Accounting Policies of Gupta Synthetics Ltd. Company

Mar 31, 2015

A. Basis of Preparation

The financial statements are prepared under historical cost convention, on accrual basis of accounting and in accordance with the generally accepted accounting principles in India, provisions of the Companies Act, 1956 and comply in material aspects with the accounting standards notified under Section 211(3C) of the Act, read with Companies (Accounting Standards) Rules 2006.

B. Use of Estimates

The preparation of financial statements in conformity with Indian generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

C. Inventories

a. Inventories of Raw Material, Packing Material, Spin Finish Oil and other Consumables are valued as per cost.

b. Work in Process is valued at cost including material cost, labour cost and manufacturing & operating overheads, or market price, whichever is lower.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

D. Fixed Assets

Fixed Assets are carried at cost of acquisition less depreciation. CENVAT availed on fixed assets purchased during the year has been reduced from the purchase cost and depreciation has been claimed on the net amount.

E. Depreciation

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

F. Gratuity

The liability as at 31.03.2015 for retiring gratuity payable to the company's employees under Section 3(B) of the payment of the Gratuity Act, 1972 has been determined at Rs. 60.72 lacs. The said amount is accounted on payment basis.

G. Investment

Investments are carried at cost.

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Mar 31, 2014

A. Basis of Preparation

The financial statements are prepared under historical cost convention, on accrual basis of accounting and in accordance with the generally accepted accounting principles in India, provisions of the Companies Act, 1956 and comply in material aspects with the accounting standards notified under Section 211(3C) of the Act, read with Companies (Accounting Standards) Rules 2006.

B. Use of Estimates

The preparation of financial statements in conformity with Indian generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

C. Inventories

a. Inventories of Raw Material, Packing Material, Spin Finish Oil and other Consumables are valued as per cost.

b. Work in Process is valued at cost including material cost, labour cost and manufacturing & operating overheads, or market price, whichever is lower.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

D. Fixed Assets

Fixed Assets are carried at cost of acquisition less depreciation. CENVAT availed on fixed assets purchased during the year has been reduced from the purchase cost and depreciation has been claimed on the net amount.

E. Depreciation

a. Depreciation has been provided under the Straight Line Method at rates prescribed in Schedule XIV to the Companies Act, 1956 for the proportionate period of use during the year. However, old machineries not put to use are not depreciated.

b. Free Hold Land and Lease Hold Land are not depreciated.

F. Gratuity

The liability as at 31.03.2014 for retiring gratuity payable to the company''s employees under Section 3(B) of the payment of the Gratuity Act, 1972 has been determined at Rs.31.71 lacs. The said amount is accounted on payment basis.

G. Investment

Investments are carried at cost.

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Mar 31, 2013

A. Basis of Preparation

The financial statements are prepared under historical cost convention, on accrual basis of accounting and in accordance with the generally accepted accounting principles in India, provisions of the Companies Act, 1956 and comply in material aspects with the accounting standards notified under Section 211(3C) of the Act, read with Companies (Accounting Standards) Rules 2006.

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

C. Inventories

a. Inventories of Raw Material, Packing Material, Spin Finish Oil and other Consumables are valued as per cost.

b. Work in Process is valued at cost including material cost, labour cost and manufacturing & operating overheads.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

D. Fixed Assets

Fixed Assets are carried at cost of acquisition less depreciation. CENVAT availed on fixed assets purchased during the year has been reduced from the purchase cost and depreciation has been claimed on the net amount.

E. Depreciation

a. Depreciation has been provided under the Straight Line Method at rates prescribed in Schedule XIV to the Companies Act, 1956 for the proportionate period of use during the year. However, old machineries not put to use are not depreciated.

b. Free Hold Land and Lease Hold Land are not depreciated.

F. Gratuity

The liability as at 31.03.2013 for retiring gratuity payable to the company''s employees under Section 3(B) of the payment of the Gratuity Act, 1972 has been determined at Rs. 30.68 lacs. The said amount is accounted on payment basis.

G. Investment

Investments are carried at cost.

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Mar 31, 2012

A. Basis of Preparation

The financial statements are prepared under historical cost convention, on accrual basis of accounting and in accordance with the generally accepted accounting principles in India, provisions of the Companies Act, 1956 and comply in material aspects with the accounting standards notified under Section 211(3C) of the Act, read with Companies (Accounting Standards) Rules 2006.

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

C. Inventories

a. Inventories of, Raw Material, Packing Material, Spin Finish Oil and other Consumables are valued as per cost.

b. Work in Process is valued at cost including material cost, labour cost and manufacturing & operating overheads.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

D. Fixed Assets

Fixed Assets are carried at cost of acquisition less depreciation. CENVAT availed on fixed assets purchased during the year has been reduced from the purchase cost and depreciation has been claimed on the net amount.

Capital assets not commissioned and under erection / installation are reflected in Balance Sheet as "Capital Work in * Progress".

E. Depredation

a. Depreciation has been provided under the Straight Line Method at rates prescribed in Schedule XIV to the Companies Act, 1956 for the proportionate period of use during the year. However, old machineries not put to use are not depreciated.

b. Free Hold Land and Lease Hold Land are not depreciated.

F. Gratuity

The liability as at 31.03.2012 for retiring gratuity payable to the company's employees under Section 3(B) of the payment of the Gratuity Act, 1972 has been determined at Rs. 29.31 lacs. The said amount is accounted on payment basis.

G. Investment

Investments are carried at cost.

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Mar 31, 2011

1. Manufacturing Activity

The company is engaged in manufacturing Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY) Polyester Texturised Yarn, Polyester Draw Twisted Yarn, Polyester Twisted Yarn and Nylon Yarn.

2. Accounting Conventions

The accompanying financial statements are prepared under the historical cost convention and on an accrual basis.

3. Inventories

a. Inventories of Raw Material, Packing Material, Spin Finish Oil and other Consumables are valued at cost.

b. Work in Process is valued at cost or net realizable value, whichever is lower. The cost includes the cost of material, labour and manufacturing and operating overheads.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

4. Fixed Assets

Fixed Assets are carried at cost of acquisition less depreciation. CENVAT availed on fixed assets purchased during the year has been reduced from the purchase cost and depreciation has been claimed on the net amount.

Capital assets not commissioned and under erection / installation are reflected in Balance Sheet as "Capital Work in Progress".

5. Depredation

a. Depreciation has been provided under the Straight Line Method at rates prescribed in Schedule XIV to the Companies Act, 1956.

b. Free Hold Land and Lease Hold Land are not depreciated.

c. Depreciation on additions to fixed assets is provided on a prorata basis from the month of addition.

6. Gratuity

The liability as at 31.03.2011 for retiring gratuity payable to the company's employees under Section 3(B) of the payment of the Gratuity Act, 1972 has been determined at Rs 28.81 lacs. This will be accounted on payment basis.

7. Investment

Investments are carried at cost.

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Mar 31, 2010

1. Manufacturing Activity

The company is engaged in manufacturing Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY) Polyester Texturised Yarn, Polyester Draw Twisted Yarn, Polyester Twisted Yarn and Nylon Yarn.

2. Accounting Conventions

The accompanying financial statements are prepared under the historical cost convention and on an accrual basis.

3. Inventories

a. Inventories of Raw Material, Packing Material, Spin Finish Oil and other Consumables are valued at cost.

b. Work in Process is valued at cost or net realizable value, whichever is lower. The cost includes the cost of material, labour and manufacturing and operating overheads.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

d. Material in transit, if any is stated at cost.

4. Fixed Assets

Fixed Assets are carried at cost of acquisition less depreciation. CENVAT availed on fixed assets purchased during the year has been reduced from the purchase cost and depreciation has been cla-ned on the net amount.

Capital assets not commissioned and under erection / installation are reflected in Balance Sheet as "Capital Work in Progress".

5. Depreciation

a. Depreciation has been provided under the Straight Line Method at rates prescribed in Schedule XIV to -the Companies Act, 1956.

b. Free Hold Land and Lease Hold Land are not depreciated.

c. Depreciation on additions to fixed assets is provided on a prorata basis from the month of addition.

6. Gratuity

The liability as at 31.03.2010 for retiring gratuity payable to the companys employees under Section 3(B) of the payment of the Gratuity Act, 1972 has been determined at ?. 26.35 lacs. This will be accounted on payment basis.

7. Investment

Investments are carried at cost.