Mar 31, 2015
Corporate Information:
Deccan Polypacks Ltd (the Company) is a Company registered under
Companies Act, 1956 and is located at Sy.No.142/A, IDA Bollaram, Via
Miyapur, Jinnaram Mandal, Medak District, Telangana- 502 325. The
Company is engaged in manufacturing PP/HDPE Woven Sacks. Equity Shares
of the Company are listed on Bombay Stock Exchange.
2.1 Accounting Convention :
The financial statements are prepared under the historical cost
convention on accrual basis in accordance with the Generally Accepted
Accounting Principles (GAAP) that are followed in India. GAAP comprises
the mandatory accounting standards as prescribed by Companies
(Accounting Standards) Rules 2006 [which continue to apply under
Companies Act, 2013("the Act")] and other applicable provisions of the
Act. All incomes and expenditures, having a material bearing on the
financial statements, are recognized on an accrual basis.
2.2 Use of Estimates :
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and disclosure of contingent
liabilities at the end of the reporting period. Although these
estimates are based upon management's best knowledge of current events
and actions, actual results could differ from these estimates
2.3 Fixed Assets :
(i) Fixed Assets are stated at cost. Cost includes all costs incidental
to acquisition, installation and commissioning of the assets until they
are ready for intended use.
(ii) Fixed assets are assessed for any indication of impairment at the
end of each financial year. On such indication, the impairment loss,
being the excess of carrying value over the recoverable value of the
assets, is charged to Statement of Profit & Loss, in the respective
financial years. The impairment loss recognized in earlier years is
reversed in cases where the recoverable value exceeds the carrying
value, upon the reassessment in subsequent years.
Depreciation :
Depreciation on Tangible Fixed Assets is provided on straight line
method as per the useful life prescribed in Schedule II to the
Companies Act, 2013
2.4 Inventories :
The method of valuation of inventories is as under:
i) Raw Materials, Stores and Spares. Work-in-process and Finished Goods
:
At lower of cost and net realisable value. Cost includes manufacturing
expenses and factory overheads.
"Cost for the purpose of valuation of raw materials (except additives
valued at weighted average) is calculated on FIFO basis and for stores
and spares and work-in-process on the basis of weighted average
method".
2.5 Retirement Benefits :
Provident Fund is administered through Regional Provident Fund
Commissioner.
Gratuity and Leave encashment are accounted on accrual basis.
2.6 Customs Duty Drawback Export incentives, Insurance Claims etc.,
are recognized only when it is reasonably certain that the ultimate
collection will be made.
2.7 Government Grants :
Capital investment subsidy received by the company is treated as
Capital Reserve.
2.8 Borrowings Costs :
Borrowing costs are recognized as an expense in the period in which
they are incurred. Borrowing cost incurred for acquiring, construction
or production of assets are capitalized as part of the cost of such
assets.
2.9 Income taxes :
i) Deferred income tax is provided, using the liability method, on all
timing differences at the balance sheet date between the tax base of
assets and liabilities and their carrying amounts for financial
reporting purposes.
ii) Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted at the balance sheet date.
2.10 Contingent Liabilities :
Contingent Liabilities arising from claims, litigation, assessment,
fines , penalties etc., are provided for when it is probable that a
liability may be incurred and the amount can be reliably estimated.
Mar 31, 2013
1.1 Accounting Convention : The financial statements have been prepared
on the basis of going concern, under the historical cost convention.
The company follows accrual system of accounting and recognises income
and expenditure on accrual basis unless otherwise stated.
1.2 Fixed Assets:
i). Fixed Assets are stated at cost. Cost includes all costs incidental
to acquisition, installation and commissioning of the assets until they
are ready for intended use.
ii) Fixed assets are assessed for any indication of impairment at the
end of each financial year. On such indication, the impairement loss,
being the excess of carrying value over the recoverable value of the
assets, is charged to Profit & Loss Account, in the respective
financial years. The impairment loss recognized in earlier years is
reversed in cases where the recoverable value exceeds the carrying
value, upon the reassessment in subsequent years. ,
1.3 Depreciation:
Depreciation on Fixed Assets is provided on straight line method in
accordance with the provisions of Schedule XIV of the Companies Act,
1956 as amended from time to time.
1.4. Foreign Currency Translation :
Foreign currency transactions have been translated at the Exchange Rate
Prevalent on the date of transaction. Gain/Loss arising out of
fluctuation in the exchange rates on realization is treated as income/
expenditure.
1.5 Inventories:
The method of valuation of inventories is as under:
i) Raw Materials, Stores and Spares.
Work-in-process and Finished Goods:
At lower cost and net realisable value.
Cost includes manufacturing expenses and factory overheads.
"Cost for the purpose of valuation of raw materials (except additives
valued at weighted average) is calculated on FIFO basis and for stores
and spares and work-in-process on the basis of weighted average method"
1.6 Retirement Benefits:
Provident Fund is administered through Regional Provident Fund
Commissioner, Group Gratuity Scheme is administered through a scheme
with Life Insurance Corporation of India. The contributions to the
above said funds are charged against revenue. Leave encashment payable
at the time of retirement is charged to Profit and Loss account based
on the assumption that such benefits are payable to all the employees
at the end of accounting year.
1.7 Customes Duty Drawback Export incentives, Insurance Claims etc.,
are recognized only when it is reasonably certain that the ultimate
collection will be made.
1.8 Government Grants:
Capital investment subsidy received by the company is treated as
Capital Reserve.
1.9 Borrowings costs:
Borrowing costs are recognized as an expense in the period in which
they are incurred. Borrowing cost incurred for acquiring, construction
or production of assets are capitalized as part of the cost of such
assets.
1.10 Income taxes:
i) Deferred income tax is provided, using the liability method, on all
timing differences at the balance sheet date between the tax base of
assets and liabilities and their carrying amounts for financial
reporting purposes.
ii) Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted at the balance sheet date.
iii) Minimum Alternate Tax (MAT) Credit entitlement:
Mat Credit entitlement represents the amounts paid in a year under
Section 115JA/115JB of the Income Tax Act 1961 (''IT ACT'') which is in
excess of the tax payable, computed on the basis of normal provisions
of the IT Act.
Such excess amount can be carried for set off in future periods in
accordance with die relevant provisions of me IT Act. Since such
credit represents a resource controlled by die company as a result of
past events and mere is evidence as at me reporting date mat the
Company will pay normal income tax during the specified period, when
such credit would be adjusted, me same has been disclosed as ''MAT
Credit entitlement" in the balance sheet with a corresponding credit to
the profit and loss account, as a separate line item.
Such assets are reviewed at each balance sheet date and written down to
reflect me amount mat will not be available as a credit to be set off
in future, based on me applicable taxation law men in force.
1.11 Contingent Liabilities:
Contingent Liabilities arising from claims, litigation, assessment,
fines, penalties etc., are provided for when it is probable mat a
liability may be incurred and the amount can be reliably estimated.
Mar 31, 2012
1.1 Accounting.Convention : The financial statements have been prepared
on the basis of going concern, under the historical cost convention.
The company follows accrual system of accounting and recognises income
and expenditure on accrual basis unless otherwise stated.
1.2 Fixed Assets:
i) Fixed Assets are stated at cost. Cost includes all costs incidental
to acquisition, installation and commissioning of the assets until they
are ready for intended use.
ii) Fixed assets are assessed for any indication of impairment at the
end of each financial year. On such indication, the impairement loss,
being the excess of carrying vajue over the recoverable value of the
assets, is charged to Profit & Loss Account, in the respective
financial years. The impairment loss recognized in earlier years is
reversed iri cases where the recoverable value exceeds the carrying
value, upon the reassessment in subsequent years.
1.3 Depreciation:
Depreciation on Fixed Assets is provided on straight line method in
accordance with the provisions of Schedule XIV of the Companies Act,
1956 as amended from time to time.
1.4. Foreign Currency Translation:
Foreign currency transactions have been translated at the Exchange Rate
Prevalent on the date of transaction. Gain/Loss arising out of
fluctuation in the exchange rates on realization is treated as income/
expenditure.
1.5 Inventories:
The method of valuation of inventories is as under:
i) Raw Materials, Stores and Spares.
Work-in-process and Finished Goods :
At lower cost and net realisable value.
Cost includes manufacturing expenses and factory overheads.
"Cost for the purpose of valuation of raw materials (except additives
valued at weighted average) is calculated on FIFO basis and for stores
and spares and work-in-process on the basis of weighted average method"
1.6 Retirement Benefits:
Provident Fund is administered through Regional Provident Fund
Commissioner, Group Gratuity Scheme is administered through a scheme
with Life Insurance Corporation of India. The contributions to the
above said funds are charged against revenue. Leave encashment payable
at the time of retirement is charged to Profit and Loss account based
on the assumption that such benefits are payable to all the employees
at the end of accounting year.
1.7 Customes Duty Drawback Export incentives, Insurance Claims etc.,
are recognized only when it is reasonably certain that the ultimate
collection will be made.
1.8 Government Grants:
Capita) investment subsidy received by the company is treated as
Capital Reserve.
1.9 Borrowings costs:
Borrowing costs are recognized as an expense in the period in which
they are incurred. Borrowing cost incurred for acquiring, construction
o. production of assets are capitalized as part of the cost of such
assets.
1.10 Income taxes*
i) Deferred income tax is provided, using the liability method, on all
timing differences at the balance sheet date between the tax base
of assets and liabilities and their carrying amounts for financial
reporting purposes.
iil Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted at the balance sheet date.
1.11 Contingent Liabilities:
Contingent Liabilities arising from claims, litigation, assessment,
fines, penalties etc., are provided for when it is probable that a
liability may be incurred and the amount can be reliably estimated.
Mar 31, 2010
A) Accounting Convention : The financial statements have been prepared
on the basis of going concern, under the historical cost convention.
The company follows accrual system of accounting and recognizes income
and expenditure on accrual basis unless otherwise stated.
b) Fixed Assets :
(i) Fixed Assets are stated at cost. Cost includes all costs incidental
to acquisition, installation & commissioning of the assets until they
are ready for intended use.
(ii) Fixed assets are assessed for any indication of impairment at the
end of each financial year. On such indication, the impairment Joss,
being the excess of carrying value over the recoverable value of the
assets, is charged to Profit & Loss account, in the respective
financial years. The impairment loss recognized in earlier years is
reversed in cases where the recoverable value exceeds the carrying
value, upon the reassessment in subsequent years.
c) Depreciation : Depreciation on Fixed Assets is provided.pn straight
line method in accordance with the provisions of Schedule XIV of the
Companies Act, 1956 as amended from time to time.
d) Foreign Currency Translation: Foreign currency transactions have
been translated at the Exchange Rate Prevalent on the date of
transaction. Gain/Loss arising out of fluctuation in the exchange rates
on realization is treated as income/expenditure.
e) Inventories : The method of valuation of inventories is as under:
(i) Raw Materials, Stores and Spares, Work-in-process and Finished
Goods : At lower of cost and net Realisable value.
Cost includes manufacturing expenses and factory > overheads.
"Cost for the purpose of valuation of raw materials (except
additives valued at weighted average) is calculated on FIFO basis and
for stores and spares and work-in-process on the basis of weighted
average method".
f). Retirement Benefits : Provident Fund is administered through
Regional Provident Fund Commissioner. Group Gratuity Scheme is
administered through a scheme with Life Insurance Corporation of India.
The contributions to the above said funds are charged against revenue.
Leave encashment payable at the time of retirement is charged to profit
and loss account based on the assumption that such benefits are payable
to all the employees at the end of the accounting year.
g) Customs Duty Drawback, Export incentives, Insurance claims etc. are
recognized only when it is reasonably certain that the ultimate
collection will be made.
h) Government Grants : Capital investment subsidy received by the
Company is treated as Capital Reserve.
i) Borrowing costs : Borrowing costs are recognized as an expense in
the period in which they are incurred. Borrowing cost incurred for
acquiring, construction or production of assets are capitalized as part
of the cost of such assets.
j) Income taxes:
i) Deferred income tax is provided, using the liability method, on all
timing differences at the balance sheet date between the tax base of
assets and liabilities and their carrying amounts for financial
reporting purposes.
ii) Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted at the balance sheet date.
k) Contingent Liabilities : Contingent Liabilities arising from claims,
litigation, assessment, fines, penalties etc., are provided for when it
is probable that a liability may be incurred and the amount can be
reliably estimated.
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