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Accounting Policies of JSL Industries Ltd. Company

Mar 31, 2015

(a) Income:

(i) Sales are accounted for on dispatch of goods. Net sales exclude amounts recovered towards sales tax, freight and are net of discounts.

(ii) Service Income is recognised as revenue after the service is rendered.

(b) Accounting of Claims:

(i) Claims receivable are accounted at the time of lodgement, depending on the certainty of receipt. Claims payable are accounted for at the time of acceptance.

(ii) Claims raised by Government Authorities regarding taxes and duties which are disputed by the Company are accounted based on the legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(c) Retirement Benefits: Retirement benefits to employees are provided as follows:

(i) Gratuity : Gratuity payable to employees is provided for by payment to Gratuity Trust Funds on the basis of amounts determined by Life Insurance Corporation of India under Group Gratuity Scheme.

(ii) Superannuation : Superannuation payable to certain Employees is provided by payments to Superannuation Trust Fund as per Superannuation Scheme.

(iii) Company's Contributions Paid / Payable to Provident Fund is charged to Profit & Loss Account.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. However it does not have any defined Retirement Benefit Scheme in this behalf. Though encashment is at the discretion of the management for the leave accumulated while in services, as well as on retirement, it is provided for during the year.

(d) Fixed Assets, Depreciation & Impairment Loss :

(i) Fixed Assets (includes assets purchased on Hire Purchase basis) are stated at cost of acquisition (net of cenvat wherever applicable) except Land, Buildings & Machineries which were revalued at market value and are stated at revalued cost. (In the year 2006 in case of JSL industries Ltd., Land & building & Machineries acquired on account of Amalgamation with JEM Industries Ltd. & Jyoti Pumps and Electricals Ltd. are stated at market values which were revalued in the year 2004.)

(ii) Depreciation on fixed assets is calculated on a straight-line basis as per Schedule II of Companies Act, 2013 on remaining useful life of particular assets after deducting its residual value. Had it been charged as for old act, depreciation of Rs. 35,55,994/- would have been lower and profit to that extent would be higher.

(iii) An amount representing difference between depreciation on Revalued Assets and original cost of Assets is transferred from Revaluation Reserve to Profit & Loss Account.

(iv) In case, the recoverable amount of the fixed assets is lower than carrying amount, a provision is made for the impairment loss.

(v) Leasehold land is amortised on a straight line basis over the period of lease.

(vi) During the year Land (6497.5101 Sq. meters) and Building attached to National Highway No-8 was compulsory acquired by National Highways Authority of India. Aggregate compensation of Rs. 71,47,261/ - and Rs. 32,16,176/- were received in that order. Cost of Land and Building amounting to Rs. 21,57,274/- and Rs. 18,40,547/- respectively were deducted from respective block of assets and capital profit earned is of Rs. 63,65,616/- is shown as capital gain.

(e) Payments for acquisition of technical know-how is capitalized to the relevant assets account and depreciation is provided as and when it is put to use.

(f) Investments: Investments are stated at cost and income thereon is accounted on receipt basis.

Share Application Money with Jyoti Limited amounting to Rs. 5,50,00,000/ - is pending for allotment.

(g) Research & Development : R&D expenditure of revenue nature is charged to Profit & Loss Account. Capital expenditure is capitalized in the year in which it is incurred and depreciation is provided on such assets as applicable.

(h) Inventories : Cost of raw materials, components and stores and spares is determined on a weighted average basis. However, materials and other items held for use in the production of finished products are not valued at written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Raw materials, components, stores and spares are valued at lower of cost or net realizable value.

Work-in-progress is valued at cost and finished goods are valued at lower of cost or net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis.

(i) Foreign Currency Transactions

Transactions in Foreign exchange are accounted for at the exchange rate prevailing on the date of receipt. Gain/ Loss arising out of fluctuation in the exchange rate are accounted for on realisation.

(j) Deferred Tax

Deferred Tax Assets and Liabilities are recognised in accordance with Accounting Standard (AS) 22 on Accounting for Taxes on Income, Issued by The Institute of Chartered Accountants of India.

(k) Provisions, Contingent Liabilities and Contingent Assets

a) A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

b) Contingent Liabilities are disclosed after careful evaluation by the management of facts and legal aspects of the obligation.

c) Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2014

(a) Income:

(i) Sales are accounted for on dispatch of goods. Net sales exclude amounts recovered towards sales tax, freight and are net of discounts.

(ii) Service Income is recognised as revenue after the service is rendered.

(iii) Dividend Received on Investment are accounted on receipt basis.

(b) Accounting of Claims:

(i) Claims receivable are accounted at the time of lodgement, depending on the certainty of receipt. Claims payable are accounted for at the time of acceptance.

(ii) Claims raised by Government Authorities regarding taxes and duties which are disputed by the Company are accounted based on the legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(c) Retirement Benefits: Retirement benefits to employees are provided as follows:

(i) Gratuity : Gratuity payable to employees is provided for by payment to Gratuity Trust Funds on the basis of amounts determined by Life Insurance Corporation of India under Group Gratuity Scheme.

(ii) Superannuation Superannuation payable to certain Employees is provided by payments to Superannuation Trust Fund as per Superannuation Scheme.

(iii) Company''s Contributions Paid / Payable to Provident Fund is charged to Profit & Loss Account.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. However it does not have any defined Retirement Benefit Scheme in this behalf. Though encashment is at the discretion of the management for the leave accumulated while in services, as well as on retirement, it is provided for during the year.

(d) Fixed Assets, Depreciation & Impairment Loss :

(i) Fixed Assets (includes assets purchased on Hire Purchase basis) are stated at cost of acquisition (net of cenvat wherever applicable) except Land, Buildings & Machineries which were revalued at market value and are stated at revalued cost. (In the year 2006 in case of JSL industries Ltd., Land & building & Machineries acquired on account of Amalgamation with JEM Industries Ltd. & Jyoti Pumps and Electricals Ltd. are stated at market values which were revalued in the year 2004.)

(ii) Depreciation on fixed assets is calculated on a straight-line basis using the rates prescribed under the Schedule XIV to the Companies Act, 1956

(iii) An amount representing difference between depreciation on Revalued Assets and original cost of Assets is transferred from Revaluation Reserve to Profit & Loss Account.

(iv) In case, the recoverable amount of the fixed assets is lower than carrying amount, a provision is made for the impairment loss.

(v) Leasehold land is amortised on a straight line basis over the period of lease.

(e) Payments for acquisition of technical know-how is capiatlised to the relevant assets account and depreciation is provided as and when it is put to use.

(f) Investments:

Investments are stated at cost and income thereon is accounted on receipt basis.

(g) Research & Development:

R&D expenditure of revenue nature is charged to Profit & Loss Account. Capital expenditure is capiatlised in the year in which it is incurred and depreciation is provided on such assets as applicable.

(h) Inventories:

Cost of raw materials, components and stores and spares is determined on a weighted average basis. However, materials and other items held for use in the production of finished products are not valued at written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Raw materials, components, stores and spares are valued at lower of cost or net realizable value.

Work-in-progress are valued at cost and finished goods are valued at lower of cost or net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis.

(i) Foreign Currency Transactions

Transactions in Foreign exchange are accounted for at the exchange rate prevailing on the date of receipt. Gain/ Loss arising out of fluctuation in the exchange rate is accounted for on realisation.

(j) Deferred Tax

Deferred Tax Assets and Liabilities are recognised in accordance with Accounting Standard (AS) 22 on Accounting for Taxes on Income, Issued by The Institute of Chartered Accountants of India.

(k) Provisions, Contingent Liabilities and Contingent Assets

a) A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

b) Contingent Liabilities are disclosed after careful evaluation by the management of facts and legal aspects of the obligation.

c) Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

(a) Income:

(i) Sales are accounted for on dispatch of goods. Net sales exclude amounts recovered towards sales tax, freight and are net of discounts.

(ii) Service Income is recognised as revenue afterthe service is rendered.

(iii) Dividend Received on Investment are accounted on receipt basis.

(b) Accounting of Claims:

(i) Claims receivable are accounted at the time of lodgement, depending on the certainty of receipt. Claims payable are accounted for at the time of acceptance.

(ii) Claims raised by Government Authorities regarding taxes and duties which are disputed by the Company are accounted based on the legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(c) Retirement Benefits: Retirement benefits to employees are provided as follows:

(i) Gratuity :Gratuity payable to employees is provided for by payment to Gratuity Trust Funds on the basis of amounts determined by Life Insurance Corporation of India under Group Gratuity Scheme.

(ii) Superannuation : Superannuation payable to certain Employees is provided by payments to Superannuation Trust Fund as per Superannuation Scheme.

(iii) Company''s Contributions Paid / Payable to Provident Fund is charged to Profit & '' Loss Account.

(iv)The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. However it does not have any defined Retirement Benefit Scheme in this behalf. Though encashment is at the discretion of the management for the leave accumulated while in services, as well as on retirement, it is provided for during the year.

(d) Fixed Assets, Depreciation & Impairment Loss:

(i) Fixed Assets (includes assets purchased on Hire Purchase basis) are stated at cost of acquisition (net of cenvat wherever applicable) except Land, Buildings & Machineries which were revalued at market value and are stated at revalued cost. (In the year 2006 in case of JSL industries Ltd., Land & building & Machineries acquired on account of Amalgamation with JEM Industries Ltd. & Jyoti Pumps and Electricals Ltd. are stated at market values which were revalued in the year 2004.)

(ii) Depreciation on fixed assets is calculated on a straight-line basis using the rates prescribed under the Schedule XIV to the Companies Act, 1956

(iii) An amount representing difference between depreciation on Revalued Assets and original cost of Assets is transferred from Revaluation Reserve to Profit & Loss Account.

(iv) In case, the recoverable amount of the fixed assets is lower than carrying amount, a provision is made for the impairment loss.

(v) Leasehold land is amortised on a straight line basis over the period of lease.

(e) Payments for acquisition of technical know-how is capiatlised to the relevant assets account and depreciation is provided as and when it is put to use.

(f) Investments:

Investments are stated at cost and income thereon is accounted on receipt basis.

(g) Research & Development:

R&D expenditure of revenue nature is charged to Profit & Loss Account. Capital expenditure is capiatlised in the year in which it is incurred and depreciation is provided on such assets as applicable.

(h) Inventories:

Cost of raw materials, components and stores and spares is determined on a weighted average basis. However, materials and other items held for use in the production of finished products are not valued at written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Raw materials, components, stores and spares are valued at lower of cost or net realizable value.

Work-in-progress are valued at cost and finished goods are valued at lower of cost or net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis.

(i) Foreign Currency Transactions

''Transactions in Foreign exchange are accounted for at the exchange rate prevailing on the date of receipt. Gain/ Loss arising out of fluctuation in the exchange rate is accounted for on realisation.

(j) Deferred Tax

Deferred Tax Assets and Liabilities are recognised in accordance with Accounting Standard (AS) 22 on Accounting for Taxes on Income, Issued by The Institute of Chartered Accountants of India.

(k) Provisions, Contingent Liabilities and Contingent Assets

a) A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

b) Contingent Liabilities are disclosed after careful evaluation by the management of facts and legal aspects of the obligation.

c) Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

(a) Income:

(i) Sales are accounted for on dispatch of goods. Net sales exclude amounts recovered towards sales tax, freight and are net of discounts.

(ii) Service Income is recognized as revenue after the service is rendered.

(iii) Dividend Received on Investment are accounted on receipt basis.

(b) Accounting of Claims:

(i) Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt. Claims payable are accounted for at the time of acceptance.

(ii) Claims raised by Government Authorities regarding taxes and duties which are disputed by the Company are accounted based on the legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(c) Retirement Benefits: Retirement benefits to employees are provided as follows:

(i) Gratuity : Gratuity payable to employees is provided for by payment to Gratuity Trust Funds on the basis of amounts determined by Life Insurance Corporation of India under Group Gratuity Scheme.

(ii) Superannuation :Superannuation payable to certain Employees is provided by payments to Superannuation Trust Fund as per Superannuation Scheme.

(iii) Company's Contributions Paid / Payable to Provident Fund is charged to Profit & Loss Account.

(iv)The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. However it does not have any defined Retirement Benefit Scheme in this behalf. Though encashment is at the discretion of the management for the leave accumulated while in services, as well as on retirement, it is provided for during the year.

(d) Fixed Assets, Depreciation & Impairment Loss :

(i) Fixed Assets (includes assets purchased on Hire Purchase basis) are stated at cost of acquisition (net of cenvat wherever applicable) except Land, Buildings & Machineries which were revalued at market value and are stated at revalued cost. (In the year 2006 in case of JSL industries Ltd., Land & building & Machineries acquired on account of Amalgamation with JEM Industries Ltd. & Jyoti Pumps and Electricals Ltd. are stated at market values which were revalued in the year 2004.)

(ii) Depreciation on fixed assets is calculated on a straight-line basis using the rates prescribed under the Schedule XIV to the Companies Act, 1956

(iii) An amount representing difference between depreciation on Revalued Assets and original cost of Assets is transferred from Revaluation Reserve to Profit & Loss Account.

(iv) In case, the recoverable amount of the fixed assets is lower than carrying amount, a provision is made for the impairment loss.

(v) Leasehold land is amortized on a straight line basis over the period of lease.

(e) Payments for acquisition of technical know-how is capitalized to the relevant assets

account and depreciation is provided as and when it is put to use.

(f) Investments:

Investments are stated at cost and income thereon is accounted on accrual basis.

(g) Research & Development:

R&D expenditure of revenue nature is charged to Profit & Loss Account. Capital expenditure is capitalized in the year in which it is incurred and depreciation is provided on such assets as applicable.

(h) Inventories:

Cost of raw materials, components and stores and spares is determined on a weighted average basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Raw materials, components, stores and spares are valued at lower of cost and net realizable value.

Work-in-progress are valued at cost and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and lab our and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis.

(i) Foreign Currency Transactions

Transactions in Foreign exchange are accounted for at the exchange rate prevailing on the date of receipt. Gain/ Loss arising out of fluctuation in the exchange rate is accounted for on realization.

(j) Deferred Tax

Deferred Tax Assets and Liabilities are recognized in accordance with Accounting Standard (AS) 22 on Accounting for Taxes on Income, Issued by The Institute of Chartered Accountants of India.

(k) Provisions, Contingent Liabilities and Contingent Assets

a) A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

b) Contingent Liabilities are disclosed after careful evaluation by the management of facts and legal aspects of the obligation.

c) Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

(a) Income:

(i) Sales are accounted for on dispatch of goods. Net sales exclude amounts recovered towards sales tax, freight and is net of discounts.

(ii) Service Income is recognised as revenue after the service is rendered.

(iii)Dividend Received on Investment are accounted on receipt basis.

(b) Accounting of Claims:

(i) Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt. Claims payable are accounted for at the time of acceptance.

(ii) Claims raised by Government Authorities regarding taxes and duties which are disputed by the Company are accounted based on the legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(c) Retirement Benefits: Retirement benefits to employees are provided as follows:

(i) Gratuity Gratuity payable to employees is provided for by payment to Gratuity Trust

Funds on the basis of amounts determined by Life Insurance Corporation of India under Group Gratuity Scheme.

(ii) Superannuation Superannuation payable to certain Employees is provided by payments to

Superannuation Trust Fund as per Superannuation Scheme.

(iii) Company's Contributions Paid / Payable to Provident Fund is charged to Profit & Loss Account.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. However it does not have any defined Retirement Benefit Scheme in this behalf. Though encashment is at the discretion of the management for the leave accumulated while in services, as well as on retirement, it is provided for during the year.

(d) Fixed Assets, Depreciation & Impairment Loss:

(i) Fixed Assets (includes assets purchased on Hire Purchase basis) are stated at cost of acquisition (net of cenvat wherever applicable) except Land, Buildings & Machineries which were revalued at market value and are stated at revalued cost (In the year 2006 in case of JSL industries Ltd. and Land & building & Machineries acquired on account of Amalgamation with JEM Industries Ltd. & Jyoti Pumps and Electricals Ltd are stated at market value which were revalued in the year 2004.)

(ii) An amount representing difference between depreciation on Revalued Assets and Original Cost of Assets is transferred from Revaluation Reserve to Profit & Loss Account

(iii) In case, the recoverable amount of the fixed assets is lower than carrying amount, a provision is made for the impairment loss.

(e) Payments for acquisition of technical know-how is capiatlised to the relevant assets account and depreciation is provided as and when it is put to use.

(f) Investments

Investments are stated at cost and income thereon is accounted on accrual basis.

(g) Research & Development

R&D expenditure of revenue nature is charged to Profit & Loss Account. Capital expenditure is capiatlised in the year in which it is incurred and depreciation is provided on such assets as applicable.

(h) Inventories

Raw Materials and components are stated at weighted average cost. Work-in-progress is valued at cost. Finished Goods are valued at lower of cost or market value. Pattern tools are valued at cost net of amortization.

(i) Foreign Currency Transactions

Transactions in Foreign exchange are accounted for at the exchange rate prevailing on the date of receipt. Gain/ Loss arising out of fluctuation in the exchange rate is accounted for on realisation.

(j) Contingent Liabilities

Contingent Liabilities are disclosed after careful evaluation by the management of facts and legal aspects of the matter involved.

 
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