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Accounting Policies of Midland Polymers Ltd. Company

Mar 31, 2015

GENERAL

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees.

METHOD OF ACCOUNTING

The Company is following Mercantile System of Accounting and recognize income and expenditure on accrual basis.

In respect of derivative contracts, premium paid, gains/losses on settlement and losses on restatement are recognised in the Profit and Loss Statement.

USE OF EXTIMATES

The preparation of the financial statements in conformity with GAAP requires estimates and assumptions to be made that effect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income 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.

FIXED ASSETS:

Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes & all other incidental expenses. No fixed assets have been revalued in the financial statement.

DEPRECIATION AND AMORTISATION

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

Expenditure related to Preferential allotment has been debited to deferred revenue expenditure and l/5th portion of the same had been written during the year.

INVENTORIES

During the year, company does not have inventory as at 31st March 2015.

INVESTMENTS

Company had acquired 900000 unquoted equity shares at a total consideration of Rs. 360.00 Lacs of M/s Protect Nature Private Limited ("PNPL") (97.26% Holding of "PNPL"). Pursuant to the said acquisitions, PNPL became subsidiaries of the Company. Long Term Investments are stated at Cost.

Further during the year company had purchased 67200 Quoted Equity Shares at a total consideration of Rs. 23.32 Lacs of M/s Choksi Laboratories Limited.

TAXES ON INCOME

Tax Expense is the aggregate of Current Tax and Deferred Tax.

Tax Liability of the company is estimated considering the Provision of the Income Tax Act- 1961. Deferred Tax is recognized subject to the consideration of Prudence, on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent year.

MAT Credit Entitlement of Rs. 31,98,033/- pertaining to the earlier years has been account for, for set off in subsequent years as per Section 115JAA of the Income tax Act.

EARNING PER SHARE:

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.


Mar 31, 2012

I. Method of Accounting: The Company is following Mercantile System of accounting and recognizes income and expenditure on accrual basis except income/expenses which could not be quantified with reasonable accuracy are accounted for on cash basis. Accounting policies not referred to otherwise are inconsistent with generally accepted accounting principles.

ii. Use of Estimates: The preparation of Financial Statements requires estimates & assumptions to be made that effect he reported amount of assets & liability on the date of financial statements and the reported amount of revenues & expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

iii. Fixed Assets: Fixed assets are stated at their original cost less depreciation. Cost includes inward freight, duties, taxes and expenses incidental to acquisition and installation and net of CENVAT credit allowed. No fixed asset has being revalued in the financial statement.

iv. Depreciation and Amortization: Depreciation for the year has been provided on written down value method in the manner and at the rates prescribed in Schedule XIV of the Companies Act, 1956. No depreciation is charged on the assets disposed off during the year.

v. Revenue Recognition: Revenue from sale of goods is recognized upon passage of title to the customers, which generally consider with delivery. Revenue from other income is recognized on completion of services.

vi. Inventories: In the current year, there are no inventories. In normal course of business, Inventories are valued as follows:

Raw-Materials -At Cost

Store & Spares -At Cost

Stock-in-Process -At Estimated Cost

Finished Goods -At Net Realizable Value

vii. Investment: Long term investments are stated at cost.

vii. Employees Benefits:

i) Contributions to Provident Fund & ESIC are accounted for on accrual basis and charged to Profit & Loss A/c for the year.

ii) Gratuity and Leave encashment are accounted for on accrual basis.

viii. Taxes on Income:

Tax expense (tax saving) is the aggregate of current tax and deferred tax.

(a) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(b) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current tax income tax provision. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

ix) Earnings Per Share: Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.


Mar 31, 2010

(a) Accounting Policies and Practices: -

i. Method of Accounting: The Company is following Mercantile System of accounting and recognizes income and expenditure on accrual basis except income/expenses which could not be quantified with reasonable accuracy, are accounted for on cash basis. Accounting policies not referred to otherwise are inconsistent with generally accepted accounting principles,

ii. Fixed Assets: Fixed assets are stated at their original cost less depreciation. Cost includes inward freight, duties, taxes and expenses incidental to acquisition and installation and net of CENVAT credit allowed.

iii. Depreciation: Depreciation has been provided on written down value method in the manner and at the rates prescribed in Schedule XIV of the Companies Act, 1956. No Depreciation has been charged on the assets disposed off during the year.

iv. Revenue Recognition: Revenue from sale of goods is recognized upon passage of title to the customers, which generally coincides with delivery.

v. Inventories: In the current year, there are no inventories. In normal course of business, Inventories are valued as follows:

Raw-Materials -At Cost

Store & Spares -At Cost

Stock-in-Process -At Estimated Cost

Finished Goods -At Net Realizable Value

vi. Investment: Long term investments are stated at cost.

vii. Retirement Benefits:

i) Contributions to Provident Fund & ES1C are accounted for on accrual basis and charged to Profit & Loss A/c for the year.

ii) Gratuity and Leave encashment are accounted for on accrual basis.

viii. Taxation Tax expense (tax saving) is the aggregate of current tax and deferred tax.

(a) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(b) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current tax income tax provision. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

ix) Earning Per Share: Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.


Mar 31, 2009

A. Accounting Policies and Practices: -

i Method of Accounting: The Company is following Mercantile System of accounting and recognizes income and expenditure on accrual basis except income/expenses which could not be quantified with reasonable accuracy, are accounted for on cash basis. Accounting policies not referred to otherwise arc inconsistent with generally accepted accounting principles.

ii. Fixed Assets: Fixed assets are stated at their original cost less depreciation. Cost includes inward freight, duties, taxes and expenses incidental to acquisition and installation and net of CENVAT credit allowed.

iii. Depreciation: Depreciation for the year has been provided on written down value method in the manner and at the rates prescribed in Schedule XIV of the Companies Act. 1956. Depreciation on the assets added/disposed off during the year is provided on pro-rata basis with reference to the date of addition/disposal.

iv Revenue Recognition: Revenue from sale of goods is recognized upon passage of title to the customers, which generally consider with delivery.

v. Inventories: Inventories are valued as follows:

Raw-Materials -At Cost

Store & Spares -At Cost

Stock-in-Process -At Estimated Cost

Finished Goods -At Net Realizable Value

vi. Investment: Long term investments are stated at cost.

vii. Retirement Benefits:

i) Contributions to Provident Fund & ESIC are accounted for on accrual basis and charged to Profit & Loss A/c for the year

ii) Gratuity and Leave encashment are accounted for on accrual basis.

viii. Taxation:

Tax expense (tax saving) is the aggregate of current tax, deferred tax and fringe benefit tax

(a) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(b) Fringe benefit tax is measured at the amount expected to be paid to the Tax Authorities it accordance with the provisions of Income Tax Act, 1961.

(c) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current tax income tax provision. Deferred tax assets are not recognized on unabsorbcd depreciation and carry forward of losses unless there is virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

ix) Earning Per Share: Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.

 
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