Amal Ltd 2013-14

Amal Ltd | Annual Report 2013-14 Notes to the Financial Statements NOTE 1 SIGNIFICANT ACCOUNTING POLICIES Corporate information Amal Ltd 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 Ltd on July 04, 1974. Its name was subsequently changed to Amal Rasayan Ltd by the said Registrar of Companies on November 10, 1986 and further to Amal Products Ltd on November 23, 1995 and further to its present name viz. Amal Ltd on September 11, 2003. The Company is engaged in the manufacturing of Speciality Chemicals (Sulphuric Acid | Oleum). 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. Summary of significant Accounting Policies A. Presentation and Preparation of the Financial Statements : These Financial Statements have been prepared in accordance with the requirements of the information and disclosures mandated by Revised Schedule VI, applicable Accounting Standards, other applicable pronouncements and regulations. B. Use of Estimates : The preparation of the 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. 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. 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