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Accounting Policies of JMG Corporation Ltd. Company

Mar 31, 2014

(a) ACCOUNTING CONCEPTS

i) The accounts are prepared on historical cost convention and in accordance with applicable Accounting standards except where otherwise stated. For recognition of Income and Expenses, Mercantile System of Accounting is followed,

(b) REVENUE RECOGNITION

I. Rending of services: "Income from services is included in turnover when the contractual commitment to the customer has been fulfilled and are net of trade discounts, service tax and works contract tax".

II. Interest Income: "interest income is recognized on time proportion basis taking into account amount outstanding and the rate applicable."

III. Dividend Income: "Dividend income on investments is recognized when the right to receive payment is established

(c) FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to working condition for its intended use.

(d) DEPRECIATION

Depreciation is provided on Straight Line Method at rates specified in Schedule XIV of the Companies Act, 1956 as amended vide notification dated 16th December, 1993 issued by the Department of Company Affairs, Government of India.

(e) FOREIGN CURRENCY TRANSACTIONS

Transactions arising in foreign currency are accounted for at the rates closely approximating those ruling on the transaction date.

Amounts payable and receivable in foreign currency are translated at the exchange rate prevailing on the balance sheet date. In respect of forward contract, the forward premium or discount is recognized as income and expenses over the life of contract in the profit and loss account and exchange difference between the exchange rate prevailing at the year end and the date of the inception of the forward exchange contract is recognized as income or expenses in the Profit & Loss Account.

(f) RETIREMENT BENEFITS:

a) Contribution to defined contribution scheme such as Provident Fund is charged to the profit & loss account as incurred.

b) The provision for Gratuity and Leave with wages liability are based on actuarial valuation.

c) Company provides for privilege leaves not availed of by the employees at the end of the year.

(g) AMORTISATION OF MISCELLANEOUS EXPENDITURE

Preliminary and Share issue expenses are amortized over a period of five years.

(h) LEASES

Finance Leases, which effectively transfer to the Lessee substantially all risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease period at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term by credit to liability for an equivalent amount. Lease payments are apportioned between the Finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.

(i) Borrowing Cost :

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are recognized as expense in the statement of profit and loss in the period in which they are incurred.

(j) Provisions, Contingent Liabilities and Contingent Assets : Provision 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 out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes.

Contingent Assets are neither recognized nor disclosed in the financial statements

(k) Use of Estimates : "The preparation of financial statements requires management to make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent liabilities at the date of these financial statements and profit & loss statement for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected."

(l) Investments : Investments are classified into current and long term investments. Investments are readily realizable and are intended to be held for not more than one year from the date on which such investments are made, are classified as "current investments". All other investments are classified as "long term investment". Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

(m) Income Taxes :

I. Current Tax is the tax payable for the period determined in accordance with the provisions of the income tax act 1961. In case of matters under appeal due to disallowance or otherwise, provision is made when the said liabilities are accepted by the company.

II. In accordance with the AS 22- " Accounting for taxes on Income", the deferred tax for the timing difference between taxable income and accounting income, that originate in one period and capable of reversal in one or more subsequent periods, is accounted for using the tax laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty of realization in future. However, when there is unabsorbed depreciation or carry forward of losses under taxation laws, deferred tax assets are recognised only if there is virtual certainty realization of such assets. Such assets are reviewed at each balance sheet date for realisability.

(n) Cenvat Credit : Cenvat credit on raw materials and capital goods has been accounted for by reducing the purchase cost of raw materials and capital goods respectively.

(o) Impairment of Assets

At each Balance Sheet, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in books of accounts.


Mar 31, 2013

(a) ACCOUNTING CONCEPTS

i) The accounts are prepared on historical cost convention and in accordance with applicable Accounting standards except where otherwise stated. For recognition of Income and Expenses, Mercantile System of Accounting is followed.

(b) REVENUE RECOGNITION

Revenue from sale of goods is recognised upon passage of title to the customers, which generally coincides with their delivery.

(c) FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to working condition for its intended use.

(d) DEPRECIATION

Depreciation is provided on Straight Line Method at rates specified in Schedule XIV of the Companies Act, 1956 as amended vide notification dated 16th December, 1993 issued by the Department of Company Affairs, Government of India.

(e) FOREIGN CURRENCY TRANSACTIONS

Transactions arising in foreign currency are accounted for at the rates closely approximating those ruling on the transaction date.

Amounts payable and receivable in foreign currency are translated at the exchange rate prevailing on the balance sheet date. In respect of forward contract, the forward premium or discount is recognized as income and expenses over the life of contract in the profit and loss account and exchange difference between the exchange rate prevailing at the year end and the date of the inception of the forward exchange contract is recognized as income or expenses in the Profit & Loss Account.

(f) EXCISE DUTY

The Company accounts for excise duty on manufactured goods at the time of their clearance from the factory rather than at the point of manufacture. This has, however, no impact on the operating results of the Company.

(g) INVENTORIES

Inventories are valued as follows:

Raw Material - at lower of cost or net realizable value

Stores & Spare Parts - at lower of cost or net realizable value

Goods Under Process - at lower of cost or net realizable value

Finished Goods - at lower of cost or net realizable value

Cost is determined using FIFO Method (h) RETIREMENT BENEFITS:

a) Contribution to defined contribution scheme such as Provident Fund is charged to the profit & loss account as incurred.

b) The provision for Gratuity and Leave with wages liability are based on actuarial valuation.

c) Company provides for privilege leaves not availed of by the employees at the end of the year.

(i) AMORTISATION OF MISCELLANEOUS EXPENDITURE

Preliminary and Share issue expenses are amortised over a period of five years.

(j) Finance Leases, which effectively transfer to the Lessee substantially all risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease period at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term by credit to liability for an equivalent amount. Lease payments are apportioned between the Finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.

(k) Impairment of Assets

At each Balance Sheet an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in books of accounts.


Mar 31, 2012

(a) ACCOUNTING CONCEPTS

i) The accounts are prepared on historical cost convention and in accordance with applicable Accounting standards except where otherwise stated. For recognition of Income and Expenses, Mercantile System of Accounting is followed.

(b) REVENUE RECOGNITION

Revenue from sale of goods is recognised upon passage of title to the customers, which generally coincides with their delivery.

(c) FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to working condition for its intended use.

(d) DEPRECIATION

Depreciation is provided on Straight Line Method at rates specified in Schedule XIV of the Companies Act, 1956 as amended vide notification dated 16th December, 1993 issued by the Department of Company Affairs, Government of India.

(e) FOREIGN CURRENCY TRANSACTIONS

Transactions arising in foreign currency are accounted for at the rates closely approximating those ruling on the transaction date.

Amounts payable and receivable in foreign currency are translated at the exchange rate prevailing on the balance sheet date. In respect of forward contract, the forward premium or discount is recognized as income and expenses over the life of contract in the profit and loss account and exchange difference between the exchange rate prevailing at the year end and the date of the inception of the forward exchange contract is recognized as income or expenses in the Profit & Loss Account.

(f) EXCISE DUTY

The Company accounts for excise duty on manufactured goods at the time of their clearance from the factory rather than at the point of manufacture. This has, however, no impact on the operating results of the Company.

(g) INVENTORIES

Inventories are valued as follows:

Raw Material - at lower of cost or net realizable value

Stores & Spare Parts - at lower of cost or net realizable value

Goods Under Process - at lower of cost or net realizable value

Finished Goods - at lower of cost or net realizable value

Cost is determined using FIFO Method

(h) RETIREMENT BENEFITS:

a) Contribution to defined contribution scheme such as Provident Fund is charged to the profit & loss account as incurred.

b) The provision for Gratuity and Leave with wages liability are based on actuarial valuation.

c) Company provides for privilege leaves not availed of by the employees at the end of the year.

(i) AMORTISATION OF MISCELLANEOUS EXPENDITURE

Preliminary and Share issue expenses are amortised over a period to five years.

(j) Finance Leases, which effectively transfer to the Lessee substantially all risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease period at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term by credit to liability for an equivalent amount. Lease payments are apportioned between the Finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.

(k) Impairment of Assets

At each Balance Sheet an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in books of accounts.


Mar 31, 2010

(a) ACCOUNTING CONCEPTS

The accounts are prepared on historical cost convention and in accordance with applicable Accounting standards except where otherwise stated. For recognition of Income and Expenses, Mercantile System of Accounting is followed.

(b) REVENUE RECOGNITION

Revenue from sale of goods is recognised upon passage of title to the customers, which generally coincides with their delivery.

(c) FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to working condition for its intended use.

(d) DEPRECIATION

Depreciation is provided on Straight Line Method at rates specified in Schedule XIV of the Companies Act, 1956 as amended vide notification dated 16th December, 1993 issued by the Department of Company Affairs, Government of India.

(e) FOREIGN CURRENCY TRANSACTIONS

Transactions arising in foreign currency are accounted for at the rates closely approximating those ruling on the transaction date.

Amounts payable and receivable in foreign currency are translated at the exchange rate prevailing on the balance sheet date. In respect of forward contract, the forward premium or discount is recognized as income and expenses over the life of contract in the profit and loss account and exchange difference between the exchange rate prevailing at the year end and the date of the inception of the forward exchange contract is recognized as income or expenses in the Profit & Loss Account.

(f) EXCISE DUTY

The Company accounts for excise duty on manufactured goods at the time of their clearance from the factory rather than at the point of manufacture. This has, however, no impact on the operating results of the Company.

(g) INVENTORIES

Inventories are valued as follows:

Raw Material - at lower of cost or net realizable value

Stores & Spare Parts - at lower of cost or net realizable value

Goods Under Process - at lower of cost or net realizable value

Finished Goods - at lower of cost or net realizable value

Cost is determined using FIFO Method

(h) RETIREMENT BENEFITS:

Gratuity & Leave Encashment

The provisions in accounts of Gratuity and Leave encashment liability are based on actuarial valuation. Provident Fund Regular monthly contributions are made to Provident Funds, which are charged against revenue.

(i) AMORTISATION OF MISCELLANEOUS EXPENDITURE

Preliminary and Share issue expenses are amortised over a period to five years.

(j) Finance Leases, which effectively transfer to the Lessee substantially all risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease period at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term by credit to liability for an equivalent amount. Lease payments are apportioned between the Finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.

(j) Impairment of Assets

At each Balance Sheet an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in books of accounts.