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Accounting Policies of National Plastic Technologies Ltd. Company

Mar 31, 2015

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except where overstated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION:

Based on Internal Technical Evaluation, the Company has re-assessed the remaining useful life of fixed assets w.e.f 1st April 2014 in accordance with Part A of Schedule II to the Companies Act, 2013. As a result of the above, depreciation is higher by Rs. 15.94 lacs for the yearended31.03.2015.

However, based on the engineer's certification, the useful life of Plant & Machinery and Electrical fittings of Irungattukottai and Guindy Plants have been enhanced as follows:

(i) Plants Machinery- from 15 years to 25 years

(ii) Electrical fittings - from 10 years to 15 years

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Company's factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material cost, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost, Manufacturing and administrative overhead.

(c) Raw materials, Stores or consumables are valued at landed cost or net realizable value whichever is lower.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for; except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provision are made for same and contingent assets are neither recognized nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

MAT Credit is recognized as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to profit and loss account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCYTRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS:

(i) Company's contributions under Provident Fund Act and Employees State Insurance

Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.


Mar 31, 2014

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXEDASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION:

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act 1956.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Company''s factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overhead.

(c) Raw materials, Stores or consumables are valued at landed cost or net realizable value which ever is lower.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provision are made for same and contingent assets are neither recognized nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India. The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable has been recognized on the basis of return of Income filed for the previous years and MAT provided for the current year. MAT Credit is recognized as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to profit and loss account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCYTRANSACTIONS: Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS:

(i) Company''s contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.


Mar 31, 2013

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION:

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act 1956.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Company''s factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of Production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overhead.

(c) Raw materials, Stores or consumables are valued at landed cost or net realizable value which ever is lower.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provision are made for same and contingent assets are neither recognized nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As

per the provisions of Section 115JAA, MAT Credit receivable has been recognized on the basis of return of Income filed for the previous years and MAT provided for the current year. MAT Credit is recognized as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to profit and loss account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCYTRANSACTIONS: Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS.

(i) Company''s contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.


Mar 31, 2010

1. ACCOUNTING POLICIES:

(i) Accounting policies are consistent with generally accepted Accounting principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed and Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus, Rates and Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure incurred in connection with acquisition of fixed assets are capitalized along with the cost of such assets.

3. CAPITAL WORK IN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion of construction.

4. DEPRECIATION :

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act, 1956.

5. REVENUE RECOGNITION :

Sale of goods is recognized at the point of dispatch of goods to the customers from the Companys plants.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of raw material cost inclusive of Cenvat, manufacturing and administrative overheads or net realisable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of raw material cost inclusive of Cenvat, manufacturing and administrative overheads.

(c) Raw materials, stores or consumables are valued at landed cost or net realisable value, which ever is lower.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provisions are made for same and contingent assets are neither recognised nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognised subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period for using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable has been recognised on the basis of Return of Income filed for the previous years and MAT provided for the current year. MAT Credit is recognised as an asset to the extent there is convincing evidence that the company will pay normal income tax during the specified period. MAT Credit is recognised as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to Profit and Loss Account and shown as MAT Credit Entitlement. The Company will review the same at each Balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

10. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS.

(i) Companys contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognised on payment basis. This is inconsistent with Accounting Standard 15

Provision on actuarial basis has not been made as the amount involved is insignificant.

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India.

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognise a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion, there is no impairment loss to the fixed assets during the year.


Mar 31, 2009

(i) Accounting policies are consistent with generally accepted Accounting Principles, except wherever stated otherwise.

(ii) Financial Statements are based on historical cost.

(iii) Mercantile System of Accounting is followed arid Income & Expenditure are accounted for on accrual concept on a going concern basis consistently. Bonus,. Rates & Taxes are on payment basis.

2. FIXED ASSETS:

Expenditure which are of Capital nature are capitalized at cost which directly incurred in acquiring assets.

3. CAPITALWORKIN PROGRESS:

Capital work in progress is carried at cost comprising direct cost and incidental expenditure during construction period to be allocated to the fixed assets on the completion construction.

4. DEPRECIATION:

Depreciation is provided from the date the assets have been acquired / commissioned and put to use, on Straight line method at the rates and the manner specified in Schedule XIV of the Companies Act 1956.

5. REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of goods to the customers from the Companys factory.

6. SALES:

Sale comprises sale of goods and includes applicable excise duty and local taxes. Consequently duties paid to the authorities are recorded as expenditure.

7. INVENTORIES:

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants are as follows:

(a) Finished goods are valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overheads or net realizable price whichever is lower.

(b) Work-in-progress is valued at cost of production consisting of Raw material cost inclusive of CENVAT, Manufacturing and administrative overhead.

(c) Raw materials, Stores or consumables are valued at Landed cost Of Net realizable value which ever is lower.

8. PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:

All Liabilities have been provided for, except liabilities of contingent nature which have been disclosed at their estimated value in the Notes to Accounts, but no provision are made for same and contingent assets are neither recognized nor disclosed in the financial statement.

9. TAXATION:

Provision is made for current tax and deferred tax. Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period tor using the tax rates and laws that have been enacted or substantially enacted on the Balance Sheet date and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is provided as per the Accounting Standard 22 of the Institute of Chartered Accountants of India.

10. FOREIGN CURRENCY TRANSACTIONS:

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction or at contracted forward rates.

11. EMPLOYEE RETIREMENT BENEFITS:

(i) Companys contributions under Provident Fund Act and Employees State Insurance Act are charged to Profit & Loss A/C on accrual basis.

(ii) Liability for Gratuity is recognized on payment basis. This is inconsistent with Accounting Standard 15 of ICAI. Provision on actuarial basis has not been made as the amount involved is insignificant,

12. BORROWING COST:

The Borrowing cost has been treated in accordance with Accounting Standard on Borrowing Costs (AS 16) issued by The Institute of Chartered Accountants of India. .

13. INVESTMENTS:

Long term investments are valued at cost. Provision for diminution in the value of investments is made to recognize a decline other than temporary.

14. IMPAIRMENT OF ASSETS:

As per the management opinion there is no impairment loss to the fixed assets during the year.

 
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