Amal Ltd 2011-12

Amal Ltd | Annual Report 2011-12 Notes to financial statements for the year ended March 31, 2012 1. Corporate Information AMAL Limited is a public company domiciled in India and incorporated on July 4, 1974 with the Registrar of Companies, Maharashtra under the provisions of the Companies Act, 1956. Its shares are listed on ASE and BSE. AMAL was incorporated under the name PIRAMAL Rasayan Limited on July 4, 1974. Its name was subsequently changed to AMAL Rasayan Limited by the said Registrar of Companies on November 10, 1986 and further to AMAL Products Limited on November 23, 1995 and further to its present name viz AMAL Limited on September 11, 2003. The Company is engaged in the manufacturing of Speciality Chemicals (Sulphuric Acid | Oleum). 2. Basis of preparation These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under Section 211(3C) and the relevant provisions of the Companies Act, 1956. The significant accounting policies adopted by the Company are detailed below. 2.1 Summary of significant accounting policies A. Presentation & Preparation of Financial Statements: As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act, 1956 is applicable to the Financial Statements for the financial year commencing on or after April 1, 2011. Accordingly, the financial statements for the year ended March 31, 2012 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to conform to the requirements of Revised Schedule VI. B. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Differences between actual results and estimates are recognised in the period in which the results are known | materialised. C. Fixed Assets: Fixed assets are carried at cost of acquisition including incidental expenses, less accumulated depreciation, amortisation and impairment or amount substituted for cost on revaluation conducted by an independent surveyor in 1985-86. D. Leased Assets: Operating lease rentals are amortised with reference to lease terms and other considerations. E. Depreciation and Amortisation: 1. Cost of leasehold land is amortised over the period of the lease. 2. Other Fixed Assets: i. Depreciation on Fixed Assets is being provided on “Straight Line Method” basis in accordance with provisions of Section 205(2)(b) of the Companies Act, 1956 in the manner and at the rates specified in Schedule XIV to the said Act. The assets have been shown at the net value after deducting the amortisation, impairment and depreciation funds. The difference between depreciation on revalued amount and that calculated on original cost of assets revalued is transferred from revaluation reserve to Statement of Profit and Loss. ii. Depreciation on additions to the assets during the year is being provided on pro-rata basis at their respective rate with reference to the month of acquisition | installation as required by Schedule XIV to the Companies Act, 1956. iii. Depreciation on assets sold, scrapped or discarded during the year is being provided at their respective rates up to the month in which such assets are sold, scrapped or discarded, as required by Schedule XIV to the Companies Act, 1956. iv. Depreciation is adjusted in subsequent periods to allocate the assets revised carrying amount after the recognition of an impairment loss on a systematic basis over its remaining useful life.