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Accounting Policies of Dynemic Products Ltd. Company

Mar 31, 2015

1 . BASIS OF PREPARATION OF FINANCIAL STATEMENT & ACCOUNTING

( i ) The Annual Accounts have been prepared on the Historical cost basis and confirms to the statutory provisions of Companies Act , 2013 and General Accounting practices prevailing in the country, and the Accounting Standards issued by the Institute of Chartered Accountants of India and the guidelines issued by the Securities and Exchange Board of India.

( ii ) The Accounts have been prepared on accrual basis.

2. FIXED ASSETS, DEPRECIATION AND CAPITAL WORK IN PROGRESS:-

( i ) Fixed Assets have been accounted for at their Historical Cost.

(ii ) During the year, the company has provided the depreciation on straight line method at rates for single shift specified in Schedule II of the Companies Act, 2013 (the Act) on the prorata basis for the additions to the Fixed Assets on the life of the Fixed Assets as specified in the Schedule II of the Act.. During the year, the company evaluated the requirement of Schedule II of the Companies Act, 2013, in respect of the useful lives of its fixed assets. In accordance with the transitional provision specified in Schedule II of the Act, during the year ened 31st March 2015, an amount of Rs. 3717503/- ( net of Deferred Tax) was adjusted in the opening balance of the retained earings.

(iii) All Fixed Assets are valued at Cost Less Accumulated depreciation ( Other than land where no depreciation is charged). All costs relating to the acquisition and installations and initial financing costs relating to the borrowed funds attributable to acquisition of Fixed Assets up to date, the assets is put to use, have been capitalised.

3 . INVESTMENTS :-

Long-term investments are stated at cost less provision for other than temporary diminution in value in the opinion of the management.Current investments comprising, investments in mutual funds, equities, and other instruments are stated at the lower of cost and fair market value, detemined on a portfolio basis. Gain/Loss arising on disposal of investments are recognised as income/ expenditure in the year of disposal.

4 . RETIREMENT BENEFITS :-

Repayment for present liability of future payment of gratuity is being made to Approved Gratuity which fully cover the same under Group Gratuity Policy or Cash Accumulation Policy with Life Insurance Corporation of India. The Gratuity trusts are covered with Life Insurance Corporation of India (LIC) and premiums are paid on advise from LIC, which determines the same on the basis of actuarial valuation. Provision for Leave Encashments is made as at the year end as per the financial figures and other details provided and certified by the Actuaries M/s. K. A. PANDIT, as per their report dtd. 27/04/2015. The disclosures as per AS 15 is annexed sperately.

5 . INVENTORIES :-

All Inventories are valued at lower of Cost or Net realisable value and the cost is ascertained on First in First Out basis wherever applicable. The cost of inventories comprises of the cost of purchases, cost of conversion and the manufacturing overheads incurred in bringing them to their present condition.

6 . SALES & REVENUE RECOGNITION :-

Sales are exclusive of Excise Duties and Sales tax. Revenue( Income) is recognised when no significant uncertainty as to determination / realization exists. Dividend income is recognised when the right to receive payment is established. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

7 . TREATMENT OF EXCISE DUTY & SERVICE TAX :-

Excise duty / Service tax is accounted on the basis of both, payments made in respect of goods cleared / services provided. Excise Modvate credit on purchase have been transferred to Excise Modvate Receivable a/c.which has been transferred or set off against Excise duties payable on sales and balance have been shown as Excise Modvate Receivable A/c. under the head Current Assets, Loans and Advances in Balance sheet.

8 . TREATMENT OF SERVICE TAX PAYABLE ON TRANSPORTATION EXPS. :-

Service tax payable on Transportation exps.has been credited to Service tax payable a/c. which has been set off agaist Modvate receivable for service tax paid on various exps.and balance of modvate receivable for Service tax paid on various exps. has been shown under the head Loans & Advances in Current Assets side of Balance Sheet.

9. FOREIGN CURRENCY TRANSACTIONS :-

Transactions in foreign currencies are recorded at the original rates of exchange in force at the time the transactions are effected. Balance in form of current assets and current liabilities in foreign currency , outstanding at the close of the year, are converted in Indian Currency at the appropriate rate of exchange prevailing on the date of the Balance Sheet .The resultant gain or loss is accounted during the year.

10. INTER DIVISIONAL TRANSFER :-

Interdivisional transfer of goods of Rs. 128696872/- ( PYF 103296491/-) of independent marketable products for further processing are being included in respective heads of account at market value to reflect the true working of the respective unit. Any un- realised profit on stock is being eliminated while valuing the inventories. The Conversion Charges of Rs. Nil (PYF Nil/-), has been included in other income and also show as expenditure under the head "other manufacturing exps" for the conversion or manufacturing process carried out by Unit-1 for the materials of Unit-2.

11. TAXES ON INCOME :-

( i ) Current tax is determined as tax payable in respect of taxable income of current year.

( ii ) Deferred tax for the year is recognised on timing difference,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

( iii ) Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted by the Balance sheet date.Deferred tax assets / liabilities arising on account of unabsorbed depreciation under tax laws are recognised on to the extent there is virtual certainity of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recongnised only to the extent there is reasonable certainity of its realisation. At each Balance sheet date, the carrying amount of Deferred Tax are reveived to reassure realisation.

( iv ) Tax on distributed profits payable in accordance with the provisions of the Income Tax Act, 1961 is disclosed in accordance with the Guidance Note on Accounting for Corporate Dividend Tax issued by ICAI.

12. IMPAIRMENT LOSS:-

As required by the Accounting Standards (AS 28) " Impairment of Assets " issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

13. Contigent Liability :-

These, if any, are disclosed in the notes on accounts. Provision is made in accounts if it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation.




Mar 31, 2014

1] BASIS OF PREPARATION OF FINANCIAL STATEMENT & ACCOUNTING :-

(i) The Annual Accounts have been prepared on the Historical cost basis and confirms to the statutory provisions of Companies Act , 1956 and General Accounting practices prevailing in the country, and the Accounting Standards issued by the Institute of Chartered Accountants of India and the guidelines issued by the Securities and Exchange Board of India.

( i i ) The Accounts have been prepared on accrual basis.

2] FIXED ASSETS, DEPRECIATION AND CAPITAL WORK IN PROGRESS:-

(i) Fixed Assets have been accounted for at their Historical Cost.

( i i ) During the year, the company has provided the depreciation on straight line method at rates for single shift specified in Schedule XIV of the Companies Act,1956 on the prorata basis for the additions from Fixed Assets.

( i i i ) All Fixed Assets are valued at Cost Less Accumulated depreciation (Other than land where no depreciation is charged). All costs relating to the acquisition and installations and initial financing costs relating to the borrowed funds attributable to acquisition of Fixed Assets up to date, the assets is put to use, have been capitalised.

3] INVESTMENTS :-

Long-term investments are stated at cost less provision for other than temporary diminution in value in the opinion of the management.Current investments comprising, investments in mutual funds, equities, and other instruments are stated at the lower of cost and fair market value, detemined on a portfolio basis. Gain/Loss arising on disposal of investments are recognised as income/ expenditure in the year of disposal.

4] RETIREMENT BENEFITS :-

Repayment for present liability of future payment of gratuity is being made to Approved Gratuity which fully cover the same under Group Gratuity Policy or Cash Accumulation Policy with Life Insurance Corporation of India. The Gratuity trusts are covered with Life Insurance Corporation of India (LIC) and premiums are paid on advise from LIC, which determines the same on the basis of actuarial valuation. Provision for Leave Encashments is made as at the year end as per the financial figures and other details provided and certified by the Actuaries M/s. K. A. PANDIT, as per their report dtd. 06/05/2014. The disclosures as per AS 15 is annexed sperately.

5] INVENTORIES :-

All Inventories are valued at lower of Cost or Net realisable value and the cost is ascertained on First in First Out basis wherever applicable.

6] SALES & REVENUE RECOGNITION :-

Sales are exclusive of Excise Duties and Sales tax. Revenue(Income) is recognised when no significant uncertainty as to determination / realization exists.

7] TREATMENT OF EXCISE DUTY :- Excise Modvate credit on purchase have been transferred to Excise Modvate Receivable a/c.which has been transferred or set off against Excise duties payable on sales and balance have been shown as Excise Modvate Receivable A/c. under the head Current Assets, Loans and Advances in Balance sheet.

8] TREATMENT OF SERVICE TAX PAYABLE ON TRANSPORTATION EXPS. :- Service tax payable on Transportation exps.has been credited to Service tax payable a/c. which has been set off agaist Modvate receivable for service tax paid on various exps.and balance of modvate receivable for Service tax paid on various exps. has been shown under the head Loans & Advances in Current Assets side of Balance Sheet.

9] FOREIGN CURRENCY TRANSACTIONS :- Transactions in foreign currencies are recorded at the original rates of exchange in force at the time the transactions are effected. Balance in form of current assets and current liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rate of exchange prevailing on the date of the Balance Sheet. The resultant gain or loss is accounted during the year.

10] INTER DIVISIONAL TRANSFER :- Interdivisional transfer of goods of Rs. 103296491/- (PYF 55279173/-) of independent marketable products for further processing are being included in respective heads of account at market value to reflect the true working of the respective unit. Any un- realised profit on stock is being eliminated while valuing the inventories. The Conversion Charges of Rs. Nil (PYF 591046/-), has been included in other income and also show as expenditure under the head "other manufacturing exps" for the conversion or manufacturing process carried out by Unit-1 for the materials of Unit-2.

11] TAXES ON INCOME :-

(i) Current tax is determined as tax payable in respect of taxable income of current year.

( ii ) Deferred tax for the year is recognised on timing difference,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

( iii ) Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted by the Balance sheet date.Deferred tax assets / liabilities arising on account of unabsorbed depreciation under tax laws are recognised on to the extent there is virtual certainity of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recongnised only to the extent there is reasonable certainity of its realisation. At each Balance sheetdate, the carrying amount of Deferred Tax are reveived to reassure realisation.

(iv) Tax on distributed profits payable in accordance with the provisions of the Income Tax Act, 1961 is disclosed in accordance with the Guidance Note on Accounting for Corporate Dividend Tax issued by ICAI.

12] IMPAIRMENT LOSS:-

As required by the Accounting Standards (AS 28) " Impairment of Assets " issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.


Mar 31, 2013

I] BASIS OF PREPARATION OF FINANCIAL STATEMENT & ACCOUNTING :-

(i) The Annual Accounts have been prepared on the Historical cost basis and confirms to the statutory provisions of Companies Act, 1956 and General Accounting practices prevailing in the country, and the Accounting Standards issued by the Institute of Chartered Accountants of India and the guidelines issued by the Securities and Exchange Board of India.

(ii) The Accounts have been prepared on accrual basis.

2] FIXED ASSETS, DEPRECIATION AND CAPITAL WORK IN PROGRESS:-

(i) Fixed Assets have been accounted for at their Historical Cost.

(ii) During the year, the company has provided the depreciation on straight line method at rates for single shift specified in Schedule

XIV of the Companies Act,1956 on the prorata basis for the additions from Fixed Assets. (iii) All Fixed Assets are valued at Cost Less Accumulated depreciation ( Other than land where no depreciation is charged). All costs relating to the acquisition and installations and initial financing costs relating to the borrowed funds attributable to acquisition of Fixed Assets up to date, the assets is put to use, have been capitalised.

3] INVESTMENTS :-

Long-term investments are stated at cost less provision for other than temporary diminution in value in the opinion of the management. Current investments comprising, investments in mutual funds, equities, and other instruments are stated at the lower of cost and fair market value, determined on a portfolio basis. Gain/Loss arising on disposal of investments are recognised as income/ expenditure in the year of disposal.

4] RETIREMENT BENEFITS :-

Repayment for present liability of future payment of gratuity is being made to Approved Gratuity which fully cover the same under

Group Gratuity Policy or Cash Accumulation Policy with Life Insurance Corporation of India.

The Gratuity trusts are covered with Life Insurance Corporation of India (LIC) and premiums are paid on advise from LIC, which determines the same on the basis of actuarial valuation. Provision for Leave Encashments is made as at the year end as per the financial figures and other details provided and certified by the Actuaries M/s. K. A. PANDIT, as per their report dtd. 29/04/2013.

The disclosures as per AS 15 is annexed separately.

5] INVENTORIES :-

All Inventories are valued at lower of Cost or Net realisable value and the cost is ascertained on First in First Out basis wherever applicable.

6] SALES & REVENUE RECOGNITION :-

Sales are exclusive of Excise Duties and Sales tax. Revenue( Income) is recognised when no significant uncertainty as to determination / realization exists.

7] TREATMENT OF EXCISE DUTY :-

Excise Modvate credit on purchase have been transferred to Excise Modvate Receivable a/c.which has been transferred or set off against Excise duties payable on sales and balance have been shown as Excise Modvate Receivable A/c. under the head Current Assets, Loans and Advances in Balance sheet.

8] TREATMENT OF SERVICE TAX PAYABLE ON TRANSPORTATION EXPENSES :-

Service tax payable on Transportation expenses has been credited to Service tax payable a/c. which has been set off agaist Modvate receivable for service tax paid on various expenses and balance of modvate receivable for Service tax paid on various expenses has been shown under the head Loans & Advances in Current Assets side of Balance Sheet.

9] FOREIGN CURRENCY TRANSACTIONS :-

Transactions in foreign currencies are recorded at the original rates of exchange in force at the time the transactions are effected. Balance in form of current assets and current liabilities in foreign currency , outstanding at the close of the year, are converted in Indian Currency at the appropriate rate of exchange prevailing on the date of the Balance Sheet .The resultant gain or loss is accounted during the year.

10] INTER DIVISIONAL TRANSFER :-

Interdivisional transfer of goods of Rs. 5,52,79,173/- ( PYF 6,08,29,325/-) of independent marketable products for further processing are being included in respective heads of account at market value to reflect the true working of the respective unit. Any un- realised profit on stock is being eliminated while valuing the inventories. The Conversion Charges of Rs. 591046/- (PYF Nil), has been included in other income and also show as expenditure under the head "other manufacturing exps" for the conversion or manufacturing process carried out by Unit-1 for the materials of Unit-2.

11] TAXES ON INCOME :-

(i) Current tax is determined as tax payable in respect of taxable income of current year.

(ii) Deferred tax for the year is recognised on timing difference,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

(iii) Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted by the Balance sheet date.Deferred tax assets / liabilities arising on account of unabsorbed depreciation under tax laws are recognised on to the extent there is virtual certainity of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recongnised only to the extent there is reasonable certainity of its realisation. At each Balance sheetdate, the carrying amount of Deferred Tax are reveived to reassure realisation.

(iv) Tax on distributed profits payable in accordance with the provisions of the Income Tax Act, 1961 is disclosed in accordance with the Guidance Note on Accounting for Corporate Dividend Tax issued by ICAI.

12] IMPAIRMENT LOSS:-

As required by the Accounting Standards (AS 28) " Impairment of Assets " issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

13] Contigent Liability :-

These, if any, are disclosed in the notes on accounts. Provision is made in accounts if it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation.


Mar 31, 2012

1 ] BASIS OF PREPARATION OF FINANCIAL STATEMENT & ACCOUNTING :-

(i) The Annual Accounts have been prepared on the Historical cost basis and confirms to the statutory provisions of Companies Act , 1956 and General Accounting practices prevailing in the country, and the Accounting Standards issued by the Institute of Chartered Accountants of India and the guidelines issued by the Securities and Exchange Board of India.

(ii) The Accounts have been prepared on accrual basis.

2] FIXED ASSETS, DEPRECIATION AND CAPITAL WORK IN PROGRESS:-

(i) Fixed Assets have been accounted for at their Historical Cost.

(ii) During the year, the company has provided the depreciation on straight line method at rates for single shift specified in Schedule XIV of the Companies Act,1956 on the prorate basis for the additions from Fixed Assets.

(iii) All Fixed Assets are valued at Cost Less Accumulated depreciation ( Other than land where no depreciation is charged). All costs relating to the acquisition and installations and initial financing costs relating to the borrowed funds attributable to acquisition of Fixed Assets up to date, the assets is put to use, have been capitalized.

3 ] INVESTMENTS :-

Long-term investments are stated at cost less provision for other than temporary diminution in value in the opinion of the management.Current investments comprising, investments in mutual funds, equities, and other instruments are stated at the lower of cost and fair market value, determined on a portfolio basis. Gain/Loss arising on disposal of investments are recognized as income/ expenditure in the year of disposal.

4 ] RETIREMENT BENEFITS :-

Repayment for present liability of future payment of gratuity is being made to Approved Gratuity which fully cover the same under Group Gratuity Policy or Cash Accumulation Policy with Life Insurance Corporation of India.

The Gratuity trusts are covered with Life Insurance Corporation of India (LIC) and premiums are paid on advice from LIC, which determines the same on the basis of actuarial valuation.

Provision for Leave Encashment is made as at the yearend as per the financial figures and other details provided and certified by the Actuaries M/s. K. A. PANDIT, as per their report dtd. 03/05/2012.

The disclosures as per AS 15 is annexed separately.

5 ] INVENTORIES :-

All Inventories are valued at lower of Cost or Net realizable value and the cost is ascertained on First in First Out basis wherever applicable.

6 ] SALES & REVENUE RECOGNITION :-

Sales are exclusive of Excise Duties and Sales tax. Revenue( Income) is recognized when no significant uncertainty as to determination / realization exists.

7 ] TREATMENT OF EXCISE DUTY :-

Excise Modvate credit on purchase have been transferred to Excise Modvate Receivable a/c. which has been transferred or set off against Excise duties payable on sales and balance have been shown as Excise Modvate Receivable A/c. under the head Current Assets, Loans and Advances in Balance sheet.

8 ] TREATMENT OF SERVICE TAX PAYABLE ON TRANSPORTATION EXPENSES :-

Service tax payable on Transportation exps.has been credited to Service tax payable a/c. which has been set off ageist Motivate receivable for service tax paid on various exps.and balance of motivate receivable for Service tax paid on various exps. has been shown under the head Loans & Advances in Current Assets side of Balance Sheet.

9] FOREIGN CURRENCY TRANSACTIONS :-

Transactions in foreign currencies are recorded at the original rates of exchange in force at the time the transactions are affected.

Balance in form of current assets and current liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rate of exchange prevailing on the date of the Balance Sheet .The resultant gain or loss is accounted during the year.

10] INTER DIVISIONAL TRANSFER :-

Interdivisional transfer of goods of Rs. 60829325/- ( PYF 6528611/-) of independent marketable products for further processing are being included in respective heads of account at market value to reflect the true working of the respective unit. Any unrealised profit on stock is being eliminated while valuing the inventories. The Conversion Charges of Rs. Nil (PYF Rs.263250/-), has been included in other income and also show as expenditure under the head "other manufacturing exps" for the conversion or manufacturing process carried out by Unit-1 for the materials of Unit-2.

11] TAXES ON INCOME :-

(i) Current tax is determined as tax payable in respect of taxable income of current year.

(ii) Deferred tax for the year is recognized on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subse- quent periods.

(iii) Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted by the Balance sheet date. Deferred tax assets / liabilities arising on account of unabsorbed depreciation under tax laws are recognized on to the extent there is virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization. At each Balance sheet date, the carrying amount of Deferred Tax are revived to reassure realization.

(iv) Tax on distributed profits payable in accordance with the provisions of the Income Tax Act, 1961 is disclosed in accordance with the Guidance Note on Accounting for Corporate Dividend Tax issued by ICAI.

12] IMPAIRMENT LOSS:-

As required by the Accounting Standards (AS 28) " Impairment of Assets " issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

13] Contingent Liability :-

These, if any, are disclosed in the notes on accounts. Provision is made in accounts if it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation.

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

I] BASIS OF PREPARATION OF FINANCIAL STATEMENT & ACCOUNTING :-

(i) The Annual Accounts have been prepared on the Historical cost basis and confirms to the statutory provisions of Companies Act , 1956 and General Accounting practices prevailing in the country, and the Accounting Standards issued by the Institute of Chartered Accountants of India and the guidelines issued by the Securities and Exchange Board of India.

(ii) The Accounts have been prepared on accrual basis.

2] FIXED ASSETS, DEPRECIATION AND CAPITAL WORK IN PROGRESS:-

(i) Fixed Assets have been accounted for at their Historical Cost.

(ii) During the year, the Company has provided the depreciation on straight line method at rates for single shift specified in Schedule IXV of the Companies Act,1956 on the prorata basis for the additions from Fixed Assets.

(iii) All Fixed Assets are valued at Cost Less Accumulated depreciation ( Other than land where no depreciation is charged). All costs relating to the acquisition and installations and initial financing costs relating to the borrowed funds attributable to acquisition of Fixed Assets up to date, the assets is put to use, have been capitalised.

3] INVESTMENTS :-

Long-term investments are stated at cost less provision for other than temporary diminution in value in the opinion of the management.Current investments comprising, investments in mutual funds, equities, and other instruments are stated at the lower of cost and fair market value, detemined on a portfolio basis. Gain/Loss arising on disposal of investments are recognised as income/ expenditure in the year of disposal.

4] RETIREMENT BENEFITS :-

Repayment for present liability of future payment of gratuity is being made to Approved Gratuity which fully cover the same under Group Gratuity Policy or Cash Accumulation Policy with Life Insurance Corporation of India.

The Gratuity trusts are covered with Life Insurance Corporation of India (LIC) and premiums are paid on advise from LIC, which determines the same on the basis of actuarial valuation.

Provision for Leave Encashments is made as at the year end as per the financial figures and other details provided and certified by the Actuaries M/s. K. A. PANDIT, as per their report dtd. 06/04/2011.

The disclosures as per AS 15 is annexed seperately and marked as Annexure - III

5] INVENTORIES :-

All Inventories are valued at lower of Cost or Net realisable value and the cost is ascertained on First in First Out basis wherever applicable.

6] SALES & REVENUE RECOGNITION :-

Sales are exclusive of Excise Duties and Sales tax. Revenue( Income) is recognised when no significant uncertainty as to determination / realization exists.

7] MISCELLANEOUS EXPENDITURE :-

Preliminery Expenses have been amortised as per Section 35D of the Income tax Act,1961.

8] TREATMENT OF EXCISE DUTY :-

Excise Modvate credit on purchase have been transferred to Excise Modvate Receivable a/c.which has been transferred or set off against Excise duties payable on sales and balance have been shown as Excise Modvate Receivable A/c. under the head Current Assets, Loans and Advances in Balance sheet.

9] TREATMENT OF SERVICE TAX PAYABLE ON TRANSPORTATION EXPENSES :-

Service tax payable on Transportation expenses has been credited to Service tax payable a/c. which has been set off agaist Modvate receivable for service tax paid on various expenses and balance of modvate receivable for Service tax paid on various expenses has been shown under the head Loans & Advances in Current Assets side of Balance Sheet.

10] FOREIGN CURRENCY TRANSACTIONS :-

Transactions in foreign currencies are recorded at the original rates of exchange in force at the time the transactions are effected.

Balance in form of current assets and current liabilities in foreign currency , outstanding at the close of the year, are converted in Indian Currency at the appropriate rate of exchange prevailing on the date of the Balance Sheet .The resultant gain or loss is accounted during the year.

II] INTER DIVISIONAL TRANSFER :-

Interdivisional transfer of goods of Rs. 65,28,611/- ( PYF 5,13,83,981/-) of independent marketable products for further processing are being included in respective heads of account at market value to reflect the true working of the respective unit. Any un- realised profit on stock is being eliminated while valuing the inventories. The Conversion Charges of Rs. 2,63,250/- (PYF Rs.46,77,750/-), has been included in other income and also shown as expenditure under the head "other manufacturing expenses" for the conversion or manufacturing process carried out by Unit-1 for the materials of Unit-2.

12] TAXES ON INCOME :-

(i) Current tax is determined as tax payable in respect of taxable income of current year.

(ii) Deferred tax for the year is recognised on timing difference,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

(iii) Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted by the Balance sheet date.Deferred tax assets / liabilities arising on account of unabsorbed depreciation under tax laws are recognised on to the extent there is virtual certainity of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recongnised only to the extent there is reasonable certainity of its realisation. At each Balance sheetdate, the carrying amount of Deferred Tax are reveived to reassure realisation.

(iv) Tax on distributed profits payable in accordance with the provisions of the Income Tax Act, 1961 is disclosed in accordance with the Guidance Note on Accounting for Corporate Dividend Tax issued by ICAI.

13] IMPAIRMENT LOSS:-

As required by the Accounting Standards (AS 28) " Impairment of Assets " issued by ICAI, as informed to us, the Company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

14] Contigent Liability :-

These, if any, are disclosed in the notes on accounts. Provision is made in accounts if it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation.


Mar 31, 2010

1] BASIS OF PREPARATION OF FINANCIAL STATEMENT & ACCOUNTING :-

(i) The Annual Accounts have been prepared on the Historical cost basis and confirms to the statutory provisions of Companies Act, 1956 and General Accounting practices prevailing in the country, and the Accounting Standards issued by the Institute of Chartered Accountants of India and the guidelines issued by the Securities and Exchange Board of India.

(ii) The Accounts have been prepared on accrual basis.

2] FIXED ASSETS, DEPRECIATION AND CAPITAL WORK IN PROGRESS:-

(i) Fixed Assets have been accounted for at their Historical Cost.

(ii) During the year, the company has provided the depreciation on straight line method at rates for single shift specified in Schedule IXV of the Companies Act,1956 on the prorata basis for the additions from Fixed Assets.

(iii) All Fixed Assets are valued at Cost Less Accumulated depreciation ( Other than land where no depreciation is charged). All costs relating to the acquisition and installations and initial financing costs relating to the borrowed funds attributable to acquisition of Fixed Assets up to date, the assets is put to use, have been capitalised.

3] INVESTMENTS:-

Long-term investments are stated at cost less provision for other than temporary diminuation in value in the opinion of the management.Current investments comprising, investments in mutual funds, equities, and other instruments are stated at the lower of cost and fair market value, determined on a portfolio basis. Gain/Loss arising on disposal of investments are recognised as income/ expenditure in the year of disposal.

4] RETIREMENT BENEFITS :-

Repayment for present liability of future payment of gratuity is being made to Approved Gratuity which fully cover the same under Group Gratuity Policy or Cash Accumulation Policy with Life Insurance Corporation of India.

The Gratuity trusts are covered with Life Insurance Corporation of India (UC) and premiums are paid on advise from LIC, which determines the same on the basis of actuarial valuation. Provision for Leave Encashments is made as at the year end as per the financial figures and other details provided and certified by the management. Actuarial valuation for leave encashment is not available.

5] INVENTORY;-

All Inventories are valued at lower of Cost or Net realisable value and the cost is ascertained on First in First Out basis wherever applicable.

6] SALES & REVENUE RECOGNITION :-

Sales are exclusive of Excise Duties and Sales tax. Revenue! Income) is recognised when no significant uncertainty as to determination / realization exists.

7] MISCELLANEOUS EXPENDITURE ¦-

Preliminery Expenses have been amortised as per Section 35D of the Income tax Act,1961.

8] TREATMFNT OF EXCISE DUTY :-

Excise Modvate credit on purchase have been transferred to Excise Modvate Receivable a/c.which has been transferred or set off against Excise duties payable on sales and balance have been shown as Excise Modvate Receivable A/c. under the head Current Assets, Loans and Advances in Balance sheet.

9] TREATMENT OF SERVICE TAX PAYABLE ON TRANSPORTATION EXPS.:-

Service tax payable on Transportation exps.has been credited to Service tax payable a/c. which has been set off against Modvate receivable for service tax paid on various exps.and balance of modvate receivable for Service tax paid on various exps. has been shown under the head Loans & Advances in Current Assets side of Balance Sheet.

10] FOREIGN CURRENCY TRANSACTIONS :-

Transactions in foreign currencies are recorded at the original rates of exchange in force at the time the transactions are effected.

Balance in form of current assets and current liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rate of exchange prevailing on the date of the Balance Sheet. The resultant gain or loss is accounted during the year.

11] INTER DIVISIONAL TRANSFER :-

Interdivisional transfer of goods of Rs. 51383981/- ( PYF 43957459/-) of independent marketable products for further processing are being included in respective heads of account at market value to reflect the true working of the respective unit. Any un- realised profit on stock is being eliminated while valuing the inventories. The Conversion Charges of Rs. 4677750/- (PYF Rs.4219950/-), has been included in other income and also show as expenditure under the head "other manufacturing exps" for the conversion or manufacturing process carried out by Unit-1 for the materials of Unit-2.

12] TAXES ON INCOME ;-

(i) Current tax is determined as tax payable in respect of taxable income of current year.

(ii) Deffered tax for the year is recognised on timing difference,being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

(iii) Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted by the Balance sheet date.Deferred tax assets / liabilities arising on account of unabsorbed depreciation under tax laws are recognised on to the extent there is virtual certainity of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recongnised only to the extent there is reasonable certainity of its realisation. At each Balance sheet date, the carrying amount of Deferred Tax are reveived to reassure realisation.

(iv) Tax on distributed profits payable in accordance with the provisions of the Income Tax Act, 1961 is disclosed in accordance with the Guidance Note on Accounting for Corporate Dividend Tax issued by ICAI.

13] IMPAIRMENT LOSS:-

As required by the Accounting Standards (AS 28) " Impairment of Assets " issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

14] Contigent Liability:-

These, if any, are disclosed in the notes on accounts. Provision is made in accoi*nts if it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation.

 
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