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Accounting Policies of Arcotech Ltd. Company

Mar 31, 2015

(a) Basis of Accounting

Financial Statements are prepared under historical cost convention on accrual basis except those disclosed in notes on accounts in conformity with accounting principles generally accepted in India and comply with the provision of Companies Act, 2013 and Accounting Standards issued by the Institute of Chartered Accountants of India.

(b) Revenue Recognition

Sales are recognized on dispatch of materials to customers.

(c) Employee Benefits

i) Defined Contribution Plan:

Contribution to Provident Fund, which is defined contribution retirement plan, is charged to the Statement of Profit & Loss in the period in which the contributions are incurred.

ii) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and leave encashment are determined on actuarial valuation using projected unit credit method at the balance sheet date and are charged to Statement of Profit & Loss.

(d) Fixed Assets

(i) Fixed assets are stated at cost of acquisition inclusive of freight, duties and incidental expenses, etc.

(ii) Depreciation on fixed assets has been charged on Straight Line Method based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

(iii) Pursuant to enactment of Companies Act, 2013 the company has applied the estimated useful life of assets as specified in Schedule II of the Act, as a result depreciation during the year is lower by Rs. 97,83,274/-

(e) Investments

Investments, if any, are stated at cost.

(f) Inventories

(i) Inventories of Raw Materials, Stores & Consumable are valued at cost.

(ii) Inventories of Work in Process are valued at lower of cost and net realizable value.

(iii) Inventories of Finished Goods are valued at cost or market value whichever is lower.

(iv) Salable dust and scrap are valued at estimated realizable value.

(g) Foreign currency translation

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date.

Exchange differences

The company accounts for exchange differences arising on translation/settlement of foreign currency monetary items as below:

(i) Transactions reported in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of transaction.

(ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

(iii) Any income or expenditure on account of foreign exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

(h) Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts and are disclosed by way of note to the accounts.

(i) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable Income for the period. Deferred Tax is recognized subject to considering prudence on timing differences being the differences between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent period. MAT under the provisions of Income Tax Act, 1961 is recognized as current tax in the statement of profit and loss. The credit available under the act in respect of MAT paid is recognized as an asset only when and to the extent convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can be carried forward for set off against the normal tax liability. MAT credit recognized as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.


Mar 31, 2014

(a) Basis of Accounting

Financial Statements are prepared under historical cost convention on accrual basis except those disclosed in notes on accounts.

(b) Revenue Recognition

Sales are recognized on dispatch of materials to customers.

(c) Employee Benefits

i) Defined Contribution Plan:

Contribution to Provident Fund, which is defined contribution retirement plan, is charged to the Statement of Profit & Loss in the period in which the contributions are incurred.

ii) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and leave encashment are determined on actuarial valuation using projected unit credit method at the balance sheet date and are charged to Statement of Profit & Loss.

(d) Fixed Assets

(i) Fixed assets are stated at cost of acquisition inclusive of freight, duties and incidental expenses, etc. (ii) Depreciation on fixed assets has been charged on Straight Line Method at the rates and in the manner, prescribed under Schedule XIV of the Companies Act, 1956.

(e) Investments

Investments, if any, are stated at cost.

(f) Inventories

(i) Inventories of Raw Materials, Stores & Consumable are valued at cost. (ii) Inventories of Work in Process are valued at lower of cost and net realizable value. (iii) Inventories of Finished Goods are valued at cost or market value whichever is lower. (iv) Salable dust and scrap are valued at estimated realizable value.

(g) Foreign currency translation

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date.

Exchange differences

The company accounts for exchange differences arising on translation/settlement of foreign currency monetary items as below:

(i) Transactions reported in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of transaction.

(ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

(iii) Any income or expenditure on account of foreign exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

(h) Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts and are disclosed by way of note to the accounts.

(i) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable Income for the period. Deferred Tax is recognized subject to considering prudence on timing differences being the differences between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax Asset for the current year has been created taking into account the unabsorbed depreciation and carry forward of losses of earlier years.

MAT under the provisions of Income Tax Act, 1961 is recognized as current tax in the statement of profit and loss. The credit available under the act in respect of MAT paid is recognized as an asset only when and to the extent convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can be carried forward for set off against the normal tax liability. MAT credit recognized as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.


Mar 31, 2013

(a) Basis of Accounting

Financial Statements are prepared under historical cost convention on accrual basis except those disclosed in notes on accounts.

(b) Revenue Recognition

Sales are recognized on dispatch of materials to customers.

(c) Employee Benefits

i) Defined Contribution Plan:

Contribution to Provident Fund, which is defined contribution retirement plan, is charged to the Statement of Profit & Loss in the period in which the contributions are incurred.

ii) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and leave encashment are determined on actuarial valuation using projected unit credit method at the balance sheet date and are charged to Statement of Profit & Loss.

(d) Fixed Assets

(i) Fixed assets are stated at cost of acquisition inclusive of freight, duties and incidental expenses, etc. (ii) Depreciation on fixed assets has been charged on Straight Line Method at the rates and in the manner, prescribed under Schedule XIV of the Companies Act, 1956.

(e) Investments

Investments, if any, are stated at cost.

(f) Inventories

(i) Inventories of Raw Materials, Stores & Consumable are valued at cost. (ii) Inventories of Work in Process are valued at lower of cost and net realizable value. (iii) Inventories of Finished Goods are valued at cost or market value whichever is lower. (iv) Salable dust and scrap are valued at estimated realizable value.

(g) Foreign currency translation

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date.

Exchange differences

The company accounts for exchange differences arising on translation/settlement of foreign currency monetary items as below:

(i) Transactions reported in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of transaction. (ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. (iii) Any income or expenditure on account of foreign exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

(h) Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts and are disclosed by way of note to the accounts.

(i) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable Income for the period. Deferred Tax is recognized subject to considering prudence on timing differences being the differences between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax Asset for the current year has been created taking into account the unabsorbed depreciation and carry forward of losses of earlier years.

MAT under the provisions of Income Tax Act, 1961 is recognized as current tax in the statement of profit and loss. The credit available under the act in respect of MAT paid is recognized as an asset only when and to the extent convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can be carried forward for set off against the normal tax liability. MAT credit recognized as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.


Mar 31, 2012

(a) Basis of Accounting

Financial Statements are prepared under historical cost convention on accrual basis except those disclosed in notes on accounts.

(b) Revenue Recognition

Sales are recognized on dispatch of materials to customers.

(c) Employee Benefits

i) Defined Contribution Plan:

Contribution to Provident Fund, which is defined contribution retirement plan, is charged to the Profit & Loss account in the period in which the contributions are incurred.

ii) Defined Benefit Plan:

Retirement benefits in the form of Gratuity and leave encashment are determined on actuarial valuation using projected unit credit method at the balance sheet date and are charged to Profit & Loss account.

(d) Fixed Assets

(i) Fixed assets are stated at cost of acquisition inclusive of freight, duties and incidental expenses, etc.

(ii) Depreciation of fixed assets has been charged on Straight Line Method at the rates and in the manner, prescribed under Schedule XIV of the Companies Act, 1956.

(e) Investments

Investments, if any, are stated at cost.

(f) Inventories

(i) Inventories of Raw Materials, Stores & Consumable are valued at cost.

(ii) Inventories of Work in Process are valued at lower of cost and net realizable value.

(iii) Inventories of Finished Goods are valued at cost or market value whichever is lower.

(iv) Saleable dust and scrap are valued at estimated realizable value.

(g) Foreign currency translation

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Exchange differences

The company accounts for exchange differences arising on translation/settlement of foreign currency monetary items as below:

(i) Transactions reported in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of transaction.

(ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

(iii) Any income or expenditure on account of foreign exchange difference either on settlement or on translation is recognized in the profit and loss account

(h) Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts and are disclosed by way of note to the accounts.

(i) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable Income for the period. Deferred Tax is recognized subject to considering prudence on timing differences being the differences between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax Asset for the current year has been created taking into account the unabsorbed depreciation and carry forward of losses of earlier years.


Mar 31, 2010

(a) Basis of Accounting

Financial Statements are prepared under historical cost convention on accrual basis except those disclosed in notes on accounts.

(b) Revenue Recognition

Domestic Sales are recognized on dispatch of materials to customers.

(c) Employee Benefits

Contribution to Provident Fund, which is defined contribution retirement plan, is charged to the Profit & Loss account in the period in which the contributions are incurred. In respect of Gratuity, liability is determined on the basis of own valuation at the Balance Sheet date and is charged to Profit & Loss account.

(d) Fixed Assets

(i) Fixed assets are stated at cost of acquisition inclusive of freight, duties and incidental expenses, etc.

(ii) Depreciation of fixed assets has been charged on Straight Line Method at the rates and in the manner, prescribed under Schedule XIV of the Companies Act, 1956.

(e) Investments

Investments, if any, are stated at cost.

(f) Inventories

(i) Inventories of Raw Materials, Stores & Consumable are valued at cost. (ii) Inventories of Work in Process are valued at lower of cost and net realizable value. (iii) Inventories of Finished Goods are valued at cost or market value whichever is lower. (iv) Salable dust and scrap are valued at estimated realizable value.

(e) Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts and are disclosed by way of note to the accounts.

(f) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable Income for the period. Deferred Tax is recognized subject to considering prudence on timing differences being the differences between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax Asset for the current year has been created taking into account the unabsorbed depreciation and carry forward of losses of earlier years.