Home  »  Company  »  Jolly Plastics  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Jolly Plastics Industries Ltd. Company

Mar 31, 2015

I) Basis of Accounting:

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956 and wherever applicable as per the provisions of the Companies Act, 2013.

ii) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made based on the current working that affect the reported amount of assets and liabilities (including contingent liabilities) on the date of financial statements and the reported amount of revenues and expenses for the reporting period. Difference between the actual and the estimates, if any, are accounted for in the period in which such differences are known/materialized.

iii) Fixed Assets:

Fixed assets are stated at its purchase price including direct expenses, finance cost till it is put to use net of recoverable taxes. If the fixed assets are revalued then they are stated at revalued amount. Accumulated depreciation, impairment loss, if any, is reduced from the fixed assets and shown under the net asset value on the reporting date. The cost including additions, improvements, renewals, revalued amount and accumulated depreciation of assets which are sold and/or discarded and/or impaired, are removed from the fixed assets and any profit or loss resulting there from is included in the Statement of Profit & Loss and the residual value of the revalued amount is withdrawn from such reserves created for the purpose.

iv) Depreciation and Amortization:

Depreciation is provided on fixed assets according to Written down Value method at the rates prescribed in the Companies Act, 1956. Depreciation of the assets added / disposed off / impaired during the year is provided on pro-rata basis.

v) Impairment of Assets:

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as an expense in the Statement of Profit & Loss in the year in which an asset is identified as impaired. In case of impaired revalued assets, the impaired loss on the residual value is withdrawn from such reserves created for the purpose. The impairment loss recognized in earlier accounting period is reversed if there has been an improvement in recoverable amount.

vi) Investments:

Investments wherever readily realizable and intended to be held not more than one year from the date of such investments are made, are qualified as current investments. Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

vii) Inventories:

Items of inventories are measured at lower of cost or net realizable value after providing for obsolescence if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them in their present condition.

viii) Revenue Recognition:

Revenue is recognized only when it can be definitely measured and it is reasonable to expect final collection. Revenue from operations includes sale of goods after adjustment of discounts (net) and return of goods. Dividend income is recognized on actual receipt basis. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

ix) Employee Benefits:

Short-term Employee Benefits (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

x) Deferred Taxation:

Deferred Taxation is provided using the liability method in respect of taxation effect arising from material timing difference between the accounting and tax treatment of Income & Expenditure based on tax rates prevailing at the time of Balance Sheet date. Deferred Taxation so provided is reviewed at each Balance Sheet date for necessary adjustments.

xi) Earnings per Share:

Basic earnings per share is calculated by dividing the net Profit for the year attributable to equity shareholders (after deducting the dividend on redeemable preference share) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is calculated by dividing the net profit attributable to equity shareholders (after deducting the dividend on redeemable preference share) by weighted average number of equity shares outstanding during the year after adjusting for the effects of dilutive options.

xii) Events occurring after Balance Sheet Date:

Events occurring after the balance sheet date have been considered in the preparation of financial statements.

xiii) Contingent Liabilities:

Unprovoked liabilities of contingent nature are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.

xiv) Cash Flow Statement:

The Company adopts the Indirect Method in preparation of Cash Flow Statement. For the purpose of Cash Flow Statement Cash & Cash equivalents consists of Cash on Hand, Cash at Bank.

xv) Segment Reporting

Based on guiding principles given in Accounting Standard -17 'Segment Reporting', issued by the Institute of Chartered Accountants of India, the Company's primary business segment is manufacturing and trading of consumable products. These activities mainly have similar risks and returns. As company's business activities fall within a single primary business segment the disclosure requirements of AS-17 in this regard are not applicable.


Mar 31, 2014

I) Basis of Accounting:

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956 and wherever applicable as per the provisions of the Companies Act, 2013.

ii) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made based on the current working that affect the reported amount of assets and liabilities (including contingent liabilities) on the date of financial statements and the reported amount of revenues and expenses for the reporting period. Difference between the actual and the estimates, if any, are accounted for in the period in which such differences are known/materialized.

iii) Fixed Assets:

Fixed assets are stated at its purchase price including direct expenses, finance cost till it is put to use net of recoverable taxes. If the fixed assets are revalued then they are stated at revalued amount. Accumulated depreciation, impairment loss, if any, is reduced from the fixed assets and shown under the net asset value on the reporting date. The cost including additions, improvements, renewals, revalued amount and accumulated depreciation of assets which are sold and/or discarded and/or impaired, are removed from the fixed assets and any profit or loss resulting there from is included in the Statement of Profit & Loss and the residual value of the revalued amount is withdrawn from such reserves created for the purpose.

iv) Depreciation and Amortization:

Depreciation is provided on fixed assets according to Written down Value method at the rates prescribed in the Companies Act, 1956. Depreciation of the assets added / disposed off / impaired during the year is provided on pro-rata basis.

v) Impairment of Assets:

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as an expense in the Statement of Profit & Loss in the year in which an asset is identified as impaired. In case of impaired revalued assets, the impaired loss on the residual value is withdrawn from such reserves created for the purpose. The impairment loss recognized in earlier accounting period is reversed if there has been an improvement in recoverable amount.

vi) Investments:

Investments wherever readily realizable and intended to be held not more than one year from the date of such investments are made, are qualified as current investments. Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

vii) Inventories:

Items of inventories are measured at lower of cost or net realizable value after providing for obsolescence if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them in their present condition.

viii) Revenue Recognition:

Revenue is recognized only when it can be definitely measured and it is reasonable to expect final collection. Revenue from operations includes sale of goods after adjustment of discounts (net) and return of goods. Dividend income is recognized on actual receipt basis. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

ix) Employee Benefits:

Short-term Employee Benefits (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

x) Deferred Taxation:

Deferred Taxation is provided using the liability method in respect of taxation effect arising from material timing difference between the accounting and tax treatment of Income & Expenditure based on tax rates prevailing at the time of Balance Sheet date. Deferred Taxation so provided is reviewed at each Balance Sheet date for necessary adjustments.

xi) Earning per Share:

Basic earning per share is calculated by dividing the net Profit for the year attributable to equity shareholders (after deducting the dividend on redeemable preference share) by the weighted average number of equity shares outstanding during the year.

Diluted earning per share is calculated by dividing the net profit attributable to equity shareholders (after deducting the dividend on redeemable preference share) by weighted average number of equity shares outstanding during the year after adjusting for the effects of dilutive options.

xii) Events occurring after Balance Sheet Date:

Events occurring after the balance sheet date have been considered in the preparation of financial statements.

xiii) Contingent Liabilities:

Unprovided liabilities of contingent nature are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.

xiv) Cash Flow Statement:

The Company adopts the Indirect Method in preparation of Cash Flow Statement. For the purpose of Cash Flow Statement Cash & Cash equivalents consists of Cash on Hand, Cash at Bank.

xv) Segment Reporting

Based on guiding principles given in Accounting Standard-17 ''Segment Reporting'', issued by the Institute of Chartered Accountants of India, the Company''s primary business segment is manufacturing and trading of consumable products. These activities mainly have similar risks and returns. As company''s business activities fall within a single primary business segment the disclosure requirements of AS-17 in this regard are not applicable.


Mar 31, 2013

These financial statements are prepared on accrual basis and under historical cost convention and in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India. The significant accounting policies adopted by the company are detailed below:

i) Revenue Recognition

The Company recognizes revenue on accrual basis.

ii) Provisions and Contingencies

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

iii) All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of business operations, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

iv) Retirement Benefits

There is no amount of gratuity liability or leave encashment or any other retirement benefits for which the company may be made liable to pay. Hence no provision for the same has been made as on the date of Balance sheet.


Mar 31, 2012

These financial statements are prepared on accrual basis and under historical cost convention and in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India. The significant accounting policies adopted by the company are detailed below:

i) Revenue Recognition

The Company recognizes revenue on accrual basis.

ii) Provisions and Contingencies

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

iii) All the assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of business operations, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

iv) Retirement Benefits

There is no amount of gratuity liability or leave encashment or any other retirement benefits for which the company may be made liable to pay. Hence no provision for the same has been made as on the date of Balance sheet.


Mar 31, 2011

1. Statement on Significant Accounting Policies:

These financial statements are prepared on accrual basis and under historical cost convention and in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India. The significant accounting policies adopted by the company are detailed below:

i) Revenue Recognition

The Company recognizes revenue on an accrual basis.

ii) Provisions and Contingencies

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation can not be made.

iii) Retirement Benefits

There is no amount of gratuity liability or leave encashment or any other retirement benefits for which the company may be made liable to pay. Hence no provision for the same has been made as on the date of Balance sheet.


Mar 31, 2009

(i) Accounting Convention

The financial statements are prepared on accrual basis accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company .

The company generally follows mercantile system of accounting and recognises significant items of Income and Expenditure Account on accrual basis.

(ii) Revenue Recognition

The revenue has been recognised on accrual basis

(iii) Fixed Assets

Fixed Assets are stated at their original cost (including additions during the year less accumulated depreciation).

(iv) Depreciation

Depreciation on all assets has been provided on written down value method at the revised rates and in the matter specified in schedule XIV to the Companies Act/1956. Depreciation on additions during the year has been provided on Pro-rata basis considering the period from the date of addition. However no depreciation has been provided in current year as there are no business activities

(v) Investments

Investments are stated at cost.

(vi) Inventories

Properties in hand are valued at actual cost

(vii) Foreign Currency Transactions.

The Company has no foreign currency transactions during the year

(viii) Related Party Transactions(AS-18)

As per provision of Accounting Standard 18 issued by the Chartered Accountants of India, the details of related party transactions are not applicable

(ix) Retirement Benefits

No provisions have been made in the accounts for PPF,EPF,Gratutity and retirement benefits for the employees. Management inform that this provision is not applicable to the company hence no such provision mede during the year.

(x) Borrowing Cost

Borrowing cost are recognised as expenses in the year in which they are incurred.


Mar 31, 2008

(i) Accounting Convention

The financial statements are prepared on accrual basis,in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company .

The company generally follows mercantile system of accounting and recognises significant items of Income and Expenditure Account on accrual basis.

(ii) Revenue Recognition

The revenue has been recognised on accrual basis

(iii) Fixed Assets

Fixed Assets are stated at their original cost (including additions during the year less accumulated depreciation).

(iv) Depreciation

Depreciation on all assets has been provided on written down value method at the revised rates and in the matter specified in schedule XIV to the Companies Act,1956. Depreciation on additions during the year has been provided on Pro-rata basis considering the period from the date of addition. However no depreciation has been provided in current year as there are no business activities

(v) Investments

Investments are stated at cost.

(vi) Inventories

Properties in hand are valued at actual cost

(vii) Foreign Currency Transactions.

The Company has no foreign currency transactions during the year

(viii) Related Party Transactions(AS-18)

As per provision of Accounting Standard 18 issued by the Chartered Accountants of india, the details of related party transactions are not applicable

(ix) Retirement Benefits

No provisions have been made in the accounts for PPF/EPF/Gratuity and retirement benefits for the employees. Management inform that this provision is not applicable to the company hence no such provision made during the year.

(x) Borrowing Cost

Borrowing cost are recognised as expenses in the year in which they are incurred.


Mar 31, 2007

(i) Accounting Convention

The financial statements are prepared on accrual basis, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company .

The company generally follows mercantile system of accounting and recognises significant items of Income and Expenditure Account on accrual basis.

(ii) Revenue Recognition

The revenue has been recognised on accrual basis

(iii) Fixed Assets

Fixed Assets are stated at their original cost (including additions during the year less accumulated depreciation).

(iv) Depreciation

Depreciation on all assets has been provided on written down value method at the revised rates and in the matter specified in schedule XIV to the Companies Act,T956. Depreciation on additions during the year has been provided on Pro-rata basis considering the period from the date of addition. However no depreciation has been provided in current year as there are no business activities

(v) Investments

Investments are stated at cost.

(vi) Inventories

Properties in hand are valued at actual cost

(viii) Related Party Transactions(AS-18)

As per provision of Accounting Standard 18 issued by the Chartered Accountants of India, the details of related party transactions are not applicable

(ix) Retirement Benefits

No provisions have been made in the accounts for PPF,EPF,Gratutity and retirement benefits for the employees. Management inform that this provision is not applicable to the company hence no such provision mede during the year.

(x) Borrowing Cost

Borrowing cost are recognised as expenses in the year in which they are incurred.


Mar 31, 2006

(i) Accounting Convention

The financial statements are prepared on accrual basis, in accordance with the generally , accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company .

The company generally follows mercantile system of accounting and recognises significant items of Income and Expenditure Account on accrual basis.

(ii) Revenue Recognition

The revenue has been recognised on accrual basis

(iii) Fixed Assets

Fixed Assets are stated at their original cost (including additions during the year less accumulated depreciation).

(iv) Depreciation

Depreciation on all assets has been provided on written down value method at the revised rates and in the matter specified in schedule XIV to the Companies Act,1956. Depreciation on additions during the year has been provided on Pro-rata basis considering the period from the date of addition. However no depreciation has been provided in current year as there are no business activities

(v) Investments

Investments are stated at cost.

(vi) Inventories

Properties in hand are valued at actual cost

(vii) Foreign Currency Transactions.

The Company has no foreign currency transactions during the year

(viii) Related Party Transactions(AS-18)

As per provision of Accounting Standard 18 issued by the Chartered Accountants of India, the details of related party transactions are not applicable

(ix) Retirement Benefits

No provisions have been made in the accounts for PPF,EPF, Gratutity and retirement benefits for the employees. Management inform mat this provision is not applicable to the company hence no such provision made during the year.

(x) Borrowing Cost

Borrowing cost are recognised as expenses in the year in which they are incurred.


Mar 31, 2003

1. FIXED ASSETS

Valued at cost.

2. DEPRECIATION

Depreciation on Fixed Assets (except on Land) has not been provided.

3. INVENTORIES

a) Basis of Valuation

Raw-Materials : At cost.

Finished Goods : At cost or net realisable value whichever is lower.

Trade Goods : At cost or net realisable value whichever is lower.

Waste Stock : At estimated realisable value.

Stores & Spare- Parts : At cost.

4. CONTINGENT LIABILITY

Contingent Liabilities are generally not provided for in the Accounts and are shown separately in Notes on Accounts.

5. INSURANCE CLAIMS

Insurance Claims are Accounted on the basis of receipts of claim money of Intimation of acceptance, if received earlier.

6. GRATUITY

Provision for Gratuity Liability is made on the basis estimated liability calculated by the company.

 
Subscribe now to get personal finance updates in your inbox!