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Accounting Policies of Mangalam Timber Products Ltd. Company

Mar 31, 2015

1.1 BASIS OF ACCOUNTING

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to circular 15/2013 dated 13th September, 2013 read with circular 08/2014 dated 4th April, 2014, till the Standards of Accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 (the 'Act') shall continue to apply. Consequently, these financial statements have been prepared to comply, in all material aspects, with the accounting standards notified under Section 133 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the other relevant provisions of the Companies Act, 1956 (the 'Act').

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI to the Act.

1.2 TANGIBLE FIXED ASSETS

a) Tangible Fixed Assets are stated at cost of acquisition or construction including any attributable cost for bringing the asset to its working condition for its intended use or at revalued amounts wherever such assets have been revalued.Subsequent expenditures related to an item of fixed asset (tangible or intangible) are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

b) Losses arising from retirement of and gain & losses arising from disposal of fixed assets are recognised in the Statement of Profit and Loss.

c) Capital Work In Progress is stated at cost.

1.3 INTANGIBLE ASSETS

Intangible assets are capitalized where it is expected to provide future enduring economic benefits. Costs incurred on acquisition of intangible assets are capitalized.

1.4 DEPRECIATION AND AMORTISATION

a) Depreciation on tangible fixed assets is provided as per estimated useful life given in Schedule II to the Companies Act, 2013 after retaining 5% of assets historical value.

b) Intangible assets are amortised over its estimated useful life from the date of its capitalization.

c) Additions on account of exchange fluctuation are depreciated prospectively over the remaining life of the assets.

1.5 IMPAIRMENT OF ASSTES

Assessment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired.

An impairment loss, if any, is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount i.e. the higher of the assets' net selling price and value in use. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable account.

1.6 INVESTMENTS

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Current investments are carried at cost or fair value, whichever is lower. Long-term investments are carried at cost less write down for any diminution, other than temporary, in carrying value.

1.7 INVENTORIES

a) Inventories are valued at lower of cost or net realisable value. Cost of finished goods comprise of material costs, labour and other appropriate overheads, where applicable. Cost for raw materials, stores & spares are determined on the basis of weighted average method.

b) Inventories of finished goods include goods yet to be graded and marked. Excise duty on finished goods are provided after grading and marking

c) Spares for specific Plant & Machinery are amortized over the useful life of the related Plant & Machinery, as estimated by the management.

d) Inventories are written down for obsolete/slow moving/non-moving items, wherever necessary.

1.8 PLANTATION WORK-IN-PROGRESS

Plantation work-in-progress is stated at cost.

Plantation work-in-progress includes cultivation and other expenses allocable to the same, which are carried forward till the commercial exploitation of the plantations raised. The wood procured on harvesting is transferred to the operations at the estimated proportionate cost incurred till harvesting and the corresponding amount is adjusted against the plantation work-in-progress.

Plantation Work-in-Progress also includes cost of raising/procurement of seedlings which are adjusted at the time of sale/consumption of such seedlings.

1.9 CDM PROJECT

The expenses incurred in relation to the CDM Project have been shown under the head Advances and the appropriation for such expenses shall be accounted for in the year of realisation of Carbon Credit.

1.10 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rates prevailing on the date of transactions. Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are reinstated at exchange rates prevailing on that date. The resultant exchange differences arising from settlement of foreign currency transactions and from the year-end restatement are recognised in the Statement of Profit and Loss.

1.11 REVENUE

Revenue from sale of goods are recognised when the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract. It includes excise duty but excludes value added tax/sales tax, trade discounts, returns, as applicable.

1.12 EMPLOYEE BENEFITS

Short term Employee Benefits

Short-term Employee Benefits (i.e. benefits falling due within one year after the end of the period in which employees render the related service) are recognised as expenses in the period in which employee services are rendered as per the Company's scheme based on expected obligations on undiscounted basis.

Post Employment Benefit Plans

Under Defined Contribution Plans, contributions payable in keeping with the related schemes are recognised as expenses for the year.

For Defined Benefit Plans, the cost of providing benefits is determined using the 'Projected Unit Credit Method', with actuarial valuations carried out at each Balance Sheet date. Actuarial gains and losses are recognised as income or expenditure immediately in full in the Statement of Profit and Loss for the year in which they occur. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, if any and as reduced by the fair value of scheme assets.

Other Lomg-term Employee Benefits

Leave encashment/Compensated Absence is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Statement of Profit and Loss for the year in which they occur. Other long-term employee benefits obligation are recognised on actual basis at each Balance Sheet date.

1.13 BORROWING COST

- General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in the statement of Profit and Loss in the period in which they are incurred.

1.14 SHARE ISSUE EXPENSE

* Share issue expenses incurred for issue of 7.5% Non- cumulative Redeemable Preference Share are amortized over the period Shares remain outstanding.

1.15 DEFERRED REVENUE EXPENSES

Deferred revenue expenses are written off in five equal installments commencing from the year in which these expenses are incurred.

1.16 INCOME TAX

* Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961.

* Deferred tax assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

1.17 LEASES

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss.

1.18 CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

1.19 EARNING PER SHARE

Basic earning per share is calculated by dividing the net profit /(loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company's earnings per share is the net profit/(loss) for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit /(loss) for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1.20 PROVISIONS AND CONTINGENT LIABILITIES

Provisions : Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

* Contingent Liabilities : Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

1.21 USE OF ESTIMATES

The presentation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods.


Mar 31, 2014

1.1 8ASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, except stated otherwise, on an accrual basis and in accordance with [he generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standard) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

The financial statements had been prepared and presented as per the requirement of Revised Schedule VI as.notified, under Companies Act 1956.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956 ("The Act"). Based on the nature of products and the time between the acquisition of assets for processing and their realisation In cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - noh current classification of assets and liabilities.

1.2 TANGIBLE FIXED ASSETS

Tangible Fined Assets are stated at cost of acquisition or construction including any attributable cost for bringing the asset to its working condition for Its Intended use or at revalued amounts wherever such assets have been revalued.

Losses arising from retirement of and gains & losses arising from disposal of fixed assets are recognized in Profit and Loss Statement.

Capital Work In Progress is stated at cost,

1.3 INTANGIBLES ASSETS

Intangible assets are capitalized where it Is expected to provide future enduring economic benefits. Costs incurred on acquisition of intangible assets are capitalized.

1.4 DEPRECIATION AND AMORTISATION

Depreciation on tangible fixed assets is provided on Straight Line Method at the rates given in Schedule XIV to the Companies Act, 1956,

Intangible assets are amortised over its estimated useful life from the date of its capitalization.

Additions on account of exchange fluctuation are depreciated prospectively over the remaining life of the assets.

1.5 INVESTMENTS

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments. Current investments are carried at cost or fair vaiue, whichever is lower. Long-term investments are carried at cost.

1.6 INVENTORIES

Inventories of finished goods Include goods yet to be graded and marked. Excise duty on finished goods is provided after grading and marking.

Inventories are valued at lower of cost or net realisable value. Cost for own manufactured goods comprise of materials, labour and other appropriate overheads. Cost for Raw materials, stores and spares are determined on the basis of weighted average method. Cost of traded goods is determined on estimated cost basis.

Spares for specific Plant & Machinery are amortized over the useful life of the related Plant &. Machinery, as estimated by the management.

1.7 PLANTATION WORK-IN-PROGRESS

Plantation work-in-progress Is stated at cost.

- Plantation work-in-progress includes cultivation and other expenses allocable to the same, which are carried forward till the commercial exploitation of the plantations raised. The wood procured on harvesting is transferred to the operations at the estimated proportionate cost incurred till harvesting and the corresponding amount is adjusted against the plantation work-in-progress.

Plantation Work-in-Progress also includes cost of raising/procurement of seedlings which are adjusted at the time of sate/consumption of such seedlings.

1.8 CDM PROJECT

The expenses Incurred In relation to the CDM Project have been shown under the head Advances and the appropriation for such expenses shall be accounted for in the year of realisation of Carbon Credit.

1.9 FOREIGN CURRENCY TRANSLATION

Transactions in foreign currency are accounted for at the exchange rates prevailing on the date of 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. Gains/losses arising out of fluctuations In the exchange rates are recognised In Profit and Loss Statement In the period In which they arise

1.10 EMPLOYEE BENEFITS

a) Short-term Employees Benefits

Short-term Employee Benefits (i.e. benefits payable within one year) are recognised in the period in which employee services are rendered.

b) Long-term Employees Benefits

Leave encashment and Compensated Absence is determined using Projected Unit Credit Method with actuarial valualion being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Profit and Loss Statement for the year in which they occur.

Other long-term benefits which are not encashable are recognised on actual basis at each Balance Sheet date.

c) Post Employment Benefit Plans

Under Defined Contribution Plans, contributions payable in keeping with the related schemes are recognised as expenses for the year.

For Defined Benefit Plans, the cost of porviding benefits Is determined using the ''Projected Unit Credit Method'', with actuarial valuations carried out at each Balance Sheet date. Actuarial gains and losses are recognised as income or expenditure immediately in full in the Profit and Loss Statement for the year in which they occur.The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, if any and as reduced by the fair value ol scheme assets.

1.11 SALES

Sales are recognised when the substantial risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract and are recognised net of trade discounts/allowance, sales return and sales taxes/value added tax.

1.17 INCOME AND EXPENDITURE

Income and expenditure unless otherwise stated are recognised on accrual basis. Subsidies, insurance claims, export benefits and other claims are accounted for on acceptance/ascertainment of amount recoverable,

1.13 BORROWING COST

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready lor their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised In Profit and Loss Statement in the period in which they are incurred

1.14 SHARE ISSUE EXPENSE

Share issue expense Incurred for issue of 7.5% Non- cumulative Redeemable Preference Share are amortized over the period Shares remaining outstanding,

1.15 DEFERRED REVENUE EXPENSES

Deferred revenue expenses are written off in five equal installments commencing from the year in which these expenses are Incurred.

1.16 INCOME TAX

Tax expense comprises current and deferred tax: Current Income tax Is measured at the amount expected to be paid to the tax authorities in accordance with the Income- tax Act, 1961,

Deferred tax assets and liabilities arising on account of timing differences and which are capable of reversal tn subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

As at the balance sheet date, unless there is an evidence to the contrary, deferred tax assets pertaining to business loss are only recognised to the extent that there are deferred tax liabilities offsetting them.

1.17 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate (if recoverable account.

MM CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash In hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

1.19 EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit /(loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit/I loss) for the period after deducting preference

dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, (he net profit /{loss) for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1.20 PROVISIONS AND CONTINGENT LIABILITIES

Provisions : Provisions involving substantial degree of estimation In measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Is termed as a contingent liability

1.21 USE OF ESTIMATES

The presentation of financial statements In conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods.


Mar 31, 2013

1.1 Basis of Accounting

- The financial statements are prepared under the historical cost convention, except stated otherwise, on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standard) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

- The financial statements had been prepared and presented as per the requirement of Revised Schedule VI as notified under Companies Act 1956.

1.2 FIXED ASSETS

- Fixed Assets are stated at cost of acquisition or construction including any attributable cost for bringing the asset to its working condition for its intended use or at revalued amounts wherever such assets have been revalued.

1.3 INTANGIBLES

- Costs incurred on acquisition of intangible assets are capitalized.

1.4 DEPRECIATION

- Depreciation on tangible assets is provided on Straight Line Method at the rates given in Schedule XIV to the Companies Act, 1956.

- Intangible assets are amortised on Straight Line Method at the rates given in schedule XIV to the Companies Act, 1956.

- Extra shift depreciation on plant and machinery is provided on the basis of actual number of working days worked by respective plants.

- Certain Plant and Machinery based on technical evaluation have been considered by the management as the continuous process plant and these have accordingly been depreciated at the prescribed rates.

- Additions on account of exchange fluctuation are depreciated prospectively over the remaining life of the assets.

1.5 INVESTMENTS

- Investments are stated at cost.

1.6 INVENTORIES

- Inventories of finished goods include goods yet to be graded and marked. Excise duty on finished goods is provided after grading and marking.

- Inventories are valued at lower of cost or net realisable value. Cost for own manufactured goods comprise of materials, labour and other appropriate overheads. Cost for Raw materials, stores and spares are determined on the basis of weighted average method. Cost of traded goods is determined on estimated cost basis.

- Spares for specific Plant & Machinery are amortized over the useful life of the related Plant & Machinery, as estimated by the management.

1.7 PLANTATION WORK-IN-PROGRESS

- Plantation work-in-progress is stated at cost.

- Plantation work-in-progress includes cultivation and other expenses allocable to the same, which are carried forward till the commercial exploitation of the plantations raised. The wood procured on harvesting is transferred to the operations at the estimated proportionate cost incurred till harvesting and the corresponding amount is adjusted against the plantation work-in-progress.

- Plantation Work-in-Progress also includes cost of raising/procurement of seedlings which are adjusted at the time of sale/consumption of such seedlings.

1.8 CDM PROJECT

- The expenses incurred in relation to the CDM Project have been shown under the head Advances and the appropriation for such expenses shall be accounted for in the year of realization of Carbon Credit.

1.9 EXCHANGE FLUCTUATION

- Foreign currency transactions are recorded by applying foreign exchange rate applicable on the date of filing of Bill of Entry. Exchange rate differences arising on the date of settlement of transaction are recognised as exchange difference in foreign currency transaction.

- Year end balances of foreign currency liabilities/receivables denominated in foreign currency are translated at the applicable forward contract or year-end rates as the case may be, and the resultant gains or losses are appropriately adjusted. Variations in foreign currency liabilities due to exchange fluctuation are adjusted in Profit and Loss Statement.

1.10 EMPLOYEE BENEFITS

a) Short term Employee Benefits

The undiscounted amount of short-term Employee Benefits expected to be paid in exchange for the services rendered by employees is recognised on accrual basis in the Profit & Loss Statement in the year when the employee actually renders the service.

b) Long-term Employees Benefits

Leave encashment is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Profit and Loss Statement for the year in which they occur.

Other long-term benefits which are not encashable are recognised on actual basis at each Balance Sheet date.

c) Post Employment Benefit Plans

Under Defined Contribution Plans, contributions payable in keeping with the related schemes are recognised as expenses for the year.

For Defined Benefit Plans, the cost of providing benefits is determined using the Rs.Projected Unit Credit Method'', with actuarial valuations carried out at each Balance Sheet date. Actuarial gains and losses are recognised as income or expenditure immediately in full in the Profit and Loss Statement for the year in which they occur. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, if any and as reduced by the fair value of scheme assets.

1.11 SALES

- Sales are inclusive of Excise duty but exclusive of VAT unless otherwise stated. Rebates, returns, discounts and allowances are netted therefrom.

1.12 INCOME AND EXPENDITURE

- Income and expenditure unless otherwise stated are recognised on accrual basis. Subsidies, insurance claims, export benefits and other claims are accounted for on acceptance/ ascertainment of amount recoverable.

1.13 BORROWING COST

- Borrowing cost incurred in relation to the acquisition, construction of assets are capitalised as part of the cost of such assets upto the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

1.14 SHARE ISSUE EXPENSE

- Share issue expense incurred for issue of 7.5% Non- cumulative Redeemable Preference Share are amortized over the period Shares remaining outstanding.

1.15 INCOME TAX

- Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rate and tax laws. Deferred tax assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

1.16 IMPAIRMENT OF ASSETS

- An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable account.

1.17 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

- Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

1.1 BASIS OF ACCOUNTING

- The financial statements are prepared under the historical cost convention, except stated otherwise, on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standard) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

- The financial statements had been prepared and presented as per the requirement of Revised Schedule VI as notified under Companies Act 1956.

1.2 FIXED ASSETS

- Fixed Assets are stated at cost of acquisition or construction including any attributable cost for bringing the asset to its working condition for its intended use or at revalued amounts wherever such assets have been revalued.

1.3 INTANGIBLES

- Costs incurred on acquisition of intangible assets are capitalized.

1.4 DEPRECIATION

- Depreciation on tangible assets is provided on Straight Line Method at the rates given in Schedule XIV to the Companies Act, 1956.

- Intangible assets are amortised on Straight Line Method at the rates given in schedule XIV to the Companies Act, 1956.

- Extra shift depreciation on plant and machinery is provided on the basis of actual number of working days worked by respective plants.

- Certain Plant and Machinery based on technical evaluation have been considered by the management as the continuous process plant and these have accordingly been depreciated at the prescribed rates.

- Additions on account of exchange fluctuation are depreciated prospectively over the remaining life of the assets.

1.5 INVESTMENTS

- Investments are stated at cost.

1.6 INVENTORIES

- Inventories of finished goods include goods yet to be graded and marked. Excise duty on finished goods is provided after grading and marking.

- Inventories are valued at lower of cost or net realisable value. Cost for own manufactured goods comprise of materials, labour and other appropriate overheads. Cost for Raw materials, stores and spares are determined on the basis of weighted average method. Cost of traded goods is determined on estimated cost basis.

- Spares for specific Plant & Machinery are amortized over the useful life of the related Plant & Machinery, as estimated by the management.

1.7 PLANTATION WORK-IN-PROGRESS

- Plantation work-in-progress is stated at cost.

- Plantation work-in-progress includes cultivation and other expenses allocable to the same, which are carried forward till the commercial exploitation of the plantations raised. The wood procured on harvesting is transferred to the operations at the estimated proportionate cost incurred till harvesting and the corresponding amount is adjusted against the plantation work-in-progress.

- Plantation Work-in-Progress also includes cost of raising/procurement of seedlings which are adjusted at the time of sale/consumption of such seedlings.

1.8 CDM PROJECT

- The expenses incurred in relation to the CDM Project have been shown under the head Advances and the appropriation for such expenses shall be accounted for in the year of realization of Carbon Credit.

1.9 EXCHANGE FLUCTUATION

- Foreign currency transactions are recorded by applying foreign exchange rate applicable on the date of filing of Bill of Entry. Exchange rate differences arising on the date of settlement of transaction are recognised as exchange difference in foreign currency transaction.

- Year end balances of foreign currency liabilities/receivables denominated in foreign currency are translated at the applicable forward contract or year-end rates as the case may be, and the resultant gains and losses are appropriately adjusted. Variations in foreign currency liabilities due to exchange fluctuation are adjusted in Profit and Loss Statement.

1.10 EMPLOYEE BENEFITS

a) Short term Employee Benefits

The undiscounted amount of short-term Employee Benefits expected to be paid in exchange for the services rendered by employees is recognised on actual basis in the Profit & Loss Statement in the year when the employee actually renders the service.

b) Long-term Employees Benefits

Leave encashment is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Profit and Loss Statement for the year in which they occur.

Other long-term benefits which are not encashable are recognised on actual basis at each Balance Sheet date.

c) Post Employment Benefit Plans

Under Defined Contribution Plans, contributions payable in keeping with the related schemes are recognised as expenses for the year.

For Defined Benefit Plans, the cost of providing benefits is determined using the 'Projected Unit Credit Method', with actuarial valuations carried out at each Balance Sheet date. Actuarial gains and losses are recognised as income or expenditure immediately in full in the Profit and Loss Statement for the year in which they occur. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, if any and as reduced by the fair value of scheme assets.

1.11 SALES

- Sales are inclusive of Excise duty but exclusive of Sales tax/VAT unless otherwise stated. Rebates, returns, discounts and allowances are netted therefrom.

1.12 INCOME AND EXPENDITURE

- Income and expenditure unless otherwise stated are recognised on accrual basis. Subsidies, insurance claims, export benefits and other claims are accounted for on acceptance/ ascertainment of amount recoverable.

1.13 BORROWING COST

- Borrowing cost incurred in relation to the acquisition, construction of assets are capitalised as the part of the cost of such assets upto the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

1.14 INCOME TAX

- Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rate and tax laws. Deferred tax assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

1.15 IMPAIRMENT OF ASSETS

- An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable account.

1.16 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

- Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

1. GENERAL

- Accounts are prepared on historical cost adjusted by the revaluation of certain Fixed Asset and on the accounting principles of a going concern.

- Accounting policies unless stated otherwise, are consistent

2. FIXED ASSETS

- Fixed Assets are stated at cost of acquisition or construction including any attributable cost for bringing the asset to its working condition for its intended use or at revalued amounts wherever such assets have been revalued.

3. INTANGIBLES

- Costs incurred on acquisition of intangible assets are capitalized and amortized on a straight-line basis as per rates specified in Schedule XIV of Companies Act, 1956.

4. DEPRECIATION

- Depreciation is provided on Straight Line Method at the rates given in Schedule XIV to the Companies Act, 1956.

- Extra shift depreciation on plant and machinery is provided on the basis of actual number of working days worked by respective plants.

- Certain Plant and Machinery based on technical evaluation have been considered by the management as the continuous process plant and these have accordingly been depreciated at the prescribed rates.

- Additions on account of exchange fluctuation are depreciated prospectively over the remaining life of the assets.

5. INVESTMENTS

- Investments are stated at cost.

6. INVENTORIES

- Inventories of finished goods include goods yet to be graded and marked. Excise duty on finished goods is provided after grading and marking.

- Inventories are valued at lower of cost or net realisable value. Cost for own manufactured goods comprise of materials, labour and other appropriate overheads. Cost for Raw materials, stores and spares are determined on the basis of weighted average method. Cost of traded goods is determined on estimated cost basis.

- Spares for specific Plant & Machinery are amortized over the useful life of the related Plant & Machinery, as estimated by the management.

7. PLANTATION WORK-IN-PROGRESS

- Plantation work-in-progress is stated at cost.

- Plantation work-in-progress includes cultivation and other expenses allocable to the same, which are carried forward till the commercial exploitation of the plantations raised. The wood procured on harvesting is transferred to the operations at the estimated proportionate cost incurred till harvesting and the corresponding amount is adjusted against the plantation work-in-progress.

- Plantation Work-in-Progress also includes cost of raising seedlings which are adjusted at the time of sale/consumption of such seedlings.

8. CDM PROJECT

- The expenses incurred in relation to the CDM Project have been shown under the head Advances and subject to the Company's proposal being registered with the UNFC who deal with the CDM Project, the appropriation for such expenses shall be accounted for in the year of realization of Carbon Credit.

9. EXCHANGE FLUCTUATION

- Foreign currency transactions are recorded by applying foreign exchange rate applicable on the date of filing of Bill of Entry. Exchange rate differences arising on the date of settlement of transaction are recognised as exchange difference in foreign currency transaction.

- Year end balances of foreign currency loans and other liabilities/receivables denominated in foreign currency are translated at the applicable forward contract or year-end rates as the case may be, and the resultant gains and losses are appropriately adjusted. Variation in foreign currency loans / liabilities due to exchange fluctuation are adjusted in Profit and Loss Account.

10. EMPLOYEE BENEFITS

a) Short term Employee Benefits

The undiscounted amount of short-term Employee Benefits expected to be paid in exchange for the services rendered by employees is recognised on actual basis in the Profit & Loss Account in the year when the employee actually renders the service.

b) Long-term Employees Benefits

Leave encashment is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Profit and Loss Account for the year in which they occur.

Other long-term benefits which are not encashable are recognised on actual basis at each Balance Sheet date.

c) Post Employment Benefit Plans

Under Defined Contribution Plans, contributions payable in keeping with the related schemes are recognised as expenses for the year.

For Defined Benefit Plans, the cost of providing benefits is determined using the `Projected Unit Credit Method', with actuarial valuations carried out at each Balance Sheet date. Actuarial gains and losses are recognised as income or expenditure immediately in full in the Profit and Loss Account for the year in which they occur. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, if any and as reduced by the fair value of scheme assets.

11. SALES

- Sales are inclusive of Excise duty but exclusive of Sales tax/VAT unless otherwise stated. Rebates, returns, discounts and allowances are netted therefrom.

12. INCOME AND EXPENDITURE

- Income and expenditure unless otherwise stated are recognised on accrual basis. Subsidies, insurance claims, export benefits and other claims are accounted for on acceptance/ ascertainment of amount recoverable.

13. BORROWING COST

- Borrowing cost incurred in relation to the acquisition, construction of assets are capitalised as the part of the cost of such assets upto the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

14. INCOME TAX

- Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rate and tax laws. Deferred tax assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

15. IMPAIRMENT OF ASSETS

- An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable account.

16. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

- Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

1. GENERAL

Accounts are prepared on historical cost adjusted by the revaluation of certain Fixed Asset and on the accounting principles of a going concern. Accounting policies unless stated otherwise, are consistent.

2. FIXED ASSETS

Fixed Assets are stated at cost of acquisition or construction including any attributable cost for bringing the asset to its working condition for its intended use or at revalued amounts wherever such assets have been revalued.

3. INTANGIBLES

Costs incurred on acquisition of intangible assets are capitalized and amortized on a straight-line basis as per rates specified in Schedule XIV of Companies Act, 1956.

4. DEPRECIATION

Depreciation is provided on Straight Line Method at the rates given in Schedule XIV to the Companies Act, 1956.

Extra shift depreciation on plant and machinery is provided on the basis of actual number of working days worked by respective plants.

Certain Plant and Machinery based on technical evaluation have been considered by the management as the continuous process plant and these have accordingly been depreciated at the prescribed rates.

Additions on account of exchange fluctuation are depreciated prospectively over the remaining life of the assets.

5. INVESTMENTS

Investments are stated at cost.

6. INVENTORIES

Inventories of finished goods include goods yet to be graded and marked. Excise duty on finished goods is provided after grading and marking.

Inventories are valued at lower of cost or net realisable value. Cost for own manufactured goods comprise of materials, labour and other appropriate overheads. Cost for Raw materials, stores and spares are determined on the basis of weighted average method. Cost of traded goods is determined on estimated cost basis.

Spares for specific Plant & Machinery are amortized over the useful life of the related Plant & Machinery, as estimated by the management.

7. PLANTATION WORK-IN-PROGRESS

Plantation work-in-progress is stated at cost.

Plantation work-in-progress includes cultivation and other expenses allocable to the same, which are carried forward till the commercial exploitation of the plantations raised. The wood procured on harvesting is transferred to the operations at the estimated proportionate cost incurred till harvesting and the corresponding amount is adjusted against the plantation work-in-progress.

Plantation Work-in-Progress also includes cost of raising seedlings which are adjusted at the time of sale/consumption of such seedlings.

8. CDM PROJECT

The expenses incurred in relation to the CDM Project have been shown under the head Advances and subject to the Companys proposal being registered with the UNFC who deal with the CDM Project, the appropriation for such expenses shall be accounted for in the year of realization of Carbon Credit.

9. EXCHANGE FLUCTUATION

Foreign currency transactions are recorded by applying foreign exchange rate applicable on the date of filing of Bill of Entry. Exchange rate differences arising on the date of settlement of transaction are recognised as exchange difference in foreign currency transaction.

Year end balances of foreign currency loans and other liabilities/receivables denominated in foreign currency are translated at the applicable forward contract or year-end rates as the case may be, and the resultant gains and losses are appropriately adjusted. Variation in foreign currency loans / liabilities due to exchange fluctuation are adjusted in Profit and Loss Account

10. EMPLOYEE BENEFITS

a) Short term Employee Benefits

The undiscounted amount of short-term Employee Benefits expected to be paid in exchange for the services rendered by employees is recognised on actual basis in the Profit & Loss Account in the year when the employee actually renders the service.

b) Long-term Employees Benefits

Leave encashment is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Profit and Loss Account for the year in which they occur.

Other long-term benefits which are not encashable are recognised on actual basis at each Balance Sheet date.

c) Post Employment Benefit Plans

Under Defined Contribution Plans, contributions payable in keeping with the related schemes are recognised as expenses for the year.

For Defined Benefit Plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations carried out at each Balance Sheet date. Actuarial gains and losses are recognised as income or expenditure immediately in full in the Profit and Loss Account for the year in which they occur. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, if any and as reduced by the fair value of scheme assets.

11. SALES

Sales are inclusive of Excise duty but exclusive of Sales tax/VAT unless otherwise stated. Rebates, returns, discounts and allowances are netted therefrom.

12. INCOME AND EXPENDITURE

Income and expenditure unless otherwise stated are recognised on accrual basis. Subsidies, insurance claims, export benefits and other claims are accounted for on acceptance/ ascertainment of amount recoverable.

13. BORROWING COST

Borrowing cost incurred in relation to the acquisition, construction of assets are capitalised as the part of the cost of such assets upto the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

14. INCOME TAX

Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rate and tax laws. Deferred tax assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

15. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable account.

16. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

 
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