Accounting Policies of Futuristic Offshore Services & Chemical Ltd. Company

Mar 31, 2014

1. Basis of Accounting

The Company adopts the accrual concepts in the preparation of the accounts. The Financial statements are based on historical cost unless and otherwise stated. The accounting principles employed are generally accepted in India and materially comply with mandatory accounting standards issued by the Institute of Chartered Accountants of India.

2. Summary of significant accounting policies

a. Fixed Assets and Depreciation.

Fixed assets are recorded at original cost of acquisition. It includes all expenses up to commissioning / putting the asset into use and is net of credits availed under modvat / cenvat scheme where applicable. The assets are capitalized when they are put to use.

Depreciation is provided on straight line in the manner and method at the rates specified under the Companies Act, 1956. The identification of "continuous process" plant for the purposes of determining the appropriate rate of depreciation, being a technical matter is based on representation made by the management. Depreciation is not being charged on lease hold land.

b. Investments.

An investment quoted is stated at cost.

c. Inventories.

Inventories consisting of consumable stores and spares raw materials and work-in process are valued at cost. Benefit of excise duty under modvat/cenvat Scheme is adjusted in the cost of materials. Finished goods are valued at lower of cost or determined on absorption costing basis, Stock of finished goods include stock in liquid & powder form.

d. Retirement Benefits.

(I) Contribution to defined schemes such as Provident Fund shall be made monthly at a pre-determined rate and debited to profit and loss account on accrual basis.

(II) Liability for leave encashment is recognized only on actual occurrence of the event.

e. Foreign Currency Transactions.

(I) Foreign currency transactions shall be recorded at the exchange rates prevailing at the date of transaction. Gains/Losses on the re-statement or actual realization / payment of the Foreign currency transaction, if any, are recognized in the profit & loss account of the period in which they arise.

(II) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates.

f. Contingent Liabilities.

(I) Contingent liabilities are determined on the basis of available information.

(II) Disputed liabilities and claims against the Company are treated as contingent liabilities.

g. Sales:

When the supply of goods taken place in accordance with the terms of sales. The value is recorded as sales, inclusive of excise duty but net of trade discounts, if any. But excluding of vat.

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Mar 31, 2012

1. Basis of Accounting.

The Company adopts the accrual concepts in the preparation of the accounts. The Financial statements are based on historical cost unless and otherwise stated. The accounting principles employed are generally accepted in India and materially comply with mandatory accounting standards issued by the Institute of Chartered Accountants of India.

2. Fixed Assets and Depreciation.

(i) Fixed assets is recorded at original cost of acquisition. It includes all expenses up to commissioning/putting the asset into use and is net of credits availed under modvat/cenvat scheme where applicable. The assets are capitalized when they are put to use.

(ii) Depreciation is provided on straight line in the manner and method at the rates specified under the Companies Act, 1956. The identification of "continuous process" plant for the purposes of determining the appropriate rate of depreciation, being a technical matter is based on representation made by the management. Depreciation is not be charged on lease hold land.

3. Investments.

An investment quoted is stated at cost.

4. Inventories.

Inventories consisting of consumable stores and spares raw materials and work-in process are valued at cost. Benefit of excise duty under modvat/cenvat Scheme is adjusted in the cost of materials. Finished goods are valued at lower of cost or determined on absorption costing basis, Stock of finished goods include stock in liquid & powder form.

5. Retirement Benefits.

(i) Contribution to defined schemes such as Provident Fund shall be made monthly at a pre-determined rate and debited to profit and loss account on accrual basis.

(ii) Liability for leave encashment is recognized only on actual occurrence of the event.

6. Foreign Currency Transactions.

(i) Foreign currency transactions shall be recorded at the exchange rates prevailing at the date of transaction. Gains/Losses on the re-statement or actual realization/payment of the Foreign currency transaction, if any, are recognized in the profit & loss account of the period in which they arise.

(ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates.

7. Contingent Liabilities.

(i) Contingent liabilities are determined on the basis of available information.

(ii) Disputed liabilities and claims against the Company are treated as contingent liabilities.

8. Sales:

When the supply of goods taken place in accordance with the terms of sales. The value is recorded as sales, inclusive of excise duty but net of trade discounts, if any. But excluding of vat.

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Mar 31, 2010

1. Basis of Accounting

The Company adopts the accrual concepts in the preparation of the accounts. The Financial statements are based on historical cost unless and otherwise stated. The accounting principles employed are generally accepted in India and materially comply with mandatory accounting standards issued by the Institute of Chartered Accountants of India.

2. Fixed Assets And Depreciation

(I) Fixed assets should be recorded at original cost of acquisition. It includes all expenses up to commissioning / putting the asset into use and is net of credits availed under modvat / cenvat scheme where applicable. The assets are capitalized when they are put to use.

(II) Depreciation shall be provided on straight line in the manner and method at the rates specified under the Companies Act, 1956. The identification of "continuous process" plant for the purposes of determining the appropriate rate of depreciation, being a technical matter is based on representation made by the management. Depreciation shall not be charged on lease hold land.

3. Investments

Investments are stated at cost.

4. Inventories

Inventories consisting of consumable stores and spares raw materials and work-in process are valued at cost. Benefit of excise duty under MODVAT / CENVAT Scheme is adjusted in the cost of materials. Finished goods are valued at lower of cost or determined on absorption costing basis, Stock of finished goods include stock in liquid & powder form.

5. Retirement Benefits

(i) Contribution to defined schemes such as Provident Fund shall be made monthly at a pre-determined rate and debited to profit and loss account on accrual basis. (ii) Liability for leave encashment is recognized only on actual occurrence of the event.

6. Foreign Currency Transactions

(i) Foreign currency transactions shall be recorded at the exchange rates prevailing at the date of transaction. Gains/ Losses on the re-statement or actual realization/payment of the Foreign currency transaction, if any, are recognized in the profit & loss account of the period in which they arise.

(ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year-end rates.

7. Contingent Liabilities

(i) Contingent liabilities are determined on the basis of available information.

(ii) Disputed liabilities and claims against the Company are treated as contingent liabilities.

8. Sales

When the supply of goods taken place in accordance with the terms of sales. The value is recorded as sales, inclusive of excise duty but net of trade discounts, if any. But excluding of vat. However no sales transactions has been entered during the year.

9. The Company in earlier years had raised interest bearing funds by way of Term Loan from Financial Institutions,

Working Capital Loans from Banks & by way of issue of Debentures to Financial institutions. During the year the company has entered into One Time Settlement (OTS) with certain Financial Institutions and Banks, where by as on 31st March 2010 company has discharged the liability comprising of principle & interest in respect of Term Loan & Debenture from Financial Institution, Working Capital Loan from Banks & Debenture issue aggregating Rs 3132.18 lacs. Out of that

a) Accordingly the company has credited Rs 225.40 lacs to. Capital Reserve being the principal outstanding of the term loan which is no longer payable to Financial Institutions. This waiver is clearly a capital receipt.

b) Rs 491.80 Lacs comprising the principal components of Working Capital Loans has written back to profit & loss account which is no longer payable to banks, as its trading liabilities.

c) Interest waiver amounting to Rs 2414.98 on term loan from Financial Institutions, Working Capital Loans from Banks & by way of issue of Debentures to Financial institutions which is no longer payable to Banks & Financial Institutions, is credited to profit & loss account.