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Accounting Policies of Jyoti Ltd. Company

Mar 31, 2015

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost conversion and on Accrual basis and are in conformity with mandatory Accounting Standards specified under section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octopi, freight and is net of discounts. Erection and Commissioning Income is recognized as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services: Repairs and Service Income misrecognised as revenue after the service is rendered.

Other Operating Income : Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Excise duty / Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest : Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the Statement of Profit and Loss.

Dividend : Dividend income is recognized when the Company's right to receive dividend is established by the reporting date.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition (net of canvas wherever applicable and expenditure incurred including interest on borrowing and financial cost) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided on Straight-line Method on all assets at the rates and in the manner specified as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(iii) Intangible Fixed Assets: Over their estimated economic life, in accordance with Accounting Standard on 'Intangible Assets' (AS-26)

(iv) Leasehold Land is amortized over the period of lease. (v) In case the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss.

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value, if any.

(E) Inventories

All Inventories are valued at lower of cost and net realizable value.

Raw Materials and Components / Press tools are valued at lower of cost determined on weighted average baseband net realizable value.

Material-in-transit is valued at lower of cost and net realizable value.

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

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits

Employee benefits are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered

by the ICICI Prudential Life Insurance Colt, and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation payable as per Superannuation Scheme is provided by payment to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co.Ltd.

(iii) Company's contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the Management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Statement of Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under.

Deferred Tax Assets and Liabilities are recognised as per Accounting Standard (AS-22) on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. Deferred Tax Assets are recognized and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, asa result of past events, for which it is probable that anoutflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.

As per requirement of Section 22 of Micro, Small & Medium Enterprises Development Act, 2006 following information is disclosed to the extent identifiable:-


Mar 31, 2014

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost conversion and on Accrual basis and are in conformity with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956 and the generally accepted accounting policies in India.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts. Erection and Commissioning Income is recognised as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services : Repairs and Service Income is recognised as revenue after the service is rendered.

Other Operating Income : Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Excise duty / Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest : Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the Statement of Profit and Loss.

Dividend : Dividend income is recognized when the Company''s right to receive dividend is established by the reporting date.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition (net of cenvat wherever applicable and expenditure incurred including interest on borrowing and financial cost) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided :

a) In respect of assets acquired upto June, 1986 on straight-line method in accordance with Circular No.1/86 issued by the Department of Company Affairs.

b) In respect of assets acquired after 1st July, 1986 on straight-line method at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Intangible Fixed Assets: Over their estimated economic life, in accordance with Accounting Standard on ''Intangible Assets'' (AS-26)

(iv) An amount representing the difference between depreciation on Revalued Assets and on Original Cost of Assets is transferred from Revaluation Reserve to Statement of Profit and Loss.

(v) Leasehold Land is amortised over the period of lease, if any.

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

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value.

(E) Inventories

All Inventories are valued at lower of cost and net realisable value.

Raw Materials and Components are valued at lower of cost determined on weighted average basis and net realisable value.

Material in transit is valued at cost and net realisable value.

Work-in-progress and finished goods are valued at lower of cost and net realisable value. Cost includes direct materials, 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.

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits Employee benefits to employees are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered

by the ICICI Prudential Life Insurance Co.Ltd, and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation payable as per Superannuation Scheme is

provided by payment to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co.Ltd.

(iii) Company''s contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the Management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognised in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognised by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under. Deferred Tax Assets and Liabilities are recognised as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. Deferred Tax Assets are recognized and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.


Mar 31, 2013

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost conversion and on Accrual basis and are in conformity with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956 and the generally accepted accounting policies in India.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts. Erection and Commissioning Income is recognised as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services :

Repairs and Service Income is recognised as revenue after the service is rendered.

Other Operating Income :

Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Excise duty / Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest :

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

Dividend :

Dividend income is recognized when the Company''s right to receive dividend is established by the reporting date.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition (net of cenvat wherever applicable and expenditure incurred including interest on borrowing and financial cost) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided :

a) In respect of assets acquired upto June, 1986 on straight-line method in accordance with Circular No.1/86 issued by the Department of Company Affairs.

b) In respect of assets acquired after 1st July, 1986 on straight-line method at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Intangible Fixed Assets: Over their estimated economic life, in accordance with Accounting Standard on ''''Intangible Assets'''' (AS-26)

(iv) An amount representing the difference between depreciation on Revalued Assets and on Original Cost of Assets is transferred from Revaluation Reserve to Statement of Profit and Loss.

(v) Leasehold Land is amortized over the period of Lease, if any.

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

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value.

(E) Inventories

All Inventories are valued at lower of cost and net realizable value.

Raw Materials and Components are valued at lower of cost determined on weighted average basis and net realizable value.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials, 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.

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits Benefits to employees are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered by the ICICI Prudential Life Insurance Co.Ltd., and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation payable as per Superannuation Scheme is provided by payment to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co.Ltd.

(iii) Company''s contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognised in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognised by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed thereunder.

Deferred Ta x Assets and Liabilities are recognised as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. Deferred Tax Assets are recognized and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.


Mar 31, 2012

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost conversion and on Accrual basis and are in conformity with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956 and the generally accepted accounting policies in India.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts. Erection and Commissioning Income is recognized as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services :

Repairs and Service Income is recognized as revenue after the service is rendered. Other Operating Income :

Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Excise duty / Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest :-

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

Dividend :-

Dividend income is recognized when the Company's right to receive dividend is established by the reporting date.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition (net of canvas wherever applicable and expenditure incurred including interest on borrowing and financial cost) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided :

a) In respect of assets acquired up to June, 1986 on straight-line method in accordance with Circular No.1/86 issued by the Department of Company Affairs.

b) In respect of assets acquired after 1st July, 1986 on straight-line method at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Intangible Fixed Assets: Over their estimated economic life, in accordance with Accounting Standard on 'Intangible Assets' (AS-26)

(iv) An amount representing the difference between depreciation on Revalued Assets and on Original Cost of Assets is transferred from Revaluation Reserve to Statement of Profit and Loss.

(v) Leasehold Land is amortized over the period of Lease, if any.

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

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value.

(E) Inventories

All Inventories are valued at lower of cost and net realizable value.

Raw Materials and Components are valued at lower of cost determined on weighted average basis and net realizable value.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials, 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.

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits Employee benefits to employees are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered by the ICICI Prudential Life Insurance Co.Ltd., and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation payable as per Superannuation Scheme is

provided by payment to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co.Ltd.

(iii) Company's contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under.

Deferred Tax Assets and Liabilities are recognized as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.

 
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