Accounting Policies of M M Rubber Company Ltd. Company

Mar 31, 2018

NOTES TO FINANCIAL STATEMENTS 1A. BACKGROUND:

M M RUBBER COMPANY LIMITED ("the Company") was incorporated on 18-08-1964 under the provision of Indian Companies Act. The Registered Office is situated in Bangalore. The Equity shares of the company are listed on Bombay Stock Exchange Limited. The Company is engaged in the business of manufacturing of mattresses, cushions and pillows.

IE. SIGNIFICANT ACCOUNTING POLICIES:

a BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These financial statements have been prepared in accordance with the Indian Accounting Standards ("Ind AS") as notified under Section 133 of the Companies Act, 2013 ( the Act) {Companies (Indian Accounting Standards) Rules, 2013} and other relevant provisions of the Act.

For all the periods up to and including the year ended 31st March 2017, the company prepares its financial statements in accordance with Accounting Standards notified under the Section 133 of the companies Act 2013, read together with Rule 7 of the Companies ( Accounts) Rules 2014 (Indian GAAP).

These financial statements for the year ended 31st March 2018 are the first such statements the company has prepared in accordance with Ind AS. Refer to note No.2.1 and 2.2 for information on first time adoption of Ind AS.

fe USE OF ESTIMATES:

The preparation of financial statements in conformity with Ind AS requires management of the Company to make estimates and assumptions that affect certain reported balances of assets and liabilities, disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Accordingly future results to could differ due to changes in these estimates and the difference between the actual result and the estimate are recognized in the period in which the results are known / materialize.

c PROPERTY, PLANT AND EQUIPMENT:

(i) Tangible assets:

Property Plant and Equipment (PPE) and other tangible assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses relating to the acquisition, installation, erection and commissioning less depreciation. Internally manufactured assets are valued at works cost. Subsequent expenditure related to PPE is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of item can be measured reliably. Other repairs and maintenance costs are recognized in the Statement of Profit & Loss while incurred. Spare parts whose life has more than 12 month has been considered as PPE and capitalized by the company.

Land and Building are recognized at fair value based on valuation by independent valuers obtained on a periodic basis less subsequent depreciation on buildings. Increase in carrying amounts on account of re-valuation of land and building are recognized net of tax in other comprehensive income and accumulated in the retained earnings under other equity. To the extent the increase in value reverses the decrease accounted previously in other comprehensive income, the increase is first recognized in other comprehensive income . Decrease in value that reverses the previously accounted surplus are first recognized in other comprehensive income to the extent of the available surplus and thereafter charged to profit / loss. Each year the difference between the depreciation based on revalued carrying amount of the asset charged to ¦statement of profit or loss and the depreciation based on the assets original cost net off tax, is reclassified from the revaluation reserve to retained earnings.

(ii) Intangible assets:

Intangible assets are accounted at cost of acquisition less depreciation /amortization.

(iii)Depreciation & Amortization:

a. Depreciation on PPE bought/sold during the year is charged on written down value method as per the useful life in Schedule II of the Act, depending upon the month of the financial year in which the assets are installed/sold. For the assets acquired prior to April 1, 2014 the carrying amount as on April 1, 2014 is depreciated on over the remaining useful life as defined in Schedule II of the Act.

d INVESTMENTS:

(i) Investments unless otherwise stated are considered as long term in nature and are valued at acquisition cost less provision for diminution, if any other than those which are considered as temporary in nature.

e INVENTORIES:

(i) Inventories does not include spare parts .servicing equipment and stand by equipment which meet definition of PPE as per AS-10 (revised) .

(ii) Raw materials, stores, spare parts and components are valued at cost on weighted average basis or net realizable value whichever is lower.

(iii) Work in progress is valued at works cost or net realizable value whichever is lower.

(iv) Finished goods are valued at net billing price {please refer note no. 35 to the Ind AS Finanacial Statements).

(v) Material cost of work in progress and finished goods are computed on weighted average basis, f REVENUE RECOGNITION:

Revenue is recognized to an extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(i) Sale of products and services is recognized on shipment of goods and transfer of significant risks and rewards to customers or on proportionate completion of services. Net sales are stated at contractual realizable values, net of excise duty,GST, sales tax, service tax, value added tax and trade discounts.

(ii) Interest income is recognized on time proportion basis, g EMPLOYEE BENEFITS:

(i) Short term employee benefits:

Employee benefits payable wholly within twelve months of rendering the service are classified as short term. Benefits such as salaries, wages, bonus, leave travel allowance etc. are recognized in the period in which the employee renders the related service.

(ii) Compensated Absences: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

(iii) Post-employment benefits:

a. Defined contribution plans:

The Company has contributed to provident and pension which are defined contribution plans. The contributions paid/ payable under the scheme are recognized during the year in which employee renders the related service.

b. Defined Benefit plan:

Gratuity and leave encashment paid to employees on retirement is accounted on payment basis, h TAXES ON INCOME:

Provision for Income-tax of the company has been made at the higher of that on the assessable income or on basis of section 115 JB of the Income Tax Act, 1961 after taking cognizance of excess / short provision in prior years. Deferred tax is recognized subject to consideration of prudence, on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax charge or credit is recognized using current tax rates. Deferred tax assets liabilities are reviewed as at each Balance sheet date.

In terms of the. Guidance note on accounting for credit available in respect of Minimum Alternative Tax(MAT) under the Income Tax Act 1961, issued by the ICAI, the excess of MAT over normal current tax payable has been recognized as an asset by way of credit to the profit & loss account as "MAT credit entitlement"

i SORROWING COSTS:

Interest and other borrowing costs on specific borrowings relatable to qualifying assets are capitalized up to the date such assets are ready for use / intended to use. Other interest and borrowing costs are charged to the statement of profit and loss.

j IMPAIRMENT OF ASSETS:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss, in the year in which an asset is identified as impaired. (Please refer note no. 37 to Ind AS Financial Statements).

k PROVISIONS AND CONTINGENT LIABILITIES:

i) A provision is recognized when the Company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits, decommissioning and site restoration cost) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

ii) Financial effect of contingent liabilities is disclosed based on information available upto the date on which financial statements are approved. However, where a reasonable estimate of financial effect cannot be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability,

I EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares during the period. For the purpose of calculating the diluted earnings per share, the net profit or loss for the period attributable to the equity share holders and weighted average number of shares outstanding during the period are adjusted for the effects of all potential dilutive equity shares.

m FINANCIAL INSTRUMENTS:

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) axe added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

(i) Cash and Cash Equivalents:

Cash and Cash Equivalents comprise cash and deposit with banks other than for term deposit earmarked for Bank Guarantee. The company considers all highly liquid investments including demand deposits with bank with an original maturity of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

(ii) Financial assets at amortized cost:

Financial assets are subsequently measured at amortized cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial liabilities:

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

n IMPAIRMENT: (i) Financial Assets:

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

(ii) Non-Financial Assets:

A non-financial asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss, in the year in which an asset is identified as impaired.

1C. Recent Accounting Pronouncements:

Introduction of new Ind AS Standard/Amendments to Ind AS Standards “Through a Notification dated 28th March 2018, the Ministry of Corporate Affairs has indicated 1st April 2018 as the effective date for the implementation of Ind AS 115- Revenue from Contracts with Customers. In addition, limited amendments have been made to some other Ind AS standards (Ind AS''s 2, 12, 21, 28 and 40) “The company is in the process of assessing the impact of the introduction of Ind AS 118- Revenue from Contracts with Customers and the limited amendments to the other Ind AS Standards. The impact, if any, will be disclosed in the financial statements for the period ended 30th June 2018/year ended 31st March 2019.

2.1.Transition to Ind AS:

These are the Company’s first financial statements prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015. The adoption of Ind AS was carried out in accordance with Ind AS 101 -‘First-time Adoption of Indian Accounting Standards’ using transition date as April 1, 2016.

Ind AS 101 requires that all Ind AS be consistently and retrospectively applied for fiscal years presented. The Company has prepared Opening Balance Sheet on the transition date and subsequent financials based on the accounting policies set out in Note-IB.

In preparing these financials, the Company has availed following exemptions in the transition from previous GAAP to Ind AS in accordance with Ind AS 101.

Optional Exemptions:

a) Deemed Cost:

Property, plant and equipment and intangible assets were carried in the balance sheet prepared under previous GAAP as at March 31, 2016. The Company has elected to regard such carrying amount as deemed cost at the date of transition i.e. April 01, 2016 except for Land and buildings where the Company has opted for fair value model as per Ind AS 16.

d) There were no significant reconciliation items between cash flows prepared under previous GAAP and those prepared under Ind AS.

Notes:

A Under previous GAAP, rental deposits were recognized at amount paid to lessors. Under Ind AS, lease deposits are carried at amortized cost over the period of deposits.

B Under previous GAAP, allowance for trade receivables were recognized based on the incurred loss method. Under Ind AS, loss allowance are based on probable loss assessment as estimated by the management.

C Under previous GAAP, gains on revaluation of land were recognized as and when such revaluations were carried out and were credited to revaluation reserve. Under Ind AS, such revaluation is to be carried out at sufficient regularity and is to be recognized in other comprehensive income. Revaluation of land was last carried out as at April 01,2016. Further fresh revaluation was done as on March 31,2017 and March 31, 2018. Accordingly, in these Ind AS financial statements, land has been revalued as on March 31,2017 and March 31,2018 and the incremental amounts have been recognized in other comprehensive income.

D Under previous GAAP, deferred tax was accounted based on timing differences impacting the Statement of Profit and Loss for the period. Under Ind AS, Deferred tax is recognized for temporary differences between tax and book bases of the relevant assets and liabilities. No deferred tax liability was recognizable under previous GAAP in respect of the incremental amount arising on revaluation of land. In the current financial statements, deferred tax liability has been recognized on such amount.

Additional information:

1) Details of security for secured loans:

Vehicle Loan from bank is secured against the hypothecation of motor car borrowed at interest rate of 8% p.a. repayable in 84 equated monthly installments.

Term loan availed from South Indian Bank is primarily secured against hypothecation/mortgage of assets purchased for utilizing the loan and a collateral charge vide equitable mortgage of 2.95 acres of land with factory building at Ranipet, Tamilnadu at a interest rate of 12.50% per annum repayable in 74 equated monthly installments.

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Mar 31, 2016

CORPORATE INFORMATION:

M M Rubber Company Ltd, (a manufacturing unit) is a Listed Company incorporated under the Companies Act. The Company’s shares are listed in Bombay Stock Exchange. The manufacturing unit of the company is situated at Ambattur Industrial Estate, Chennai. The unit manufactures foam based products such as mattresses, pillows etc., The Company’s Sales Offices are at Bangalore, Chennai, Ernakulum, Delhi, Chandigarh, Hyderabad and Vijayawada.

1. ACCOUNTING POLICIES: 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 mattresses, 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, wherever 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.

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 dealt by the company 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.

Q) Leases: The Company has an operating leases with respect to factory and god owns at Chennai and branch office premises across India. Lease payments under operating lease are recognized as an expenditure on a straight line method basis.

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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.

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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.

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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.

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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.

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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.

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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.