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Accounting Policies of Bright Brothers Ltd. Company

Mar 31, 2018

SIGNIFICANT ACCOUNTING POLICIES

COMPANY INFORMATION:

The Bright Brothers Limited ("the Company") is public limited Company incorporated and domiciled in India and has registered office at 610-611, Nirman Kendra, Famous Studio Lane, Dr. E. Moses Road, Mahalaxmi, Mumbai 400 011. It is incorporated under the Indian Companies Act, 1913 and its shares are listed on the Bombay Stock Exchange Limited.

The Company is engaged in the business of manufacturing injection moulded plastics products for supplies to Original Equipment Manufacturers for Consumer Durable Industry and market its own products under "Brite" brand for material handling crates.

The Company has hair care division which market hair brushes and beauty products under "DIVO" brand.

(A) Basis of Preparation of Financial Statements:

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified under the Companies (Indian Accounting standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendments Rules 2016 prescribed under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014.

The financial statements of the Company are prepared and presented on accrual basis and under the historical cost convention, except for the following material items that have been measured at fair value as required by the relevant Ind AS:

- Certain financial assets and liabilities are measured at Fair value (refer accounting policy on financial instruments - note (H) below.

- Defined Benefit and other Long term Employee Benefits - Refer note (J) below.

(B) Use of Estimates:

The presentation of financial statements requires the management to make certain judgments, estimates and assumption that affects the reported amounts reported under the financial statements and notes thereto. Although such estimates and assumptions are based on the management evaluation of relevant facts and circumstances as on the date of financial statements, the actual amounts (crystallization after preparation of financial statements) may differ from these estimates.

All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle of twelve months and other criteria set out in Schedule III to the Companies Act, 2013.

(C) Property, Plant and Equipment:

(i) Property, plant and equipment other than certain revalued land, capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.

(ii) Items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost and depreciated over their useful life. Otherwise, such items are classified as inventories.

(iii) Gains or losses arising from de-recognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

(iv) Cost of land includes lands acquired under lease.

(v) Cost of building includes buildings constructed on leasehold lands.

(D) Depreciation on Property, Plant and Equipment:

(i) Depreciation on Property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management, which are equal to the life prescribed under the Schedule II to the Companies Act, 2013.

Depreciation on assets added/sold or discarded during the year is being provided on pro-rata basis up to the date on which such assets are added/sold or discarded.

Gains/Losses on disposals/de-recognition of property, plant and equipment are determined by comparing proceeds with carrying amount and these are recognized in statement of profit & Loss.

(ii) Premium on leasehold land is amortized over the period of lease.

(E) Intangible Assets:

Intangible assets, which are acquired, are capitalized and amortized on a straight-line basis over their useful lives of four years.

Intangible assets are held on the balance sheet at cost less accumulated amortisation and impairment losses.

(F) Foreign Currency Transactions:

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

(ii) Foreign currency monetary assets and liabilities are translated at year end exchange rates. Exchange differences arising either on settlement or on translation of monetary items at the year end are recognised as income or expenses in the year in which they arise.

(G) Inventories:

Inventories includes Raw Material, Work-in-Progress, Finished goods, Stores & spares, Consumables, Packing Materials.

(i) Raw Material and Components - Cost include cost of purchases and other costs incurred in bringing the inventories to their present location and condition. Cost is determined using identified lot basis/First in first out (FIFO) basis.

(ii) Finished stock, Traded goods and work in progress stock - Cost includes cost of direct material, labor, other direct cost and a proportion of fixed manufacturing overheads allocated based on the normal operating capacity but excluding borrowing costs. Cost is determined on weighted average cost basis.

(iii) Stores, Spare Parts, Consumables, Packing Materials etc. - Cost is determined on FIFO basis.

Adequate allowance is made for obsolete and slow moving items.

(H) Financial Instruments:

Financial assets - Initial recognition

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the Statement of Profit and Loss. Subsequent measurement Financial assets, other than equity instruments, are subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both:

(i) the entity''s business model for managing the financial assets and;

(ii) the contractual cash flow characteristics of the financial asset.

(a) Measured at amortised cost:

A financial asset is measured at amortised cost, if it is held under the hold to collect business model i.e. held with an objective of holding the assets to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest on the principal outstanding. Amortised cost is calculated using the effective interest rate ("EIR") method by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in interest income in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss. On derecognition, gain or loss, if any, is recognised to Statement of Profit and Loss.

(b) Measured at fair value through other comprehensive income (FVOCI):

A financial asset is measured at FVOCI, if it is held under the hold to collect and sell business model i.e. held with an objective to collect contractual cash flows and selling such financial asset and the contractual cash flows are solely payments of principal and interest on the principal outstanding. It is subsequently measured at fair value with fair value movements recognised in the OCI, except for interest income which recognised using EIR method. The losses arising from impairment are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in the OCI is reclassified from the equity to Statement of Profit and Loss.

(c) Measured at fair value through profit or loss (FVTPL):

Investment in financial asset other than equity instrument, not measured at either amortised cost or FVOCI is measured at FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised in the Statement of Profit and Loss.

Equity Instruments:

All investments in equity instruments classified under financial assets are subsequently measured at fair value. Equity instruments which are held for trading are measured at FVTPL.

For all other equity instruments, the Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. Fair value changes on an equity instrument shall be recognised in Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in the OCI. Amounts recognised in Other Comprehensive Income (OCI) are not subsequently transferred to Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognised in Statement of Profit and Loss.

Impairment:

The Company recognises a loss allowance for Expected Credit Losses (ECL) on financial assets that are measured at amortised cost and at FVOCI. The credit loss is difference between all contractual cash flows that are due to an entity in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate. This is assessed on an individual or collective basis after considering all reasonable and supportable including that which is forward-looking.

The Company''s trade receivables or contract revenue receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall, being simplified approach for recognition of impairment loss allowance.

Under simplified approach, the Company does not track changes in credit risk. Rather it recognizes impairment loss allowance based on the lifetime ECL at each reporting date right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables.

The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

For financial assets other than trade receivables, the Company recognises 12-month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. If, in a subsequent period, credit quality of the instrument improves such that there is no longer significant increase in credit risks since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12 months ECL.

The impairment losses and reversals are recognised in Statement of Profit and Loss. For equity instruments and financial assets measured at FVTPL, there is no requirement for impairment testing.

De-recognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Financial Liabilities

Initial Recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are initially recognised at fair value net of transaction costs for all financial liabilities not carried at fair value through profit or loss.

The Company''s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement:

Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

Loans & Borrowings:

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using EIR method. Gains and losses are recognized in profit & loss when the liabilities are derecognized as well as through EIR amortization process.

Financial Guarantee Contracts

Financial guarantee contracts issued by the Company are those contracts that requires a payment to be made or to reimburse the holder for a loss it incurs because the specified debtors fails to make payment when due in accordance with the term of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.

Subsequently the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative adjustments.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

(I) Fair Value measurement:

The Company measures financial instruments, at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(i) In the principal market for the asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

(i) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

(ii) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

(iii) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

(J) Employee Benefits:

The Company has following post-employment plans:

(a) Defined benefit plans such a gratuity and;

(b) Defined contribution plans such as Provident fund & Superannuation fund

(a) Defined-benefit plan:

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of defined benefit obligations at the end of the reporting period less fair value of plan assets. The defined benefit obligations is calculated annually by actuaries through actuarial valuation using the projected unit credit method.

The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

(i) Service costs comprising current service costs, past-service costs, gains and losses on curtailment and non-routine settlements; and

(ii) Net interest expense or income

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and fair value of plan assets. This cost is included in employee benefit expenses in the statement of the profit & loss.

Re-measurement comprising

(i) Re-measurement of Actuarial(gains) /losses

(ii) Return on plan assets, excluding amount recognized in effect of asset ceiling

(iii) Re-measurement arising because of change in effect of asset ceiling are recognised in the period in which they occur directly in Other comprehensive income. Re-measurement are not reclassified to profit or loss in subsequent periods.

Ind AS 19 requires the exercise of judgment in relation to various assumptions including future pay rises, inflation and discount rates and employee and pensioner demographics. The Company determines the assumptions in conjunction with its actuaries and believes these assumptions to be in line with best practice, but the application of different assumptions could have a significant effect on the amounts reflected in the income statement, other comprehensive income and balance sheet. There may be also interdependency between some of the assumptions.

(b) Defined-contribution plan:

Under defined contribution plans, provident fund, the Company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. Defined Contribution plan comprise of contributions to the employees'' provident fund with the government, superannuation fund and certain state plans like Employees'' State Insurance and Employees'' Pension Scheme. The Company''s payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.

(c) Other employee benefits:

(i) Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the obligation as at the Balance sheet date determined based on an actuarial valuation.

(ii) Undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the period when the employee renders the related services.

(K) Impairment of Non Financial Assets:

The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial assets are impaired. If any such indication exists, the Company estimates the amount of impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognised in profit or loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit or loss.

(L) Taxes on Income:

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary differences between accounting and tax treatments, and due to items, that are never taxable or tax deductible. Tax provisions are included in current liabilities. Interest and penalties on tax liabilities are provided for in the tax charge. The Company offsets, the current tax assets and liabilities (on a year on year basis) where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis or to realise the assets and liabilities on net basis.

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements. Deferred income tax asset are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred tax assets are not recognised where it is more likely than not that the assets will not be realised in the future.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Minimum Alternative Tax (''MAT'') credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income-tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income-tax during the specified period.

(M) Provisions, Contingent Liabilities and Contingent Assets:

Provisions:

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

Contingent Liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can''t be recognised because it can''t be measured reliably. The Company does not recognise the contingent liability but disclose its existence in its financial statements.

Contingent assets:

Contingent assets are neither recognised, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

(N) Leased Assets:

A lease is classified at the inception date as a finance lease or an operating lease. Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.

Other leases are treated as operating leases, with payments are recognised as expense in the statement of profit & loss on a straight line basis over the lease term.

(O) Exceptional Items:

Exceptional Items: On certain occasions, the size, type or incidence of an item of income or expense, pertaining to ordinary activities of the Company is such that its disclosure improves an understanding of performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts..

(P) Borrowing Costs:

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use or sale. All other borrowing costs are charged to revenue.

(Q) Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment, including excise duty and excluding taxes or duties collected on behalf of the government (other than excise duty).

Revenue is recognised only if following conditions are satisfied:

(i) The Company has transferred risks and rewards incidental to ownership to the customer;

(ii) The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

(iii) It is probable that the economic benefit associated with the transaction will flow to the Company; and

(iv) It can be reliably measured and it is reasonable to expect ultimate collection.

Revenue from sale of services are recognized when the services are rendered.

Dividend income is recognised when the right to receive payment is established.

(R) Earnings Per Share:

Earnings per share is calculated by divided the profit attributable to the shareholders by the number of equity shares outstanding at the close of the year. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The weighted diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

(S) Cash and Cash Equivalents:

Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of changes in value where original maturity is three months or less.

(T) Cash Flow Statement:

The Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of:

(i) transactions of a non-cash nature.

(ii) any deferrals or accruals of past or future operating cash receipts or payments and

(iii) items of income or expense associated with investing or financing cash flows.


Mar 31, 2017

SIGNIFICANT ACCOUNTING POLICIES

COMPANY INFORMATION:

The Company is engaged in the business of manufacturing injection moulded plastics products for supplies to Original Equipment Manufacturers for Consumer Durable Industry and market its own products under "Brite" brand for material handling crates.

The Company has hair care division which market hair brushes and beauty products under "DIVO" brand.

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention other than revaluation of certain property, plant and equipment, on an accrual basis and in accordance with the generally accepted accounting principles in India (Indian GAAP), the applicable mandatory Accounting Standards as prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment Rules, 2016. The financial statements have been prepared and presented as per requirement of Schedule III as notified under Companies Act, 2013. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(B) Use of Estimates:

The presentation of financial statements requires the management to make certain judgement, estimates and assumption that affects the reported amounts reported under the financial statements and notes thereto. Although such estimates and assumptions are based on the management evaluation of relevant facts and circumstances as on the date of financial statements, the actual amounts (crystallization after preparation of financial statements) may differ from these estimates.

(C) Property, Plant and Equipment:

(i) Property, plant and equipment other than certain revalued land, capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in the statement of profit and loss as incurred.

(ii) Items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost and depreciated over their useful life. Otherwise, such items are classified as inventories.

(iii) Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

(iv) Cost of land includes lands acquired under lease.

(v) Cost of building includes buildings constructed on leasehold lands.

(D) Depreciation on Property, Plant and Equipment:

(i) Depreciation on Property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management, which are equal to the life prescribed under the Schedule II to the Companies Act, 2013.

(ii) Premium on leasehold land is amortized over the period of lease.

(E) Intangible Assets:

Intangible assets, which are acquired, are capitalized and amortized on a straight-line basis over their useful lives of four years.

(F) Foreign Currency Transactions:

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

(ii) Foreign currency monetary assets and liabilities are translated at year end exchange rates. Exchange differences arising either on settlement or on translation of monetary items at the year end are recognized as income or expenses in the year in which they arise.

(G) Inventories:

(i) Raw Materials are valued at lower of cost or net realizable value, includes taxes, duties which are non refundable in nature.

(ii) Finished stock, Traded goods and work in progress stock are valued at lower of cost or net realizable value.

(iii) Stores, spares and packing materials are valued at cost.

(H) Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

(I) Employee Benefits:

Defined contribution Plan:

Gratuity:

The company has an obligation towards gratuity, a defined contribution retirement plan covering all eligible employees. In accordance applicable laws, the Company provides for gratuity benefit retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity plan provides for, at retirement or termination of employment, an amount based on the respective employees last drawn salary and the year of employment with the Company. The Company provides the Gratuity benefits through annual contribution to a Gratuity Trust which has taken a Group Gratuity Assurance Scheme with the Life Insurance Corporation of India (LIC). Under this plan the settlement obligation remains with the Gratuity trust. Life Insurance Corporation of India administers the plan and determines the contribution premium to be paid by the trust.

Superannuation:

Defined contribution plan wherein contributions are made to LIC.

Apart from being covered under the Gratuity plan described above, the employees of the Company who are Managers and above have the option to participate in a defined contribution superannuation plan maintained by the Company.

Provident Fund:

In addition to the above benefits, all employees are entitled to be provided benefits as per the law. For this the Company makes contribution to Regional Provident Fund Commissioner and there is no further obligation on the Company in future.

(J) Impairment of Assets:

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:

(i) the provision for impairment loss, if any; and

(ii) the reversal of impairment loss recognized in previous periods, if any,

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

Recoverable amount is determined:

(i) In the case of an individual asset, at the higher of the net selling price and the value in use;

(ii) In the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit''s net selling price and the value in use.

(Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life).

(K) Taxes on Income:

(i) Tax expense comprises of current and deferred taxes.

Provision for Current-tax (inclusive of Minimum Alternate Tax) is made on based on taxable income in accordance with relevant tax rates and laws. MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal tax during the specified period.

(ii) Deferred Tax, being tax on "timing differences" between accounting income and taxable income that originate in one year and capable of reversal in one or more subsequent years has been recognized accounted by using the tax rates and laws that have been substantively enacted as on the Balance Sheet date.

(iii) Deferred tax assets, excluding assets arising from loss/depreciation carried forward are not recognized unless there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In case of carried forward loss/depreciation, it is recognized only if virtual certainty exists.

(L) Provisions, Contingent Liabilities and Contingent Assets:

Provisions:

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

Contingent Liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can''t be recognized because it can''t be measured reliably. The Company does not recognize the contingent liability but disclose its existence in its financial statements.

Contingent assets:

Contingent assets are neither recognized, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date. (M) Leased Assets:

Operating Leases: Assets acquired on lease where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Profit and Loss account on an accrual basis.

(N) Extraordinary and Exceptional Items:

(i) Extraordinary items:

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expenses, is classified as extraordinary items and disclosed as such.

(ii) Exceptional Items:

On certain occasions, the size, type or incidence of an item of income or expense, pertaining to ordinary activities of the Company is such that its disclosure improves an understanding of performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

(O) Borrowing Costs:

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use or sale. All other borrowing costs are charged to revenue.

(P) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

(i) Sales are net of sales return and trade discounts and excludes all taxes and levies.

(ii) Revenue from the sale of manufactured goods and traded goods is recognized when the significant risks and rewards of ownership have been transferred to the customer.

(iii) Income from services is recognized upon completion of the contract, in accordance with the specific terms of the contract with the customer.

(iv) Interest income is recognized on a time proportion basis, determined by the amount outstanding and the rate applicable.

(v) Dividend Income has been accounted on receipt basis.

(vi) Profit on sale of investment is recognized at the time when the investments are realized.

(Q) Excise Duty:

Excise duty has been accounted on the basis of payments made in respect of goods cleared. No excise duty provision has been made on closing inventory of finished goods. However, it does not have impact on the profits of the Company.

(R) Earnings Per Share:

Earning per share is calculated by divided the profit attributable to the shareholders by the number of equity shares outstanding at the close of the year. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The weighted diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

(S) Cash Flow Statement:

The Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of:

(i) transactions of a non-cash nature.

(ii) any deferrals or accruals of past or future operating cash receipts or payments and

(iii) items of income or expense associated with investing or financing cash flows.


Mar 31, 2016

COMPANY INFORMATION:

The Company is engaged in the business of manufacturing injection moulded plastics products for supplies to Original Equipment Manufacturers for Consumer Durable Industry and market its own products under "Brite" brand for material handling crates.

The Company has hair care division which market hair brushes and beauty products under "DIVO" brand.

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention other than revaluation of certain fixed assets, on an accrual basis and in accordance with the generally accepted accounting principles in India (Indian GAAP), the applicable mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared and presented as per requirement of Schedule III as notified under Companies Act, 2013. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(B) Use of Estimates:

The presentation of financial statements requires the management to make certain judgement, estimates and assumption that affects the reported amounts reported under the financial statements and notes thereto. Although such estimates and assumptions are based on the management evaluation of relevant facts and circumstances as on the date of financial statements, the actual amounts (crystallization after preparation of financial statements) may differ from these estimates.

(C) Fixed Assets and Depreciation:

(i) All the fixed assets, other than certain revalued land, are stated at cost, net of Cenvat and Value added tax less accumulated depreciation including impairment loss. All direct cost including financing cost till commencement of commercial production are capitalized as part of fixed assets.

(ii) Cost of land includes lands acquired under lease.

(iii) Cost of building includes buildings constructed on leasehold lands.

(iv) Depreciation on Fixed Assets has been provided on Straight Line Method based on the useful lives as prescribed under part C of Schedule II of the Companies Act, 2013.

(v) Intangible assets are amortized on a straight-line basis over a period of four years.

(vi) Depreciation for assets purchased/sold during the year is proportionately charged.

(vii) Premium on leasehold land is amortized over the period of lease.

(D) Foreign Currency Transactions:

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

(ii) Foreign currency monetary assets and liabilities are translated at year end exchange rates. Exchange differences arising either on settlement or on translation of monetary items at the yearend are recognized as income or expenses in the year in which they arise.

(E) Inventories:

(i) Raw Materials are valued at lower of cost or net realizable value, includes taxes, duties which are non refundable in nature.

(ii) Finished stock and work in progress stock are valued at lower of cost or net realizable value.

(iii) Stores, spares and packing materials are valued at cost.

(F) Investments:

Trade investments comprise investments in which the Company has strategic business interest. Investments, which are readily realizable and are intended to be held for not more than one year from the date of acquisition, are classified as current investments. All other investments are classified as long term investments.

Long Term Investments are carried at cost less provision, if any, for permanent diminution in value of such investments. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

Current investments are carried at lower of cost or realizable value.

(G) Employee Benefits:

Defined contribution Plan:

Gratuity:

The company has an obligation towards gratuity, a defined contribution retirement plan covering all eligible employees. In accordance applicable laws, the Company provides for gratuity benefit retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity plan provides for, at retirement or termination of employment, an amount based on the respective employees last drawn salary and the year of employment with the Company. The Company provides the Gratuity benefits through annual contribution to a Gratuity Trust which has taken a Group Gratuity Assurance Scheme with the Life Insurance Corporation of India (LIC). Under this plan the settlement obligation remains with the Gratuity trust. Life Insurance Corporation of India administers the plan and determines the contribution premium to be paid by the trust.

Superannuation:

Defined contribution plan wherein contributions are made to LIC.

Apart from being covered under the Gratuity plan described above, the employees of the Company who are Managers and above have the option to participate in a defined contribution superannuation plan maintained by the Company.

Provident Fund:

In addition to the above benefits, all employees are entitled to be provided benefits as per the law. For this the Company makes contribution to Regional provident fund commissioner and there is no further obligation on the Company in future.

(H) Impairment of Assets:

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:

(i) the provision for impairment loss, if any; and

(ii) the reversal of impairment loss recognized in previous periods, if any,

Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

Recoverable amount is determined:

(i) In the case of an individual asset, at the higher of the net selling price and the value in use;

(ii) In the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit''s net selling price and the value in use.

(Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life).

(I) Taxes on Income:

(i) Tax expense comprises of current and deferred taxes.

Provision for Current-tax (inclusive of Minimum Alternate Tax) is made on based on taxable income in accordance with relevant tax rates and laws. MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal tax during the specified period.

(ii) Deferred Tax, being tax on "timing differences" between accounting income and taxable income that originate in one year and capable of reversal in one or more subsequent years has been recognized accounted by using the tax rates and laws that have been substantively enacted as on the Balance Sheet date.

(iii) Deferred tax assets, excluding assets arising from loss/depreciation carried forward are not recognized unless there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In case of carried forward loss/depreciation, it is recognized only if virtual certainty exists.

(J) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

(i) the Company has a present obligation as a result of a past event,

(ii) a probable outflow of resources is expected to settle the obligation and

(iii) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

(i) A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation;

(ii) A present obligation when no reliable estimate is possible;

(iii) A possible obligation arising from past events where the probability of outflow of resources is not remote.

Contingent assets are neither recognized, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

(K) Leased Assets:

Operating Leases: Assets acquired on lease where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease Rentals are charged to the Profit and Loss account on an accrual basis.

(L) Extraordinary and Exceptional Items:

(i) Extraordinary items:

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expenses, is classified as extraordinary items and disclosed as such.

(ii) Exceptional Items:

On certain occasions, the size, type or incidence of an item of income or expense, pertaining to ordinary activities of the Company is such that its disclosure improves an understanding of performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

(M) Borrowing Costs:

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use or sale. All other borrowing costs are charged to revenue.

(N) Revenue Recognition:

(i) Sales are net of sales return and trade discounts and excludes all taxes and levies.

(ii) Revenue from the sale of manufactured goods and traded goods is recognized when the significant risks and rewards of ownership have been transferred to the customer.

(iii) Income from services is recognized upon completion of the contract, in accordance with the specific terms of the contract with the customer.

(iv) Interest income is recognized on a time proportion basis, determined by the amount outstanding and the rate applicable.

(v) Dividend Income has been accounted on receipt basis.

(vi) Profit on sale of investment is recognized at the time when the investments are realized. (O) Excise Duty:

Excise duty has been accounted on the basis of payments made in respect of goods cleared. No excise duty provision has been made on closing inventory of finished goods. However, it does not have impact on the profits of the Company.

(P) Earnings Per Share:

Earnings per share is calculated by divided the profit attributable to the shareholders by the number of equity shares outstanding at the close of the year. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The weighted diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

(Q) Cash Flow Statement:

The Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of:

(i) transactions of a non-cash nature.

(ii) any deferrals or accruals of past or future operating cash receipts or payments and

(iii) items of income or expense associated with investing or financing cash flows.


Mar 31, 2013

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting in accordance with the Companies Act, 1956, and comply with the applicable Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 and issued by the Institute of Chartered Accountants of India (ICAI). The accounting policies adopted in the preparation of the financial statements are consistent with those follow in the previous years.

(B) Use of Estimates:

The presentation of financial statements is in conformity with generally accepted accounting principles requires the management to make judgement, estimates and assumption that affects the reported amount of assets and liabilities, revenue and expenses, disclosure of contingent liabilities at the end of reporting period. Although such estimates and assumptions are based on the management evaluation of relevant facts and circumstances as on the date of financial statements, the actual amounts (crystallization after preparation of financial statements) may differ from this estimate.

(C) Fixed Assets and Depreciation:

(i) All the fixed assets, other than certain revalued land, are stated at cost, net of Cenvat and Value added tax less accumulated depreciation including impairment loss. All direct cost including financing cost till commencement of commercial production are capitalized as part of fixed assets.

(ii) Cost of land includes lands acquired under lease.

(iii) Cost of building includes buildings constructed on leasehold lands.

(iv) Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

(v) Intangible Assets are amortised for a period not exceeding three years.

(D) Foreign Currency Transactions:

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

(ii) Foreign currency monetary assets and liabilities are translated at year end exchange rates. Any income or expense on account of exchange differences arising on either on settlement or on translation of monetary items at the year end are recognised as income or expenses in the year in which they arise.

(E) Inventories:

(i) Raw Materials are valued at cost or net realisable value, whichever is lower.

(ii) Finished stock and work in progress stock are valued at cost or net realisable value, whichever is lower.

Finished goods (Trading), at cost or realisable value. (iii) Stores, spares and packing materials are valued at cost.

(F) Investments:

Trade investments comprise investments in which the Company has strategic business interest.

Investments, which are readily realizable and are intended to be held for not more than one year from the date of acquisition, are classified as current investments. All other investments are classified as long term investments. Current investments are carried at lower of cost or realizable value.

(G) Employee Benefits:

Defined contribution Plan: Gratuity:

In accordance with applicable laws, the Company provides for gratuity benefit retirement plan (Gratuity Plan) covering all staff, workers and officers. The Gratuity plan provides for, at retirement or termination of employment, an amount based on the respective employees last drawn salary and the years of employment with the Company. The Company provides the Gratuity benefits through annual contribution to a Gratuity Trust which in turn mainly contributes to Life Insurance of Corporation of India (LIC) for this purpose. Under this plan, the settlement obligation remains with the Grautity trust. Life Insurance Corporation of India administers the plan and determines the contribution premium to be paid by the trust.

Superannuation:

Defined contribution plan wherein contributions are made to a Trust which in turn contributes to LIC. Apart from being covered under the Gratuity plan described above, the employee of the Company who are Manager and above have the options to participate in a defined contribution superannuation plan maintained by the Company. The Company has no further obligation under the plan except making annual contribution based on a specified percentage of each covered employees.

Providend Fund:

In addition to the above benefits, all employees are entitled to provided benefits as per the law. For this Company makes contribution to Regional provident fund commissioner and there is no further obligation on the Company in future.

(H) Impairment of Assets:

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine: (i) the provision for impairment loss, if any; and

(ii) the reversal of impairment loss recognised in previous periods, if any, Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

Recoverable amount is determined:

(i) in the case of an individual asset, at the higher of the net selling price and the value in use; (ii) in the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit''s net selling price and the value in use. (Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life).

(I) Taxes on Income:

(i) Provision for Current tax including Minimum Alternative Tax (MAT) is made on based on taxable income in accordance with relevant tax rates and laws. MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal tax during the specified period.

(ii) Deferred Tax, being tax on "timing differences" between accounting income and taxable income that originate in one year and capable of reversal in one or more subsequent years has been recognized accounted by using the tax rates and laws that have been substantively enacted as on the Balance Sheet date.

(iii) Deferred tax assets, excluding assets arising from loss/depreciation carried forward are not recognized unless there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In case of carried forward loss/depreciation, it is recognized only if virtual certainty exists.

(J) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

(a) the Company has a present obligation as a result of a past event,

(b) a probable outflow of resources is expected to settle the obligation and

(c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

(a) A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation;

(b) A present obligation when no reliable estimate is possible;

(c) A possible obligation arising from past events where the probability of outflow of resources is not remote.

Contingent assets are neither recognised, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

(K) Leased Assets:

Operating Leases: Assets acquired on lease where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease Rentals are charged to the Profit and Loss account on an accrual basis.

(L) Extraordinary and Exceptional Items:

(i) Extraordinary items:

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expenses, is classified as an extraordinary items and disclosed as such.

(ii) Exceptional items:

On certain occasions, the size, type or incidence of an item of income or expense, pertaining to ordinary activities of the Company is such that its disclosure improves an understanding of performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

(M) Borrowing Costs:

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time as the asset is ready for its intended use or sale. All other borrowing costs are charged to revenue.

(N) Segment Accounting:

(a) Segment accounting policies

Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:

(i) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

(ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. Expenses, which relate to the Group as a whole and not allocable to segments, are included under "unallocable corporate expenditure".

(b) The Company''s reporting segments are identified based on activities/products, risk and reward structure, organization structure and internal reporting systems.

(O) Revenue Recognition:

(i) Sales are net of sales return and trade discounts and excludes all taxes and levies.

(ii) Revenue from the sale of goods is recognized in the statement of profit and loss account when the significant risk and reward of ownership have been transferred to the buyer.

(iii) Income from services is recognized upon completion of the contract, in accordance with the specific terms of the contract with the customer.

(iv) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

(v) Dividend Income has been accounted on receipt basis (P) Excise Duty:

Excise duty has been accounted on the basis of payments made in respect of goods cleared. No excise duty provision has been made on closing inventory of finished goods. However, it does not have impact on the profits of the Company.

(Q) Earnings per share:

Earning per share is calculated by divided the profit attributable to the shareholders by the number of equity shares outstanding at the close of the year. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The weighted diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

(S) Cash Flow Statement:

Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of:

I. transactions of a non-cash nature

II. any deferrals or accruals of past or future operating cash receipts or payments and

III. items of income or expense associated with investing or financing cash flows.


Mar 31, 2012

BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the applicable Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 as amended and the relevant provisions of the Companies Act, 1956 of India (the Act). The accounting policies followed in the preparation of financial statements are consistent with those of previous year.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria as set out in the Schedule VI to the Companies Act, 1956. Based on the nature of service rendered by the Company and the time incurred between the cost incurred for rendering the service and their cash and cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

The adoption of revised Schedule VI does not impact recognition and measurement principle followed for preparation of financial statements. However it has significant impact on presentation and disclosure made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(B) VALUATION OF INVENTORIES (AS-2):

Inventories are valued at lower of cost or net realisable value. The general practice adopted by the Company for valuation of inventory is as follows:

(a) Raw Material : At cost (FIFO)

(b) Finished Goods/Work-in-Progress : At lower of cost and net realizable value

(c) Trading Goods /Moulds : At lower of cost and net realizable value

(d) Stores & Spares : At cost (FIFO)

(e) Packing Material : At cost (FIFO)

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

(C) CASH FLOW STATEMENT (AS-3):

The cash flow statement is prepared under "Indirect Method" and the same is annexed.

(D) CONTINGENCIES AND EVENTS OCCURING AFTER BALANCE SHEET DATE (AS-4):

N.A.

(E) NET PROFIT AND LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES (AS-5):

NIL

(F) DEPRECIATION ACCOUNTING (AS-6):

(i) Depreciation has been provided using the straight line method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

(ii) Asset individually costing of Rs 5,000 or less is fully depreciated in the year of acquisition.

(iii) In respect of assets added/sold during the year, pro rata depreciation has been provided.

(iv) Leasehold land and improvements is amortised over the period of lease.

(v) Intangible Assets are amortised for a period not exceeding three years.

(vi) SAP software programme have been amortised over a period of 5 years.

(G) REVENUE RECOGNITION (AS-9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The Company collects sales tax and Value added tax (VAT) on behalf of the Government and therefore, these are not economic benefits flowing to the Company. Hence they are excluded from revenue.

Revenue from the sale of goods is recognized in the statement of profit & loss account when the significant risk and reward of ownership have been transferred to the buyer. Excise duty deducted from the turnover (gross) is the amount that is the amount that is included in the amount of turnover (gross) and not the entire amount of liability that arose during the year.

Income from services is recognized upon completion of the contract, in accordance with the specific terms of the contract with the customer.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income has been accounted on receipt basis.

(H) ACCOUNTING FOR FIXED ASSETS (AS-10):

Fixed assets are stated at cost including expenditure incurred in bringing them to usable condition as reduced by Central Value Added Tax Credit (CENVAT), Value Added Tax (VAT) less accumulated depreciation.

Cost of lands includes land acquired under lease. Building includes building constructed on leaseholds lands.

Fixed Assets acquired under Hire Purchase Scheme are capitalized at their present value and hire charges are expensed.

Intangible assets like trademarks are amortized over a period of three years.

(I) ACCOUNTING FOR THE EFFECT IN FOREIGN EXCHANGE RATE (AS-11):

Foreign Currency translation:

Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of the transaction. In respect of fixed assets, the exchange rate difference has been adjusted in the cost of assets and in respect of other transactions are recognized in the Profit and Loss Account.

(J) ACCOUNTING FOR GOVERNMENT GRANTS (AS-12):

Government subsidy is accounted under Capital subsidy under the head Reserves and Surplus.

(K) ACCOUNTING FOR INVESTMENT (AS-13):

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. Investments are valued at Cost. However, provision for diminution in value, if any, is made to recognize a decline other than temporary in nature in the value of investments.

(L) ACCOUNTING FOR RETIREMENT BENEFITS (AS-15):

Disclosure is made as per the requirements of the standard and the same is furnished below:

Short term employees benefits:

All employees' benefits payable wholly within twelve months are classified as short- term employee's benefits. Benefits such as salaries, wages, performance incentives etc. are recognized at actual amount due in the period in which the employees rendered the related service.

Post employment benefits:

Defined Contribution plan:

Provident Fund: Contribution to Provident Fund is made to Employees Provident Fund administered by Regional Provident Fund Commissioner. There are no other obligations other than the contribution payable to the funds.

Superannuation fund: The Company makes contribution to a scheme administered by the Life Insurance Corporation of India (LIC) to discharge superannuating liabilities to the employees. The annual contribution is charged to Profit & Loss Account.

Defined Benefits Plan:

Gratuity: The Company makes contribution to a scheme administered by Life Insurance Corporation of India (LIC) to discharge gratuity liabilities to the employees. Company's annual contribution to the scheme is charged to Profit & Loss Account.

Leave Encashment: The Company provides for the encashment of leave with pay subject to certain rules. Employees are entitled to accumulate leave. The liability is based upon the number of days of unutilized leave at each balance sheet date.

(M) BORROWING COST (AS-16):

The borrowing cost has been treated in accordance with the Accounting Standards on borrowing cost (AS -16) issued by The ICAI. During the year, there were no borrowings attributable to qualifying assets and hence, no borrowing cost has been capitalized.

(N) SEGMENT REPORTING (AS-17):

The Company operates in one Business Segment of Processed Plastics Products and accordingly there is the only primary segment as per Accounting Standard AS-17.

(O) RELATED PARTY DISCLOSURE (AS-18):

Information on Related Party Transactions furnished in this report was complied based on the guidelines issued by the Institute of The Chartered Accountants of India, under Accounting Standard on Related Party Transactions (AS-18).

The following are the related parties with whom transactions have been entered into during the year:

Key Management Personnel

Mrs. Hira T. Bhojwani - Whole Time Director Mr. Suresh Bhojwani - Managing Director

Relatives of Key Management Personnel

Mr. Karan Bhojwani

Ms. Ruchika Bhojwani

Enterprises in which Key Management Personnel have significant influence

M/s. Quality Plastics

M/s. T. W. Bhojwani Leasing Pvt Ltd.

(P) ACCOUNTING FOR LEASE (AS-19):

Disclosure as required by Accounting Standard 19, "Leases", issued by The Institute of

Chartered Accountant of India, are given below:

1. The Company has taken various factory premises, office premises and guest house under operating lease agreement. These are generally cancellable and are renewable on mutually agreed terms. Operating lease payments are recognized as an expenses in the profit and loss account on a straight line basis over the lease term.

(Q) EARNING PER SHARE (AS-20):

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

(R) ACCOUNTING FOR TAXES ON INCOME (AS-22):

Tax expenses comprises of current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities and determined on the profit of the year in accordance with the provisions of Income tax Act, 1961. Deferred tax is calculated at tax rates and the laws that have been enacted or substantially enacted at the balance sheet date and is recognized on timing difference that originates in one period and capable of reversal in one or more subsequent periods. Deferred tax assets, is recognized subject to consideration of prudence, and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which deferred taxes will be utilized. In situation where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profit.

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal tax during the specified period.

(S) INTERIM FINANCIAL REPORTING (AS-25):

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

(T) INTANGIBLE ASSETS (AS-26):

During the year the Company has not capitalized any sum towards intangible assets.

(U) IMPAIREMENT OF ASSETS (AS-28):

The cash generating units are evaluated at the Balance Sheet date to ascertain the estimated recoverable amounts/value in use as against the Written Down Value. Impairment loss, if any, is recognized whenever the Written Down Value exceeds estimated recoverable amounts/value in use.

(V) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS-29):

(a) The liability in respect of warranty attached to the products are to the extent of replacement of products, no specific provision has been made in the accounts.

(b) Contingent Liabilities not provided for are disclosed in the notes to the accounts given below and Contingent assets are not recognized.

Capital commitment

Estimated amount of Contract remaining to be executed on Capital account and not provided for Rs 61.18 lacs (Previous Year - Rs 72.78 Lacs) — (net of advance).

(c) Contested liabilities and Contingencies:

Rs in lacs

Liabilities not provided for As at As at 31-3-2012 31-3-2011

Service tax 51.50 Nil

Excise duty 129.74 133.30

Wealth Tax Nil 3.31

Income Tax Nil 503.86

Bombay Sales Tax 73.60 118.55

Stamp Duty 36.75 36.75

Note: In respect of Stamp Duty the Company has deposited the entire amount payable under Protest.

(d) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.


Mar 31, 2011

(A) DISCLOSURE OF ACCOUNTING POLICIES (AS-1):

The financial statements have been prepared under the historical cost convention on an accrual basis and comply in all material aspects with the applicable Accounting Standards notified under sub-section (3c) of Section 211 of the Companies Act, 1956 of India (the Act) and the relevant provisions of the Act. The Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(B) VALUATION OF INVENTORIES (AS-2):

Inventories are valued at lower of cost or net realisable value. The general practice adopted by the Company for valuation of inventory is as follows:

(a) Raw Material : At cost (FIFO)

(b) Work-in-Progress : At lower of cost and net realizable value

(c) Finished Goods : At lower of cost and net realizable value

(d) Trading Goods : At lower of cost and net realizable value

(e) Moulds : At cost

(f) Stores & Spares : At cost (FIFO)

(g) Packing Material : At cost (FIFO)

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

(C) CASH FLOW STATEMENT (AS-3):

The cash flow statement is prepared under "Indirect Method" and the same is annexed.

(D) CONTINGENCIES AND EVENTS OCCURING AFTER BALANCE SHEET DATE

(AS-4):

On 16th April, 2011 there was a fire at Faridabad Unit, which has partially resulted in damage/destroyed to stock, plant & machinery, furniture & fixture, computer hardware and software and electrical installation. Since it has not affected the going concern concept, no provision has been given in these financial statements in the line with the Accounting Standard-4.

(E) NET PROFIT AND LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES (AS-5):

Nil.

(F) DEPRECIATION ACCOUNTING (AS-6):

(i) Depreciation has been provided using the straight line method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

(ii) Asset individually costing of Rs. 5,000 or less are fully depreciated in the year of acquisition.

(iii) In respect of assets added/sold during the year, pro rata depreciation has been provided.

(iv) Leasehold land and improvements is amortised over the period of lease.

(v) Intangible Assets are amortised for a period not exceeding three years.

(vi) SAP software licence have been amortised over a period of five years.

(G) REVENUE RECOGNITION (AS-9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

The sale comprised of plastic components, moulds and traded goods. Sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyers.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

Dividend income has been accounted on receipt basis.

Profit on sale of investment is recognized only at the time when the investments are realised.

(H) ACCOUNTING FOR FIXED ASSETS (AS-10):

Fixed assets are stated at cost including expenditure incurred in bringing them to usable condition as reduced by Central Value Added Tax Credit (CENVAT), Value Added Tax (VAT) less accumulated depreciation. Cost of lands includes land acquired under lease. Building includes building constructed on leaseholds lands. Fixed Assets acquired under Hire Purchase Scheme are capitalized at their present value and hire charges are expensed. Intangible assets like trademarks and SAP licence are amortized over a period of three years and five years respectively.

(I) ACCOUNTING FOR THE EFFECT IN FOREIGN EXCHANGE RATE (AS-11):

Foreign Currency transactions:

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. In respect of fixed assets, the exchange rate difference has been adjusted in the cost of assets and in respect of other transactions are recognized in the Profit and Loss Account.

(J) ACCOUNTING FOR GOVERNMENT GRANTS (AS-12):

Government subsidy is accounted under Capital subsidy under the head Reserves and Surplus.

(K) ACCOUNTING FOR INVESTMENT (AS-13):

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. Investments are valued at Cost. However, provision for dimunition in value, if any, is made to recognize a decline other than temporary in nature in the value of investments.

(L) ACCOUNTING FOR RETIREMENT BENEFITS (AS-15):

Disclosure is made as per the requirements of the standard and the same is furnished below:

Short-term employees benefits:

All employees benefits payable wholly within twelve months are classified as short- term employees benefits. Benefits such as salaries, wages, performance incentives etc. are recognized at actual amount due in the period in which the employees rendered the related service.

Post employment benefits:

Defined Contribution plan:

Provident Fund: Contribution to Provident Fund is made to Employees Provident Fund administered by Regional Provident Fund Commissioner. There are no other obligations other than the contribution payable to the funds.

Superannuation Fund: The Company makes contribution to a scheme administered by the Life Insurance Corporation of India (LIC) to discharge superannuating liabilities to the employees. The annual contribution is charged to Profit & Loss Account.

Defined Benefits Plan:

Gratuity: The Company makes contribution to a scheme administered by Life Insurance Corporation of India (LIC) to discharge gratuity liabilities to the employees. Companys annual contribution to the scheme is charged to Profit & Loss Account.

Leave Encashment: The Company provides for the encashment of leave with pay subject to certain rules. Employees are entitled to accumulate leave. The liability is based upon the number of days of unutilized leave at each balance sheet date.

(M) BORROWING COST (AS-16):

The borrowing cost has been treated in accordance with the Accounting Standard on borrowing cost (AS-16). During the year, there were no borrowings attributable to qualifying assets and hence, no borrowing cost has been capitalized.

(N) SEGMENT REPORTING (AS-17):

The Company operates in one Business Segment of Processed Plastics Products and accordingly this is the only primary segment as per Accounting Standard AS-17.

(O) RELATED PARTY DISCLOSURE (AS-18):

Information on Related Party Transactions furnished in this report was complied based on the guidelines issued by The Institute of Chartered Accountants of India, under Accounting Standard on Related Party Transactions (AS-18).

The following are the related parties with whom transactions have been entered into during the year:

Key Management Personnel

Mrs. Hira T. Bhojwani - Whole Time Director

Mr. Suresh Bhojwani - Chairman & Managing Director

Relatives of Key Management Personnel

Mr. Karan S. Bhojwani

Ms. Ruchika S. Bhojwani

Enterprises in which Key Management Personnel have significant influence

M/s. Quality Plastics

M/s. T. W. Bhojwani Leasing Pvt. Ltd.

Summary of the monetary value of the Transaction with related parties are as follows:

(P) ACCOUNTING FOR LEASE (AS-19):

Disclosure as required by Accounting Standard 19, "Leases", issued by The Institute of Chartered Accountant of India, are given below:

1. The Company has taken various factory premises, office premises and guest house under operating lease agreement. These are generally cancellable and are renewable on mutually agreed terms. Operating lease payments are recognized as an expenses in the profit and loss account on a straight line basis over the lease term.

(Q) EARNING PER SHARE (AS-20):

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to Equity shareholders by the weighted average number of equity shares outstanding during the year as under:

Disclosure is made in the profit & loss account as per the requirements of the standard.

(R) ACCOUNTING FOR TAXES ON INCOME (AS-22):

Tax expenses comprises of current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities and determined on the profit of the year in accordance with the provisions of Income Tax Act, 1961. Deferred tax is calculated at tax rates and the laws that have been enacted or substantially enacted by the Balance Sheet date and is recognized on timing difference that originates in one period and capable of reversal in one or more subsequent periods. Deferred tax assets, is recognized subject to consideration of prudence, and carried forward only to the extent that they can be realized. In situation where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profit.

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal tax during the specified period.

(S) INTERIM FINANCIAL REPORTING (AS-25):

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

(T) INTANGIBLE ASSETS (AS-26):

During the year the Company has capitalized a sum of Rs. 13.76 lacs for SAP licence which is written off over a period of 5 years.

(U) IMPAIREMENT OF ASSETS (AS-28):

The cash generating units are evaluated at the Balance Sheet date to ascertain the estimated recoverable amounts/value in use as against the Written Down Value. Impairment loss, if any, is recognized whenever the Written Down Value exceeds estimated recoverable amounts/ value in use.

(V) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS-29):

(a) The liability in respect of warranty attached to the products are to the extent of replacement of products. No specific provision has been made in the accounts.

(b) Contingent Liabilities not provided for are disclosed in the notes to the accounts given below and Contingent assets are not recognized.

(c) Capital commitment

Estimated amount of Contract remaining to be executed on Capital account and not provided for Rs. 72.78 lacs (net of advance)

(d) Contested liabilities and Contingencies:

- Stamp duty Rs 36.75 lacs

- Sales Tax Rs. 118.55 lacs

- Excise duty Rs. 133.30 lacs

- Wealth tax Rs 3.31 lacs

- Income Tax Rs. 503.86 lacs

- ESIC Rs 7.65 lacs

Note: In respect of Stamp Duty the Company has deposited the entire amount payable under Protest.


Mar 31, 2010

(A) DISCLOSURE OF ACCOUNTING POLICIES (AS-1):

The financial statements have been prepared under the historical cost convention on an accrual basis and comply in all material aspects with the applicable Accounting Standards notified under sub-section (3c) of Section 211 of the Companies Act, 1956 of India (the Act) and the relevant provisions of the Act. The Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(B) VALUATION OF INVENTORIES (AS-2):

Inventories are valued at lower of cost or net realisable value. The general practice adopted by the Company for valuation of inventory is as follows:

(a) Raw Material : At cost.(FIFO)

(b) Work-in-Progress : At lower of cost and net realizable value

(c) Finished Goods : At lower of cost and net realizable value

(d) Trading Goods/Moulds : At lower of cost and net realizable value

(e) Stores & Spares : At cost (FIFO)

(f) Packing Material : At cost (FIFO)

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

(C) CASH FLOW STATEMENT (AS-3):

The cash flow statement is prepared under "Indirect Method" and the same is annexed.

(D) CONTINGENCIES AND EVENTS OCCURING AFTER BALANCE SHEET DATE (AS-4):

Nil.

(E) NET PROFIT AND LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES (AS-5):

Nil

(F) DEPRECIATION ACCOUNTING (AS-6):

(i) Depreciation has been provided under the straight line method at the rates prescribed under Schedule XIV of the Companies Act, 1956 with applicable shift allowances.

(ii) Asset individually costing Rs. 5,000 or less are fully depreciated in the year of acquisition.

(iii) In respect of assets added/sold during the year, pro rata depreciation has been provided.

(iv) Leasehold land and improvements is amortised over the period of lease.

(v) Intangible Assets are amortised for a period not exceeding three years.

(G) REVENUE RECOGNITION (AS-9):

The sale of the Company comprised of sale of plastic components, mould and traded goods. The sales are net of trade discount and sales tax, value added tax and excise duty on own manufacture goods. Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

The revenue and expenditure are accounted on a going concern basis.

(H) ACCOUNTING FOR FIXED ASSETS (AS-10):

Fixed assets are stated at cost including expenditure incurred in bringing them to usable condition as reduced by Central Value Added Tax Credit (CENVAT), Value Added Tax (VAT) less accumulated depreciation. Cost of lands includes land acquired under lease. Building includes building constructed on leaseholds lands. Fixed Assets acquired under Hire Purchase Scheme are capitalized at their present value and hire charges are expensed. Intangible assets like software cost and trademarks is amortized over a period of three years.

(I) ACCOUNTING FOR THE EFFECT IN FOREIGN EXCHANGE RATE (AS-11):

Foreign Currency transactions:

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary asset and liabilities are translated at the exchange rate prevailing on the balance sheet date. Exchange difference arising out of such transaction are recognized in the Profit and Loss Account.

(J) ACCOUNTING FOR GOVERNMENT GRANTS (AS-12):

Government subsidy is accounted under Capital subsidy under the head Reserves and Surplus. During the year the Company has received Rs. 15 lakhs from the Government of Haryana towards subsidy.

(K) ACCOUNTING FOR INVESTMENT (AS-13):

Investments are valued at Cost except where there is a dimunition in value other than temporary in which case the carrying value is reduced to recognize the decline.

(L) ACCOUNTING FOR RETIREMENT BENEFITS (AS-15):

Disclosure is made as per the requirements of the standard and the same is furnished below:

Short term employees benefits:

All employees benefits payable within twelve months are classified as short-term employees benefits. Benefits such as salaries, wages, performance incentives etc. are recognized at actual amount due in the period in which the employees rendered the related service.

Post employment benefits:

Defined Contribution plan:

Provident Fund: Contribution to Provident Fund is made to Employees Provident Fund administered by Regional Provident Fund Commissioner.

Superannuation fund: The Company makes contribution to a scheme administered by the Life Insurance Corporation of India (LIC) to discharge superannuating liabilities to the employees. The annual contribution is charged to Profit & Loss Account.

Defined Benefits Plan:

Gratuity: The Company makes contribution to a scheme administered by Life Insurance Corporation of India (LIC) to discharge gratuity liabilities to the employees. Companys annual contribution to the scheme is charged to profit & loss account.

Leave Encashment: The Company provides for the encashment of leave with pay subject to certain rules. Employees are entitled to accumulate leave. The liability is based upon the number of days of unutilized leave at each balance sheet date.

(M) BORROWING COST (AS-16):

The borrowing cost has been treated in accordance with the Accounting Standards on borrowing cost (AS -16) issued by The ICAI. During the year, there were no borrowings attributable to qualifying assets and hence, no borrowing cost has been capitalized.

(N) SEGMENT REPORTING (AS-17):

The Company operates in one Business Segment of Processed Plastics Products and accordingly there is no separate reportable segment as per Accounting Standard AS-17.

(O) RELATED PARTY DISCLOSURE (AS-18):

Information on Related Party Transactions furnished in this report was complied based on the guidelines issued by the Institute of Chartered Accountants of India, under Accounting Standard on Related Party Transactions (AS-18).

The following are the related parties with whom transactions have been entered into during the year:

Key Management Personnel

Mrs. Hira T. Bhojwani - Whole Time Director

Mr. Suresh Bhojwani - Chairman & Managing Director

Relatives of Key Management Personnel

Mrs. Devika S. Bhojwani Mr. Karan S. Bhojwani Ms. Ruchika S. Bhojwani M/s. T. W. Bhojwani HUF Mr. V. W. Bhojwani

Enterprises in which Key Management Personnel have significant influence

M/s. T. W. Bhojwani Leasing Pvt. Ltd. M/s. Quality Plastics

(P) ACCOUNTING FOR LEASE (AS-19):

Disclosure as required by Accounting Standard 19, "Leases", issued by The Institute of Chartered Accountant of India, are given below:

1. The Company has taken various residential, office and warehouse premises under operating lease agreement. These are generally cancellable and are renewed on mutually agreed terms. The Company has given refundable interest free security deposits under certain agreements.

(Q) EARNING PER SHARE (AS-20):

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to Equity shareholders by the weighted average number of equity shares outstanding during the year as under:

(R) ACCOUNTING FOR TAXES ON INCOME (AS-22):

Current tax is determined on the profit of the year in accordance with the provisions of Income tax Act, 1961. Deferred tax is calculated at tax rates and the laws that have been enacted or substantially enacted by the Balance Sheet date and is recognized on timing difference that originates in one period and capable of reversal in one or more subsequent periods. Deferred tax assets, is recognized subject to consideration of prudence, are recognized and carried forward only to the extent that they can be realized.

(S) INTERIM FINANCIAL REPORTING (AS-25):

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

(T) INTANGIBLE ASSETS (AS-26):

During the year the Company has not capitalized any sum towards intangible assets.

(U) IMPAIREMENT OF ASSETS (AS-28):

The cash generating units are evaluated at the Balance Sheet date to ascertain the estimated recoverable amounts/value in use as against the Written Down Value. Impairment loss, if any, is recognized whenever the Written Down Value exceeds estimated recoverable amounts/ value in use.

(V) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS-29):

(a) The liability in respect of warranty attached to the products are to the extent of replacement of products. No specific provision has been made in the accounts..

(b) Contingent Liabilities not provided for are disclosed in the notes to the accounts given below and Contingent assets are not recognized.

(a) Estimated amount of Contract remaining to be executed on Capital account and not provided for Rs. 199.76 lacs (net of advance).

(c) Contested liabilities and Contingencies:

- Stamp duty Rs. 36.75 lacs

- Sales Tax Rs. 171.14 lacs

- Excise duty Rs. 159.07 lacs

- Service tax Rs. 19.76 lacs

- Wealth tax Rs. 3.31 lacs

- ESIC Rs. 4.64 lacs

Note: In respect of Stamp Duty the Company has deposited the entire amount payable under Protest.

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