Vadivarhe Speciality Chemicals Ltd. कंपली की लेखा नीति

Mar 31, 2025

A) Corporate Information

Vadivarhe Speciality Chemicals Limited (the company) is an entity incorporated in India. The registered office of the company is at Gat No. 204, Vadivarhe, Igatpuri-422403.

The company is engaged in manufacturing of Organic Chemicals with a core focus on Intermediates, Personal Care Products, and Speciality Chemicals.

B) Significant Accounting Policies

1. Basis of preparation of Financial Statements & Accounts

The financial statements & accounts are prepared under historical cost convention in accordance with the mandatory Accounting Standards as specified under section 133 of the Companies Act 2013, read with Rule 3 of the Companies (Accounting Standards) Rules, 2021 and the relevant provisions of the Companies Act, 2013.

The Company has adopted accrual basis of accounting.

Accounting policies except specifically referred to, are consistent and in consonance with generally accepted accounting policies.

2. Use of Estimates

The preparation and presentation of financial statements in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities, revenues and expenditures and disclosure of contingent liabilities. The estimates and assumptions used in accompanying financial statements are based upon management’s evaluation of relevant facts and circumstances as on the date of financial statements. Difference between the actual results and estimates are recognized in the period in which results materialize/ are known. Future results could differ from these estimates.

3. Revenue Recognition

i. Revenue is recognized at the time of dispatch of goods to the customer along with sales invoice and e-way bill (wherever applicable) to that extent AS 9 has not been complied.

ii. Sale of services are recognized when services are delivered to the customer and are recorded net of Duties, Taxes and Trade Discounts & Rebates.

iii. Interest Income is recognized on a time proportion basis

iv. Dividend Income is recognized on receipt basis.

v. Subsidies, Duty Drawback Incentive are recognized on receipt basis.

4. Property Plant And Equipment Tangible Assets

Tangible assets, capital work in progress are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises of purchase price, borrowing costs, if capitalization criteria are met and any cost attributable to bringing the assets to its working condition for its intended use which includes taxes (except taxes of which input credit is been claimed), freight, and installation and allocated incidental expenditure during the construction/ acquisition.

When parts of an item of tangible assets have different useful lives, they are accounted for as separate items (Major Components) of property, plant and equipment. Subsequent expenditure relating to tangible assets is capitalized only if such expenditure results in an increase in the future benefits from such assets beyond its previously assessed standard of performance.

Intangible Assets

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a WDV basis commencing from the date the asset is available to the Company for its use.

During the financial year, intangible assets have been totally amortized.

5. Depreciation and Amortization

Depreciation on Property, Plant and Equipment is provided to the extent of depreciable amount on Straight Line Method (SLM) Method. Depreciation is provided based on useful life of assets as prescribed in Schedule II to the Companies Act, 2013.

Depreciation on addition to tangible assets is provided on pro-rata basis from the date the assets are ready for intended use. Depreciation on sale/ discard from tangible assets is provided for up to the date of sale, deduction or discard of tangible assets as the case may be.

6. Inventories

Inventories are valued at cost and no net realizable value is calculated. Cost of Inventories comprises of purchase costs, and other cost incurred in bringing the inventories to their present location and condition. The cost is determined as under.

i. Raw materials on FIFO Basis

ii. Finished Products - at raw material plus conversion cost

iii. Work-in-Progress at raw material cost plus proportionate conversion cost

7. Cash flow statement

Cash flows are reported using the indirect method as specified under Accounting Standard - 3, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.

8. Government grants

Grants and subsidies or incentives from the government are being recognized on receipt basis.

During the year, the company has received DIC PSI-2013 Incentive of Rs 5,74,500/- for F.Y.2022-23 (In Rupees (Nearest Hundred)) which has been showed as exceptional item.

9. Investments

Investments are valued at cost except where there is a permanent decline in the value of investments.

Non-current investment includes Bank Shares

10. Taxes on Income

Income Tax for the period is provided as per the provisions of the Income Tax Act, 1961 after considering various deductions available under the Act. However, due to loss for the year, there is no current tax liability.

Deferred Tax Expense/Income is recognized for "timing differences" between the accounting income and the taxable income using the tax rates and laws that are enacted or substantially enacted as on the Balance Sheet date. The Deferred Tax Assets is recognized and carried forward only to the extent there is a reasonable certainty that the asset will be realized in future.

During the year, deferred tax has not recognized since there is no virtual certainty for set off of losses.

11. Employee Benefits

All short term employee benefits are recognized at their undiscounted amount in the accounting period in which they are incurred.

Defined Contribution Plan

The company is having defined contribution plan for post-employment benefits in the form of Provident Fund. Under the Provident Fund Plan, the company contributes to a Government administered Provident Fund on behalf of employees. The company has no further obligation beyond making the Contribution.

Defined Benefit Plan

The company has made provision for payment of Gratuity and Leave Encashment to its employees. The cost of providing gratuity and leave encashment under this plan is determined on the basis of actuarial valuation at year end.

12. Borrowing Cost

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowing.

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to get ready for its intended use are capitalized. All other borrowing costs are recognized as expenditure in the period in which they are incurred.

13. Impairment of Assets

In accordance with AS-28, in the opinion of management, there is no impairment loss to the company.

14. Provisions and Contingent Liabilities

Provisions involving judgments and estimation in measurement of expenses 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.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources.

15. Foreign Exchange Transactions

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

ii) Monetary items in the form of Current Assets and Current Liabilities in Foreign Currency , outstanding at the close of the year , are converted in Indian currency the appropriate rates of exchange prevailing on the date of the Balance Sheet , resultant gain or loss is accounted in the statement of Profit and loss during the year.

iii) All other incomes or expenditure in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

16. Earning Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period after deducting any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period for all periods presented is adjusted for events, such as bonus shares, that have changed the number of equity shares outstanding, without corresponding change in the resources.

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Mar 31, 2024

Data Not Available

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Mar 31, 2016

NOTES FORMING PART OF ACCOUNTS AS AT 31^st MARCH 2016 A) SIGNIFICANT ACCOUNTING POLICIES

(1) ACCOUNTING CONVENTIONS:

The financial statements are presented under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act 2013 read with rule 7 of the companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) of Companies Act 1956 (Companies (Accounting Standards) Rules, 2006, as amended) and other relevant provisions of the Companies Act 2013.

(2) USE OF ESTIMATES :-

The preparation of financial statements require the management to make estimates and assumption considered in the reported amount of assets and liabilities {including contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used on preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

(3) REVENUE RECOGNITION:

Sale of goods is recognized on dispatches to customer, inclusive of sales tax (wherever applicable) and is net of discount.

The income from loan licensing facilities is recognized on the basis of actual production and invoice raised accordingly.

(4) FIXED ASSETS:

a) Fixed assets are stated at historical cost of acquisition / construction less depreciation.

b) Attributable interest and expenses of bringing the respective assets to working condition for their intended use are capitalized.

(5) METHOD OF DEPRECIATION AND AMORTISATION:

i) Depreciation on fixed assets is provided on Straight Line Method at the rates specified in the Schedule II of The Companies Act 2013.

ii) Effective 1^st April 2014, the company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act 1956.

(6} INVENTORIES:

a) Inventories are valued at lower of cost and net realizable value.

b) Cost of Semi-finished and finished goods comprise of materials and conversion cost.

(7) INVESTMENTS:

Investments to be stated at cost.

(8) TAXATION:

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) The deferred tax for timing difference between the book and tax profit for the year is accounted using tax rates tax laws that have been enacted or substantially enacted at the Balance Sheet date.

c) Deferred Tax assets arising from the timing difference are recognized to the extent there is reasonable certainty that sufficient future taxable income will be available.

(9) Income from Temporary Investments (Interest) are accounted on accrual basis.

(10) Employment Retirement Benefits:

Monthly Contributions to Provident Fund are considered on accrual basis in the accounts.

The Provision for Gratuity is made in the books of accounts as per actuarial valuation.

(11) Contingent Liabilities:

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts.

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Mar 31, 2015

A) SIGNIFICANT ACCOUNTING POLICIES

(1) ACCOUNTING CONVENTIONS:

The financial statements are presented under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act 2013 read with rule 7 of the companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) of Companies Act 1956 (Companies (Accounting Standards) Rules, 2006, as amended) and other relevant provisions of the Companies Act 2013.

(2) USE OF ESTIMATES

The preparation of financial statements require the management to make estimates and assumption considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used on preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

(3) REVENUE RECOGNITION:

Sale of goods is recognized on dispatches to customer, inclusive of sales tax (wherever applicable) and is net of discount.

The income from loan licensing facilities is recognized on the basis of -actual production and invoice raised accordingly.

(4) FIXED ASSETS:

a) Fixed assets are stated at historical cost of acquisition / construction less depreciation.

b) Attributable interest and expenses of bringing the respective assets to working condition for their intended use are capitalized.

(5) METHOD OF DEPRECIATION AND AMORTISATION:

i) Depreciation on fixed assets is provided on Straight Line Method at the rates specified in the Schedule II of The Companies Act 2013.

ii) Effective 1^st April 2014, the company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act 1956.

(6) INVENTORIES:

a) Inventories are valued at lower of cost and net realizable value.

b) Cost of Semi-finished and finished goods comprise of materials and conversion cost.

(7) INVESTMENTS:

Investments to be stated at cost.

(8) TAXATION:

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) The deferred tax for timing difference between the book and tax profit for the year is accounted using tax rates tax laws that have been enacted or substantially enacted at the Balance Sheet date.

c) Deferred Tax assets arising from the timing difference are recognized to the extent there is reasonable certainty that sufficient future taxable income will be available.

(9) Income from Temporary Investments (Interest) are accounted on accrual basis.

(10) Employment Retirement Benefits:

Monthly Contributions to Provident Fund are considered on accrual basis in the accounts.

The Provision for Gratuity is made in the books of accounts as per actuarial valuation.

(11) Contingent Liabilities:

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts.

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Mar 31, 2014

(1) ACCOUNTING CONVENTIONS:

The financial statements are presented under the historical cost convention on accrual basis and applicable mandatory Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

(2) USE OF ESTIMATES

The preparation of financial statements require the management to make estimates and assumption considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used on preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

(3) REVENUE RECOGNITION:

Sale of goods is recognized on dispatches to customer, inclusive of sales tax (wherever applicable) and is net of discount.

The income from loan licensing facilities is recognized on the basis of actual production and invoice raised accordingly.

(4) FIXED ASSETS:

a) Fixed assets are stated at historical cost of acquisition / construction less depreciation.

b) Attributable interest and expenses of bringing the respective assets to working condition for their intended use are capitalized.

(5) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates specified in the Schedule XIV of the Companies Act, 1956.

(6) INVENTORIES:

a) Inventories are valued at lower of cost and net realizable value.

b) Cost of Semi-finished and finished goods comprise of materials and conversion cost.

(7) INVESTMENTS:

Investments to be stated at cost.

(8) TAXATION:

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) The deferred tax for timing difference between the book and tax profit for the year is accounted using tax rates tax laws that have been enacted or substantially enacted at the Balance Sheet date.

c) Deferred Tax assets arising from the timing difference are recognized to the extent there is reasonable certainty that sufficient future taxable income will be available.

(9) Income from Temporary Investments (Interest) are accounted on accrual basis.

(10) Employment Retirement Benefits:

Monthly Contributions to Provident Fund are considered on accrual basis in the accounts.

The Provision for Gratuity is made in the books of accounts. The expenditure of gratuity is accounted for when actual payment is made.

(11) Contingent Liabilities:

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts.

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Mar 31, 2013

(1) ACCOUNTING CONVENTIONS:

The financial statements are presented under the historical cost convention on accrual basis and applicable mandatory Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

(2) USE OF ESTIMATES

The preparation of financial statements require the management to make estimates and assumption considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used on preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

(3) REVENUE RECOGNITION:

Sale of goods is recognized on dispatches to customer, inclusive of sales tax (wherever applicable) and is net of discount.

The Marketing services are recognised on the basis of the completion of service and the invoices raised.

(4) FIXED ASSETS:

a) Fixed assets are stated at historical cost of acquisition / construction less depreciation.

b) Attributable interest and expenses of bringing the respective assets to working condition for their intended use are capitalized. . ,

(5) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the

rates specified in the Schedule XIV of the Companies Act, 1956.

(6) INVENTORIES:

a) Inventories are valued at lower of cost and net realizable value.

b) Cost of Semi-finished and finished goods comprise of materials and conversion cost.

(7) INVESTMENTS:

Investments to be stated at cost.

(8) TAXATION:

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) The deferred tax for timing difference between the book and tax profit for the year is accounted using tax rates tax laws that have been enacted or substantially enacted at the Balance Sheet date.

c) Deferred Tax assets arising from the timing difference are recognized to the extent there is reasonable certainty that sufficient future taxable income will be available.

(9) Income from Temporary Investments (Interest) are accounted on accrual basis.

(10) Employment Retirement Benefits:

Monthly Contributions to Provident Fund are considered on accrual, basis in the accounts.

The Provision for Gratuity is made in the books of accounts. The expenditure of gratuity is accounted for when actual payment is made.

(11) Contingent Liabilities:

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts. ......

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Mar 31, 2012

(1) ACCOUNTING CONVENTIONS:

The financial statements are presented under the historical cost convention on accrual basis and applicable mandatory Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

(2) USE OF ESTIMATES :-

The preparation of financial statements require the management to make estimates and assumption considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used on preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

(3) REVENUE RECOGNITION:

Sale of goods is recognized on dispatches to customer, inclusive of sales tax (wherever applicable) and is net of discount.

(4) FIXED ASSETS:

a) Fixed assets are stated at historical cost of acquisition / construction less depreciation.

b) Attributable interest and expenses of bringing the respective assets to working condition for their intended use are capitalized.

(5) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates specified in the Schedule XIV of the Companies Act, 1956.

(6) INVENTORIES:

a) Inventories are valued at lower of cost and net realizable value

b) Cost of Semi-finished and finished goods comprise of materials and '' conversion cost. accountants

(7) INVESTMENTS:

Investments to be stated at cost.

(8) TAXATION:

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) The deferred tax for timing difference between the book and tax profit for the year is accounted using tax rates tax laws that have been enacted or substantially enacted at the Balance Sheet date.

c) Deferred Tax assets arising from the timing difference are recognized to the extent there is reasonable certainty that sufficient future taxable income will be available.

(9) Income from Temporary Investments (Interest) are accounted on accrual

basis.

(10) Employment Retirement Benefits:

Monthly Contributions to Provident Fund are considered on accrual basis in the accounts.

No provision for gratuity is made in the books of accounts. The expenditure of gratuity is accounted for when actual payment is made. .

(11) Contingent Liabilities:

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts.