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Accounting Policies of Ecoboard Industries Ltd. Company

Mar 31, 2015

I) Basis of preparation of financial statements :The financial statements are prepared under the historical cost convention on the accrual basis of accounting, unless otherwise stated, in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act 2013 and the applicable accounting standards.

ii) Use of estimates :The preparation of financial statements requires estimates and assumptions. Differences between the estimates and actual results are recognized in the period in which the same are known.

iii) Fixed assets : Fixed assets are capitalised inclusive of legal and/or installation expenses. Pre-operative expenses (including interest charges) upto the date of start of commercial production are capitalised over the items of fixed assets.

iv) Depreciation : Depreciation on fixed assets is provided at the rates detetermined in accordance with the provisions of the Companies Act, 2013. Depreciation on tangible assets is provided on the straight line method as prescribed in Schedule II to the Companies Act, 2013 over the remaining useful life of the assets.

v) Impairment of assets : An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use.

vi) Inventories valuation:

(a) Stocks of raw-materials, packing materials, stores & spares are valued at cost.

(b) Stock of work-in progress is valued at cost.

(c) Finished goods are valued at lower of cost and net realisable value.

vii) Foreign exchange transactions: Foreign exchange transactions are recorded at the exchange rate prevailing on the date of transaction. Exchange differences in respect of foreign currency transactions are dealt with in the profit & loss account, except in respect of capital assets. All foreign currency assets & liabilities, if any, as at the Balance Sheet date are restated at the applicable exchange rates prevailing on that date.

viii) Sales & contract receipt:

a) Revenue from contracts for supply/commissioning of Bio-gas plants and equipments is recognized by adding the aggregate cost and proportionate margin using the percentage completion method. Percentage of completion is determined as a proportion of cost incurred-to-date to the total estimated contract cost.

b) Sales include products consumed internally for manufacture of capital assets, adjusted on cost basis, but exclude inter-unit transfers on revenue account.

ix) Insurance claims: Insurance claims for loss of assets or goods are accounted at the time of lodging of the claim with the insurer at the cost of assets/ goods lost. Any shortfall in the claim recovery is accounted for at the time of final settlement of the claim.

x) Excise duty and Cenvat credits: Sales and purchases (including those of capital goods) are stated inclusive of excise duty.

xi) Value Added Tax (VAT) and input credits: Sales are stated exclusive of VAT. Purchases (including those of capital goods) are stated inclusive of VAT except to the extent such input tax is eligible for set-off. Reduction in set- off, if any, under the provisions of VAT laws is debited to VAT paid account.

xii) Expenditures are shown net of recoveries.

xiii) Retirement benefits:

(a) Contributions to provident fund, family pension fund are made to Government Provident fund authorities and are recognized as expense in the year they are incurred.

(b) Provision for leave encashment is made on the basis of actuarial valuation made at the end of each year/ period.

(c) Provision for gratuity liability is made on the basis of actuarial valuation made at the end of each year/period

(d) For superannuation benefit, the Company makes defined contributions as per company's policy and recognizes such contributions as expense in the year they are incurred.






Mar 31, 2014

I) Basis of preparation of financial statements : The financial statements are prepared under the historical cost convention on the accrual basis of accounting, unless otherwise stated, in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act 1956 and the applicable accounting standards.

ii) Use of estimates : The preparation of financial statements requires estimates and assumptions. Differences between the estimates and actual results are recognized in the period in which the same are known.

iii) Fixed assets : Fixed assets are capitalised inclusive of legal and/or installation expenses. Preoperative expenses (including interest charges) upto the date of start of commercial production are capitalised over the items of fixed assets.

iv) Depreciation : Depreciation on fixed assets is provided on straight line basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided on pro-rata basis for the period for which the assets are put to use. Assets costing less than Rs.5000/- are fully depreciated in the year of purchase. Lease-hold land is not amortised.

v) Impairment of assets : An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use.

vi) Inventories valuation :

(a) Stocks of raw-materials, packing materials, stores & spares are valued at cost.

(b) Stock of work-in progress is valued at cost.

(c) Finished goods are valued at lower of cost and net realisable value.

vii) Foreign exchange transactions : Foreign exchange transactions are recorded at the exchange rate prevailing on the date of transaction. All exchange differences in respect of foreign currency transactions are dealt with in the profit & loss account. All foreign currency assets & liabilities, if any, as at the Balance Sheet date are restated at the applicable exchange rates prevailing on that date.

viii) Sales & contract receipt:

a) Revenue from contracts for supply/commissioning of Bio-gas plants and equipments is recognized by adding the aggregate cost and proportionate margin using the percentage completion method. Percentage of completion is determined as a proportion of cost incurred-to-date to the total estimated contract cost.

b) Sales include products consumed internally for manufacture of capital assets, adjusted on cost basis, but exclude inter-unit transfers on revenue account.

ix) Insurance claims : Insurance claims for loss of assets or goods are accounted at the time of lodging of the claim with the insurer at the cost of assets/ goods lost. Any shortfall in the claim recovery is accounted for at the time of final settlement of the claim.

x) Excise duty and Cenvat credits : Sales and purchases (including those of capital goods) are stated inclusive of excise duty.

xi) Value Added Tax (VAT) and input credits : Sales are stated exclusive of VAT. Purchases (including those of capital goods) are stated inclusive of VAT except to the extent such input tax is eligible for set-off. Reduction in set-off, if any, under the provisions of VAT laws is debited to VAT paid account.

xii) Expenditures are shown net of recoveries.

xiii) Retirement benefits :

(a) Contributions to provident fund, family pension fund are made to Government Provident fund authorities and are recognized as expense in the year they are incurred.

(b) Provision for leave encashment is made on the basis of actuarial valuation made at the end of each year/period.

(c) Provision for gratuity liability is made on the basis of actuarial valuation made at the end of each year/period.

(d) For superannuation benefit, the Company makes defined contributions as per company''s policy and recognizes such contributions as expense in the year they are incurred.


Mar 31, 2013

I) Basis of preparation of financial statements : The financial statements are prepared under the historical cost convention on the accrual basis of accounting, unless otherwise stated, in accordance with the Generally Accepted Accounting Principles in India, the provisions of the Companies Act 1956 and the applicable Accounting standards.

ii) Use of estimates : The preparation of financial statements requires estimates and assumptions. Differences between the estimates and actual results are recognized in the period in which the same are known.

iii) Fixed assets : Fixed assets are capitalised inclusive of legal and/or installation expenses. Preoperative expenses (including interest charges) upto the date of start of commercial production are capitalised over the items of fixed assets.

iv) Depreciation : Depreciation on fixed assets is provided on straight line basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided on pro-rata basis for the period for which the assets are put to use. Assets costing less than Rs.5000/- are fully depreciated in the year of purchase. Lease-hold land is not amortised.

v) Impairment of assets : An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use.

vi) Inventories valuation :

(a) Stocks of raw-materials, packing materials, stores & spares are valued at cost.

(b) Stock of work-in progress is valued at cost.

(c) Finished goods are valued at lower of cost and net realisable value.

vii) Foreign exchange transactions : Foreign exchange transactions are recorded at the exchange rate prevailing on the date of transaction. All exchange differences in respect of foreign currency transactions are dealt with in the profit & loss account. All foreign currency assets & liabilities, if any, as at the Balance Sheet date are restated at the applicable exchange rates prevailing on that date.

viii) Sales & contract receipt :

a) Revenue from contracts for supply/commissioning of Bio-gas plants and equipments is recognized by adding the aggregate cost and proportionate margin using the percentage completion method. Percentage of completion is determined as a proportion of cost incurred-to-date to the total estimated contract cost.

b) Sales include products consumed internally for manufacture of capital assets, adjusted on cost basis, but exclude inter-unit transfers on revenue account.

ix) Insurance claims : Insurance claims for loss of assets or goods are accounted at the time of lodging of the claim with the insurer at the cost of assets/ goods lost. Any shortfall in the claim recovery is accounted for at the time of final settlement of the claim.

x) Excise duty and Cenvat credits : Sales and purchases (including those of capital goods) are stated inclusive of excise duty.

xi) Value Added Tax (VAT) and input credits: Sales are stated exclusive of VAT. Purchases (including those of capital goods) are stated inclusive of VAT except to the extent such input tax is eligible for set-off. Reduction in set-off, if any, under the provisions of VAT laws is debited to VAT paid account.

xii) Expenditures are shown net of recoveries.

xiii) Retirement benefits :

(a) Contributions to provident fund, family pension fund are made to Government Provident fund authorities and are recognized as expense in the year they are incurred.

(b) Provision for leave encashment is made on the basis of actuarial valuation made at the end of each year/period.

(c) Provision for gratuity liability is made on the basis of actuarial valuation made at the end of each year/period.

(d) For superannuation benefit, the Company makes defined contributions as per company''s policy and recognizes such contributions as expense in the year they are incurred.


Mar 31, 2012

I) Basis of preparation of financial statements :

The financial statements are prepared under the historical cost convention on the accrual basis of accounting, unless otherwise stated, in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act 1956 and the applicable accounting standards. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956 became applicable to the company for preparation and presentation of the Financial Statements. The revised Schedule VI does not impact recognition and measurement principles followed in the preparation of the Financial Statements. However, it prescribes significant changes in presentation and disclosures of information in the Financial Statements. Previous year figures have been reclassified accordingly.

II) Use of Estimates :

The preparation of financial statements requires estimates and assumptions. Differences between the estimates and actual results are recognized in the period in which the same are known.

III) Fixed Assets :

Fixed assets are capitalised inclusive of legal and/or installation expenses. Preoperative expenses (including interest charges) upto the date of start of commercial production are capitalised over the items of fixed assets.

IV) Depreciation :

Depreciation on fixed assets is provided on straight line basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided on pro-rata basis for the period for which the assets are put to use. Assets costing less than Rs. 5000/- are fully depreciated in the year of purchase. Lease-hold land is not amortised.

V) Impairment of Assets :

An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use.

VI) Inventory valuation:

a) Stocks of raw-materials, packing materials, stores & spares are valued at cost.

b) Stock of work-in progress is valued at cost.

c) Finished goods are valued at lower of cost and net realisable value.

VII) Foreign exchange transactions : Foreign exchange transactions are recorded at the exchange rate prevailing on the date of transaction. All exchange differences in respect of foreign currency transactions are dealt with in the profit & loss account. All foreign currency assets & liabilities, if any, as at the Balance Sheet date are restated at the applicable exchange rates prevailing on that date.

VIII) Sales & contract receipt :

a) Revenue from contracts for supply/commissioning of Bio-gas plants and equipments is recognized by adding the aggregate cost and proportionate margin using the percentage completion method. Percentage of completion is determined as a proportion of cost incurred-to-date to the total estimated contract cost.

b) Sales include products consumed internally for manufacture of capital assets, adjusted on cost basis, but exclude inter-unit transfers on revenue account.

IX) Insurance claims : Insurance claims for loss of assets or goods are accounted at the time of lodging of the claim with the insurer at the cost of assets/ goods lost. Any shortfall in the claim recovery is accounted for at the time of final settlement of the claim.

X) Excise duty and Cenvat credits : Sales and purchases (including those of capital goods) are stated inclusive of excise duty.

XI) Value Added Tax (VAT) and input credits : Sales are stated exclusive of VAT. Purchases (including those of capital goods) are stated inclusive of VAT except to the extent such input tax is eligible for set-off. Reduction in set-off, if any, under the provisions of VAT laws is debited to VAT paid account.

XII) Expenditures are shown net of recoveries.

XIII) Retirement benefits:

(a) Contributions to provident fund, family pension fund are made to Government Provident fund authorities and are recognized as expense in the year they are incurred.

(b) Provision for leave encashment is made on the basis of actuarial valuation made at the end of each year/period.

(c) Provision for gratuity liability is made on the basis of actuarial valuation made at the end of each year/period.

(d) For superannuation benefit, the Company makes defined contributions as per company's policy and recognizes such contributions as expense in the year they are incurred.

Rights, preferences and restrictions attached to shares

The Company has only one class of Equity shares. Each Share has a paid up value of Rs.10/-. Every shareholder is entitled to one vote per share. Each share is entitled to dividend at the rate as may be declared by the Board and approved by the shareholders at the Annual General Meeting.

Vehicle loan from bank is repayable by way of 36 equated monthly instalments ending July 2014. No repayment date is stipulated for Directors' deposits. However it is agreed by the Directors that the deposits shall not be repayable before 1st April 2013.


Mar 31, 2010

I) Basis of preparation of financial statements : The financial statements are prepared under the historical cost convention on the accrual basis of accounting, unless otherwise stated, in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act 1956 and the applicable accounting standards.

II) Use of Estimates : The preparation of financial statements requires estimates and assumptions. Differences between the estimates and actual results are recognized in the period in which the same are known.

III) Fixed Assets : Fixed assets are capitalised inclusive of legal and/or installation expenses. Preoperative expenses (including interest charges) upto the date of start of commercial production are capitalised over the items of fixed assets.

IV) Depreciation : Depreciation on fixed assets is provided on straight line basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided on pro-rata basis for the period for which the assets are put to use. Assets costing less than Rs.5000/- are fully depreciated in the year of purchase. Lease-hold land is not amortised.

V) Impairment of Assets : An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use.

VI) Inventory valuation:

a) Stocks of raw-materials, packing materials, stores & spares are valued at cost

b) Stock of work-in progress is valued at cost

c) Finished goods are valued at lower of cost and net realisable value.

VII) Foreign exchange transactions: Foreign exchange transactions are recorded at the exchange rate prevailing on the date of transaction. All exchange differences in respect of foreign currency transactions are dealt with in the profit & loss account. All foreign currency assets & liabilities, if any, as at the Balance Sheet date are restated at the applicable exchange rates prevailing on that date.

VIII) Sales & contract receipt:

a) Revenue from contracts for supply/commissioning of Bio-gas plants and equipments is recognized by adding the aggregate cost and proportionate margin using the percentage completion method. Percentage of completion is determined as a proportion of cost incurred-to-date to the total estimated contract cost.

b) Sales include products consumed internally for manufacture of capital assets, adjusted on cost basis, but exclude inter-unit transfers on revenue account.

IX) Insurance claims: Insurance claims for loss of assets or goods are accounted at the time of lodging of the claim with the insurer at the cost of assets/ goods lost. Any shortfall in the claim recovery is accounted for at the time of final settlement of the claim.

X) Excise duty and Cenvat credits: Sales and purchases (other than those of capital goods) are stated inclusive of excise duty. Cenvat credits are accounted as other income. Cenvat credits relating to capital goods are reduced from the value of the capital goods.

XI) Value Added Tax (VAT) and input credits: Sales are stated exclusive of VAT. Purchases (including those of capital goods) are stated inclusive of VAT except to the extent such input tax is eligible for set-off. Reduction in set-off, if any, under the provisions of VAT laws is debited to VAT paid account.

XII) Expenditures are shown net of recoveries.

XIII) Retirement benefits:

(a) Contributions to provident fund, family pension fund are made to Government Provident fund authorities and are recognized as expense in the year they are incurred.

(b) Provision for leave encashment is made on the basis of actuarial valuation made at the end of each year/period.

(c) Provision for gratuity liability is made on the basis of actuarial valuation made at the end of each year/period

(d) For superannuation benefit, the Company makes defined contributions as per companys policy and recognizes such contributions as expense in the year they are incurred.

 
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