Starsource Multitrade Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2) SignificantAccounting Policies:

A) Revenue Recognition:

Revenue / income and cost / expenditure are generally accounted on accrual as they are earned or
incurred. Other Income is Comprised primarily of interest income, dividend income and gain/loss on
investments. Interest income is recognised using the effective interest method. Dividend income is
recognised when the right to receive payment is estatblished.

B) Employees Benefits:

1) Company''s Contribution to Provident Fund are charged to Profit & LossAccount.

2) Gratuity payable to Employees is calculated as per provisions of the Gratuity Act. However, there is no
gratuity payable till current yearfor the Company.

3) Leave encashment benefit is payable at the time of retirement. The Company provides for the
uncosumed leaves till the year, however there is no liability payable for the Company.

C) Classification of Current / Non-CurrentAssets and Liabilities

All the assets and liabilities have been classified as current or non-current as per the Company’s normal
operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1
“Presentation of financial statements”.

Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal
operating cycle;

b) it is held primarilyforthe purpose of being traded;

c) it is expected to be realised within twelve months afterthe reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for
at least twelve months afterthe reporting date.

Liabilities:

Aliability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company’s normal operating cycle;

b) it is held primarilyforthe purpose of being traded;

c) it is due to be settled within twelve months afterthe reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve
months afterthe reporting date. Terms of a liability that could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do not affect its clasification

All other assets / liabilities are classified as non-current.

Based on the nature of products and the time between the acquisition of assets for processing and their
realisation in cash or cash equivalents, the Company has ascertained its normal operating cycle as twelve
months for the purpose of Current/Non-current classification of assets and liabilities.

D) Property, Plant and Equipment:

Property, Plant and Equipment are valued at cost of acquisition less depreciation.

Property, plant and equipment are recorded at cost of acquisition / construciton less accumulated
depreciation and impirment losses, if any. Cost comprises of the purchase price net of creditable cenvate,
Service Tax, Vaule Added Tax and Goods and Service Tax, if any, and any attributable cost of bringing the
assets to its working condition for its intened use.

The Cost and realted accumulated depreciation are eliminated from the financial statements upon sale or
retirement or impirment of the asset and reultant gains or losses are recognised in the Statement of Profit
and Loss.

E) Depreciation andAmortisation on Property, Plant and Equipment:

Depreciation / amortisation on Property, plant and equipemnt is charged on WDV basis so as to write off
original cost of the assets over the useful lives. The useful life of the fixed assets as prescribed under the
CompaniesAct, 2013 are as under:

Type ofAssets Useful life (in Years)

Computer 3

Motor Car 8

AirConditioner 10

F) Cash & Cash Equivalents :

Cash and cash equivalents, in balance sheet and in cash flow statment, includes cash in hand, term
deposit with Bank and other short term highly liquid investments with original maturities of three months or
less.

G) Investment:

Long Term Investments are stated at cost less provision for diminution in value other than temporary if any.

H) Taxes on Income:

i. Current Tax:

Provision for current income tax is made on the taxable income using the applicable tax rates and tax
laws. Advance income tax and provision for current tax is disclosed in the Balance Sheet at net as
these are settled on net basis.

ii. Deferred Tax:

Deferred tax arising on account of timing differences and which are capable of reveral in one or more
subsequent period is recognised using the tax rate tax laws that have been enacted or sustantively
enacted. Deferred tax assets are not recognised unless there is virtual certainity with respect to the
reveral of the same in future years

I) Financial Instruments:

The Company recognises financial assets and financial liabilitieswhen it becomes a party to the
constractual provisios of the financial instrument.

i) FinancialAssets:

a) Initial Recognition and Measurement:

All financial assets are recognised initially atfairvalue, plus in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset. Purchases or sales of financial assets that require delivery of assets within a time
frame established by regulation or convention in the market place (regular way trades) are recognised
on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

b) Subsequent Measurement:

For purpose of subsequent measurement financial assets are classified in three categories:
i) Financial Assets atAmortised Cost:

A financial asset is subsequently measured at amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the constractual term o the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.

After initial measurement, debt instrument, debt instrument are subsequently measured at amortised cost
using the effective interest rates method, less method, less impairment, if any.

ii) Financial Assets at Fair Value through Other Comprehensive Income:

A financial asset is subsequently measured at fair value through other comprehensive income if it is
held within a business model whose objective is achieved by both collecting constractual cash flows
and selling financial assets and the contractual terms of the financial assts give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Company has made an irrevocable election for its investments which are classified as equity/
debt instruments to present the subsequent changes in fair value in other comprehensive incoem
base on its business model.

iii) FianancialAssets at Fair Value through Profitor Loss:

Financial assets which are not classified in any of the above categories are subsequently fair valued
through profif or loss.

i) Financial Liabilities:

a) Initial Recognition and Measurement:

The Company''s financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts, financial guarnatee contracts and derivative financial instruments.

Financial lilabilities are classified, at initial recognition, as at fair value through profit and loss or as
those measured at amortised cost.

b) Subsequent Measurement:

For purpose of subsequent measurement financial liabilities depends on their classification as
follows:

i) Fianancial Liabilities at Fair Value through Profit or Loss:

A financial liabilities at fair value through profit and loss include financial libilities held for trading. The
Company has not designated nay financial libilities upon initial recognition at fair value through profit
and loss.

ii) Financial Liabilites Measured atAmortised Cost:

After initial recgnition, interest bearing loans and borrowings are subsequently measured at amortised
cost using the effective interests rate method except for those designated in an effective hedging
relationship.

J) Earning Per Share:

The earnings consider in ascertaing the Company''s earning per share (EPS) comprise of the net profit after
tax after reducing dividend on cumulative preference shares for the period (irrespective of whether
declared, paid or not), as perAccounting Standard 20 on "Earning pershare"

---

Mar 31, 2024

2) Significant Accounting Policies :

A) Revenue Recognition :

Revenue / income and cost / expenditure are generally accounted on accrual as they are earned or
incurred. Other Income is Comprised primarily of interest income, dividend income and gain/loss on
investments. Interest income is recognised using the effective interest method. Dividend income is
recognised when the right to receive payment is established.

B) Employees Benefits :

1) Company''s Contribution to Provident Fund are charged to Profit & Loss Account.

2) Gratuity payable to Employees is calculated as per provisions of the Gratuity Act. However, there
is no gratuity payable till current year for the Company.

3) Leave encashment benefit is payable at the time of retirement. The Company provides for the
uncosumed leaves till the year, however there is no liability payable for the Company.

C) Classification of Current / Non-Current Assets and Liabilities

All the assets and liabilities have been classified as current or non-current as per the Company’s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and
Ind AS 1 “Presentation of financial statements”.

Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal
operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting date.

Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company’s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within twelve months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting date. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity instruments do not affect its
classification.

All other assets / liabilities are classified as non-current.

Based on the nature of products and the time between the acquisition of assets for processing and
their realisation in cash or cash equivalents, the Company has ascertained its normal operating cycle
as twelve months for the purpose of Current / Non-current classification of assets and liabilities.

D) Property, Plant and Equipment :

Property, Plant and Equipment are valued at cost of acquisition less depreciation.

Property, plant and equipment are recorded at cost of acquisition / construction less accumulated
depreciation and impairment losses, if any. Cost comprises of the purchase price net of creditable
cenvate, Service Tax, Value Added Tax and Goods and Service Tax, if any, and any attributable cost of
bringing the assets to its working condition for its intened use.

The Cost and realted accumulated depreciation are eliminated from the financial statements upon
sale or retirement or impairment of the asset and reultant gains or losses are recognised in the
Statement of Profit and Loss.

E) Depreciation and Amortisation on Property, Plant and Equipment :

Depreciation / amortisation on Property, plant and equipemnt is charged on WDV basis so as to write
off original cost of the assets over the useful lives. The useful life of the fixed assets as prescribed
under the Companies Act, 2013 are as under:

Type of Assets Useful life (in Years)

Computer 3

Motor Car 8

Air Conditioner 10

F) Cash & Cash Equivalents :

Cash and cash equivalents, in balance sheet and in cash flow statement, includes cash in hand, term
deposit with Bank and other short term highly liquid investments with original maturities of three
months or less.

G) Investment :

Long Term Investments are stated at cost less provision for diminution in value other than temporary
if any.

H) Taxes on Income :

i. Current Tax :

Provision for current income tax is made on the taxable income using the applicable tax rates and
tax laws. Advance income tax and provision for current tax is disclosed in the Balance Sheet at
net as these are settled on net basis.

ii. Deferred Tax :

Deferred tax arising on account of timing differences and which are capable of reveral in one or
more subsequent period is recognised using the tax rate tax laws that have been enacted or
sustantively enacted. Deferred tax assets are not recognised unless there is virtual certainity
with respect to the reveral of the same in future years.

I) Financial Instruments :

The Company recognises financial assets and financial liabilitieswhen it becomes a party to the
constractual provisios of the financial instrument.

i) Financial Assets :
a) Initial Recognition and Measurement :

All financial assets are recognised initially at fair value, plus in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Purchases or sales of financial assets that require delivery of
assets within a time frame established by regulation or convention in the market place (regular
way trades) are recognised on the trade date, i.e., the date that the Company commits to
purchase or sell the asset.

b) Subsequent Measurement :

For purpose of subsequent measurement financial assets are classified in three categories:

i) Financial Assets at Amortised Cost:

A financial asset is subsequently measured at amortised cost if it is held within a business
model whose objective is to hold the asset in order to collect contractual cash flows and the
constractual term o the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

After initial measurement, debt instrument, debt instrument are subsequently measured at
amortised cost using the effective interest rates method, less method, less impairment, if any.

ii) Financial Assets at Fair Value through Other Comprehensive Income :

A financial asset is subsequently measured at fair value through other comprehensive
income if it is held within a business model whose objective is achieved by both collecting
constractual cash flows and selling financial assets and the contractual terms of the financial
assets give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

The Company has made an irrevocable election for its investments which are classified as
equity/ debt instruments to present the subsequent changes in fair value in other
comprehensive income base on its business model.

iii) Financial Assets at Fair Value through Profit or Loss:

Financial assets which are not classified in any of the above categories are subsequently fair
valued through profit or loss.
ii) Financial Liabilities:

a) Initial Recognition and Measurement :

The Company''s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Financial liabilities are classified, at initial recognition, as at fair value through profit and loss or as
those measured at amortised cost.

b) Subsequent Measurement :

For purpose of subsequent measurement financial liabilities depends on their classification as
follows:

i) Financial Liabilities at Fair Value through Profit or Loss:

A financial liabilities at fair value through profit and loss include financial liabilities held for
trading. The Company has not designated nay financial liabilities upon initial recognition at
fair value through profit and loss.

ii) Financial Liabilities Measured at Amortised Cost:

After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using the effective interests rate method except for those designated in an
effective hedging relationship.

J) Earning Per Share :

The earnings consider in ascertaing the Company''s earning per share (EPS) comprise of the net profit
after tax after reducing dividend on cumulative preference shares for the period (irrespective of
whether declared, paid or not), as per Accounting Standard 20 on "Earning per share".

---

Mar 31, 2015

A) General :

The Financial Statement have been prepared on their historical cost convention and in accordance with the normally accept- ed accounting principles on accrual basis.

b) Fixed Assets :

Fixed Assets are valued at cost of acquisition less depreciation.

c) Depreciation :

As per the requirement of Schedule II of the Companies Act, 2013 effective from April 1,2014. The Company has been changing depreciation based on the useful lives of the assets.

d) Investment :

Long Term Investments are valued at cost of acquisition.

e) Employees Retirement Benefits :

1) Company's Contribution to Provident Fund are Charged to Profit & Loss Account.

2) Gratuity payable to Employees is calculated as per provisions of the Gratuity Act. The Company provides for Gratuity Liability in the account as and when paid.

3) Leave encashment benefit at the time of retirement is considered on cash basis as and when paid.

---

Mar 31, 2014

A) General:

The Financial Statement have been prepared on their historical cost convention and in accordance with the normally accepted accounting principles on accrual basis.

b) Fixed Assets :

Fixed Assets are valued at cost of acquisition less depreciation!

c) Depreciation :

1) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate specified in the Schedule XIV of the Companies Act, 1956.

2) Depreciation on additions / deletions during the year is provided on a pro-rata basis from the month of addition / deletion.

d) Investment:

Long Term Investments are valued at cost of acquisition.

e) Employees Retirement Benefits :

1) Company''s Contribution to Provident Fund are Charged to Profit & Loss Account.

2) Gratuity payable to Employees is calculated as per provisions of the Gratuity Act. The Company provides for Gratuity Liability in the account as and when paid.

3) Leave encashment benefit at the time of retirement is considered on cash basis as and when paid.

B) Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value Rs.10/- per Share. Each Holder of Equity Shares is entitled to one, vote per Share. The Company decalres and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuring Annual General Meeting.

During the year ended 31st March, 2014, the amount of per Share Dividend recognized as distribution to Equity Shareholders was Rs. Nil (31 March 2013 : Rs. Nil)

---

Mar 31, 2013

A) General

The Financial Statement have been prepared on their historical cost convention and in accordance with the normally accepted accounting principles on accrual basis.

b) Fixed Assets

Fixed Assets are valued at cost of acquisition less depreciation.

c) Depreciation

1) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate specified in the Schedule XIV of the Companies Act, 1956.

2) Depreciation on additions / deletions during the year is provided on a pro-rata basis from the month of addition / deletion.

d) Investment

Long Term Investments are valued at cost of acquisition.

e) Employees Retirement Benefits

1 Company''s Contribution to Provident Fund are Charged to Profit & Loss Account.

2 Gratuity payable to Employees is calculated as per provisions of the Gratuity Act. The Company provides for Gratuity Liability in the account as and when paid.

3 Leave encashment benefit at the time of retirement is considered on cash basis as and when paid.

---

Mar 31, 2012

A) General

The Financial Statement have been prepared on their historical cost convention and in accordance with the normally accepted accounting principles on accrual basis.

b) Fixed Assets

Fixed Assets are valued at cost of acquisition less depreciation.

c) Depreciation

1) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate specified in the Schedule XIV of the Companies Act, 1956.

2) Depreciation on additions / deletions during the year is provided on a pro-rata basis from the month of addition / deletion.

d) Investment

Long Term Investments are valued at cost of acquisition.

e) Employees Retirement Benefits

1 Company's Contribution to Provident Fund are Charged to Profit & Loss Account.

2 Gratuity payable to Employees is calculated as per provisions of the Gratuity Act. The Company provides for Gratuity Liability in the account as and when paid.

3 Leave encashment benefit at the time of retirement is considered on cash basis as and when paid.

---

Mar 31, 2011

A) General

The Financial Statement have been prepared on their historical cost convention and in accordance with the normally accepted accounting principles on accrual basis.

b) Fixed Assets

Fixed Assets are valued at cost of acquisition less depreciation.

c) Depreciation

1) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate specified in the Schedule XIV of the Companies Act, 1956.

2) Depreciation on additions / deletions during the year is provided on a pro-rata basis from the month of addition / deletion.

d) Investment

Long Term Investments are valued at cost of acquisition.

e) Valuation of Inventories

Stock of Shares are valued at Cost or market value whichever is lower

f) Employees Retirement Benefits

1. Company's Contribution to Provident Fund are Charged to Profit & Loss Account.

2. Gratuity payable to Employees is calculated as per provisions of the Gratuity Act. The Company provides for Gratuity Liability in the account as and when paid.

3. Leave encashment benefit at the time of retirement is considered on cash basis as and when paid.

g) Previous Year Expenses/Income

Expenses / Income pertaining to previous years are separately accounted for.

---

Mar 31, 2010

A) General

The Financial Statement have been prepared on their historical cost convention and in accordance with the normally accepted accounting principles on accrual basis.

b) Fixed Assets

Fixed Assets are valued at cost of acquisition less depreciation.

c) Depreciation

1) Leasehold Land are not depreciated.

2) Depreciation on Fixed Assets of Pharmaceutical Division is provided on Written Down Value Method at the rate specified in the Schedule XIV of the Companies Act, 1956.

3) Depreciation on Fixed Assets of Fine Chemicals Division is provided on Straight Line Method: on additions made from the year 1987-88 at the rate specified in the Schedule XIV of the Companies Act, 1956 and on additions made upto 1987-88, in accordance with a circular of Department of Company Affairs, Government of India dated 21st May, 1986, except Extra Multiple Shift Allowance.

4) Depreciation on additions / deletions during the year is provided on a pro-rata basis from the month of addition / deletion.

d) Investment

Long Term Investments are valued at cost of acquisition.

e) Valuation of Inventories

Stock of Shares are valued at Cost Value

f) Employees Retirement Benefits

1. Companys Contribution to Provident Fund are Charged to Profit & Loss Account.

2. Gratuity payable to Employees is calculated as per provisions of the Gratuity Act. The Company provides for Gratuity Liability in the account as and when paid.

3. Leave encashment benefit at the time of retirement is considered on cash basis as and when paid.

g) Previous Year Expenses/Income

Expenses / Income pertaining to previous years are separately accounted for.