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Accounting Policies of Indo National Ltd. Company

Mar 31, 2015

A) BASIS OF ACCOUNTING

The financial accounts are prepared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act, 201 3

b) USE OF ESTIMATES

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions that affect the reported amounts, assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year. The management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The actual results could differ from these estimates.

c) PROVISIONS AND CONTINGENCIES

Provisions : Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date and are not discounted to their present value.

Contingent Liabilities : Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

d) INVENTORIES

Raw materials including components, Finished goods, Work in process, Stock in trade (Traded Goods), materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

e) DEPRECIATION

Depreciation is charged on the fixed assets except land at the rates provided in Part "C" of Schedule II of the Companies Act, 2013 as under :

(i) under straight line method on imported Body maker and Bag openers, other projects under plant and machinery on assets relating to 3D Project (I Line), 3U Unit (New Line), Wind Mills and Solar Plant and on intangible assets.

(ii) under written down value method on all the other tangible assets, having regard to the expected useful life and residual value commencing from the date the asset is available for use.

Assets individually costing Rs.5,000/- or less is fully depreciated.

f) REVENUE RECOGNITION

(i) Sales exclude discounts,sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

g) FIXED ASSETS

Fixed assets are stated at cost less depreciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

h) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of monetary assets and liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the cost of fixed assets.

i) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans.The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. and HDFC Life. The contributions actuarially assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are credited / charged to revenue.

iii) In respect of those not covered by L.I.C. and HDFC Life schemes necessary provision has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company's policy.

3) Termination benefits : Payments made under employees 'Early Seperation Scheme' are charged to the statement of Profit and loss.

j) EARNINGS PER SHARE

The company's share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

k) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises of current tax and deferred tax. Current tax is recognised based on assessable income computed in accordance with the Income Tax Act, 1961, and at the prevailing rates. Deferred tax liability is recognized for all timing differences. The deferred tax asset on temporary difference is recognized subject to consideration of prudence.

Deferred tax asset and liabilities are measured at the tax rates that have been enacted or substantively enacted at the balance sheet date.

l) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

m) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

n) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and amortised over their useful life.

o) IMPAIRMENT OF ASSETS

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the recoverable amount is estimated. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the statement of profit and loss to the extent the carrying amount exceeds the recoverable amount.


Mar 31, 2014

A) BASIS OF ACCOUNTING

The financial accounts are prepared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act,1956.

b) USE OF ESTIMATES

The preparation of the financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year and management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The actual results could differ from these statements.

c) INVENTORIES

Raw materials including components, Finished goods, goods in process, materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

d) FIXED ASSETS AND DEPRECIATION

Depreciation has been charged:

(i) at 10% under straight line method on imported Body maker and Bag openers, other projects under plant and machinery and intangible assets having regard to the expected useful life and residual value and

(ii) at the rates and in the manner prescribed under schedule XIV of the Companies Act,1956.

(a) on assets relating to 3D Project (I line), 3U Unit (New Line) and assets related to Wind Mills and Solar Plant under the straight line method.

(b) on all the other assets under the written down value method.

e) REVENUE RECOGNITION

(i) Sales exclude discounts,sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

f) FIXED ASSETS

Fixed assets are stated at cost less depreciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

g) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the cost of fixed assets.

h) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans.The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are credited / charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provision has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company''s policy.

3) Termination benefits : Payments made under employees ''Early Seperation Scheme'' are charged to the statement of Profit and loss.

i) EARNINGS PER SHARE

The company''s share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

j) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax liability is recognised for all timing differences. The deferred tax asset on temporary difference is recognised subject to consideration of prudence.

k) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

l) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

m) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and written off over their useful life.

n) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets determined by the Company, no loss has been recognised on impairment of assets.

The Company has issued only one class of equity shares having at par value of Rs.10/- each. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the Annual General Meeting and is declared on approval.


Mar 31, 2013

A) BASIS OF ACCOUNTING

The financial accounts are prepared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act,1956.

b) USE OF ESTIMATES

The preparation of the financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year and management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The actual results could differ from these statements.

c) INVENTORIES

Raw materials including components, Finished goods, goods in process, materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

d) FIXED ASSETS AND DEPRECIATION

Depreciation has been charged:

(i) at 10% under straight line method on imported Body maker and Bag openers, other projects under plant and machinery and intangible assets having regard to the expected useful life and residual value and

(ii) at the rates and in the manner prescribed under schedule XIV of the Companies Act,1956.

(a) on assets relating to 3D Project (I line), 3U Unit (New Line) and assets related to Wind Mills under the straight line method.

(b) on all the other assets under written down value method.

e) REVENUE RECOGNITION

(i) Sales exclude discounts,sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

f) FIXED ASSETS

Fixed assets are stated at cost less depreciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

g) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the cost of fixed assets.

h) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans.The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are credited / charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provision has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company''s policy.

3) Termination benefits : Payments made under employees ‘Early Seperation Scheme'' are charged to the statement of Profit and loss.

i) EARNINGS PER SHARE

The company''s share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

j) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax liability is recognised for all timing differences. The deferred tax asset on temporary difference is recognised subject to consideration of prudence.

k) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

l) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

m) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and written off over their useful life.

n) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets determined by the Company, no loss has been recognised on impairment of assets.


Mar 31, 2012

A) BASIS OF ACCOUNTING

The financial accounts are prepared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES

The preparation of the financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year and management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The actual results may differ from these statements.

c) INVENTORIES

Finished goods, Raw materials including components, goods in process, materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

d) FIXED ASSETS AND DEPRECIATION

Depreciation has been charged:

(i) at 10% under straight line method on imported Body maker and Bag openers and other projects under plant and machinery having regard to the expected useful life and residual value and

(ii) at the rates and in the manner prescribed under schedule XIV of the Companies Act, 1956.

(a) on assets relating to 3D Project (I line) and assets related to Wind Mills under the straight line method.

(b) on all the other assets under written down value method.

e) REVENUE RECOGNITION

(i) Sales exclude discounts, sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

f) FIXED ASSETS

Fixed assets are stated at cost less depreciation /amortisation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

g) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the cost of fixed assets.

h) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss account of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss account of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans. The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provisions has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company's policy.

3) Termination benefits : Payments made under employees 'Early Seperation Scheme' are charged to the statement of Profit and loss.

i) EARNINGS PER SHARE

The company's share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

j) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax liability is recognised for all timing differences. The deferred tax asset on temporary difference is recognised subject to consideration of prudence.

k) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

l) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

m) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and written off over their useful life.

n) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets determined by the Company, no loss has been recognised on impairment of assets.


Mar 31, 2011

A) The financial accounts are prepared under the historical cost convention and accounted on accrual basis.

b) INVENTORIES

Raw materials including components, finished goods, goods in process, materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method.

c) DEPRECIATION

Depreciation has been charged :

i) at 10% under straight line method on machinery imported Body maker and Bag openers and other projects having regard to the expected useful life and residual value and

ii) at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

a) on assets relating to 3D Project (I Line) and assets related to Wind Mill under straight line method.

b) on all the other assets under written down value method.

d) REVENUE RECOGNITION

i) Sales exclude Discounts, Sales Tax recoveries and include Excise Duty.

ii) Interest is recognised on the time basis determined by the amount outstanding and the rate applicable.

e) FIXED ASSETS

Fixed Assets are stated at cost less depreciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

f) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Profit & Loss Account. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan instalments are adjusted to the value of fixed assets.

g) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the profit and loss account of the year in which the employee has rendered services:

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans. The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C and paid under the plan are charged to revenue.

b) Actuarial gains and losses are charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provisions has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per Companys Policy.

3) Termination benefits: Payments made under employees Early Separation Scheme are amortised over a period of five years from the date upto which the scheme was in operation.

h) EARNINGS PER SHARE

The Companys share capital consists only of Equity Shares. The basic earning per share is calculated and disclosed.

i) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax is recognised for all timing differences subject to consideration of prudence. Deferred tax in respect of the accumulated balance as on 31- 03-2001 has been recognised in the accounts as deferred tax, asset / liabilities with a corresponding charge of net amount to the general reserve.

j) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

k) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

l) INTANGIBLE ASSETS

There are no other intangible assets except those disclosed in the accounts separately for Cost of acquired computer software

m) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets, no loss has been recognised on impairment of assets.


Mar 31, 2010

A)The financial accounts are prepared under the historical cost convention and accounted on accrual basis.

b)INVENTORIES

Raw materials including components,finished goods,goods in process,materials in transit,packing materials and stores &spares have been valued at lower of cost and estimated net realiseable value.Cost is computed under the FIFO method.

c)DEPRECIATION

Depreciation has been charged :

i)at 10%under straight line method on machinery imported Body maker and Bag openers and other projects having regard to the expected useful life and residual value of the machinery and

ii)at the rates and in the manner prescribed under Schedule XIV of the Companies Act,1956.

a)on assets relating to 3D Project (I Line)and assets related to Wind Mill under straight line method.

b)on all the other assets under written down value method.

d)REVENUE RECOGNITION

i)Sales exclude Discounts,Sales Tax recoveries and include Excise Duty.

ii)Interest is recognised on the time basis determined by the amount outstanding and the rate applicable.

e)FIXED ASSETS

Fixed Assets are stated at cost less depreciation except land which is stated at cost.Cost comprises purchase price and attributable costs (including financing costs).

f)FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of current assets and current liabilities other than transactions relating to fixed assets is recognised in the Profit &Loss Account.In respect of liabilities incurred in foreign currencies for acquisition of fixed assets,variations in exchange rates at thetime of repayment of loan instalments are adjusted to the value of fixed assets.

g) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

2) Post employment and other long term employee benefits recognised as expense in the profit and loss account of the year in which the employee has rendered services:

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans. The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The contributions actuarially assessed by the L.I.C and paid under the plan are charged to revenue.

b) Actuarial gains and losses are charged to revenue.

iii) In respect of those not covered by L.I.C., schemes necessary provisions has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per Company’s Policy.

1) Termination benefits: Payments made under employees ’ Early Separation Scheme’ are amortised over a period of five years from the date upto which the scheme was in operation.

h) EARNINGS PER SHARE

The Company’s share capital consists only of Equity Shares. The basic earning per share is calculated and disclosed.

i) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises current tax and deferred tax. Deferred tax is recognised for all timing differences subject to consideration of prudence. Deferred tax in respect of the accumulated balance as on 31- 03-2001 has been recognised in the accounts as deferred tax, asset / liabilities with a corresponding charge of net amount to the general reserve.

j) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

k) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

l) INTANGIBLE ASSETS

There are no other intangible assets except those disclosed in the accounts separately for Cost of acquired computer software

m) IMPAIRMENT OF ASSETS

There being no indication of impairment of assets, no loss has been recognised on impairment of assets.

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