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Accounting Policies of MPL Plastics Ltd. Company

Mar 31, 2014

1. GENERAL:

Unless otherwise stated hereunder the financial accounts have been drawn up on Historical Cost Convention generally following accrual basis of accounting.

2. REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Products:

Revenue Is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are disclosed net of sales tax/VAT, discounts and returns, as applicable.

3. FIXED ASSETS:

Tangible

Fixed Assets are recorded at cost of acquisition/construction, which comprises of purchase consideration and other directly attributable cost of bringing an assets to Its working condition for the Intended use.

4. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method In accordance with the rates prescribed In Schedule XIV of the Companies Act, 1956 as amended by the Notification GSR 756 (E) dated 16.12.93 Issued by the department of Company Affairs.

5. INVE8TMENT8:

Long Term Investments are stated at cost. However, provision for diminution In value Is made to recognize a decline other than temporary In the value of the Investments.

6. INVENTORIES:

Inventories are valued on the basis given below:

(a) Raw Material ¦ At lower of cost and net realizable value. Cost Is determined on FIFO bails.

(b) Semi Finished Goods - At lower of cost and net realizable value. Cost Inoludes Raw Materials and Conversion Coat, exoept thoae purchased directly whloh are valued at cost.

(o) Finished Goods - At lowar of cost and net realizable valua. Coat la determined using the abaorptlon coating prlnolplaa,

(d) Packing Materials - At lowar of oost and net realizable valua. Coat la determined on walghtad average baala.

7. EMPLOYEE BENEFIT SCHEMES:

(a) Provident Fund- Eligible employeea of the Company receive benefits under the Provldant Fund whloh la a defined contribution plan, where both tha employee and tha Company make monthly oontrlbutlona aqual to speolfled percentage of the covered employee''a salary. Theae contributions are made to tha funds administered and managed by the Government, The Company''a monthly oontrlbutlona are charged to revenue In the period they are Incurred.

(b) Gratuity = In accordance with the Payment of Gratuity Act 1972, the Company provldea for gratuity a defined retirement benefit plan ("the Gratuity Plan") covering eligible employeea. Liabilities with regard! to auoh Gratuity Plan are determined by actuarial valuation and the exoets of aotuarlal valuation over the fund available ¦- oorpua under Company''a LIC Group Gratuity Polloy Is provided and charged to revenue in the period along with the contribution made to the aald policy.

(o) Provision for unutilized Leave- The accrual for unutilized leave la determined for the entire available leave balanoe standing to the credit of the employees at the year and and charged to tha revenue In the period.

8. FOREIGN CURRENCY TRANSACTIONS:

Tranaaotlona In Foreign Currency are aooounted at the exohange rate prevailing on the date of the transaction, Year end balances of the foreign ourrenoy transactions are translated at the year end rate and the oorreapondlng effect Is given In the respective account,

9. EXCISE DUTY:

(a) Exclae duty Is charged to Statement of Profit end Loaa In the year of oleeranoe of gooda.

(b) CENVAT credits on materials purohaaed for production are taken Into aooount at the time of purohaae and oenvat oredlta on purchase of oapltal Itema wherever applicable are taken Into aooount aa and when the assets are Installed to the oredlt of respective purchase and asset accounts. The Cenvat oredlta so taken are utilised for payment of exolso duty on goods manufactured. The unutilised Cenvat credit Is carried forward In the books,

10. EARNING PER SHARE:

In determining earnings per share, the Company considers the net profit/(loss) after tax for the year attributable to equity shareholders. The number of shares used in computing basic earnings per share is the we jhted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.


Mar 31, 2013

1. GENERAL:

Unless otherwise stated hereunder the financial accounts have been drawn up on Historical Cost Convention generally following accrual basis of accounting.

2. REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Products:

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are disclosed net of sales tax/VAT, discounts and returns, as applicable.

3. FIXEDASSETS:

Tangible

Fixed Assets are recorded at cost of acquisition/construction, which comprises of purchase consideration and other directly attributable cost of bringing an assets to its working condition for the intended use.

4. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended by the Notification GSR 756 (E) dated 16.12.93 issued by the department of Company Affairs.

5. INVESTMENTS:

Long Term Investments are stated at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

6. INVENTORIES:

Inventories are valued on the basis given below:

(a) Raw Material -At lower of cost and net realizable value. Cost is determined on FIFO basis.

(b) Semi Finished Goods - At lower of cost and net realizable value. Cost includes Raw Materials and Conversion Cost, except those purchased directly which are valued at cost.

(c) Finished Goods - At lower of cost and net realizable value. Cost is determined using the absorption costing principles.

(d) Packing Materials - At lowerofcost and net realizable value. Cost is determined on weighted average basis.

7. EMPLOYEE BENEFIT SCHEMES:

(a) Provident Fund- Eligible employees of the Company receive benefits under the Provident Fund which is a defined contribution plan, where both the employee and the Company make monthly contributions equal to specified percentage of the covered employee''s salary. These contributions are made to the funds administered and managed by the Government. The Company''s monthly contributions are charged to revenue in the period they are incurred.

(b) Gratuity - In accordance with the Payment of Gratuity Act 1972, the Company provides for gratuity a defined retirement benefit plan ("the Gratuity Plan") covering eligible employees. Liabilities with regards to such Gratuity Plan are determined by actuarial valuation and the excess of actuarial valuation over the fund available as corpus under Company''s LIC Group Gratuity Policy is provided and charged to revenue in the period along with the contribution made to the said policy.

(c) Provision for unutilized Leave- The accrual for unutilized leave is determined for the entire available leave balance standing to the credit of the employees at the year end and charged to the revenue in the period.

8. FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of the transaction. Year end balances of the foreign currency transactions are translated at the year end rate and the corresponding effect is given in the respective account.

9. EXCISE DUTY:

(a) Excise duty is charged to Statement of Profit and Loss in the year of clearance of goods.

(b) CENVAT credits on materials purchased for production are taken into account at the time of purchase and cenvat credits on purchase of capital items wherever applicable are taken into account as and when the assets are installed to the credit of respective purchase and asset accounts. The Cenvat credits so taken are utilised for payment of excise duty on goods manufactured. The unutilised Cenvat credit is carried forward in the books.


Mar 31, 2012

1. GENERAL:

Unless otherwise stated hereunder the financial accounts have been drawn up on Historical Cost Convention generally following accrual basis of accounting.

2. FIXED ASSETS:

Fixed Assets are recorded at cost of acquisition/construction.

3. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended by the Notification GSR 756 (E) dated 16.12.93 issued by the department of Company Affairs.

4. INVESTMENTS:

Investments are recorded at cost.

5. INVENTORIES:

Inventories are valued on the basis given below:

(a) Raw Material -At Cost.

(b) Semi Finished Goods - At Direct Cost i.e. Raw Materials and Conversion Cost, except those purchased directly which are valued at cost.

(c) Finished Goods - At Absorption Cost.

(d) Packing Materials-At Cost.

6. EMPLOYEE BENEFIT SCHEMES:

(a) Provident Fund- Eligible employees of the Company receive benefits under the Provident Fund which is a defined contribution plan, where both the employee and the Company make monthly contributions equal to specified percentage of the covered employee's salary. These contributions are made to the funds administered and managed by the Government. The Company's monthly contributions are charged to revenue in the period they are incurred.

(b) Gratuity - In accordance with the Payment of Gratuity Act 1972, the Company provides for gratuity a defined retirement benefit plan ("the Gratuity Plan") covering eligible employees. Liabilities with regards to such Gratuity Plan are determined by actuarial valuation and the excess of actuarial valuation over the fund available as corpus under Company's LIC Group Gratuity Policy is provided and charged to revenue in the period along with the contribution made to the said policy.

(c) Provision for unutilized Leave- The accrual for unutilized leave is determined for the entire available leave balance standing to the credit of the employees at the year end and charged to the revenue in the period.

7. FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of the transaction. Year end balances of the foreign currency transactions are translated at the year end rate and the corresponding effect is given in the respective account.

8 EXCISE DUTY:

(a) Excise duty is charged to Profit and Loss Account in the year of clearance of goods.

(b) CENVAT credits on materials purchased for production are taken into account at the time of purchase and cenvat credits on purchase of capital items wherever applicable are taken into account as and when the assets are installed to the credit of respective purchase and asset accounts. The Cenvat credits so taken are utilised for payment of excise duty on goods manufactured. The unutilised Cenvat credit is carried forward in the books.

9. EARNING PER SHARE:

In determining earnings per share, the Company considers the net profit/(loss) after tax for the year attributable to equity shareholders. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.


Mar 31, 2010

1. GENERAL:

Unless otherwise stated hereunder the financial accounts have been drawn up on Historical Cost Convention generally following accrual basis of accounting.

2. FIXEDASSETS:

Fixed Assets are recorded at cost of acquisition/construction.

3. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended by the Notification GSR 756 (E) dated 16.12.93 issued by the department of Company Affairs.

4. INVESTMENTS:

Investments are recorded at cost.

5. INVENTORIES:

Inventories are valued on the basis given below:

(a) Raw Material -At Cost.

(b) Semi Finished Goods - At Direct Cost i.e. Raw Materials and Conversion Cost, except those purchased directly which are valued at cost.

(c) Finished Goods-At Absorption Cost.

(d) Packing Materials-At Cost.

6 EMPLOYEE BENEFIT SCHEMES:

(a) Provident Fund- Eligible employees of the company receive benefits underthe Provident Fund which is a defined contribution plan, where both the employee and the company make monthly contributions equal to specified percentage of the covered employees salary. These contributions are made to the funds administered and managed by the Government. The Companys monthly contributions are charged to revenue in the period they are incurred.

(b) Gratuity - In accordance with the Payment of Gratuity Act 1972, the company provides for gratuity a defined retirement benefit plan ("the Gratuity Plan") covering eligible employees. Liabilities with regards to such Gratuity Plan are determined by actuarial valuation and the excess of actuarial valuation over the fund available as corpus under companys LIC Group Gratuity Policy is provided and charged to revenue in the period along with the contribution made to the said policy. The actuarial assumptions in arriving at the provision of gratuity liability as at the year end amounting to Rs. 1,14,453 are as follows;

i) Discount Rate (p.a.)(%) 7.00

ii) Salary escalation rate 4%

iii) Retirement age 60 Years.

(c) Provision for unutilized Leave- The accrual for unutilized leave is determined for the entire available leave balance standing to the credit of the employees at the year end and charged to the revenue in the period.

7. FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of the transaction. Year end balances of the foreign currency transactions are translated at the year end rate and the corresponding effect is given in the respective account.

8. EXCISE DUTY:

(a) Excise duty is charged to Profit and Loss Account in the year of clearance of goods.

(b) CENVAT credits on materials purchased for production are taken into account at the time of purchase and cenvat credits on purchase of capital items wherever applicable are taken into account as and when the assets are installed to the credit of respective purchase and asset accounts. The Cenvat credits so taken are utilised for payment of excise duty on goods manufactured. The unutilised Cenvat credit is carried forward in the books.

9. EARNING PER SHARE:

In determining earnings per share, the Company considers the net profit/(loss) after tax for the year attributable to equity shareholders. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

 
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