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Accounting Policies of Manjushree Technopack Ltd. Company

Mar 31, 2015

I. ACCOUNTING CONCEPTS

The financial statements have been prepared under the historical cost convention on accrual basis under Indian Generally Accepted Accounting Principles (IGAAP). IGAAP comprises Accounting Standards notified by the Central Government of India under section 133 of The Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other pronouncements of the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 and 2013.

ii. USE OF ESTIMATES

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provision for doubtful debts, employee benefits, provision for income taxes, the useful lives of depreciable fixed assets and provisions for impairment.

iii. FIXED ASSETS

All assets are stated at historical cost (net of CENVAT and VAT Credit wherever applicable) less accumulated depreciation. Cost comprises of direct cost, related taxes, duties, freight attributable finance cost still such assets are ready for its intended use and the fluctuation in long term foreign currency loan on fixed assets. Reference is invited to note no. 1 A viii (b)

Fixed assets taken on finance lease are capitalized.

In respect of projects involving construction, related pre-operative expenses specifically attributable to construction of a project or to the acquisition of a fixed asset or bringing it to its working condition form part of the cost of assets. This treatment is in accordance with para 9.2 of Accounting Standard 10 -Accounting for Fixed Assets.

iv. DEPRECIATION

Depreciation is provided for under written down value method at the rates prescribed under Schedule II of the Companies Act, 2013 for all categories of eligible assets on a proportionate basis depending on the period of use. Assets acquired/discarded during the year are depreciated on pro-rata basis.

v. INVESTMENTS

Long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments comprising investments in mutual funds are stated at the lower of cost and fair value.

vi. BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or the construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowings costs are charged to the statement of profit and loss.

vii. VALUATION OF INVENTORIES

- Raw material, packing material, Stores & Spares and consumables are valued at cost computed on FIFO basis or market value whichever is less on the relevant valuation date. Cost for the purposes of valuation of raw-material, packing materials and stores, spares and consumables are inclusive of duties and taxes, freight inward, octroi and inward insurance and is net off credit under the CENVAT / VAT scheme.

- Finished Goods are valued at cost of manufacture or net realizable value whichever is lower. Cost includes the provision for excise duty likely to be payable upon clearance of the finished goods lying at the year end in factory / bonded premises. Such Finished Goods value includes the expenses incurred on conversion stocks under Company''s control.

viii. FOREIGN CURRENCY TRANSACTION

a) Transactions denominated in foreign currencies are normally recorded at monthly standard rate. Exchange fluctuations arising on payment in the case of material and expenses or realization are dealt within the statement of profit and loss. All monetary items are restated at the year end and non-monetary items are at valuation date rate / transaction date as the case may be and any differences arising thereof have been dealt within the statement of profit and loss to the extent it pertains to the current year.

b) The Company has exercised its option pursuant to Notification GSR914 (E) dated December 29, 2011 issued by MCA for adjusting to the cost of depreciable assets. In terms of notification GSR 913(E) dated December 29, 2011, the option is exercisable till the accounting periods ending on or before March 31, 2020.

c) Any income or expense on account of exchange difference either on settlement or on transaction is recognized in statement of Profit & Loss except as stated in above.

d) Premium or discount on forward exchange contracts are amortized and recognized in the statement of profit and loss over the period of the contract except as stated in above. Forward exchange contracts outstanding at the balance sheet date are restated at closing rate and any gains or losses are recognized in the statement of profit and loss.

ix. REVENUE RECOGNITION

a) Revenue from sale is recognized on dispatch of goods. Gross Sales are inclusive of excise duty and are net of trade discounts / sales returns.

b) Dividend Income is recognized when the right to receive is established.

c) Interest Income is accrued on a time proportionate basis.

d) Income from sale of scrap is recognized upon dispatch.

x. EMPLOYEE BENEFITS (also refer notes 6 and 10)

a) Provident Fund

The Company contributes to a government administered provident / pension fund in respect of all eligible employees. The fixed contributions to these funds are charged to statement of profit and loss.

b) Gratuity

The Gratuity Plan provides a lump sum payment to vested employees, at retirement, death, incapacitation or termination of employment. This is a defined benefit plan. Liabilities with regard to gratuity plan are determined by actuarial valuation at each Balance Sheet date. The Company fully contributes all ascertained liabilities to Manjushree Extrusion Employees Group Gratuity Trust (the Trust). Trustees administer the contributions made to the Trust and contributions are invested in Gratuity Fund of the Trust maintained by an insurer. The Company recognizes the net obligation of the gratuity plan in the Balance Sheet as an assets or liability.

Gratuity expenses for the year are determined by actuarial valuation using the Projected Unit Credit Method and provided for at the year end. Short term and long term obligation in this regard are also determined by actuarial valuation.

c) Leave Encashment

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

xi. TAXES ON INCOME

Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expense or benefit is recognized on timing difference between taxable income and accounting income that originating one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available to realize such assets. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

xii. SHARE ISSUE EXPENSES

Expenses in connection with issue of shares are written-off equally over 5 years in the Statement of Profit and Loss. The unamortized amount is shown under "Other Current or Non Current Assets based on its amortization period.

xiii. IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each Balance Sheet date for impairment, if any, based on internal/ external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets'' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

xiv PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) 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. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.


Mar 31, 2014

I. ACCOUNTING CONCEPTS

The financial statements have been prepared under the historical cost convention on accrual basis under Indian Generally Accepted Accounting Principles (IGAAP). IGAAP comprises Accounting Standards notified by the Central Government of India under Companies (Accounting Standards) Rules, 2006 and other pronouncements of the Institute of Chartered Accountants of India, and the provisions of the Companies Act, 1956.

II. USE OF ESTIMATES

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provision for doubtful debts, employee benefits, provision for income taxes, the useful lives of depreciable fixed assets and provisions for impairment.

III. FIXED ASSETS

All assets are stated at historical cost (net of CENVAT and VAT Credit wherever applicable) less accumulated

depreciation. Cost comprises of direct cost, related taxes, duties, freight attributable finance cost still such

assets are ready for its intended use and the fluctuation in long term foreign currency loan on fixed assets.

Reference is invited to note no. 1 A viii (b)

Fixed assets taken on finance lease are capitalized.

In respect of projects involving construction, related pre-operative expenses specifically attributable to

construction of a project or to the acquisition of a fixed asset or bringing it to its working condition form part of

the cost of assets. This treatment is in accordance with para 9.2 of Accounting Standard 10 - Accounting for

Fixed Assets issued under Companies (Accounting Standards) Rules, 2006.

iv. DEPRECIATION

Depreciation is provided for under written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956 for all categories of eligible assets on a proportionate basis depending on the period of use. Assets acquired/discarded during the year are depreciated on pro-rata basis.

v. INVESTMENTS

Long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments comprising investments in mutual funds are stated at the lower of cost and fair value.

vi. BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or the construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowings costs are charged to the statement of profit and loss.

vii. VALUATION OF INVENTORIES

- Raw material, Packing Material, Stores & Spares and Consumables are valued at cost computed on FIFO basis or market value whichever is less on the relevant valuation date. Cost for the purposes of valuation of raw-material, packing materials and stores, spares and consumables are inclusive of duties and taxes, freight inward, octroi and inward insurance and is net off credit under the CENVAT / VAT scheme.

- Finished Goods are valued at cost of manufacture or net realizable value whichever is lower. Cost includes the provision for excise duty likely to be payable upon clearance of the finished goods lying at

the year end in factory / bonded premises. Such Finished Goods value includes the expenses incurred on conversion stocks under Company''s control.

viii. FOREIGN CURRENCY TRANSACTION

a) Transactions denominated in foreign currencies are normally recorded at monthly standard rate. Exchange fluctuations arising on payment in the case of material and expenses or realization are dealt within the statement of profit and loss. All monetary items are restated at the year end and non monetary items are at valuation date rate / transaction date as the case may be and any differences arising thereof have been dealt within the statement of profit and loss to the extent it pertains to the current year.

b) The Company has exercised its option pursuant to Notification GSR914 (E) dated December 29, 2011 issued by MCA for adjusting to the cost of depreciable assets. In terms of notification GSR 913(E) dated December 29, 2011, the option is exercisable till the accounting periods ending on or before March 31, 2020.

c) Any income or expense on account of exchange difference either on settlement or on transaction is recognized in statement of Profit & Loss except as stated in b above.

d) Premium or discount on forward exchange contracts are amortised and recognised in the statement of profit and loss over the period of the contract except as stated in b above. Forward exchange contracts outstanding at the balance sheet date are restated at closing rate and any gains or losses are recognised in the statement of profit and loss.

ix. REVENUE RECOGNITION

a) Revenue from sale is recognized on dispatch of goods. Gross Sales are inclusive of excise duty and are net of trade discounts / sales returns.

b) Dividend Income is recognised when the right to receive is established.

c) Interest Income is accrued on a time proportionate basis.

d) Income from sale of scrap is recognised upon dispatch

x. EMPLOYEE BENEFITS (also refer notes 6 and 10)

a) Provident Fund

The Company contributes to a government administered provident / pension fund in respect of all eligible employees. The fixed contributions to these funds are charged to statement of profit and loss.

b) Gratuity

The Gratuity Plan provides a lump sum payment to vested employees, at retirement, death, incapacitation or termination of employment. This is a defined benefit plan. Liabilities with regard to gratuity plan are determined by actuarial valuation at each Balance Sheet date. The Company fully contributes all ascertained liabilities to Manjushree Extrusion Employees Group Gratuity Trust (the Trust). Trustees administer the contributions made to the Trust and contributions are invested in Gratuity Fund of the Trust maintained by an insurer. The company recognises the net obligation of the gratuity plan in the Balance Sheet as an assets or liability.

Gratuity expenses for the year are determined by actuarial valuation using the Projected Unit Credit Method and provided for at the year end. Short term and long term obligation in this regard are also determined by actuarial valuation.

c) Leave Encashment

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

xi. TAXES ON INCOME

Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax expense or benefit is recognized on timing difference between taxable income and accounting income that originating one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available to realise such assets. In other situations, deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets.

xii. SHARE ISSUE EXPENSES

Expenses in connection with issue of shares are written-off equally over 5 years in the Statement of Profit and Loss. The unamortized amount is shown under "Other Current or Non Current Assets based on its amortization period.

xiii. IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each Balance Sheet date for impairment, if any, based on internal/external factors.An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets'' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

xiv. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) 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. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements. B. NOTES ON ACCOUNT

1. All the figures in the Financial Statement have been rounded off to the nearest rupees.

2. Figures of the previous year have been reclassified, regrouped, aggregated and segregated, wherever necessary, to conform to the current year figures.

3. No amount is paid/payable by the Company under Section 441A of the Companies Act, 1956 (cess on turnover) since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

4. Balances in debtors, creditors and advances accounts as appearing in the books of account at the close of relevant accounting year are subject to external confirmation/ reconciliation after the year end as per standard accounting practice followed by the Company. In the opinion of the Board, all the current assets, loans and advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated in the books of account.

5. Estimated amount of contracts remaining to be executed on Capital Account as on March 31, 2014 is Rs.3,472.41 Lakhs (Previous year: Rs.696.27 Lakhs) against which advance of Rs.1,289.86 Lakhs (Previous year: Rs.91.97 Lakhs) has been made.

6. Additional information pursuant to the requirements of revised Schedule VI to the Companies Act, 1956:

8. The Company is engaged in the manufacture and sale (both Domestic & Exports) of "PET / Plastics Preforms & Containers," on own account and on account of others which constitutes single business segment. As per Management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographical segments to be reported as per Accounting Standard 17issued under the Companies (Accounting Standards) Rules, 2006.

9. Pursuant to disclosure requirements of Accounting Standard 18 on related parties issued under the Companies (Accounting Standards) Rules, 2006, the following disclosuresare given:

i. List of related parties and their relationship

- Enterprises under common control of the management (EUC)

- Mphinite Technologies Private Limited

- Mphinite Solutions Private Limited

- Manjushree Fincap Private Limited

- Shruti Financial Services Private Limited

- Hitech Creations Private Limited

a. Key Management personnel (KMP)

- Vimal Kedia

- Surendra Kedia

- Rajat Kedia

- Ankit Kedia

b. Relatives of Key Management Personnel (RKMP)

- Savita Kedia (wife of Vimal Kedia)

- Sashi Kedia (wife of Surendra Kedia)

ii. List of transactions with related parties


Mar 31, 2013

I. ACCOUNTING CONCEPTS

The financial statements have been prepared under the historical cost convention on accrual basis under Indian Generally Accepted Accounting Principles (GAAP). GAAP comprises Accounting Standards notified by the Central Government of India under Companies (Accounting Standards) Rules, 2006 and other pronouncements of the Institute of Chartered Accountants of India, and the provisions of the Companies Act, 1956.

ii. USE OF ESTIMATES

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provision for doubtful debts, employee benefits, provision for income taxes, the useful lives of depreciable fixed assets and provisions for impairment.

iii. FIXED ASSETS

All assets are stated at historical cost (net of CENVAT and VAT Credit wherever applicable) less accumulated depreciation. Cost comprises of direct cost, related taxes, duties, freight attributable, finance cost still such assets are ready for its intended use and the fluctuation in long term foreign currency loan on fixed assets. Reference is invited to note no. 1A viii (b)

Fixed assets taken on finance lease are capitalized.

In respect of projects involving construction, related pre-operative expenses specifically attributable to construction of a project or to the acquisition of a fixed asset or bringing it to its working condition form part of the cost of assets. This treatment is in accordance with para 9.2 of Accounting Standard 10 - Accounting for Fixed Assets issued under Companies (Accounting Standards) Rules, 2006.

iv. DEPRECIATION

Depreciation is provided for under written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956 for all categories of eligible assets on a proportionate basis depending on the period of use. Assets acquired/discarded during the year are depreciated on pro-rata basis.

V. INVESTMENTS

Long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments comprising investments in mutual funds are stated at the lower of cost and fair value.

vi. BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or the construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowings costs are charged to the statement of profit and loss.

vii. VALUATION OF INVENTORIES

- Raw material, packing material, Stores & Spares and consumables are valued at cost computed on FIFO basis or market value whichever is less on the relevant valuation date. Cost for the purposes of valuation of raw-material, packing materials and stores, spares and consumables are inclusive of duties and taxes, freight inward, octroi and inward insurance and is net off credit under the CENVAT / VAT scheme.

- Finished Goods are valued at cost of manufacture or net realizable value whichever is lower. Cost includes the provision for excise duty likely to be payable upon clearance of the finished goods lying at the year end in factory / bonded premises. Such Finished Goods value includes the expenses incurred on conversion stocks under Company''s control.

viii. FOREIGN CURRENCY TRANSACTION

a) Transactions denominated in foreign currencies are normally recorded at monthly standard rate. Exchange fluctuations arising on payment in the case of material and expenses or realization are dealt within the statement of profit and loss. All monetary items are restated at the year end and non monetary items are at valuation date rate / transaction date as the case may be and any differences arising thereof have been dealt within the statement of profit and loss to the extent it pertains to the current year.

b) During the year, the Company has exercised its option pursuant to Notification GSB914 (E) dated December 29, 2011 issued by MCA for adjusting to the cost of depreciable assets. In terms of notification GSR 913(E) dated December 29,2011, the option is exercisable till the accounting periods ending on or before March 31,2020.

The exchange difference amounting to Rs248.64 lacs arising on reporting of long-term foreign currency liability relating to acquisition of such assets has been adjusted with cost of assets during the current year.

c) Any income or expense on account of exchange difference either on settlement or on transaction is recognized in statement of Profit & Loss except as stated in b above.

d) Premium or discount on forward exchange contracts are amortised and recognised in the statement of profit and loss over the period of the contract except as stated in b above. Forward exchange contracts outstanding at the balance sheet date are restated at closing rate and any gains or losses are recognised in the statement of profit and loss.

ix. REVENUE RECOGNITION

a) Revenue from sale is recognized on dispatch of goods. Gross Sales are inclusive of excise duty and are net of trade discounts / sales returns.

b) Dividend Income is recognised when the right to receive is established.

c) Interest Income is accrued on a time proportionate basis.

d) Income from sale of scrap is recognised upon dispatch

x. EMPLOYEE BENEFITS (also refer notes 6 and 10)

a) Provident Fund

The Company contributes to a government administered provident / pension fund in respect of all eligible employees. The fixed contributions to these funds are charged to statement of profit and loss.

b) Gratuity

The Gratuity Plan provides a lump sum payment to vested employees, at retirement, death, incapacitation or termination of employment. This is a defined benefit plan. Liabilities with regard to gratuity plan are determined by actuarial valuation at each Balance Sheet date. The Company fully contributes all ascertained liabilities to Manjushree Extrusion Employees Group Gratuity Trust (the Trust). Trustees administer the contributions made to the Trust and contributions are invested in Gratuity Fund of the Trust maintained by an insurer. The company recognises the net obligation of the gratuity plan in the Balance Sheet as an assets or liability.

Gratuity expenses for the year are determined by actuarial valuation using the Projected Unit Credit Method and provided for at the year end. Short term and long term obligation in this regard are also determined by actuarial valuation.

c) Leave Encashment

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

xi. TAXES ON INCOME

Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expense or benefit is recognized on timing difference between taxable income and accounting income that originating one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available to realise such assets. In other situations, deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets.

xii. SHARE ISSUE EXPENSES

Expenses in connection with issue of shares are written-off equally over 5 years in the Statement of Profit and Loss. The unamortized amount is shown under "Other Current or Non Current Assets" based on its amortization period.

xiii. IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each Balance Sheet date for impairment, if any, based on internal/ external factors.An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets'' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

xiv. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) 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. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.


Mar 31, 2012

I. ACCOUNTING CONCEPTS

The financial statements have been prepared under the historical cost convention on accrual basis under Indian Generally Accepted Accounting Principles (GAAP). GAAP comprises Accounting Standards notified by the Central Government of India under Companies (Accounting Standards) Rules, 2006 and other pronouncements of the Institute of Chartered Accountants of India, and the provisions of the Companies Act, 1956.

II. USE OF ESTIMATES

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provision for doubtful debts, employee benefits, provision for income taxes, the useful lives of depreciable fixed assets and provisions for impairment.

III. FIXED ASSETS

All assets are stated at historical cost (net of CENVAT and VAT Credit wherever applicable) less accumulated depreciation. Cost comprises of direct cost, related taxes, duties, freight and attributable finance costs till such assets are ready for their intended use. Fixed assets taken on finance lease are capitalized.

iv. DEPRECIATION

Depreciation is provided for under written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956 for all categories of eligible assets on a proportionate basis depending on the period of use. Assets acquired/discarded during the year are depreciated on pro-rata basis.

v. INVESTMENTS

Long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments comprising investments in mutual funds are stated at the lower of cost and fair value.

vi. BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or the construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to statement of profit and loss.

vii. VALUATION OF INVENTORIES

- Raw material, packing material, stores and spares and consumables are valued at cost computed on FIFO basis or market value whichever is less on the relevant valuation date. Cost for the purposes of valuation of raw-material, packing materials and stores, spares and consumables are inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit under the CENVAT / VAT scheme.

- Finished Goods are valued at cost of manufacture or net realizable value whichever is lower. Cost includes the provision for excise duty likely to be payable upon clearance of the finished goods lying at the year end in factory / bonded premises.

- The Company has changed its accounting policy in respect of expenses incurred on conversion stocks under the Company's control. Such expenses now have been inventoried. Earlier these were considered as period costs. Consequently profit for the year and inventories at the year-end are higher by Rs 206.41 lakhs.

viii. FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are normally recorded at monthly standard rate. Exchange fluctuations arising on payment or realization are dealt with in the statement of profit and loss. All monetary items are restated at the year end and non monetary items are at valuation date rate / transaction date as the case may be and any differences arising thereof have been dealt within the statement of profit and loss to the extent it pertains to the current year.

Any income or expense on account of exchange difference, either on settlement or on transaction, is recognized in the statement of profit and loss.

Premium or discount on forward exchange contracts are amortised and recognised in the statement of profit and loss over the period of the contract. Forward exchange contracts outstanding at the balance sheet date are restated at closing rate and any gains or losses are recognised in the statement of profit and loss.

ix. REVENUE RECOGNITION

- Revenue from sale is recognized on dispatch of goods. Gross Sales are inclusive of excise duty and are net of trade discounts / sales returns.

- Dividend Income is recognised when the right to receive is established.

- Interest Income is accrued on a time proportionate basis.

- Income from sale of scrap is recognised upon dispatch

x. EMPLOYEE BENEFITS (Also refer Notes # 6 and 10) Provident Fund

The Company contributes to a government administered provident / pension fund in respect of all eligible employees. The fixed contributions to these funds are charged to statement of profit and loss.

Gratuity

The Gratuity Plan provides a lump sum payment to vested employees, at retirement, death, incapacitation or termination of employment. This is a defined benefit plan. Liabilities with regard to gratuity plan are determined by actuarial valuation at each Balance Sheet date. The Company fully contributes all ascertained liabilities to Manjushree Extrusion Employees Group Gratuity Trust (the Trust). Trustees administer the contributions made to the Trust and contributions are invested in Gratuity Fund of the Trust maintained by an insurer. The company recognises the net obligation of the gratuity plan in the Balance Sheet as an asset or liability.

Gratuity expenses for the year are determined by actuarial valuation using the Projected Unit Credit Method and provided for at the year end. Short term and long term obligation in this regard are also determined by actuarially valuation.

Leave Encashment

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

xi. TAXES ON INCOME

Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expense or benefit is recognised on timing difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available to realise such assets. In other situations, deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets.

xii. SHARE ISSUE EXPENSES

Expenses in connection with issue of shares are written-off equally over 5 years in the statement of profit and loss. The unamortized amount is shown under "Other Current or Non-current Assets based on its amortization period.

xiii. IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each Balance Sheet date for impairment, if any, based on internal/ external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

xiv. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) 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. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.


Mar 31, 2011

1. ACCOUNTING CONCEPTS

The financial statements have been prepared under the historical cost convention on accrual basis under Indian Generally Accepted Accounting Principles (GAAP). GAAP comprises Accounting Standards notified by the Central Government of India under Companies (Accounting Standard) Rules, 2006 and other pronouncements of the Institute of Chartered Accountants of India, and the provisions of the Companies Act, 1956.

2. USE OF ESTIMATES

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provision for doubtful debts, employee benefits, provision for income taxes, the useful lives of depreciable fixed assets and provisions for impairment.

3. FIXED ASSETS

All assets are stated at historical cost (net of CENVAT CREDIT wherever applicable) less accumulated depreciation. Cost comprises of direct cost, related taxes, duties, freight and attributable finance costs till such assets are ready for its intended use. Fixed assets taken on finance lease are capitalized.

4. DEPRECIATION

Depreciation is provided for under written down value method at the rates prescribed under schedule VI of the Companies Act, 1956 for all categories of eligible assets on a proportionate basis depending on the period of use.

5. INVESTMENTS

Long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments comprising investments in mutual funds are stated at the lower of cost and fair value.

6. BORROWING COSTS

Borrowing Costs are capitalized as part of qualifying asset when it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

7. VALUATION OF INVENTORIES

(i) Raw material, packing material, Stores & Spares and consumables are valued at cost computed on FIFO basis or market value whichever is less on the relevant valuation date. Cost for the purposes of valuation of raw- material, packing materials and stores & tools is inclusive of duties and taxes, freight inward, octroi and inward insurance and is net of credit under the CENVAT / VAT scheme.

(ii) Finished Goods are valued at cost of manufacture or net realizable value whichever is lower and also includes the provision for excise duty likely to be payable upon clearance of the finished goods lying at the year end in factory / bonded premises.

8. FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are normally recorded at monthly standard rate. Exchange fluctuations arising on payment or realization are dealt within the profit and loss account. All monetary items are restated at the year end and non monetary items are at valuation date rate / transaction date as the case may be and any differences arising thereof have been dealt within the profit and loss account to the extent pertains to the current year.

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the Profit & Loss account.

9. REVENUE RECOGNITION

Revenue from sale is recognized on dispatch of goods. Gross Sales are inclusive of excise duty and are net of trade discounts / sales returns.

Dividend Income is recognised when the right to receive is established.

Interest Income is accrued on a time proportionate basis.

Income from sale of scrap is recognised upon dispatch.

10. EMPLOYEE BENEFITS

Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Short term employee benefits, including accumulated compensated absences, at the balance sheet date, are recognized as an expense as per the Company's scheme based on expected obligations on undiscounted basis.

Long-term employee benefits Provident Fund

The company contributes to a government administered provident / pension fund in respect of all eligible employees. The fixed contributions to these funds are charged to Profit and Loss Account.

Gratuity

The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment. Liability with regard to gratuity plan is accrued based on an actuarial valuation at the balance sheet date carried out by the independent actuary and is funded by Aviva Life Insurance Company India Limited.

Leave Encashment

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

11. TAXES ON INCOME

Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available to realise such assets. In other situations, deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets.

12. SHARE ISSUE EXPENSES

Expenses in connection with issue of shares are shown as Miscellaneous Expenditure in the balance sheet and written-off equally over 5 years.

13. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each Balance Sheet date for impairment, if any, based on internal/ external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) 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. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.


Mar 31, 2010

1. ACCOUNTING CONCEPTS

The financial statements have been prepared under the historical cost convention on accrual basis under Indian Generally Accepted Accounting Principles (GAAP). GAAP comprises Accounting Standards notified by the Central Government of India under Companies (Accounting Standard) Rules, 2006 and other pronouncements of the Institute of Chartered Accountants of India, and the provisions of the Companies Act, 1956.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting year. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. FIXED ASSETS Tangible Assets

All assets are stated at historical cost (net of CENVAT wherever applicable) less accumulated depreciation. Cost comprises of direct cost, related taxes, duties, freight and attributable finance costs till such assets are ready for its intended use. Fixed assets taken on finance lease are capitalized.

Intangible Assets

Intangible Assets are stated at cost of acquisition less accumulated amortization.

4. DEPRECIATION

Depreciation is provided for under written down value method at the rates prescribed under schedule VI of the Companies Act, 1956 for all categories of eligible assets on a proportionate basis depending on the period of use.

5. BORROWING COSTS

Borrowing Costs are capitalized as part of qualifying asset when it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

6. VALUATION OF INVENTORIES

(i) Raw material, packing material, Stores & Spares and consumables are valued at cost or market value whichever is less on the relevant valuation date. (ii) Finished Goods are valued at cost of manufacture or net realizable value whichever is lower and also includes the provision for excise duty likely to be payable upon clearance of the finished goods lying at the year end in factory/bonded premises.

7. FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are normally recorded at monthly standard rate. Exchange fluctuations arising on payment or realization are dealt within the profit and loss account. All monetary items are restated at the yearend and non monetary items are at valuation date rate / transaction date as the case may be and any differences arising thereof have been dealt within the profit and loss account to the extent pertains to the current year.

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the Profit & Loss account.

8. REVENUE RECOGNITION

Revenue from sale is recognized on dispatch of goods. Gross Sales are inclusive of excise duty and are net of trade discounts/sales returns.

9. EMPLOYEE BENEFITS Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Short term employee benefits, including accumulated compensated absences, at the balance sheet date, are recognized as an expense as per the Companys scheme based on expected obligations on undiscounted basis.

Defined Contribution Plans Provident Fund

The company contributes to a government administered provident/pension fund in respect of all eligible employees. The fixed contributions to these funds are charged to Profit and Loss Account.

Gratuity

The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment. Liability with regard to gratuity plan is accrued based on an actuarial valuation at the balance sheet date carried out by the independent actuary and is funded by Aviva Life Insurance Company India Limited.

10. TAXES ON INCOME

Provision for Current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and reviewed for the appropriateness of their carrying values at each balance sheet date.

11. SHARE ISSUE EXPENSES

Expenses in connection with issue of shares are shown as Miscellaneous Expenditure in the balance sheet and is to be written-off over a period of 5 years in equal installments.

12. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

13. CONTINGENT LIABILITIES

Provisions are recognized only when there is a present obligation as a result of past events and when a reasonable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) possible obligation which will be confirmed only by future events not wholly within the control of the company or (ii) present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2009

1. ACCOUNTING CONCEPTS

(i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and the Accounting Standards (AS) pronounced by the Institute of Chartered Accountants of India.

(ii) The financial statements are prepared under the historical cost convention on the basis of a going concern with revenues recognised and expenses accounted on their accrual, unless otherwise specifically stated.

2. SALES TURNOVER, DUTIES & TAXES

Sales Turnover is inclusive of excise duty payable by the Company but excludes all other taxes realised from the customers on account of the Government. Duties and taxes at the point of sales are accounted for when the finished products are despatched from bonded premises.

3. VALUATION OF INVENTORIES

(i) Raw Materials, Packing Materials, Stores & Spares and Consumables are valued at cost or market value, whichever is less, on the relevant valuation date.

(ii) Finished Goods are valued at cost of manufacture or net realisable value, whichever is lower, and also includes the provision for Excise Duty likely to be payable upon despatch of the finished goods lying at the year end in factory / bonded premises.

4. EMPLOYEE BENEFITS

The Company has provided for its estimated liability in respect of Bonus, Leave Encashment and Gratuity payable to employees on accrual basis as per the usual practice adopted in earlier years.

5. FIXED ASSETS AND DEPRECIATION

(i) Fixed assets are valued at cost, net of Cenvat and other duty credits set-off, plus all other expenses specifically incurred in their procurement and installation at company premises.

(ii) Depreciation is provided for under written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956 (as amended) for all categories of eligible assets on a proportionate basis depending on the period of user.

6. CONTINGENT LIABILITIES

Contingent liabilities are not provided for, but disclosed by way of notes on accounts.

7. SHARE ISSUE EXPENSES

Expenses in connection with issue of shares is shown as miscellaneous expenditure to be written off over a period of 5 years in equal instalments as per applicable provisions of IT Act, 1961.


Mar 31, 2008

1. ACCOUNTING CONCEPTS

(i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and the Accounting Standards (AS) pronounced by the Institute of Chartered Accountants of India.

(ii) The financial statements are prepared under the historical cost convention on the basis of a going concern with revenues recognised and expenses accounted on their accrual, unless otherwise specifically stated.

2. SALES TURNOVER, DUTIES TAXES

Sales Turnover is inclusive of excise duty payable by the Company but excludes all other taxes realised from the customers on account of the Government. Excise Duty at the point of sales is accounted for when the finished productsare despatched from bonded premises.

3. VALUATION OF INVENTORIES

(i) Raw Materials, Packing Materials, Stores Et Spares and Consumables are valued at cost or market value, whichever is less, computed on FIFO basis.

(ii) Finished Goods a re valued at cost of manufacture or net realisable value, whichever is lower, and also includes the provision for Excise Duty likely to be payable upon despatch of the finished goods lying at the year end in factory / bonded premises.

4. EMPLOYEE BENEFITS

The Company has provided for its estimated liability in respect of Bonus and Gratuity payable to employees on accrual basis as per the usual practice adopted by the Company in earlier years. Pursuant to AS 15 (Revised) issued by ICAI, applicable from 1st April 2007, the liability for accumulated leave till the current accounting year has been duly accounted for.

5. FIXED ASSETS AND DEPRECIATION

(I) Fixed assets are valued at cost, net of the Modvat Credit set-off, plus all other expenses specifically incurred in their procurement and installation at factory premises.

(ii) Depreciation is provided for under written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956 (as amended) for all categories of eligible assets on a proportionate basis depending on the period of user.

6. CONTINGENT LIABILITIES

Contingent liabilities are not provided for, but disclosed by way of notes on accounts.

7. FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction. Any income or expense on account of exchange difference either on settlement or on transaction is recognised in the profit loss account.

8. SHARE ISSUE EXPENSES

Expenses in connection with issue of shares is being shown as misc. expenses to be written off over a period of 5 years in equal instalments as per applicable provisions of IT Act, 1961.


Mar 31, 2005

I. ACCOUNTING CONCEPTS

(i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and the Accounting Standards (AS) pronounced by the Institute of Chartered Accountants of India.

(ii) The financial statements are prepared under the historical cost convention on the basis of a going concern with revenues recognised and expenses accounted on their accrual, unless otherwise specifically stated.

2. SALES TURNOVER, DUTIES & TAXES

Sales Turnover is inclusive of excise duty payable by the company but excludes all other taxes realised from the customers on account of the Government. Excise Duty payable on sales is accounted for when the finished products are despatched from bonded premises.

3. VALUATION OF INVENTORIES

(i) Raw Materials, Packing Materials, Stores & Spares and Consumables are valued at cost computed on FIFO basis.

(ii) Finished Goods are valued at cost of manufacture or net realisable value, whichever is lower, and also includes the provision for Excise Duty likely to be payable upon despatch of the finished goods lying at the year-end in factory/bonded premises.

4. FIXED ASSETS AND DEPRECIATION

(i) Fixed assets are valued at cost, net of the Modvat Credit set-off, plus all other expenses specifically incurred in their procurement and installation at factory premises. The cost also includes preoperative expenses incurred during construction period, which are capitalised as per recognised accounting practices.

(ii) Depreciation is provided for underwritten Down Value Method at the rates prescribed under Schedule XIV of the Companies Act, 1956 (as amended) for all categories of eligible assets on a proportionate basis depending on the period of user.

5. CONTINGENT LIABILITIES

Contingent liabilities are not provided for, but disclosed by way of notes on accounts.

6. PRELIMINARY AND PUBLIC ISSUE EXPENSES

These expenses are being amortized over a period of 10 years.

7. FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction. Any income or expense on account of exchange difference either on settlement or on transaction is recognised in the profit & loss account except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.


Mar 31, 2004

1. ACCOUNTING CONCEPTS

(i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and the Accounting Standards (AS) pronounced by the Institute of Chartered Accountants of India.

(ii) The financial statements are prepared under the historical cost convention on the basis of a going concern with revenues recognised and expenses accounted on their accrual, unless otherwise specifically stated.

2. SALES TURNOVER. DUTIES & TAXES

Sales Turnover is inclusive of excise duty payable by the company but excludes all other taxes realised from the customers on account of the Government. Excise Duty payable on sales is accounted for when the finished products are despatched from bonded premises.

3. VALUATION OF INVENTORIES

(i) Raw Materials, Packing Materials, Stores & Spares and Block & Dies are valued at cost computed on FIFO basis.

(ii) Finished Goods are valued at cost of manufacture or net realisable value, whichever is lower, and also includes the provision for Excise Duty likely to be payable upon despatch of the finished goods lying at the year-end in factory / bonded premises.

4. FIXED ASSETS AND DEPRECIATION

(i) Fixed assets are valued at cost, net of the Modvat Credit set-off, plus all other expenses specifically incurred in their procurement and installation at factory premises. The cost also includes preoperative expenses incurred during construction period, which are capitalised as per recognised accounting practices.

(ii) Depreciation is provided for under Written Down Value Method at the rates prescribed under Schedule XIV of the Companies Act, 1956 (as amended) for all categories of eligible assets on a proportionate basis depending on the period of user.

5. CONTINGENT LIABILITIES

Contingent liabilities are not provided for, but disclosed by way of notes on accounts.

6. PRELIMINARY AND PUBLIC ISSUE EXPENSES

These expenses are being amortized over a period of 10 years.

7. FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction. Any income or expense on account of exchange difference either on settlement or on transaction is recognised in the profit & loss account except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.


Mar 31, 2002

1. ACCOUNTING CONCEPTS

(i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

(ii) The financial statements are prepared under the historical cost convention on the basis of a going concern with revenues recognised and expenses accounted on their accrual, unless otherwise specifically stated. Claims and/or Refunds not ascertainable with reasonable certainty are accounted for on cash basis.

2. SALES

Sales are inclusive of excise duty but exclude all other taxes.

3. EXCISE DUTY/CUSTOMS DUTY

Excise Duty and Customs Duty is accounted for as and when the same is paid on the despatch/release of goods from bonded premises. No duty is provided for in respect of the goods lying in factory/bonded premises.

4. VALUATION OF INVENTORIES

(i) Raw Materials, Fuel and Packing Materials are valued at cost computed on FIFO basis.

(ii) Finished Goods/Semi-Finished Goods are valued at cost or net realisable value, whichever is lower.

Cost for the purpose is computed on the basis of cost of materials, labour and overhead upto the stage of manufacture of the products(s).

5. FIXED ASSETS AND DEPRECIATION

(i) Fixed assets are valued at cost, net of the Modvat Credit set-off, plus all other expenses specifically incurred in their procurement and installation at factory premises. The cost also includes preoperative expenses incurred during construction period, which are capitalised as per recognised accounting practices.

(ii) Depreciation is provided for under Written Down Value Method at the rates prescribed under Schedule XIV of the Companies Act, 1956 (as amended) for all categories of eligible assets on a proportionate basis depending on the period of user.

6. CONTINGENT LIABILITIES

Contingent liabilities are not provided for, and are disclosed by way of notes on accounts.

7. PRELIMINARY AND PUBLIC ISSUE EXPENSES

These expenses are being amortized over a period of 10 years.

8. FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction. Any income or expense on account of exchange difference either on settlement or on transaction is recognised in the profit & loss account except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.


Mar 31, 2000

A. SIGNIFICANT ACCOUNTING POLICIES

1. ACCOUNTING CONCEPTS

(i) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

(ii) The financial statements are prepared under the Historical Cost Convention on the basis of a Going Concern with revenues recognised and expenses accounted on their accrual, unless otherwise specifically stated. Claims and/or Refunds not ascertainable with reasonable certainty are accounted for on cash basis.

2. SALES

Sales are inclusive of excise duty but exclude all other taxes.

3. EXCISE DUTY/CUSTOMS DUTY

Excise Duty and Customs Duty is accounted for as and when the same is paid on the despatch/release of goods from bonded premises. No duty is provided for in respect of the goods lying in factory/bonded premises.

4. VALUATION OF INVENTORIES

(i) Raw Materials, Fuel and Packing Materials are valued at cost computed on FIFO basis.

(ii) Finished Goods and Semi-Finished Goods are valued at cost or net realisable value, whichever is lower. Cost for the purpose is computed on the basis of cost of materials, labour, and other related overhead upto the stage of manufacture of the products(s).

5. FIXED ASSETS AND DEPRECIATION

(i) Fixed assets are valued at cost, net of the Modvat Credit set-off, plus all other expenses specifically incurred in their procurement and installation at factory premises. The cost also includes preoperative expenses incurred during construction period, which are capitalised as per recognised accounting practices.

(ii) Depreciation is provided for at the rates prescribed under Schedule XIV of the Companies Act, 1956 (as amended) for all categories of eligible assets, on a proportionate basis depending on the period of user, as under :

(a) In respect of the Flexible Packing Unit at Guwahati, under the Straight Line Method; and

(b) In respect of the PET Containers Unit at Bangalore, under the Written Down Value method.

6. CONTINGENT LIABILITIES

Contingent liabilities are not provided for, and are disclosed by way of notes on accounts.

7. PRELIMINARY AND PUBLIC ISSUE EXPENSES

These expenses are being amortized over a period of 10 years.

8. FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction. Any income or expense on account of exchange difference either on settlement or on transaction is recognised in the profit & loss account except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

 
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