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Accounting Policies of Meyer Apparel Ltd. Company

Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

Financial statements have been prepared on accrual and going concern basis and in accordance with historical cost convention and generally accepted accounting principles including mandatory accounting standards and relevant presentational requirements of the Companies Act, 1956.

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, if any, related pre-operational expenses form part of the value of assets capitalised.

3. DEPRECIATION

Depreciation on the fixed assets has been provided for on the straight-line method at the rates and in the manner specified in the Schedule-XIV to the Companies Act, 1956.

4. IMPAIRMENT OF ASSETS:

Impairment of an asset is worked out at the year end after depreciation and necessary revaluations and is accounted for in accordance with the Accounting Standard-28 issued by the Institute of Chartered Accountants of India.

5. INVENTORIES

Inventories have been valued on the following basis:

Raw Materials and Stock in Process at lower of the direct cost including overheads, if any, and net realisable value.

Spare parts and consumables at lower of cost or net realisable value.

Finished goods at the lower of cost (inclusive of excise duty, if any) or net realisable value.

Bought-out items at lower of cost or net realisable value.

The Cost is calculated using FIFO method and the Net realisable value as certified by the Management.

6. EMPLOYEE BENEFITS

The Company has adopted AS-15(Revised)-"Employee Benefit" issued by the Institute of Chartered Accountants of India. Present value of Gratuity and Leave Encashment is determined based on actuarial valuation and are provided for at the year end.

7. FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency have been recorded at the exchange rates prevailing on the date of the transaction. Liabilities/Receivables in foreign currency on the Balance Sheet date are converted at the exchange rate prevailing at the end of the year.

8. REVENUE RECOGNITION

Export sales are accounted for when the items are shipped to the customers.

Sales to others are accounted for on despatch and are stated inclusive of excise duty, if any, and net of sales tax/VAT and trade discounts.

Income from Rentals, Interest, and Other Incomes are booked on Accrual basis.

9. DUTY DRAWBACK

Duty drawback on exports has been accounted for on accrual basis on approval of the shipping bill by the customs authorities.

10. BORROWING COSTS

Borrowing costs incurred in respect of working capital are expensed off. Borrowing cost that are directly attributable to the acquisition of the fixed assets are capitalised along with the cost of the asset.

11. PRIOR PERIOD, EXCEPTIONAL, AND EXTRAORDINARY ITEMS

Prior period items and extraordinary items having material impact on the financial affairs of the Company have been credited/charged to the Profit & Loss Account and disclosed separately.

12. DEFERRED TAX

Provision has been made during the year for deferred tax assets required under the Accounting Standard - 22, namely, "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

13. MISCELLENEOUS EXPENDITURE

Preliminary expenses and Public issue expenses, if any, are written off @ 10% per annum from the date of commencement of commercial production.

14. ESOPS

The Company had so far issued 16.75 Lacs stock options out of the total 20 Lacs stock options to the employees as well as to certain directors of the Company and to those of the associated company (ies) under the ESOS, 2009 scheme of the Company, read with SEBI Guidelines. The finance cost in this regard is to recognize to the extent and in the year in which the vested options are actually exercised.

15. The Company has followed all the mandatory accounting standards as given in Section 211 (3C) of the Companies Act, 1956 as and where applicable.


Mar 31, 2013

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

Financial statements have been prepared on accrual and going concern basis and in accordance with historical cost convention and generally accepted accounting principles including mandatory accounting standards and relevant presentational requirements of the Companies Act, 1956.

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, if any, related pre-operational expenses form part of the value of assets capitalised.

3. DEPRECIATION

Depreciation on the fixed assets has been provided for on the straight-line method at the rates and in the manner specified in the Schedule-XIV to the Companies Act, 1956.

4. IMPAIRMENT OF ASSETS :

Impairment of an asset is worked out at the year end after depreciation and necessary revaluations and is accounted for in accordance with the Accounting Standard-28 issued by the Institute of Chartered Accountants of India.

5. INVENTORIES

Inventories have been valued on the following basis:

- Raw Materials and Stock in Process at lower of the direct cost including overheads, if any, and net realisable value.

- Spare parts and consumables at lower of cost or net realisable value.

- Finished goods at the lower of cost (inclusive of excise duty, if any) or net realisable value. ,- Bought-out items at lower of cost or net realisable value.

- The Cost is calculated using FIFO method and the Net realisable value is as certified by the Management.

6. EMPLOYEE BENEFITS

The Company has adopted AS-15(Revised)-"Employee Benefit" issued by the Institute of Chartered Accountants of India. Present value of Gratuity and Leave Encashment is determined based on actuarial valuation and are provided for at the year end.

7. FOREIGN EXCHANGE TRANSACTIONS

¦ Transactions in foreign currency have been recorded at the exchange rates prevailing on the date of the transaction. Liabilities/Receivables in foreign currency on the Balance Sheet date are converted at the exchange rate prevailing at the end of the year.

8. REVENUE RECOGNITION

- Export sales are accounted for when the items are shipped to the customers.

- Sales to others are accounted for on despatch and are stated inclusive of excise duty, if any, and net of sales tax/ VAT and trade discounts.

- Income from Rentals, Royalty, Interest, and Other Incomes are booked on Accrual basis.

9. DUTY DRAWBACK

Duty drawback on exports has been accounted for on Accrual basis on approval of the shipping bill by the customs authorities.

10. BORROWING COSTS

Borrowing costs incurred in respect of working capital are expensed off. Borrowing cost that are directly attributable to the acquisition of the fixed assets are capitalised along with the cost of the asset.

11. PRIOR PERIOD, EXCEPTIONAL, AND EXTRAORDINARY ITEMS

Prior period items and extraordinary items having material impact on the financial affairs of the Company have been credited/charged to the Profit & Loss Account and disclosed separately.

12. DEFERRED TAX

Provision has been made during the year for deferred tax assets required under the Accounting Standard - 22, namely, "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

13. MISCELLENEOUS EXPENDITURE

Preliminary expenses and Public issue expenses, if any, are written off @ 10% per annum from the date of commencement of commercial production.

14. ESOPS

The Company had so far issued 16.75 Lacs stock options out of the total 20 Lacs stock options to the employees as well as to certain directors of the Company and to those of the associated company (ies) under the ESOS, 2009 scheme of the Company, read with SEBI Guidelines. The finance cost in the regared is to recognize to the extent and in the year in which the vested options are actually exercised.

15. The Company has followed all the mandatory accounting standards as given in Section 211 (3C) of the Companies Act, 1956 as and where applicable.


Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

Financial statements have been prepared on accrual and going concern basis and in accordance with historical cost convention and generally accepted accounting principles including mandatory accounting standards and relevant presentational requirements of the Companies Act, 1956.

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalised.

3. DEPRECIATION

Depreciation on the fixed assets has been provided for on the straight-line method at the rates and in the manner specified in the Schedule-XIV to the Companies Act, 1956.

4. IMPAIRMENT OF ASSETS :

Impairment of an asset is worked out at the year end after depreciation and necessary revaluations and is accounted for in accordance with the Accounting Standard-28 issued by the Institute of Chartered Accountants of India.

5. INVENTORIES

Inventories have been valued on the following basis:

- Raw Materials and Stock in Process at lower of the direct cost including overheads, if any, and net realisable value.

- Spare parts and consumables at lower of cost or net realisable value.

- Finished goods at the lower of cost (inclusive of excise duty, if any) or net realisable value.

- Bought-out items at lower of cost or net realisable value.

- The Cost is calculated using FIFO method and the Net realisable value is as certified by the Management.

6. EMPLOYEE BENEFITS

The Company has adopted AS-15(Revised)-"Employee Benefit" issued by the Institute of Chartered Accountants of India. Present value of Gratuity and Leave Encashment is determined based on actuarial valuation and are provided for at the year end.

7. FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency have been recorded at the exchange rates prevailing on the date of the transaction. Liabilities/Receivables in foreign currency on the Balance Sheet date are converted at the exchange rate prevailing at the end of the year.

8. REVENUE RECOGNITION

- Export sales are accounted for when the items are shipped to the customers.

- Sales to others are accounted for on despatch and are stated inclusive of excise duty, if any, and net of sales tax/ VAT and trade discounts.

- Income from Rentals, Royalty, Interest, and Other Incomes are booked on Accrual basis.

9. DUTY DRAWBACK

Duty drawback on exports has been accounted for on Accrual basis on approval of the shipping bill by the customs authorities.

10. BORROWING COSTS

Borrowing costs incurred in respect of working capital are expensed off. Borrowing cost that are directly attributable to the acquisition of the fixed assets are capitalised along with the cost of the asset.

11. PRIOR PERIOD, EXCEPTIONAL, AND EXTRAORDINARY ITEMS

Prior period items and extraordinary items having material impact on the financial affairs of the Company have been credited/charged to the Profit & Loss Account and disclosed separately.

12. DEFERRED TAX

Provision has been made during the year for deferred tax assets required under the Accounting Standard - 22, namely, "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

13. MISCELLENEOUS EXPENDITURE

Preliminary expenses and Public issue expenses, if any, are written off @ 10% per annum from the date of commencement of commercial production.

14. ESOPS

Out of the total 20 Lacs stock options, 13.25 Lacs stock options were issued on 11th January, 2010 to the employees of the Company as well as to certain directors of the Company and those of the associated company (ies) under the ESOS, 2009 scheme of the Company, read with SEBI Guidelines. The finance cost in this regard will be recognized to the extent and in the year in which the vested options are actually exercised.

15. The Company has followed all the mandatory accounting standards as given in Section 211 (3C) of the Companies Act, 1956 as and where applicable.

 
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