Amal Ltd 2012-13

Notes to financial statements 1 Corporate Information 2 Basisof preparation 2.1 Summaryof significant accountingpolicies A. Presentation&Preparationof Financial Statements : B. Useof Estimates : C. FixedAssets: D. LeasedAssets: E. DepreciationandAmortization: Amal Limited is a public company domiciled in India and incorporated on July 04 , 1974 with the Registrar of Companies, Maharashtra under the provisions of the Companies Act, 1956. It's shares are listed on ASE and BSE. Amal was incorporated under the name Piramal Rasayan Limited on July 04, 1974. Its namewas subsequently changed toAmal Rasayan Limitedby the saidRegistrar of Companies on November 10 ,1986 and further to Amal Products Limited onNovember 23 , 1995 and further to its present name viz. Amal Limited on September 11, 2003. The company is engaged in the manufacturingof SpecialityChemicals (SulphuricAcid | Oleum). 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. As notified byMinistry of Corporate Affairs, Revised ScheduleVI under the Companies Act, 1956 is applicable to the Financial Statements for the financial year commencing on or after 1st April, 2011. Accordingly, the financial statements for the year ended March 31, 2013 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures included in the financial statement of theprevious year havebeen reclassified to conformto current year’s presentation. 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 baseduponmanagement's best knowledge of current events and actions,actual results could differ from these estimates. Differences between actual results and estimates are recognized in theperiod inwhich the results are known |materialized. Fixed assets are carried at cost of acquisition including incidental expenses, less accumulated depreciation, amortization and impairment or amount substituted for cost on revaluation conductedby an independent surveyor in1985-86. Capital work-in-progress – Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest. Operating lease rentals are amortizedwith reference to lease terms andother considerations. 1. Cost of leasehold land is amortisedover the periodof the lease. 2. Other FixedAssets : i) Depreciationon FixedAssets is beingprovidedon "Straight LineMethod" 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 amortization, impairment and depreciation funds. The difference between depreciation on revalued amount and that calculated on original cost of assets revalued is transferred fromrevaluation reserve to Statement of Profit and Loss. Amal Ltd | Annual Report 2012-13