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Accounting Policies of Gothi Plascon (India) Ltd. Company

Mar 31, 2015

A) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b) FIXED ASSETS & DEPRECIATION

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized. Component accounting is mandatory for financial years commencing on or after 1 April 2015. It is optional for financial years beginning 1 April 2014. The company has not applied component accounting in the current year.

Till the year ended 31 March 2014, Schedule XIV to the Companies Act, 1956, prescribed requirements concerning depreciation of fixed assets. Depreciation rates prescribed under Schedule XIV were treated as minimum rates and the company was not

allowed to charge depreciation at lower rates. From the current year, Schedule XIV has been replaced by Schedule II to the Companies Act,

2013. As per Schedule II of Companies Act 2013, companies are not permitted to adopt useful lives of assets and residual values higher than that prescribed in Schedule II.

Considering the applicability of Schedule II, the management has depreciated the assets on the basis of useful lives and residual values of all its fixed assets.

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management. *

The estimated remaining useful life of the building is 20 years and new building is 37 years as estimated by the management on 01.04.2014.

In case of plant and machinery, the estimated useful life has been adopted as per Schedule II ie 15 years and 3 years for computers.

The residual value for all the assets has been estimated at 5% by the management.

c) VALUATION OF INVENTORIES

The company is not carrying any inventory; hence no policy of valuation is applicable. -

d) LEASES

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

e) REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Income from Services

Rental income is recognized on accrual basis. The company collects service tax on behalf of the government and, therefore, it is not an economic benefit flowing to the company. Hence, it is excluded from revenue.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

f) DUES TO MSMED

There are no trade payables outstanding during the year and hence no dues are outstanding to MSMEDs

g) CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non- occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that on outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognized a contingent liability but discloses its existence in the financial statements.

h) FOREIGN CURRENCY TRANSACTIONS Expenditure in Foreign Currency - Nil

Earning in Foreign Currency - Nil

i) EBITDA

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expense, finance costs and tax expense.

j) PROVIDENT FUND

No provident fund is payable by company.

k) CASH & CASH EQUIVALENTS

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

l) INCOME TAXES

Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to ' items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

m) In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realization, in the ordinary course of business, at least equal to the amount at which they are stated.


Mar 31, 2014

A) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b) FIXED ASSETS & DEPRECIATION

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized. Depreciation of fixed assets has been charged on single shift basis on SLM basis at following rates:

Block of asset Rate

Plant& Machinery 4.75%

Building 3.34%

c) VALUATION OF INVENTORIES

The company is not carrying any inventory, hence no policy of valuation is applicable.

d) REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

e) DUES TO MSMED

There are no trade payables outstanding during the year and hence no dues are outstanding to MSMEDs


Mar 31, 2013

A) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b) FIXED ASSETS & DEPRECIATION

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price: Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

Depreciation of fixed assets has been charged on single shift basis on SLM basis at following rates:

Block of asset Rate

Plant & Machinery 4.75%

Building 3.34%

c) VALUATION OF INVENTORIES

Raw materials, components, stores and spares are valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores and spares is determined on a weighted average basis.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes duect materials and labor and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis. Net realizable value is the estimated setting price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

d) REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured The excise duty which is deducted from the Gross Sales amounts to Rs. 54,58,125

e) DUES TO MSMED

There are no trade payables outstanding during the year and hence no dues are Qutstanding to MSMEDs

f) CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by (he occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that on outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognized a contingent liability but discloses its existence in the financial statements.

g) FOREIGN CURRENCY TRANSACTIONS Expenditure in Foreign Currency - Nil

Earning in Foreign Currency - Nil h) EBITDA

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expense, finance costs and tax expense.

i) PROVIDENT FUND

Company''s contribution to provident fund is accounted on accrual basis and is charges to revenue account.

j) In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realization, in the ordinary course of business, at least equal to the amount at which they are stated


Mar 31, 2012

1. CORPORATE INFORMATION

Gothi Plascon (India) Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of plastic items. The company caters to domestic markets only.

2. BASIS OF ACCOUNTING

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year

3. Summary of significant accounting policies

a) Change in accounting policy

During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

4. FIXED ASSETS & DEPRECIATION

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Gains or losses arising from derecognizing of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized. Depreciation of fixed assets has been charged on single shift basis at rates specified in the Schedule XTV of the Companies Act, 1956.

5. VALUATION OF INVENTORIES

Raw materials, components, stores and spares are valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores and spares is determined on a weighted average basis.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

6. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The excise duty which is deducted from the Gross Sales amounts to Rs.2,230,950.

7. Payment against supplies from SSI and ancillary undertaking are generally made in accordance with agreed credit terms and there were no over dues in this regard.


Mar 31, 2011

1. BASIS OF ACCOUNTING

a. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounts are prepared on historical cost and as a going concern.

b. Accounting policies not referred to otherwise are consistent with generally accepted accounting policies.

2. FIXED ASSETS & DEPRECIATION

a. Fixed Assets are stated at their historical cost of acquisition including taxes, duties freight and other incidental expenses related to acquisition and installation of the concerned assets.

b. Depreciation of fixed assets of has been charged on single shift basis on a straight line basis at the rates specified in schedule XIV of the Companies Act 1956.

3. INVESTMENTS Investments are stated at Cost.

4. VALUATION OF INVENTORIES

The stock of Raw Material and packing material are value at average Cost. Work in progress is valued at cost (which include cost of Raw Material and Conversion Cost)

5. SALES

Sales are recorded and supply of goods takes place in accordance with the terms of sales. Sales do not include Excise Duties.

6. Payment against supplies from SSI and ancillary undertaking are generally made in accordance with agreed credit terms and there were no over dues in this regard.

7. ACCOUNTING STANDARD

The Profit and Loss A/C. and Balance Sheet Complied with the accounting standards referred in section see 211 (3C) of companies Act 1986.

8. CHANGE IN ACCOUNTING POLICY

There is no change in policy of accounts

9. Expenditure in Foreign Currency- Nil

Earning in Foreign Currency - Nil


Mar 31, 2010

1. BASIS OF ACCOUNTING

a. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounts are prepared on historical cost and as a going concern.

b. Accounting policies not referred to otherwise are consistent with generally accepted accounting policies.

2. FIXED ASSETS* DEPRECIATION

a. Fixed Assets are stated at their historical cost of acquisition including taxes, duties freight and other incidental expenses related to acquisition and installation of the concerned assets;

b. Depreciation of fixed assets of has been charged on single shift basis on a straight line basis at the rates specified in schedule XIV of the Companies Act 1956.

3. INVESTMENTS Investments are stated at Cost.

4. VALUATION OF INVENTORIES

The stock of Raw Material and packing material are value at average Cost. Work in progress is valued at cost (which include cost of Raw Material and Conversion Cost)

5. SALES

Sales are recorded and supply of goods takes place in accordance with the terms of sales. Sales do not include Excise Duties.

6. Payment against Supplies from SSI and ancillary undertaking are generally made in accordance with agreed credit terms and there were no over dues in this regard.

7. ACCOUNTING STANDARD

The Profit and Loss A/C. and Balance Sheet Complied with the accounting standards referred in section see 211 (3C) of companies Act 1986.

8. CHANGE IN ACCOUNTING POLICY

There is no change in policy of accounts 9. Expenditure in Foreign Currency - Nil Earning in Foreign Currency - Nil

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