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Accounting Policies of Cosboard Industries Ltd. Company

Mar 31, 2015

I. Basis of preparation of financial statements

The financial statements have been prepared in conformity with Generally Accepted Accounting Principles to comply in all material respects with the notified Accounting Standards (Rs,AS') under Companies Accounting Standard Rules, 2006, (as amended),the relevant provisions of the Companies Act, 1956 (Rs, the Act'). The Financial Statements have been prepared under the historical cost con- venation on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

a) Change in Accounting Policy

Presentation and disclosure of financial statements

II. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities and commitments on the date of financial statements and the result of operations during the year. Differences between actual results and estimates are recognized in the year in which the results are known or materialized. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

III. Fixed Assets /Depreciation

Fixed assets are stated at cost or at revalued amounts less accumulated depreciation. Cost of fixed assets includes all incidental expenses and interest costs on borrowings, attributable to the acquisition of the assets, up to the date of commissioning of the assets. Depreciation for the year is computed basing on estimates useful life of assets as per the Companies Act, 2013. The revaluation of Assets depreciation is adjusted against revaluation reserve. However on estimates we have taken useful life of Assets as under:

1) Main Plant, Electrical Installation, other fixed Assets, Boiler, Erection & Installation, Laboratory, Pollution Plant, Furniture & Fixtures, Fixed Assets (Kol.) : 10 Years

2) Vehicles : 10 Years 3) Weigh Bridge : 15 Years

4) Boiling : 30 Years

5) Computer : 3 Years

6) Air Conditioner, Inverter, Television, Stabilizer, Camera, Fridge, water Cooler, Revolver : 5 years

Fixed assets are reviewed for impairment on each Balance Sheet date, in accordance with AS 28 "Impairment of Assets".

IV. Revenue Recognition

Revenue from sale of products is recognized when the products are dispatched against orders from customers.

Sales are stated inclusive of excise duty but net of VAT, CST and Entry Tax.

V. Investments

Investments held by the Company which are long term in nature are stated at cost.

VI. Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolete- sconce, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to the respective present location and condition. Cost of raw material, stores and spares, packing materials and coal have been valued at cost comprising of purchase price, taxes, duties (other than those which are subsequently recover- able by the Company.

VIII Foreign Currency transaction

Transaction in Foreign Currency are recorded at exchange rate prevailing on the date of transaction,

VIII Retirement Benefits and Employee Benefits Scheme

The Company has various schemes of retirement benefit such as Provident Fund, Gratuity and Leave encashment benefit.

Further, provision for Gratuity and Leave encashment has been provided in the Books of Account as below:

i) Leave Encashment

The Employees will get one day earned leave after working of 20 days.

ii) Gratuity

The Employees will get gratuity after completion of 5 years and the basis of calculation is 15 days salary out of 26 working days of each completed year of service of last salary drawn.

IX Taxation

a) Current Taxes:

Provision for current taxes is determined on the basis of taxable income and tax credits as per provision of the Income Tax Act, 1961.

b) Deferred Taxes

Provision for deferred tax is made at the current rates of taxation, on all timing differences to the extent that it is probable that a liability or asset will crystallize.

X Borrowing Cost

Borrowing Cost directly attributable to the acquisition or construction of Fixed Assets are capitalized as part of the cost of the Assets up to the date the asset is put to use. Other borrowing costs are charged to revenue in the year in which it is incurred.

c) Terms/rights attached to equity shares.

The Company has issued Equity shares having a face value of Rs. 10/- . Each holder of Equity Shares is entitled to one Vote per share. The Dividend proposed by the Board of Directors, if any, is subject to the approval of shareholders in Annual General Meeting. In the event of liquidation of the company the holder of the Equity shares will be entitled to receive remaining assets of the company after settlement of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the equity shareholders.

XI Contingent Liabilities

All liabilities have been provided for in the accounts except liabilities of contingent nature, which has been disclosed in the notes on Financial Statements.


Mar 31, 2014

I. Basis of preparation of financial statements

The financial statemets have been prepared in confirmity with Generally Accepted Accounting Principles to comply in all material respects with the notified Accounting Standards (''AS'') under Companies Accounting Standard Rules, 2006, (as amended),the relevant provisions of the Companies Act, 1956 (''the Act''). The Financial Statements have been prepared under the historical cost con- vention on an accrual basis. The accounting policies have eeb consistently applied by the Company and are consistent with those used in the previous year.

a) Change in Accounting Policy

Presentation and disclosure of financial statements

II. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities and commitments on the date of financial statements and the result of operations during the year. Differences between actual results and estimates are recognized in the year in which the results are known or materailized. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

III. Fixed Assets /Depreciation

Fixed assets are stated at cost or at revalued amounts less accumulated depreciation. Cost of fixed assets includes all incidental expenses and interest costs on borrowings, attributable to the acquistion of the assets, upto the date of commissioning of the assets. Depreciation for the year is computed on the straight line method, as per the rates prescribed in Schedule XIV to the Companies Act,1956. Additional charge of depreciation on amount added on revaluation is adjusted against revaluation reserve.

Fixed assets are reviewed for impairment on each Balance Sheet date, in accordance with AS 28 "Impairment of Assets".

IV. Revenue Recognition

Revenue from sale of products is recognized when the products are dispatched against orders from customers.

Sales are stated inclusive of excise duty but net of VAT, CST and Entry Tax.

V. Investments

Investments held by the Company which are long term in nature are stated at cost.

VI. Inventories

Items of inventories are measured at lower of cost and net ralizable value after providing for obsole- scence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to the respective present location and condition. Cost of raw material, stores and spares, packing materials and coal have been valued at cost comprising of purchase price, taxes, duties (other than those which are subsequently recover- able by the Company.

COSBOARD INDUSTRIES LIMITED

VIII Foreign Currency transaction

Transaction in Foreign Currency are recorded at excahnge rate prevailing on the date of transaction, VIII Retirement Benefits and Employee Benefits Scheme The Company has various schemes of retirement benefit such as Provident Fund, Gratuity and Leave encashment benefit.

Further, provision for Gratuity and Leave encashment has been provided in the Books of Account as below:

i) Leave Encashment

The Employees will get one day earned leave after working of 20 days.

ii) Gratuity

The Employees will get gratuity after completion of 5 years and the basis of calcultion is 15 days salary out of 26 working days of each completed year of service of last salary drawn.

IX Taxation

a) Current Taxes:

Provision for current taxes is determined on the basis of taxable income and tax credits as per provision of the Income Tax Act, 1961.

b) Deferred Taxes

Provision for deferred tax is made at the current rates of taxation, on all timing differences to the extent that it is probable that a liability or asset will crystalize.

X Borrowing Cost

Borrowing Cost directly attributable to the acquisition or construction of Fixed Assets are capitalized as part of the cost of the Assets upto the date the asset is put to use. Other borrowing costs are charged to revenue in the year in which it is incurred.

XI Contingent Liabilities

All liabilities have been provided for in the accounts except liabilities of contingent nature, which has been disclosed in the notes on Financial Statements.


Mar 31, 2013

I. Basis of preparation of financial statements

The financial statemets are prepared on accrual basis under the historical cost convention, in accordance with the Indian Generally Accepted Accounting Principles (GAPP). Financial statements with the applicable Accounting Standards (AS) specified in Companies (Accounting Standard) Rules, 2006 and presentational requirement of the Companies Act, 1956.

II. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities and commitments on the date of financial statements and the result of operations during the year. Differences between actual results and estimates are recognized in the year in which the results are known or materailized. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

III. Fixed Assets /Depreciation

Fixed assets are stated at cost or at revalued amounts less accumulated depreciation. Cost of fixed assets includes all incidental expenses and interest costs on borrowings, attributable to the acquistion of the assets, upto the date of commissioning of the assets. Depreciation for the year is computed on the straight line method, as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Additional charge of depreciation on amount added on revaluation is adjusted against revaluation reserve.

Fixed assets are reviewed for impairment on each Balance Sheet date, in accordance with AS 28 "Impairment of Assets".

IV. Revenue Recognition

Revenue from sale of products is recognized when the products are dispatched against orders from customers.

Sales are stated inclusive of excise duty but net of VAT, CST and Entry Tax.

V. Investments

Investments held by the Company which are long term in nature are stated at cost.

VI. Inventories

Items of inventories are measured at lower of cost and net ralizable value after providing for obsole- scence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to the respective present location and condition. Cost of raw material, stores and spares, packing materials and coal have been valued at cost comprising of purchase price, taxes, duties (other than those which are subsequently recover- able by the Company.

VII Foreign Currency transaction

Transaction in Foreign Currency are recorded at excahnge rate prevailing on the date of transaction, vni Retirement Benefits and Employee Benefits Scheme

The Company has various schemes of retirement benefit such as Provident Fund, Gratuity and Leave encashment benefit.

Further, provision for Gratuity and Leave encashment has been provided in the Books of Account as below:

i) Leave Encashment

The Employees will get one day earned leave after working of 20 days. ii) Gratuity

The Employees will get gratuity after completion of 5 years and the basis of calcultion is 3 5 days salary out of 26 working days of each completed year of service of last salary drawn.

IX Taxation

a) Current Taxes:

Provision for current taxes is determined on the basis of taxable income and tax credits as per provision of the Income Tax Act, 1961.

b) Deferred Taxes

Provision for deferred tax is made at the current rates of taxation, on all timing differences to the extent that it is probable that a liability or asset will crystalize.

X Borrowing Cost

Borrowing Cost directly attributable to the acquisition or construction of Fixed Assets are capitalized as part of the cost of the Assets upto the date the asset is put to use. Other borrowing costs are charged to revenue in the year in which it is incurred.

XI Contingent Liabilities

All liabilities have been provided for in the accounts except liabilities of contingent nature, which has been disclosed in the notes on Financial Statements.


Mar 31, 2010

I. The Accounts are prepared under the Historical cost convention and materially comply with the mandatory Accounting standard issued by the Institute of Chartered Accountants of India.

ii. Revenue Recognition

Revenue fromsale of products is recognized when the products are dispatched against order from customers.

Sales are stated inclusive of Excise duty but net of Sales Tax and Entry Tax.

iii. Fixed Assets ,

At-cost less accumulated depreciation except for certain assets which were revalued and shown at valuation as per valuers certificates.

iv. Depreciation

a. Depreciation is provided on straight line method at the rates prescribed under Schedule XIV of the Companies Act 1956. Depreciation on addition/deletion during the year has been charged on pro-rata .basis.

b. Depreciation on differential increase in value arising out of revaluation is recouped from Revaluation Reserve.

v. Inventories

a. Raw materials and coal have been valued at cost comprising of purchase price, freight, taxes, duties (other than those which are subsequently recoverable by the Company) and other attributable costs.

b. Stores, Spares and Consumables have been valued at cost comprising of purchase price, freight, taxes, duties (other than those which are subsequently recoverable by the Company) and other attributable costs after providing for obsolescence.

c. The finished goods are valued at lower of cost or net realisable value.

vi.. Borrowing Cost

Borrowing cost directly attributable to the acquisition or construction of Fixed Assets are capitalized as part of the cost of the Assets upto the date the asset is put to use. Other borrowing costs are charged to revenue in the year in which it is incurred.

vii. Foreign Currency transaction

Transaction in Foreign Currency are recorded at exchange rate prevailing on the date of transaction.

viii. Investment

Investments are valued at cost.

ix. Retirement Benefits and Employee Benefits Scheme

The Company has various schemes of retirement benefit such as Provident Fund, Gratuity and Leave encashment benefit.

Further, provision for Gratuity and Leave encashment has been provided in the Books of Account as below:

i. Leave Encashment

The Employees will get me day earned leave after working of 20 days.

ii. Gratuity

The Employees will get gratuity after completion of 5 years and the basis of calculation is 15 days salary out of 26 working days of each completed year of service of last salary drawn,

x. Taxes on Income

Provision for deferred taxation is made at the current rates of taxation, on all timing differences to the extent that it is probable that a liability or asset will crystallise.

xi. All liabilities have been provided for in the accounts except liabilities of contingent nature, which have been disclosed at the estimated value in the notes on accounts.

 
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