Accounting Policies of Hipolin Ltd. Company

Mar 31, 2015

2.1 Accounting Convention

The financial statements have been prepared to comply in all material respects with the Notified Accounting Standards by the Companies Accounting Standard Rules, 2006 and the relevant provisions of the Companies Act, 2013. The Accounts have been prepared following the mercantile system of accounting and accordingly revenues / income and costs / expenditure are generally accounted on accrual basis, as they are earned or incurred.

2.2 Use of Estimates:

The presentation of financial statements requires certain estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

2.3 Fixed Assets:

Fixed assets are stated at cost(including all direct cost and other incidental expenses incurred in connection with acquisition of assets apportioned thereto and is net of input tax credit availed) less accumulated depreciation and impairment losses, if any.

2.4 Depreciation:

Depreciation on different fixed assets have been provided based on useful lives of respective assets as provided in Part-C of Schedule II of the Companies Act, 2013. Depreciation on Plant & Machinery have been provided considering their useful life as 15 years as applicable to other than Continuous Process Plant.

2.5 Inventories:

Inventories are valued at lower of cost or net realizable value. Cost is arrived at as under:

RAW MATERIALS : FIFO

PACKING MATERIALS : FIFO

STOCK IN PROGRESS : Absorption Cost Basis

STOCK IN GOODS : Absorption Cost Basis

2.6 Revenue Recognition:

i. Sales are recognized on dispatch of products to the customer. Sales are inclusive of Cenvat Duty

ii. Interest is accounted for on a time proportion basis taking into account the amount outstanding and the rate applicable.

2.7 Transaction of Foreign Currency Items:

Transactions in Foreign Currencies are recorded at the original rate of exchange in force on the date of the transactions. Monetary items denominated in foreign currency at the year end are restated at year end rates.

2.8 Prior Period Expenses/Income:

Material items of prior period expenses / income are disclosed separately.

2.9 Employees Benefit:

Retirement benefits in the form of Provident Fund, Family Pension Fund and Superannuation Schemes, which are defined contribution schemes, are charged to the profit and loss account of the period in which the contributions to the respective funds accrue. The Company has created Employees Group gratuity fund which has taken a Group Gratuity insurance Policy from Life Insurance Corporation of India (LIC). Premium on the above policy as intimated by LIC is charged to the profit and loss account. The adequacy of balances available is compared with actuarial valuation obtained at the period end and shortfall, if any, is provided for the profit and loss account. Actuarial gains and losses are immediately recognized in the profit and loss account and are not deferred.

2.10 Cenvat Credit:

Cenvat Credit is accounted for on accrual basis on purchase of material.

2.11 Taxon Income:

Current Tax is determined on the basis of the amount of tax payable in respect of taxable income for the year.

Deferred tax is calculated at current statutory income tax rate and is recognized on timing differences; being the difference between taxable income and accounting income that originate in the one period and are capable of reversal in one or more subsequent periods. Deferred tax assets subject to the consideration of prudence, are recognized and carried forward only to extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax liability can be realized.

2.12 Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

2.13 Impairment:

The carrying amounts of fixed assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of fixed assets exceeds its estimated recoverable amount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing the value in use the estimated future cash flows are discounted to the present value at the weighted average cost of capital.

2.14 Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit /loss for the year attributable to equity share holders by the weighted average number of the equity shares during the year. The number of shares used in calculating earnings per share is the weighted average number of equity shares outstanding during the year.

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Mar 31, 2014

(a) GENERAL :

(i) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. The accounts are prepared on historical cost basis, as a going concern and adjusted by revaluation of assets.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and practices. The financial statements have been prepared in compliance with all material aspects of the mandatory Accounting Standard issued by the ICAI and the relevant provisions of the Companies Act, 1956.

(b) USE OF ESTIMATES:

The preparation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

(c) FIXED ASSETS & DEPRECIATION

Fixed Assets are stated at cost and adjusted by revaluation of assets.

(i) Depreciation on Fixed Assets (including revalued assets ) is provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of Companies Act,1956, read with the relevant circulars issued by the Department of Company Affairs from time to time.

(ii) Depreciation on the assets added/disposed off during the year has been provided on pro - rata basis with reference to the date of addition / disposal.

(d) CURRENT ASSETS : Inventories are valued at lower of cost or net realizable value. Cost is arrived at as under :

RAW MATERIALS : FIFO

PACKING MATERIALS : FIFO

STOCK IN PROGRESS : Absorption Cost Basis

STOCK IN GOODS : Absorption Cost Basis

(e) INVESTMENT : All the Investments of the Company are long tem investments and the same are stated at cost.

(f) EMPLOYEE BENEFIT : Retirement benefits in the form of Provident Fund, Family Pension Fund and Superannuation Schemes, which are defined contribution schemes, are charged to the profit and loss account of the period in which the contributions to the respective funds accrue.

The Company has created Employees Group gratuity fund which has taken a Group Gratuity insurance Policy from Life Insurance Corporation of India (LIC). Premium on the above policy as intimated by LIC is charged to the profit and loss account. The adequacy of balances available is compared with actuarial valuation obtained at the period end and shortfall, if any, is provided for in the profit and loss account.

Actuarial gains and losses are immediately recognized in the profit and loss account and are not deferred.

(g) TAX ON INCOME :

Current Tax is determined on the basis of the amount of tax payable in respect of taxable income for the year.

Deferred tax is calculated at current statutory income tax rate and is recognized on timing differences; being the difference between taxable income and accounting income that originate in the one period and are capable of reversal in one or more subsequent periods. Deferred tax assets subject to the consideration of prudence, are recognized and carried forward only to extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax liability can be realized.

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Mar 31, 2013

(a) GENERAL:

(i) The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounts are prepared on historical cost basis, as a going concern and adjusted by revaluation of assets.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and practices. The financial statements have been prepared in compliance with all material aspects of the mandatory Accounting Standard issued by the ICAI and the relevant provisions of the Companies Act, 1956.

(b) USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

(c) FIXED ASSETS & DEPRECIATION

Fixed Assets are stated at cost and adjusted by revaluation of assets.

(i) Depreciation on Fixed Assets (including revalued assets ) is provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of Companies Act,1956, read with the relevant circulars issued by the Department of Company Affairs from time to time.

(ii) Depreciation on the assets added/disposed off during the year has been provided on pro-rata basis with reference to the date of addition /disposal.

Actuarial gains and losses are immediately recognized in the profit and loss account and are not deferred.

(g) TAX ON INCOME:

Current Tax is determined on the basis of the amount of tax payable in respect of taxable income for the year.

Deferred tax is calculated at current statutory income tax rate and is recognized on timing differences; being the difference between taxable income and accounting income that originate in the one period and are capable of reversal in one or more subsequent periods. Deferred tax assets subject to the consideration of prudence, are recognized and carried forward only to extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax liability can be realized.

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Mar 31, 2010

(a) GENERAL:

(i) The Company follows the mercantile system of accounting and recongnises income and expenditure on accrual basis. The accounts are prepared on historical cost basis, as a going concern and adjusted by revaluation of assets.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and practices. The financial statements have been prepared in compliance with all material aspects of the mandatory Accounting Standard issued by the ICAI and the relevant provisions of the Companies Act, 1956.

(b) USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

(c) FIXED ASSETS &DEPRICIATION

Fixed Assets are stated at cost and adjusted by revaluation of assets.

(i) Depreciation on Fixed Assets (including revalued assets) is provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of Companies Act,1956, read with the relevant circulars issued by the Department of Company Affairs from time to time.

(ii) Depreciation on the assets added/disposed off during the year has been provided on pro - rata basis with reference to the date of addition /disposal

(d) CURRENT ASSETS : Inventories are valued at lower of cost or net realizable value. Cost is arrived at as under:

RAW MATERIALS : FIFO

PACKING MATERIALS : FIFO

STOCK IN PROGRESS : Absorption Cost Basis

STOCK IN GOODS : Absorption Cost Basis

(e) INVESTMENT

: All the Investments are the Company are long tem investments and the same are stated at cost. classified into current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost.

(f) EMPLOYEE BENEFIT

Retirement benefits in the form of Provident Fund, Family Pension Fund and Superannuation Schemes, which are defined contribution schemes, are charged to the profit and loss account of the period in which the contributions to the respective funds accrue.

The Company has created Employees Group gratuity fund which has taken a Group Gratuity insurance Policy fro Life Insurance Corporation of India (L1C). Premium on the above policy as intimated by LIC is charged to the profit and loss account. The adequacy of balances available is compared with actuarial valuation obtained at the period end and shortfall, if any, is provided for the profit and loss account.

Actuarial gains and losses are immediately recognized in the profit and loss account and are not deferred.

(g) TAX ON INCOME:

Current Tax is determined on the basis of the amount of tax payable in respect of taxable income for the year.

Fringe Benefit Tax is provided as per provision of the Income Tax, 1961.

Deferred tax is calculated at current statutory income tax rate and is recognized on timing differences; being the difference between taxable income and accounting income that originate in the one period and are capable of reversal in one or more subsequent periods. Deferred tax assets subject to the consideration of prudence, are recognized and carried forward only to extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax liability can be realized.