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Accounting Policies of M M Rubber Company Ltd. Company

Mar 31, 2015

A) BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules 2006 and with the relevant provisions of the Companies Act, 2013. The Accounting policies applied by the Company are consistent with those used in the previous year.

B) REVENUE RECOGNITION

a) Revenue from sale of mattereses,pillows, etc are recognized and are recorded exclusive of Vat,Excise duty and sales discount which is generally on dispatch of goods.

b) Other income is recognized on receipt basis.

C) INVESTMENTS Investments are stated at cost.

D) FIXED ASSETS : (AS10)

Tangible and Intangible Assets:

Tangible and Intangible assets are state at cost of acquisition(net of cenvat.whererever applicable) less accumulated depreciation. Cost is inclusive freight,duties and any directly attributable cost of bringing the assets to the working conditions for intended use. Losses or gains arising from the disposal of the tangible assets which are carried at cost are recognized in the statement of Profit & Loss Account.

E) DEPRECIATION AND AMORTISATION:

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated/amortised over the revised/ remaining useful lives. The written down value of fixed assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit & Loss Account amounting to Rs 5.81 lacs.

F) IMPAIRMENT OF FIXED ASSETS: (AS28)

Impairment, if any, on the value of assets is reviewed periodically and recognized, provided for in the accounts, when on such verification realizable value is found to be less than the book value.

G) INVENTORIES

Inventories are valued as under:

Raw materials - Cost (including freight,taxes and duties is net of credit under Vat and cenvat scheme where applicable.).

Finished goods - Net Billing Price Work-in-Progress - At factory cost.

Damaged or obsolete stock determined at the end of each year is valued at NIL cost and the carrying cost of such damaged or obsolete stock is adjusted while valuing the inventories.

H) EMPLOYEE BENEFITS

a) Defined Contribution Plan:

Defined contribution plan consists of Government Provident fund scheme operated under statutory employees provident fund & miscellaneous provisions act and the scheme framed there under and Employees State Insurance Scheme. Company's contribution paid/payable during the year under these schemes are recognized as expense in the statement of Profit and Loss. There are no other obligations other than the contribution made by the company.

b) Retirement Plan:

Gratuity and leave encashment paid to employees on retirement is accounted on payment basis.

I) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted in rupees on the basis of the exchange rate prevalent on the date of payment/transaction.

J) TAXATION:

Tax expense comprises of current tax and deferred tax charge or credit. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. The deferred tax charge or credit is recognized using prevailing enacted or substantially enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only, if there is virtual certainty of realization of such assets. Other Deferred tax assets are recognized only to the extent that there is a reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to re-assess realization/liabilities. In view of the carry forward losses Income Tax under MAT is not applicable.

K) PROVISIONS,CONTINGENT LIABLIITES AND CONTINGENT ASSETS: (AS29)

A provision is recognized when the company has a present obligation as a result of past events: it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. . The Company has made provisions in respect of outstanding Liabilities in full. The Contingent liabilities are not recognized but are disclosed in the notes to account, unless the possibility of an outflow of resources embodying the economic benefit is remote. The Contingent assets are neither recognized nor disclosed in the financial statements.

L) The Expenditure incurred for development, launching and branding of such products are captured separately and deferred to be written off equally over a period of five years from the following year of incurrence.

M) EVENTS OCCURING AFTER THE DATE OF BALANCE SHEET:

Materials events occurring after date of balance sheet are taken into cognizance.

N) CASH & CASH EQUIVILANTS:

Cash comprises of cash on hand and demand deposits with bank. Cash equivalents are short term highly liquid investments, that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

O) EARNINGS PER SHARE:

The company reports basic and diluted earnings per share in accordance with the accounting standards-20-'Earnings per Share' prescribed by the companies (Accounting Standards) Rules 2006. Basic and diluted earnings per share are computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

P) Discontinuing operations (AS24), the company has not discontinued any operations during the year.




Mar 31, 2014

A) BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules 2006 and with the relevant provisions of the Companies Act, 1956. The Accounting policies applied by the Company are consistent with those used in the previous year.

B) REVENUE RECOGNITION

a) Revenue from sale of mattereses, pillows, etc are recognized and are recorded exclusive of Vat, Excise duty and sales discount which is generally on dispatch of goods.

b) Other income is recognized on receipt basis.

C) INVESTMENTS Investments are stated at cost.

D) FIXED ASSETS : (AS10)

Tangible and Intangible Assets:

Tangible and Intangible assets are stated at cost of acquisition (net of cenvat, wherever applicable) less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Losses or gains arising from the disposal of the tangible assets which are carried at cost are recognized in the statement of Profit and Loss.

E) DEPRECIATION AND AMORTISATION:

Depreciation in respect of Fixed Assets is provided by adopting written down value method at the rates specified in accordance with the schedule xiv of the companies act. On additions to or deductions from fixed assets, depreciation is provided on pro-rata basis from the date of additions/till the date of disposal. Assets whose actual cost does not exceed Rs.5,000/- have been written off at 100 per cent.

F) IMPAIRMENT OF FIXED ASSETS: (AS28)

Impairment, if any, on the value of assets is reviewed periodically and recognized, provided for in the accounts, when on such verification realizable value is found to be less than the book value.

G) INVENTORIES

Inventories are valued as under:

Raw materials - Cost (including freight,taxes and duties is net of credit under Vat and cenvat scheme where applicable.).

Finished goods - Net Billing Price Work-in-Progress - At factory cost.

Damaged or obsolete stock determined at the end of each year is valued at NIL cost and the carrying cost of such damaged or obsolete stock is adjusted while valuing the inventories.

H) EMPLOYEE BENEFITS

a) Defined Contribution Plan:

Defined contribution plan consists of Government Provident fund scheme operated under statutory employees provident fund & miscellaneous provisions act and the scheme framed there under and Employees State Insurance Scheme. Company's contribution paid/payable during the year under these schemes are recognized as expense in the statement of Profit and Loss. There are no other obligations other than the contribution made by the company.

b) Retirement Plan:

Gratuity and leave encashment paid to employees on retirement is accounted on payment basis.

I) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted in rupees on the basis of the exchange rate prevalent on the date of payment/transaction.

J) TAXATION:

Tax expense comprises of current tax and deferred tax charge or credit. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. The deferred tax charge or credit is recognized using prevailing enacted or substantially enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only, if there is virtual certainty of realization of such assets. Other Deferred tax assets are recognized only to the extent that there is a reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to re-assess realization/liabilities.

K) PROVISIONS,CONTINGENT LIABILITIES AND CONTINGENT ASSETS: (AS29)

A provision is recognized when the company has a present obligation as a result of past events: it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. The Company has made provisions in respect of outstanding Liabilities in full. The Contingent liabilities are not recognized but are disclosed in the notes to account, unless the possibility of an outflow of resources embodying the economic benefit is remote. The Contingent assets are neither recognized nor disclosed in the financial statements.

L) The Expenditure incurred for development, launching and branding of such products are captured separately and deferred to be written off equally over a period of five years from the following year of incurrence.

M) EVENTS OCCURING AFTER THE DATE OF BALANCE SHEET:

Materials events occurring after date of balance sheet are taken into cognizance

N) CASH & CASH EQUIVALENTS:

Cash comprises of cash on hand and demand deposits with bank. Cash equivalents are short term highly liquid investments, that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

O) EARNINGS PER SHARE:

The company reports basic and diluted earnings per share in accordance with the accounting standards-20-'Earnings per Share' prescribed by the companies (Accounting Standards) Rules 2006. Basic and diluted earnings per share are computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

P) Discontinuing operations (AS24), the company has not discontinued any operations during the year.


Mar 31, 2013

A) BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules 2006 and with the relevant provisions of the Companies Act, 1956. The Accounting policies applied by the Company are consistent with those used in the previous year.

B) REVENUE RECOGNITION

a) Revenue from sale of mattereses.pillows, etc are recognized and are recorded exclusive of Vat,Excise duty and sales discount which is generally on dispatch of goods.

b) Other income is recognized on receipt basis.

C) INVESTMENTS Investments are stated at cost.

D) FIXED ASSETS :(AS10)

Tangible and Intangible Assets:

Tangible and Intangible assets are stated at cost of acquisition (net of cenvat, wherever applicable) less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Losses or gains arising from the disposal of the tangible assets which are carried at cost are recognized in the statement of Profit and Loss.

E) DEPRECIATION AND AMORTISATION:

Depreciation in respect of Fixed Assets is provided by adopting written down value method at the rates specified in accordance with the schedule xiv of the companies act. On additions to or deductions from fixed assets, depreciation is provided on pro-rata basis from the date of additions/till the date of disposal. Assets whose actual cost does not exceed Rs.5,000/- have been written off at 100 per cent.

F) IMPAIRMENT OF FIXED ASSETS: (AS28)

Impairment, if any, on the value of assets is reviewed periodically and recognized, provided for in the accounts, when on such verification realizable value is found to be less than the book value.

G) INVENTORIES

Inventories are valued as under:

Raw materials - Cost (including freight.taxes and duties is net of credit under Vat and cenvat scheme where applicable.).

Finished goods - Net Billing Price

Work-in-Progress - At factory cost.

Damaged or obsolete stock determined at the end of each year is valued at NIL cost and the carrying cost of such damaged or obsolete stock is adjusted while valuing the inventories.

H) EMPLOYEE BENEFITS

a) Defined Contribution Plan:

Defined contribution plan consists of Government Provident fund scheme operated under statutory employees provident fund & miscellaneous provisions act and the scheme framed there under and Employees State Insurance Scheme. Company''s contribution paid/payable during the year under these schemes are recognized as expense in the statement of Profit and Loss. There are no other obligations other than the contribution made by the company.

b) Retirement Plan:

Gratuity and leave encashment paid to employees on retirement is accounted on payment basis.

I) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted in rupees on the basis of the exchange rate prevalent on the date of payment/transaction.

J) TAXATION:

Tax expense comprises of current tax and deferred tax charge or credit. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. The deferred tax charge or credit is recognized using prevailing enacted or substantially enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only, if there is virtual certainty of realization of such assets. Other Deferred tax assets are recognized only to the extent that there is a reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to re-assess realization/liabilities.

K) PROVISIONS,CONTINGENT LIABLIITES AND CONTINGENT ASSETS: (AS29)

A provision is recognized when the company has a present obligation as a result of past events: it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. The Company has made provisions in respect of outstanding Liabilities in full. The Contingent liabilities are not recognized but are disclosed in the notes to account, unless the possibility of an outflow of resources embodying the economic benefit is remote. The Contingent assets are neither recognized nor disclosed in the financial statements.

L) The Expenditure incurred for development, launching and branding of such products are captured separately and deferred to be written off equally over a period of five years from the following year of incurrence,

M) EVENTS OCCURING AFTER THE DATE OF BALANCE SHEET:

Materials events occurring after date of balance sheet are taken into cognizance

N) CASH & CASH EQUIVILANTS:

Cash comprises of cash on hand and demand deposits with bank. Cash equivalents are short term highly liquid investments, that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

O) EARNINGS PER SHARE:

The company reports basic and diluted earnings per share in accordance with the accounting standards-20-''Earnings per Share'' prescribed by the companies (Accounting Standards) Rules 2006. Basic and diluted earnings per share are computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

P) Discontinuing operations (AS24), the company has not discontinued any operations during the year.


Mar 31, 2012

A) BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles ( GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules 2006 and with the relevant provisions of the Companies Act, 1956. The Accounting policies applied by the Company are consistent with those used in the previous year.

b) Presentation and disclosure of financial statements:

During the year ended 31 st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company for preparation and presentation of financial statements. The adoption of revised schedule VI does not impact recognition and principles followed by the company, however, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the figures of the previous year wherever necessary to be in conformity with the requirements of revised schedule VI presentation.

c) INCOME RECOGNITION

Company Accounts all expenditure on accrual basis except disputed statutory liabilities and all Income on due basis except refunds from Government Department which is accounted on receipt basis.

d) TANGIBLE AND INTANGIBLE FIXED ASSETS AND DEPRECIATION;(AS 10) (ASS)

Tangible Fixed Assets are stated at historical cost less depreciation. Depreciation is provided at rates and in the manner specified in Schedule XIV of the Companies Act, 1956, on written down value method. On additions to or deductions from fixed assets, depreciation is provided on pro-rata basis from the date of additions/till the date of disposal. Assets whose actual cost does not exceed Rs.5,000/- have been written off at 100 per cent. The Company does not hold any intangible assets.

Impairment, if any, on the value of assets is revived periodically and recognized and provided for in the accounts, when on such verification realizable value is found to be less than book value.

e) INVESTMENTS

Investments are stated at cost. .

I) INVENTORIES

Inventories are valued as under:

Raw materials - Cost (including freight, taxes and duties is net of credit under Vat and cenvat scheme where applicable.).

Finished goods - Net Billing Price Work-in-Progress - At factory cost.

Damaged or obsolete stock determined at the end of each year is valued at NIL cost and the carrying cost of such damaged or obsolete stock is adjusted while valuing the inventories

g) RETIREMENT BENEFITS

Gratuity and leave encashment accounted on payment basis.

h) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted in rupees on the basis of the exchange rate prevalent on the date of payment/transaction.

i) siii.fs

Sales are recognized at the point of dispatch to the customers and are exclusive of excise duty, j) PROVISIONS: 1

Amounts payable in respect of statutory liabilities disputed and claims of refund from statutory authorities are accounted on cash basis.

k) THE DEFERMENT AND WRITING OFF EXPENDITURE IN CONNECTION WITH LAUNCHING OF NEW PRODUCTS:

The expenditure incurred for development, launching and branding of such products are captured separately and deferred to be written of equally over a period of five years from the following year of incurrence.


Mar 31, 2011

A. BASIS OF ACCOUNTING

The financial statements have been prepared on the historical cost in accordance with the generally accepted accounting principles to comply in all respects with the mandatory Accounting Standards notified under Company's (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act 1956. The Accounting policies applied by the Company are consistent with those used in the previous year.

B. INCOME RECOGNITION

Company Accounts all expenditure on accrual basis except disputed statutory liabilities and all Income on due basis except refunds from Government Department which is accounted on receipt basis.

C . FIXED ASSETS & DEPRECIATION

i) Fixed Assets are stated at cost. Cost includes all expenses attributable to acquisition and up to the point of commissioning.

ii) Depreciation is provided on Written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956. Depreciation is calculated on Pro rata basis from the date of additions/till the date of disposal of the assets. Assets costing Upto Rs. 5000/- is fully depreciated in the year of use.

iii) Impairment in the value of assets is recognized as and when the realizable value is lower than the book value.

B. INVESTMENTS Investments are stated at cost.

C. INVENTORIES

Inventories are valued as under:

Raw materials - Cost (including duties and taxes paid - net of Cenvat) plus inward freight.

Finished goods - Net Billing Price

Work-in-Progress - At factory cost.

Damaged or obsolete stock determined at the end of each year is valued at NIL cost and the carrying cost of such damaged or obsolete stock is adjusted while valuing the inventories

D. RETIREMENT BENEFITS

Gratuity and leave encashment accounted on payment basis.

E. FOREIGN CURRENCY TRANSACTIONS

Expenditure incurred in foreign currency incurred during the year has been shown elsewhere in the notes on accounts. F SALES

Sales are recognized at the point of dispatch to the customers and are inclusive of excise duty.

G. PROVISIONS:

Amounts payable in respect of statutory liabilities disputed and claims of refund from statutory authorities are accounted on cash basis.

H. THE DEFERMENT AND WRITING OFF EXPENDITURE IN CONNECTION WITH LAUNCHING OF NEW PRODUCTS :

The expenditure incurred for development, launching and branding of such products are captured separately and deferred to be written off equally over a period of five years from the following year of incurrence.


Mar 31, 2010

A. BASIS OF ACCOUNTING

The financial statements have been prepared on the historical cost in accordance with the generally accepted accounting principles to comply in all respects with the mandatory Accounting Standards notified under Companys (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act 1956. The Accounting policies applied by the Company are consistent with those used in the previous year.

B. INCOME RECOGNITION

Company Accounts all expenditure on accrual basis except disputed statutory liabilities and all Income on due basis except refunds from Government Department which is accounted on receipt basis.

C. FIXED ASSETS & DEPRECIATION

i) Fixed Assets are stated at cost. Cost includes all expenses attributable to acquisition and up to the point of commissioning.

ii) Depreciation is provided on Written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956. Depreciation is calculated on Pro rata basis from the date of additions/till the date of disposal of the assets. Assets costing Upto Rs. 5000/- is fully depreciated in the year of use.

iii) Impairment in the value of assets is recognized as and when the realizable value is lower than the book value.

B. INVESTMENTS

Investments are stated at cost. Provision for diminution in value of investments is made, wherever required as per Accounting Standard 13.

C. INVENTORIES

Inventories are valued as under:

Raw materials - Cost (including duties and taxes paid - net of Cenvat) plus inward freight.

Finished goods - At cost (including excise duty paid/payable) or net realizable value, whichever is less.

Work-in-Progress - At factory cost.

Damaged or obsolete stock determined at the end of each year is valued at NIL cost and the carrying cost of such damaged or obsolete stock is adjusted while valuing the inventories

D. RETIREMENT BENEFITS

Gratuity and leave encashment accounted on payment basis. E FOREIGN CURRENCY TRANSACTIONS

Expenditure incurred in foreign currency incurred during the year has been shown elsewhere in the notes on accounts. F. SALES

Sales are recognized at the point of dispatch to the customers and are inclusive of excise duty.

E PROVISIONS:

Amounts payable in respect of statutory liabilities disputed and claims of refund from statutory authorities are accounted on cash basis.

 
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