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Accounting Policies of Dutron Polymers Ltd. Company

Mar 31, 2014

* Basis of Preparation of Financial Statements:

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles on going concern basis and provisions of the Companies Act, 1956 as adopted consistently by the company. The accounts are materially complying with Accounting Standards issued by The Institute of Chartered Accountants of India.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. However Municipal Tax is recognized on Cash Basis.

* AS - 1 - Disclosure of Accounting Policies

The Accounting Principles and policies, recognized as appropriate for measurement and reporting of the financial performance and the financial position on Accrual Basis except otherwise disclosed using historical cost i.e. not taking into account changing money values/impact of inflation, are applied in the preparation of the financial statement and those which are considered material to the affairs are suitably disclosed. The statement on Significant Accounting policy excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during year.

* AS - 2 - Valuation of Inventories

The Company has kept proper records of its inventories. The Cost of inventory is ascertained as sum total of cost of procurement, cost of conversions and cost of bringing inventories to its present location and conditions excluding any abnormal cost, administrative, financial, and selling and storage cost. While net realizable value is calculated on the basis of estimated sales price in the ordinary course of business less estimated cost of completion and estimated cost necessary to make sale. Net realizable value is calculated on the basis of most reliable evidence at the time of valuation. The comparison of cost and net realizable value is made item by item or by group of item. Inventories are generally valued at cost or market value whichever is lower. Closing stock of raw material has been valued at cost price after adjusting CENVAT credit availed. Balance in CENVAT credit account has been grouped along with excise balances under the head of loans & advances. The closing stock of finished goods & scrap material has been valued including Excise Duty.

* AS - 3 - Depreciation Accounting

a) The Gross Block of fixed assets is stated at cost of acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.

b) Depreciation on fixed assets is provided on ‘Straight Line Basis'' at the rate prescribed in Schedule XIV to the Companies Act, 1956. On additions of Assets the depreciation is charged on pro rata basis.

* AS - 4 - Accounting of Fixed Assets

Fixed Assts are stated at cost of acquisition less accumulated depreciation except in case of Some Land, Building and Plant & Machinery where it has been adjusted by revaluation. The Company had revalued its land, building and Plant & Machinery by Rs. 54,11,156 in the financial year 1992-93. The depreciation on the same has been reversed in the current year amounting to Rs. 35,531 (previous year Rs. 35,531).

* AS - 7 - Accounting of Foreign Exchange Fluctuations

Transactions in foreign currency are recorded at the approximate exchange rate prevailing on the date of transactions. Foreign currency monetary assets and monetary liabilities not covered by forward exchange contracts are translated at year end exchange rates and profit and loss so determined and realized exchange gains/losses are recognized in purchase proceed of imports . The company has made loss due to Foreign Exchange Fluctuations (Purchase proceeds of imports) amounting to Rs. 16,63,500 during the year.

* AS - 5 - Accounting for the Government Grant

The company recognizes the Government grant only when there is reasonable assurance that:-

* The enterprise will comply with the conditions attached to them and

* The grant will be received.

During the year, the company has not received any grant/subsidy.

* AS - 6 - Accounting for Investments

(a) Investments in Equity - Associates (Trade / Quoted) - NIL

(b) Investments in Equity - Others (Trade / Quoted) - NIL

(c) Investments in Equity - Others (Trade / Unquoted) 200 Shares of The Ahmedabad Mercantile Co.Op.Bank fully paid up equity shares of F.V. Rs. 50 each.

(d) Current Investments - NIL

* AS - 7 - Accounting for retirement benefits

Contribution made to defined contribution retirement benefit plans viz Provident fund, Gratuity fund, which are recognized as expenses as they fall due and paid. All the above expenditures are debited to profit and loss account. Provision for leave salary is not made.

* AS - 8 - Accounting of Borrowing Cost

Interest on Borrowings to finance fixed assets are capitalized only if the borrowing costs are directly attributable to the acquisition of fixed assets or assets get substantial period of time to get ready for intended use. Expenditure incurred on alteration/temporary construction is charged against revenue under appropriate head in year in which it incurred.

Borrowing cost capitalized in year Rs. Nil

* AS - 9 - Impairment of Assets

The carrying value of fixed assets is evaluated whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. There is no impairment loss recognized or quantified during the reporting period.

* AS - 10 - Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities are not provided for but are disclosed after a careful evaluation of facts and legal aspects of the matter involved. In general, liabilities and contingencies are provided for it if, in the opinion and at the discretion of the management, there are reasonable prospects of such liabilities crystallizing or future outcome of such contingencies is likely to be materially detrimental to business.

The notes referred to above form an integral part of Accounts.


Mar 31, 2013

1. Basis of Preparation of Financial Statements

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles on going concern basis and provisions of the Companies Act, 1956 as adopted consistently by the company. The accounts are materially complying with Accounting Standards issued by The Institute of Chartered Accountants of India.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. However Municipal Tax is recognized on Cash Basis.

- AS - 1 - Disclosure of Accounting Policies

The Accounting Principles and policies, recognized as appropriate for measurement and reporting of the financial performance and the financial position on Accrual Basis except otherwise disclosed using historical cost i.e. not taking into account changing money values/impact of inflation, are applied in the preparation of the financial statement and those which are considered material to the affairs are suitably disclosed. The statement on Significant Accounting policy excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during year.

- AS - 2 - Valuation of Inventories

The Company has kept proper records of its inventories. The Cost of inventory is ascertained as sum total of cost of procurement, cost of conversions and cost of bringing inventories to its present location and conditions excluding any abnormal cost, administrative, financial, selling and storage cost. While net realisable value is calculated on the basis of estimated sales price in the ordinary course of business less estimated cost of completion and estimated cost necessary to make sale. Net realisable value is calculated on the basis of most reliable evidence at the time of valuation. The comparison of cost and net realisable value is made item by item or by group of item. Inventories are generally valued at cost or market value whichever is lower. Closing stock of raw material has been valued at cost price after adjusting CENVAT credit availed. Balance in CENVAT credit account has been grouped along with excise balances under the head of loans & advances. The closing stock of finished goods & scrap material has been valued including Excise Duty.

- AS - 3 - Cash Flow Statement

Cash flow statement, as per AS - 3 is annexed with financial statements.

AS - 5 - Net Profit and Loss for the period, extra ordinary items and change in accounting policy

1 Net Profit for the period : All items of income and expense in the period are included for determination of net profit of the year unless specifically mentioned elsewhere in the financial statements or required by an Accounting Standard. Prior period items, extra ordinary items and changes in accounting policy are disclosed only if those have material impact on the affairs of the company.

2 Prior Period items: All material items of Income/ Expenditure pertaining to prior period and expenses to subsequent period are accounted separately. The other income includes prior period item ofRs. Nil

3 Extra ordinary Items : There are no Extra ordinary Items.

4 Accounting Policies : The company has consistently followed accounting policies and there are no material changes in accounting policy of the company from that followed in previous year.

- AS - 6 - Depreciation Accounting

a) The Gross Block of fixed assets is stated at cost of acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.

b) Depreciation on fixed assets is provided on ''Straight Line Basis'' at the rate prescribed in Schedule XIV to the Companies Act, 1956. On additions of Assets the depreciation is charged on pro rata basis.

- AS - 10 - Accounting of Fixed Assets

Fixed Assts are stated at cost of acquisition less accumulated depreciation except in case of Some Land, Building and Plant & Machinery where it has been adjusted by revaluation.

The Company had revalued its land, building and Plant & Machinery byRs. 54,11,156/- in the financial year 1992- 93. The depreciation on the same has been reversed in the current year amounting to Rs. 35,531 (previous year Rs. 35,531).

AS - 11 - Accounting of Foreign Exchange Fluctuations

Transactions in foreign currency are recorded at the approximate exchange rate prevailing on the date of transactions. Foreign currency monetary assets and monetary liabilities not covered by forward exchange contracts are translated at year end exchange rates and profit and loss so determined and realized exchange gains/losses are recognized in purchase proceed of imports . The company has made loss due to Foreign Exchange Fluctuations (Purchase proceeds of imports) amounting to Rs. 76,17,038/- during the year.

AS - 12 - Accounting for the Government Grant

The company recognizes the Government grant only when there is reasonable assurance that:-

* The enterprise will comply with the conditions attached to them and

* The grant will be received.

During the year, the company has not received any grant/subsidy. 11. Accounting for Investments

(a) Investments in Equity - Associates (Trade / Quoted) - NIL

(b) Investments in Equity - Others (Trade / Quoted) - NIL

(c) Investments in Equity - Others (Trade / Unquoted)

200 Shares of The Ahmedabad Mercantile Co.Op.Bank fully paid up equity shares of F.V. Rs. 50/- each.

(d) Current Investments - NIL

AS - 15 - Accounting for retirement benefits

Contribution made to defined contribution retirement benefit plans viz Provident fund, Gratuity fund, which are recognized as expenses as they fall due and paid. All the above expenditures are debited to profit and loss account. Provision for leave salary is not made.

AS - 16 — Accounting of Borrowing Cost

Interest on Borrowings to finance fixed assets are capitalized only if the borrowing costs are directly attributable to the acquisition of fixed assets or assets get substantial period of time to get ready for intended use. Expenditure incurred on alteration/temporary construction is charged against revenue under appropriate head in year in which it incurred.

Borrowing cost capitalized in year Rs. Nil

AS - 17 - Segment Reporting

The Company is engaged in manufacture of HDPE/RIGID PVC/CPVC Pipes. This is the only segment of the company and there is no other reportable segment. Hence segment wise reporting is not applicable to the company.

- AS - 18 - Related Party Disclosure

A. List of Related Parties and Relations 1. Group Companies

(1) Cosmofil Plastisack Pvt. Ltd. (2) Dutron Plastics Ltd.

(3) Dutron Plastics (Bharuch) (4) Dutron Polymers

(5) Dura Vinyle Industries (6) Nippon Polymers Pvt. Ltd.

(7) Technoplast Engg. Co.

2. Key Management Personnel

(a) Shri Sudip B. Patel

(b) Shri Rasesh H. Patel

(c) Shri Alpesh B. Patel

3. List of Relatives of Key Managerial Personnel and Enterprise over which Key Management Personnel and their relatives significantly influence, with whom transaction have taken place during the year

(1) Cosmofil Plastisack P. Ltd. (2) Dutron Plastics Ltd.

(3) Dutron Plastics (Bharuch) (4) Dutron Polymers

(5) Dura Vinyle Industries (6) Nippon Polymers Pvt. Ltd. (7) Technoplast Engg. Co.


Mar 31, 2010

1. Basis of Preparation of Financial Statements:-

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles on going concern basis and provisions of the Companies Act, 1956 as adopted consistently by the company. The accounts are materially complying with Accounting Standards issued by Institute of Chartered Accounts of India.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. However Municipal Tax is recognized on Cash Basis.

- AS -1 - Disclosure of Accounting Policies

The Accounting Principles and policies, recognized as appropriate for measurement and reporting of the financial performance and the financial position on Accrual Basis except otherwise disclosed using historical cost i.e. not taking into account changing money values/impact of inflation, are applied in the preparation of the financial statement and those which are considered material to the affairs are suitably disclosed. The statement on Significant Accounting policy excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during year.

- AS - 2 - Valuation of Inventories

The Company has kept proper records of its inventories. The Cost of inventory is ascertained as sum total of cost of procurement, cost of conversions and cost of bringing inventories to its present location and conditions excluding any abnormal cost, administrative, financial, selling and storage cost. While net realisable value is calculated on the basis of estimated sales price in the ordinary course of business less estimated cost of completion and estimated cost necessary to make sale. Net realisable value is calculated on the basis of most reliable evidence at the time of valuation. The comparison of cost and net realisable value is made item by item or by group of item.

Inventories are generally valued at cost or market value whichever is lower. Closing stock of raw material has been valued at cost price after adjusting CENVET credit availed. Balance in CENVET credit account has been grouped along with excise balances under the head of loans & advances. The closing stock of finished goods & scrap material has been valued including Excise Duty.

- AS - 3 - Cash Flow Statement

Cash flow statement, as per AS - 3 is annexed with financial statements.

 
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