under the
 Income Tox Act, 1S61, the said asset Is created by way of iredit to the
 Statement of Profit an J Loss and sn own as ''MAT Credit Entitlement'',
 The company reviews the ''MAT Credit Entitlement'' asset at each
 reporting date and writes down the asset to the extent the company does
 not have convincing evidence that it will pay normal tax during the
 specified period.
 Deferred tax Is recogniied, subject to the considerations of prudence,
 on timing difference, 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. Deferred tax assets are not
 recognized on unabsorbed depreciation and carry forward ef losses
 unless there is virtual certainty that sufficient future taxable income
 will Le available against which such deferred tax assets can be
 1.10. Investments:
 Investments, which are readily realisable and intended to be held for
 not more than 1 year from the date of such investments are rri3de, are
 classified as current investments. Any other Investment other than
 stated above are classified as non-current Investments.
 Cost of Investments Include acquisition charges such as brokerage, fees
 and duties.
 Current Investments are carried individually, at the lower of cost and
 fair value.
 Non-current Investments (excluding investment properties), are carried
 Individually at cost less provision for diminution, other than
 temporary. In the value of such Investments.
 1.11 Provisions, Contingent Liabilities and Contingent Assets:
 Provision Is recognized when there is a present obligation as a result
 of past events and it is probable that an outflow of resources will be
 required to settle the obligation in respect nf which a reliable
 estimate can be made. Provisions (excluding retirement benefits] are
 noi discounted to their present value and are determined based on the
 best estimate 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 estimates. Contingent liabilities are
 disclosed in the notes.  
 1.12 Segment reporting:
 The Company Identifies primary segments based on the dominant source,
 nature of risks and returns and the Internal organisation and
 management structure. The operating segments are the segments for which
 separate financial information is available and for which operating
 profit/loss amounts are evaluated regularly by the executive Management
 In deciding how to allocate resources and In assessing performance.
 The accounting policies adopted for segment reporting are In line with
 the accounting policies of the Company. Segment revenue, segment
 expenses, segment assets and segment liabilities have been Identified
 to segments on the basis of their relationship to the operating
 activities of the segment
 Inter-segment revenue Is accounted on the basis of transactions which
 are primarily determined based on market / fair value factors.
 Revenue, expenses, assets and liabilities which relate to the Company
 as a whole and are not allocable to segments on reasonable basis have
 been included under ''unallocated revenue / expenses / assets /
 1.13 Employee benefits
 Employee benefits include provident fund, gratuity fund, compensated
 absences and post employment medical benefits
Source : Dion Global Solutions Limited
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