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Accounting Policies of Indian Acrylics Ltd. Company

Mar 31, 2015

I) The financial statements are prepared under the historical cost convention in accordance with the applicable Accounting Standard and relevant presentational requirements of the Companies Act, 2013.

ii) Fixed Assets.:

Fixed Assets are stated at cost less depreciation. Cost of acquisition or construction is inclusive of duties, taxes and other incidental expenses. Cenvat credit available is deducted from cost of fixed assets.

Capital work-in-progress includes advances paid for purchase of Fixed Assets, preoperative expenses pending capitalisation, and capital work in progress. As per practice, expenses incurred on modernisation / debottlenecking of plant are capitalised.

iii) Depreciation :

Depreciation is provided as per rates specified in Schedule II of the Companies Act, 2013 as per details given below:

S.No. Name of Asset

1. Building SLM Basis

2. Plant & Machinery WDV Basis

3. Other Assets (Vehicles, Furniture & Fixture) WDV Basis

The plant being a continuous process plant, so rates of depreciation as applicable to continuous process industry have been applied.

iv) Inventories :

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of various items of inventories are computed as under:-

* In case of raw materials stores and spares at weighted average cost plus direct expenses.

* In case of work in process at raw material cost plus conversion expenses depending upon stage of completion.

* In case of finished goods at raw materials cost plus conversion cost, packing cost, excise duty and other overheads to bring the goods to present condition and location.

* Raw material and other stocks lying at port pending clearance at cost inclusive of custom duty actually paid. The custom duty payable on material lying into bond is accounted on clearance for home consumption.

v) Retirement Benefits :

Gratuity and earned leave encashment has been provided for in the books of accounts on acturial valuation basis as at the end of the year.

vi) Interest :

Interest in respect offixed deposits lying with banks has been accounted for on accrual basis.

vii) Cenvat & Excise Duty

Purchases, Sales and Stocks are shown net of cenvat credit available. Balance in the cenvat account is shown as current assets and excise duty expenditure is booked on gross basis. Provision made for excise duty liability on stock offinished goods lying at the year end is booked in excise duty expenditure account and liability for the same is shown as provisions under schedule of current liabilities.

viii) Recognition of Income/expenditure :

All revenues and expenses are accounted for on accrual basis except for medical reimbursement payable, claims receivable and export incentives which are accounted for on cash basis, unless otherwise explained hereafter. All expenses are shown as net of Input Tax credit as Service Tax credit is adjustable against excise duty under cenvat credit Rules.

ix) Foreign Exchange Fluctuations :

a) Foreign currency assets / liabilities not covered by forward contracts are restated at the rates prevailing at the end of the year.

b) Any income or expense on account of exchange difference is recognised in the Profit and Loss Account as per the requirement of AS-11.


Mar 31, 2014

I) The financial statements are prepared under the historical cost convention in accordance with the applicable Accounting Standard and relevant presentational requirements of the Companies Act, 1956.

ii) FIXED ASSETS.:

Fixed Assets are stated at cost less depreciation. Cost of acquisition or construction is inclusive of duties, taxes and other incidental expenses. Cenvat credit available is deducted from cost of fixed assets.

Capital work-in-progress includes advances paid for purchase of Fixed Assets, preoperative expenses pending capitalisation, and capital work in progress. As per practice, expenses incurred on modernisation / debottlenecking of plant are capitalised.

iii) Depreciation :

Depreciation is provided as per rates specified in Schedule XIV of the Companies Act, 1956 as per details given below:

S.No. Name of Asset

1. Building SLM Basis

2. Plant & Machinery WDV Basis

3. Other Assets (Vehicles, Furniture & Fixture) WDV Basis

The plant being a continuous process plant, so rates of depreciation as applicable to continuous process industry have been applied.

iv) Inventories :

Inventories are valued as under :-

* In case of raw materials stores and spares at weighted average cost plus direct expenses.

* In case of work in process at raw material cost plus conversion expenses depending upon stage of completion.

* In case of finished goods at raw materials cost plus conversion cost, packing cost, excise duty and other overheads to bring the goods to present condition and location.

* Raw material and other stocks lying at port pending clearance at cost inclusive of custom duty actually paid. The custom duty payable on material lying into bond is accounted on clearance for home consumption.

v) Retirement Benefits :

Gratuity and earned leave encashment has been provided for in the books of accounts on acturial valuation basis as at the end of the year.

vi) Interest :

Interest in respect of fixed deposits lying with banks has been accounted for on accrual basis.

vii) Cenvat & Excise Duty

Purchases, Sales and Stocks are shown net of cenvat credit available. Balance in the cenvat account is shown as current assets and excise duty expenditure is booked on gross basis. Provision made for excise duty liability on stock of finished goods lying at the year end is booked in excise duty expenditure account and liability for the same is shown as provisions under schedule of current liabilities.

viii) Recognition of Income/Expenditure :

All revenues and expenses are accounted for on accrual basis except for medical reimbursement payable, claims receivable and export incentives which are accounted for on cash basis, unless otherwise explained hereafter. All expenses are shown as net of Input Tax credit as Service Tax credit is adjustable against excise duty under cenvat credit Rules.

ix) Foreign Exchange Fluctuations :

a) Foreign currency assets / liabilities not covered by forward contracts are restated at the rates prevailing at the end of the year.

b) Any income or expense on account of exchange difference is recognised in the Profit and Loss Account as per the requirement of AS-11


Mar 31, 2013

I) The financial statements are prepared under the historical cost convention in accordance with the applicable Accounting Standard and relevant presentational requirements of the Companies Act, 1956.

ii) FIXED ASSETS :

Fixed Assets are stated at cost less depreciation. Cost of acquisition or construction is inclusive of duties, taxes and other incidental expenses. Cenvat credit available is deducted from cost of fixed assets. Capital work-in-progress includes advances paid for purchase of Fixed Assets, preoperative expenses pending capitalisation, and capital work in progress. As per practice, expenses incurred on modernisation /debottlenecking of plant are capitalised.

iii) Depreciation :

Depreciation is provided as per rates specified in Schedule XIV of the Companies Act, 1956 as per details given below:

S.No. Name of Asset

1. Building SLM Basis

2. Plant & Machinery WDV Basis

3. Other Assets (Vehicles, Furniture & Fixture) WDV Basis

The plant being a continuous process plant, so rates of depreciation as applicable to continuous process industry have been applied.

iv) Inventories :

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of various items of inventories are computed as under:-

- In case of raw materials stores and spares at weighted average cost plus direct expenses.

- In case of work in process at raw material cost plus conversion expenses depending upon stage of completion.

- In case of finished goods at raw materials cost plus conversion cost, packing cost, excise duty and other overheads to bring the goods to present condition and location.

- Raw material and other stocks lying at port pending clearance at cost inclusive of custom duty actually paid. The custom duty payable on material lying into bond is accounted on clearance for home consumption.

v) Retirement Benefits :

Gratuity and earned leave encashment has been provided for in the books of accounts on acturial valuation basis as at the end of the year.

vi) Interest :

Interest in respect of fixed deposits lying with banks has been accounted for on accrual basis.

vii) Cenvat & Excise Duty

Purchases, Sales and Stocks are shown net of cenvat credit available. Balance in the cenvat account is shown as current assets and excise duty expenditure is booked on gross basis. Provision made for excise duty liability on stock of finished goods lying at the year end is booked in excise duty expenditure account and liability for the same is shown as provisions under schedule of current liabilities.

viii) Recognition of Income/Expenditure :

All revenues and expenses are accounted for on accrual basis except for medical reimbursement payable, claims receivable and export incentives which are accounted for on cash basis, unless otherwise explained hereafter. All expenses are shown as net of Input Tax credit as Service Tax credit is adjustable against excise duty under cenvat credit Rules.

ix) Foreign Exchange Fluctuations :

a) Foreign currency assets / liabilities not covered by forward contracts are restated at the rates prevailing at the end of the year.

b) Any income or expense on account of exchange difference is recognised in the Profit and Loss Account as per the requirement of AS-11 issued by ICAI, New Delhi.


Mar 31, 2012

I) The financial statements are prepared under the historical cost convention in accordance with the applicable Accounting Standard and relevant presentational requirements of the Companies Act, 1956.

ii) FIXED ASSETS :

Fixed Assets are stated at cost less depreciation. Cost of acquisition or construction is inclusive of duties, taxes and other incidental expenses. Cenvat credit available is deducted from cost of fixed assets.

Capital work-in-progress includes advances paid for purchase of Fixed Assets, preoperative expenses pending capitalisation, and capital work in progress. As per practice, expenses incurred on modernisation / debottlenecking of plant are capitalised.

iii) Depreciation :

Depreciation is provided as per rates specified in Schedule XIV of the Companies Act, 1956 as per details given below:

S.No. Name of Asset 1. Building SLM Basis

2. Plant & Machinery WDV Basis

3. Other Assets (Vehicles, Furniture & Fixture) WDV Basis

The plant being a continuous process plant, so rates of depreciation as applicable to continuous process industry have been applied.

iv) Inventories :

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of various items of inventories are computed as under:-

- In case of raw materials stores and spares at weighted average cost plus direct expenses.

- In case of work in process at raw material cost plus conversion expenses depending upon stage of completion.

- In case of finished goods at raw materials cost plus conversion cost, packing cost, excise duty and other overheads to bring the goods to present condition and location.

- Raw material and other stocks lying at port pending clearance at cost inclusive of custom duty actually paid. The custom duty payable on material lying into bond is accounted on clearance for home consumption.

v) Retirement Benefits :

Gratuity and earned leave encashment has been provided for in the books of accounts on actuarial valuation basis as at the end of the year.

vi) Interest :

Interest in respect of fixed deposits lying with banks has been accounted for on accrual basis.

vii) Cenvat & Excise Duty

Purchases, Sales and Stocks are shown net of cenvat credit available. Balance in the cenvat account is shown as current assets and excise duty expenditure is booked on gross basis. Provision made for excise duty liability on stock of finished goods lying at the year end is booked in excise duty expenditure account and liability for the same is shown as provisions under schedule of current liabilities.

viii) Recognition of Income/Expenditure :

All revenues and expenses are accounted for on accrual basis except for medical reimbursement payable, claims receivable and export incentives which are accounted for on cash basis, unless otherwise explained hereafter. All expenses are shown as net of Input Tax credit as Service Tax credit is adjustable against excise duty under cenvat credit Rules.

ix) Foreign Exchange Fluctuations :

a) Foreign currency assets / liabilities not covered by forward contracts are restated at the rates prevailing at the end of the year.

b) Any income or expense on account of exchange difference is recognised in the Profit and Loss Account as per the requirement ofAS-11 issued by ICAI, New Delhi.

 
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