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Accounting Policies of Indra Industries Ltd. Company

Mar 31, 2015

1. Accounting Standard 1: Disclosure of Significant Accounting Policies

The financial statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.


Mar 31, 2014

The financial statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Accounting Standard 2 - Valuation of Inventory Raw Material - At cost Work in Process - At prime cost Finished Goods - At lower of cost of production or net realizable Value Scrap - At realizable value Stores, spares, tools, jigs & packing material - At cost

3. Accounting Standard 4 - Contingencies and Events occurring after Balance Sheet date No such events have occurred.

4. Accounting Standard 5 - Net Profit or Loss for the period, prior period items and changes in accounting policies: Such items have been earmarked separately.

5. Accounting Standard 6 - Depreciation

Fixed Assets are depreciated on Straight line Value Method. Depreciation is provided for at the rates specified in Schedule - XIV to the Companies Act, 1956.

Depreciation is provided on pro - rata basis from the date of addition.

6. Accounting Standard 7 - Accounting for Construction Contracts The company has not entered into any construction contracts.

7. Accounting Standard 9 - Revenue Recognition:

Sale of goods is recognized on dispatch to customers and it is net of discount.

Dividend income is accounted for on receipt.

Interest income is recognized on a time proportion basis.

8. Accounting Standard 10 - Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition, less accumulated depreciation. Cost includes all expenses related to acquisition and installation of the concerned assets.

9. Accounting Standard 11 - Accounting for effects of change in Foreign Exchange Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction. Assets and Liabilities related to foreign currency transactions, remaining unsettled at the year end, are stated at the contracted rates, when covered under forward exchange contracts and at year end rates in other cases. The premium payable on forward foreign exchange contracts is amortized over the period of contract. Exchange gains /losses are recognized in the profit and loss account except for exchange differences relating to fixed assets, which are adjusted in the cost of assets.

10. Accounting Standard 12 - Accounting for Government Grants

The company has received Government grants during the year. Capital subsidy is forming part of reserve & surplus while interest subsidy has been net off from interest paid.

11. Accounting Standard 13 - Accounting for Investments

Investments are classified into current and long-term investments. Long-term investments are carried at cost. Current investments are stated at lower of cost and net realizable value.

12.Accounting Standard 14- Accounting for Amalgamations The company has not undergone any amalgamation.

13. Accounting Standard 15 - Accounting for Retirement Benefits

As per the Company''s policy, provision for gratuity payable on retirement is done at the end of year and the payment is made accordingly.

14. Accounting Standard 16 - Borrowing Cost

Borrowing cost incurred during pre-operation period is capitalized and those incurred in the post operation period is recognized as an expense.

15. Accounting Standard 22 - Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. The deferred tax for timing difference between the book and tax profit for the year is accounted using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date. Deferred Tax assets arising from the timing difference are recognized to the extent that there is reasonable certainty that sufficient future taxable income will be available.

16.Accounting Standard 26 - Intangible Assets The company does not have any intangible assets

17. Accounting Standard 29 - Provisions, Contingent Liabilities & Contingent Assets

(Rs. in lacs)

Contingent Liabilities 2014 2013

Bank guarantee 26.82 42.56

Cases in appeal 14.03 20.71

Letter of Credit 19.75 51.21

Cess on royalty - 6.00

Contingent liabilities are generally not provided for in the books of account and Contingent assets are not recognised.

18. Notes to Quantitative Details

* Sale is inclusive of shortage if any

19. In the opinion of the Board current assets, loans & advances have value of realization in the ordinary course of business at least equal to the amount of which they are stated and that provision for known liabilities is adequate and not in excess of the amount reasonably necessary.

20. The HDPE division of the company is exempted from entry tax vide letter no. 1049 dated 19/03/2012 for the period 24/02/2011 to 23/02/2016. Accordingly entry tax has not been levied/ provided for.

21. Name of Small Scale Industrial undertakings to whom the company owes any sum together with interest outstanding for more than 30 days

* Distinct Polymers

* Varsha Printing Inks Mfg. Co.

* Asiatic Marketing Company

* Ganesh Polygraph

* Lohia Corp Limited

* Gandhar Oil Refinary India Ltd

22. Previous year figures have been regrouped and rearranged wherever considered necessary.


Mar 31, 2013

1 Accounting Standard 1: Disclosure of Significant Accounting Policies

The financial statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Accounting Standard 2 - Valuation of Inventory Raw Material - At cost Work in Process - At prime cost Finished Goods - At lower of cost of production or net realizable Value Scrap - At realizable value

Stores, spares, tools, jigs & packing material - At cost

3. Accounting Standard 4 - Contingencies and Events occurring after Balance Sheet date No such events have occurred.

4. Accounting Standard 5 - Net Profit or Loss for the period, prior period items and changes in accounting policies : Such items have been earmarked separately.

5. Accounting Standard 6 - Depreciation

Fixed Assets are depreciated on Straight line Value Method. Depreciation is provided for at the rates specified in Schedule - XIV to the Companies Act, 1956.

Depreciation is provided on pro-rata basis from the date of addition.

6. Accounting Standard 7 - Accounting for Construction Contracts The company has not entered into any construction contracts.

7. Accounting Standard 9 - Revenue Recognition:

Sale of goods is recognized on dispatch to customers and it is net of discount.

Dividend income is accounted for on receipt.

Interest income is recognized on a time proportion basis.

8. Accounting Standard 10 - Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition, less accumulated depreciation. Cost includes all expenses related to acquisition and installation of the concerned assets.

9. Accounting Standard 11 - Accounting for effects of change in Foreign Exchange

Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction. Assets and Liabilities related to foreign currency transactions, remaining unsettled at the year end, are stated at the contracted rates, when covered under forward exchange contracts and at year end rates in other cases. The premium payable on forward foreign exchange contracts is amortized over the period of contract. Exchange gains /losses are recognized in the profit and loss account except for exchange differences relating to fixed assets, which are adjusted in the cost of assets.

2013 2012

Earning in foreign currency NIL NIL

Expenditure in foreign currency NIL NIL

10 Accounting Standard 12 - Accounting for Government Grants

The company has received Government grants during the year. Capital subsidy is forming part of reserve & surplus while interest subsidy has been net off from interest paid.

II Accounting Standard 13 - Accounting for Investments

Investments are classified into current and long-term investments. Long-term investments are carried at cost. Current investments are stated at lower of cost and net realizable value.

12 Accounting Standard 14- Accounting for Amalgamations The company has not undergone any amalgamation.

13 Accounting Standard 15 - Accounting for Retirement Benefits

As per the Company''s policy, provision for gratuity payable on retirement is done at the end of year and the payment is made accordingly.

14 Accounting Standard 16 - Borrowing Cost


Mar 31, 2012

1.. Accounting Standard 1: Disclosure of Significant Accounting Policies

The financial statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956

2. Accounting Standard 2 - Valuation of Inventory Raw Material - At cost Work in Process - At prime cost Finished Goods - At lower of cost of production or net realizable Value Scrap - At realizable value

Stores, spares, tools, jigs & packing material - At cost.

3. Accounting Standard 4 - Contingencies and Events occurring after Balance Sheet date No such events have occurred.

4. Accounting Standard 5 - Net Profit or Loss for the period, prior period items and changes in accounting policies: Earlier year tax of Rs. 1,11,878 has been debited to Profit and loss account.

5. Accounting Standard 6 - Depreciation

Fixed Assets are depreciated on Straight line Value Method. Depreciation is provided for at the rates specified in Schedule - XIV to the Companies Act, 1956.

Depreciation is provided on pro-rata basis from the date of addition.

6. Accounting Standard 7 - Accounting for Construction Contracts

The company has not entered into any construction contracts.

7. Accounting Standard 9 - Revenue Recognition:

Sale of goods is recognized on dispatch to customers and it is net of discount.

Dividend income is accounted for on receipt.

Interest income is recognized on a time proportion basis.

8. Accounting Standard 10 - Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition, less accumulated depreciation. Cost includes all expenses related to acquisition and installation of the concerned assets.

9. Accounting Standard 11 - Accounting for effects of

change in Foreign Exchange

Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction. Assets and Liabilities related to foreign currency transactions, remaining unsettled at the year end, are stated at the contracted rates, when covered under forward exchange contracts and at year end rates in other cases. The premium payable on forward foreign exchange contracts is amortized over the period of contract. Exchange gains /losses are recognized in the profit and loss account except for exchange differences relating to fixed assets, which are adjusted in the cost of assets.

2012 2011

Earning in foreign currency NIL NIL

Expenditure in foreign currency NIL NIL

10. Accounting Standard 12 - Accounting for Government Grants No government grant has been received during the year.

11. Accounting Standard 13 - Accounting for Investments

Investments are classified into current and long-term investments. Long-term investments are carried at cost. Current investments are stated at lower of cost and net realizable value.

12. Accounting Standard 14- Accounting for Amalgamations The company has not undergone any amalgamation.

13. Accounting Standard 15 - Accounting for Retirement Benefits

As per the Company''s policy, provision for gratuity payable on retirement is done at the end of year and the payment is made accordingly.

14. Accounting Standard 16 - Borrowing Cost

Borrowing cost incurred during pre-operation period is capitalized and those incurred in the post operation period is recognized as an expense.

 
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