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Kalptaru Papers Ltd. Accounting Policies | Accounting Policy of Kalptaru Papers Ltd.
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Accounting Policies of Kalptaru Papers Ltd. Company

Mar 31, 2014

1 Basis of Accounting:-

Accounts of the company are prepared on mercantile system of accounting and on going concern basis. The accounting policies are consistent and in accordance with generally accepted Auditing Standards and Indian Accounting Standards specified by ICAI

2. Fixed Assets:-

a) Fixed assets are stated at cost of acquisition or construction, net of accumulated depreciation, cenvat credit adjustments and inclusive of non refundable taxes, incidental Expenses and interest on borrowings till the Assets are put to use

b) Capital work - in - progress are valued at cost

c) Land is valued at cost.

d) Advances paid towards acquisition of Fixed assets are Shown as advance Against Capital Goods.

3. Depreciation:-

a) Depreciation on fixed assets has been provided on straight-line basis at the rates prescribed in schedule XIV of the Companies act, 1956

b) Fixed Assets acquired below Rs. 5000/- has been fully written off in the year.

4. Recognition of Income & Expenditure

Items of income and expenditure are recognized on accrual basis, except various Govt. revenues, Insurance claims and prior period incomes.

5. Excise Duty

Excise duty on manufactured goods is accounted for at the time of their clearance from the factory rather than at the time of manufacturing. The above policy has, however no impact on the operating results of the company.

6. Investments

Permanent investments are valued at cost less permanent diminution, if any in value of investment.

7. Employment Benefits

A) Retirement Benefits

i) Gratuity

Liability for gratuity is accounted as per actuarial valuation and in accordance with the Accounting Standard 15 issued by ICAI.

ii) Provident Fund

Retirement benefits in the form of provident fund are charged to profit & loss account for the year.

B) Short Term Employee Benefits i) Leave Encashment

Provision for leave encashment made on 31.03.2014 is paid within 12 months.

8. Borrowing Costs

a. Interest on borrowing costs & other incidental expenses are charged to Profit & Loss except for the: i) Interest on borrowings for acquisition of capital assets till the date of its put to use.

9. Revenue Recognition

i) Revenue is recognised on completion of sale of goods.

ii) Sales are stated at inclusive of excise duty and net of sales tax /vat & other incidental amount collected.

10. Taxation

Income tax on current year profits has been accounted for as per provisions of Income Tax Act, 1961.

11. Cash Flow Statement

Cash flow statement is prepared as per indirect method prescribed under Accounting Standard 3 issued By ICAI.

12. Prior period Items

i) Prior period items are incomes/ expenses, which arise in the current period due to error or omissions in the preparation of financial statements of one or more earlier Period.

13. Segment Reporting

Company is engaged in the core business of manufacturing of paper; therefore reporting requirements of under AS-17 are not applicable in the company case.

14. Estimated amount of contracts remaining to be executed on capital A/c and not provided for:-

15. In the opinion of the Board of Directors, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.


Mar 31, 2012

Basis of Accounting:-

1) Accounts of the company are prepared on mercantile system of accounting and on going concern basis. The accounting policies are consistent and in accordance with generally accepted Auditing Standards and Indian Accounting Standards specified by ICAI

Fixed Assets:-

2) a) Fixed assets are stated at cost of acquisition or construction, net of accumulated depreciation, cenvat credit

adjustments and inclusive of non refundable taxes, incidental Expenses and interest on borrowings till the Assets are put to use

b) Capital work - in - progress are valued at cost

c) Land is valued at cost.

d) Advances paid towards acquisition of Fixed assets are Shown as advance Against Capital Goods.

Depreciation:-

3) a) Depreciation on fixed assets has been provided on straight-line basis at the rates prescribed in schedule XIV of the Companies act, 1956.

b) Fixed Assets acquired below Rs. 5000/- has been fully written off in the year.

Recognition of Income & Expenditure

4) Items of income and expenditure are recognized on accrual basis, except various Govt. revenues, Insurance claims and prior period incomes.

Excise Duty

5) Excise duty on manufactured goods is accounted for at the time of their clearance from the factory rather than at the time of manufacturing. The above policy has, however no impact on the operating results of the company.

Investments

6) Permanent investments are valued at cost less permanent diminution, if any in value of investment.

Employment Benefits

7) A) Retirement Benefits

i) Gratuity

Liability for gratuity is accounted as per actuarial valuation and in accordance with the Accounting Standard 15 issued by ICAI.

ii) Provident Fund

Retirement benefits in the form of provident fund are charged to profit & loss account for the year.

B) Short Term Employee Benefits i) Leave Encashment

Provision for leave encashment made on 31/03/2012 is paid within 12 months.

Borrowing Costs

8) a. Interest on borrowing costs & other incidental expenses are charged to Profit & Loss except for the:

i) Interest on borrowings for acquisition of capital assets till the date of its put to use.

Foreign Exchange Transactions

9) Initial recognition

Import purchases and foreign creditors are initially recognised in the books at the exchange rates prevailing on the date of bill of entry.

Year End Disclosure

Foreign exchange creditors are translated at the exchange rates prevailing on the last day of accounting year and amount of fluctuation from initial recognition is charged to profit & loss account.

Revenue Recognition

10) i) Revenue is recognised on completion of sale of goods

ii) Sales are stated at inclusive of excise duty and net of sales tax/vat & other incidental amount collected.

Taxation

11) Income tax on current year profits has been accounted for as per provisions of Income Tax Act, 1961.

Cash Flow Statement

12) Cash flow statement is prepared as per indirect method prescribed under Accounting Standard 3 issued By ICAI.

Prior period Items

13) i) Prior period items are incomes/ expenses, which arise in the current period due to error or omissions in the preparation of financial statements of one or more earlier Period.

Segment Reporting

14) Company is engaged in the core business of manufacturing of paper; therefore reporting requirements of under AS-17 are not applicable in the company case.


Mar 31, 2010

1) i) Fixed assets are valued at cost less depreciation. ii) Capital work - in - progress is valued at cost.

iii) Land is valued at cost.

2) Depreciation

i) Depreciation on fixed assets has been provided on straight line basis at the rates prescribed in schedule XIV of the

Companies (Amendment) Act, 1988. ii) There are no Fixed Assets purchased below Rs. 5000/- that has been fully written off in the year.

3) Inventories

Raw Material at cost.

Stores & Spare parts at cost.

Work in Progress at cost.

Stock in Transit is valued at cost.

Finished goods at cost or realisable value whichever is lower.

Packing material at cost

4) Recognition of Income & Expenditure

Items of income and expenditure are recognized on accrual basis, except Various Govt, revenues.

5) Excise Duty

Excise duty on manufactured goods is accounted for at the time of their clearance from the factory rather than at the time of manufacturing. The above policy has, however no impact on the operating results of the company.

6) Investment

Investments are valued at cost.

7) Contingent Liability

Contingent liability is generally not provided for in the books of accounts and is shown separately in the notes on account, if any. The contingent liability as on 31st March, 2010 is as under:

a) Inland Letter of Credit (ILC) Rs. 99,96,470.00

b) Bank Guarantee Rs. 71,49,600.00

8) Foreign Exchange Transaction

During the period, foreign currency transactions relating to purchases and sale of goods and services are translated at the rates prevailing at the time of settlement of the transactions.

9) Revenue Recognition

Revenue is recognized on completion of sale of goods.

 
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