Amal Ltd 2015-16

Amal Ltd | Annual Report 2015-16 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. The shares of the Company are listed on ASE and BSE. The Company 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, that is, Amal Ltd on September 11, 2003. The company is engaged in the manufacturing of Specialty Chemicals (Sulphuric Acid | Oleum | Sulphur Dioxide | Sulphur Trioxide). Basis of preparation The Financial Statements are prepared on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), and comply in material aspects with the Accounting Standards specified under Section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014. The Financial Statements have been prepared under the historical cost convention on accrual basis, except for certain fixed assets which are carried at revalued amounts. The significant Accounting Policies adopted by the Company are detailed below. Summary of significant Accounting Policies 01. Presentation and preparation of Financial Statements: The Financial Statements have been prepared in accordance with the requirements of the information and disclosures mandated by Schedule III of the Companies Act 2013, applicable Accounting Standards, other applicable pronouncements and regulations. The amounts and disclosures included in the Financial Statement of the previous year have been reclassified to confirm to current year’s presentation. 02. Use of estimates: Preparation of the Financial Statements in conformity with Indian GAAP requires the 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. 03. 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. 04. Leased assets: Operating lease rentals are amortised with reference to lease terms and other considerations. 05. Depreciation and amortisation: 1. Cost of leasehold land is amortized over the period of the lease. 2. Other Fixed Assets : i. Depreciation on Fixed Assets is provided on ‘Straight Line Method’ basis as per the useful life and in the manner prescribed under Part C of Schedule II to the Companies Act, 2013.