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Accounting Policies of Mayur Leather Products Ltd. Company

Mar 31, 2015

(A) Basis of Preparation

These Financial Statements have been prepared in accordance with the generally accepted Accounting Principles in India under the Historical Cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 133 of the Companies Act 2013, read with rule 7 of the Companies Accounts Rules, 2014.

All Assets & 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 III to the Companies Act, 2013.

(B) Tangible Assets

Tangible Assets are stated at cost which includes cost of acquisition, installation, direct costs and borrowing cost incurred upto the date of commissioning.

(C) Intangible Assets

Intangible Assets not yet amortized, being under development & not put to use.

(D) Depreciation

(i) Depreciation on tangible assets has been provided at the SLM Method on the basis of useful life of assets as prescribed in part C of schedule 11 of Companies Act, 2013.

(ii) Depreciation on additions and deletion during the year has been provided on pro-rata basis with reference to the month of addition and deletion.

(iii) Land & Site Development has not been depreciated.

(iv) From the date Schedule II comes into effect:

(a) has been depreciated over the remaining useful life of the assets as per this schedule

(b) has been charged to surplus of profit & Loss accounts, where the remaining useful life of an asset is Nil.

(E) Foreign Currency Transactions

(i) Cost of imported material is converted to Indian currency at the rates prevailing at the time of payment.

(ii) The expenditure in Foreign Currency is accounted at the rates prevailing on the date of transaction.

(iii) The Export Sales are accounted for at the actual rates prevailing at the time of bill discounting.

(iv) Balances of Monetary items in Foreign Currency outstanding at the close of the year are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet.

(v) Exchange rate difference between the prevailing rate on the date of transaction and on the date of settlement as also on conversion of monetary items in Current Assets and Current Liabilities at the end of the year are recognized as income & expenses as the case may be in Profit & Loss Account.

(F) Inventories

(i) Raw Material, Stores, Spares & Maintenance items, consumable goods are valued at lower of landed cost and Net Realizable Value. The cost formula used is FIFO for all items.

(ii) Work in process is valued at cost.

(iii) Finished Goods are valued at Cost or Net Realizable Value whichever is lower.

(iv) The cost of imported raw material includes custom duties and other direct expenditure.

(G) Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Sales within India are exclusive of Sales Tax and Excise Duty. Cut off date for accounting Export Sales is based on the date of bill of lading. Export sales are accounted for on FOB Basis.

(H) Employee Benefits

(i) The Company has Defied Contribution Plan for its employee's retirement benefits comprising of Provident Fund & Employee's State Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employee's salary. The Company recognizes its contribution as expenses of the year in which the liability is incurred.

(ii) Gratuity Liability under the Payment of Gratuity Act is based on actuarial valuation carried out at the close of the financial year in accordance with the scheme administered by Life Insurance Corporation of India through a Gratuity Trust Fund and contribution payable under the said scheme are charged to Profit & Loss Account. In absences of information Company is not in a position to disclose details as per AS-15 (Employee Benefits) in respect of defined benefit Plan (Gratuity).

(iii) Earn Leave Accruing to employees as on the last day of Financial Year on accrual basis.

(I) Borrowing Costs

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 recognized in statement of Profit and Loss in the period in which they are incurred.

(J) Taxation

Income Tax Provision comprises Current Tax and Deferred Tax charge or credit. Provision for current tax is made on Assessable Income at the tax rate applicable to the relevant assessment year. The Deferred Tax Assets and Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of unabsorbed depreciation under tax laws are recognized only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized, only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred assets is reviewed to reassure realization.

(K) Impairment

The carrying amount of Assets are reviewed at each Balance Sheet date if there is any Indication of Impairment based on Internal as well as external factors. An Impairment Loss will be recognized wherever carrying amount of Assets exceeds its estimated Recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value at weighted average cost of capital. After, impairment, depreciation is provided on revised carrying amount of assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(L) Provisions, Contingent Liabilities & Contingent Assets

The company recognizes a provision where there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A Disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

(M) Lease Transaction

For assets taken/Given on operating lease, lease rentals payable/receivable are charged/creditors to revenue.

(N) Investments

Investments are valued at cost. Provision for diminution in the value of long term investments is made. Only if such decline is other than temporary.

(O) Research & Development

Revenue expenditure pertinent to research & development is charged to the Profit & Loss Account in the year in which it is incurred.

(P) Cash & Cash Equivalent

In the Cash Flow Statement, 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.

(Q) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.


Mar 31, 2014

(A) Basis of Preparation

These Financial Statements have been prepared in accordance with the generally accepted Accounting Principles in India under the Historical Cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211 (3C) [Companies (Accounting Standards) Rules, 2006, as amended and all other relevant provisions of the Companies Act, 1956.

All Assets & 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.

(B) Tangible Assets

Tangible Assets are stated at cost which includes cost of acquisition, installation, direct costs and borrowing cost incurred upto the date of commissioning.

(C) Depreciation

(i) Depreciation has been provided at the SLM rates as prescribed by Schedule XIV of the Companies Act, 1956.

(ii) Depreciation has been provided on Double Shift Basis.

(iii) Depreciation on additions and deletion during the year has been provided on pro-rata basis with reference to the month of addition and deletion.

(iv) Land & Site Development has not been depreciated.

(D) Foreign Currency Transactions

(i) Cost of imported material is converted to Indian currency at the rates prevailing at the time of payment.

(ii) The expenditure in Foreign Currency is accounted at the rates prevailing on the date of transaction.

(iii) The Export Sales are accounted for at the actual rates prevailing at the time of bill discounting.

(vi) Alances of Monetary items in Foreign Currency outstanding at the close of the year are

converted in Indian Currency at the appropriate rates of exchange prevailing on the date of thes

Balance Sheet.

(v) Exchange rate difference between the prevailing rate on the date of transaction and on the date of settlement as also on conversion of monetary items in Current Assets and Current Liabilities at the end of the year are recognized as income & expenses as the case may be in Profit & Loss Account.

(E) Inventories

(i) Raw Material, Stores, Spares & Maintenance items, consumable goods are valued at lower of landed cost and Net Realizable Value. The cost formula used is FIFO for all items.

(ii) Work in process is valued at cost.

(iii) Finished Goods are valued at Cost or Net Realizable Value whichever is lower.

(iv) The cost of imported raw material includes custom duties and other direct expenditure.

(F) Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Sales within India are exclusive of Sales Tax and Excise Duty. Cut off date for accounting Export Sales is based on the date of bill of lading. Export sales are accounted for on FOB Basis.

(G) Employee Benefits

(i) The Company has Defied Contribution Plan for its employee''s retirement benefits comprising of Provident Fund & Employee''s State Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employee''s salary. The Company recognizes its contribution as expenses of the year in which the liability is incurred.

(ii) Gratuity Liability under the Payment of Gratuity Act is based on actuarial valuation carried out at the close of the financial year in accordance with the scheme administered by Life Insurance Corporation of India through a Gratuity Trust Fund and contribution payable under the said scheme are charged to Profit & Loss Account. In absences of information Company is not in a position to disclose details as per AS-15 (Employee Benefits) in respect of defined benefit Plan (Gratuity).

(iii) Earn Leave Accruing to employees as on the last day of Financial Year on accrual basis.

(iv) Compensation to Employees who have opted for retirement under the Voluntary Retirement Scheme of the Company is charged to Profit & Loss Account in the year of exercise of option.

(H) Borrowing Costs

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 recognized in statement of Profit and Loss in the period in which they are incurred.

(I) Taxation

Income Tax Provision comprises Current Tax and Deferred Tax charge or credit. Provision for current tax is made on Assessable Income at the tax rate applicable to the relevant assessment year. The Deferred Tax Assets and Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of unabsorbed depreciation under tax laws are recognized only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized, only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred assets is reviewed to reassure realization.

(J) Impairment

The carrying amount of Assets are reviewed at each Balance Sheet date if there is any Indication of Impairment based on Internal as well as external factors. An Impairment Loss will be recognized wherever carrying amount of Assets exceeds its estimated Recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value at weighted average cost of capital. After, impairment, depreciation is provided on revised carrying amount of assets over the remaining useful life. Previously recognized impairment loss is further provided or reversed depending on changes in circumstances.

(K) Provisions, Contingent Liabilities & Contingent Assets

The company recognizes a provision where there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A Disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

(L) Lease Transaction

For assets taken/ Given on operating lease, lease rentals payable/ Receivable are charged/Credited to revenue.

(M) Investments

Investments are valued at cost. Provision for diminution in the value of long term investments is made, only if such decline is other than temporary.

(N) Research & Development

Revenue expenditure pertinent to research & development is charged to the Profit & Loss Account in the year in which it is incurred.

(O) Cash & Cash Equivalent

In the Cash Flow Statement, 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.

(P) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.


Mar 31, 2013

1. SIGNIFICANT ACCOUNTING POLICIES

(A) Basis of Preparation

These Financial Statements have been prepared in accordance with the generally accepted Accounting Principles in India under the Historical Cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211 (3C) [Companies (Accounting Standards) Rules, 2006, as amended] and all other relevant provisions of the Companies Act, 1956. All Assets & 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.

(B) Tangible Assets

Tangible Assets are stated at cost which includes cost of acquisition, installation, direct costs and borrowing cost incurred upto the date of commissioning.

(C) Depreciation

(i) Depreciation has been provided at the SLM rates as prescribed by Schedule XIV of the Companies Act, 1956.

(ii) Depreciation has been provided on Double Shift Basis.

(iii) Depreciation on additions and deletion during the year has been provided on pro-rata basis with reference to the month of addition and deletion.

(iv) Land &Site Development has not been depreciated.

(D) Foreign Currency Transactions

(i) Cost of imported material is converted to Indian currency at the rates prevailing at the time of payment.

(ii) The expenditure in Foreign Currency is accounted at the rates prevailing on the date of transaction.

(iii) The Export Sales are accounted for at the actual rates prevailing at the time of bill discounting.

(vi) Balances of Monetary items in Foreign Currency outstanding at the close of the year are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet.

(v) Exchange rate difference between the prevailing rate on the date of transaction and on the date of settlement as also on conversion of monetary items in Current Assets and Current Liabilities at the end of the year are recognized as income & expenses as the case may be in Profit & Loss Account.

(E) Inventories

(i) Raw Material, Stores, Spares & Maintenance items, consumable goods are valued at lower of landed cost and Net Realizable Value. The cost formula used is FIFO for all items.

(ii) Work in process is valued at cost.

(iii) Finished Goods are valued at Cost or Net Realizable Value whichever is lower.

(iv) The cost of imported raw material includes custom duties and other direct expenditure.

(F) Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Sales within India are exclusive of Sales Tax and Excise Duty. Cutoff date for accounting Export Sales is based on the date of bill lading. Export sales are accounted for on FOB Basis.

(G) Employee Benefits

(i) The Company has Defied Contribution Plan for its employee''s retirement benefits comprising of Provident Fund & Employee''s State Insurance Fund. The Company and eligible employees make monthly contribution to the above mentioned funds at a specified percentage of the covered employee''s salary. The Company recognizes its contribution as expenses of the year in which the liability is incurred.

(ii) Gratuity Liability under the Payment of Gratuity Act is based on actuarial valuation carried out at the close of the financial year in accordance with the scheme administered by Life Insurance Corporation of India through a Gratuity Trust Fund and contribution payable under the said scheme are charged to Profit & Loss Account. In absences of information Company is not in a position to disclose details as per AS-15 (Employee Benefits) in respect of defined benefit Plan (Gratuity).

(iii) Earn Leave Accruing to employees as on the last day of Financial Year on accrual basis.

(iv) Compensation to Employees who have opted for retirement under the Voluntary Retirement Scheme of the Company is charged to Profit & Loss Account in the year of exercise of option.

 
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