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Accounting Policies of Pee Cee Cosma Sope Ltd. Company

Mar 31, 2015

I. Basis of Accounting

Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and to comply with Accounting Standards referred to in Section 133 of the Companies Act2013 read with Rule 7 of Company (Accounts)Rules2014, to the extent applicable.

The Company follows the mercantile system of accounting and recognizes the income & expenditure on accrual basis.

All assets and liabilities have been classified as Current or Non-current as per Company's normal operating cycle.

Based on the nature of products and time between acquisition of assets/materials for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle being a period of one year for the purpose of classification of assets and liabilities as current and non-current:

ii. 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 the 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.

iii. Accounting Policies

a. FIXED ASSETS

Fixed Assets are stated at acquisition cost less accumulated depreciation. Cost includes inward freight, duties, taxes and incidental expenses related to acquisition and installation incurred up to the date of commissioning of assets.

b. DEPRECIATION

i) Depreciation on fixed assets for the year ended 31st March 2014, is provided for on the Written Down Value method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956 except on fixed assets with 100% rate of depreciation which are fully depreciated in the year of addition. Effective from 1st April 2014, depreciation is charged on the basis of useful life of the fixed assets. The Company has adopted useful life of fixed assets as given in Part 'C of Schedule II of the Companies Act, 2013 in respect of all fixed assets.

ii) Leasehold land is amortized over the period of lease.

iii) Intangible assets are amortized over their estimated useful life. In respect of Computer Software as 5 years.

c. IMPAIRMENT OF ASSETS

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash- generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.

d. INVESTMENTS

Long-term investments are carried at cost less provision, if any, for dimnunition in value other than temporary. Current investments are carried individually, at lower of cost and fair value.

e. INVENTORIES

(i) Raw materials, Packing Material, Stores & Spares are valued at lower of cost or net realizable value. Cost of materials is ascertained on First in First out basis.

(ii) Finished and Semi-finished goods produced by the Company are valued at lower of cost or net realizable value.

f. SALES

Sale of goods is recognized at the time of dispatch of finished goods to the customers and is net of excise duty, sales return, rate difference and cash discounts. Consignment sales are recognized on receipt of account sales from the agents.

g. PURCHASES AND EXPENSES

Purchases include cost of materials, transportation charges, Entry Tax and are net of refund of Sales Tax, credit availed under the Cenvat Scheme and State VAT during the year and other claims and discounts. Expenses on which Service Tax is charged are account for net of Service Tax. h. RETIREMENT BENEFITS i) Short-term employee benefits are recognized as an Expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the employee has rendered services.

ii) Post employment benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using market yields of government bonds at the balance sheet date, as the discounting rate.

iii) Other long term employee benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. Estimated liability on account of long term benefits is discounted to the present valul using the market yield on government bonds as on the date of balance sheet.

iv) Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit & Loss.

i. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as

j. ACCOUNTING FORTAXES ON INCOME

The accounting treatment followed for taxes on income is to provide for current and deferred tax. Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Deferred Tax is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

k. EARNINGS PERSHARE

shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.

I. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent liability if any is disclosed by way of notes on account. Provision is made in accounts in respect of those contingencies which are likely to materialize in to liabilities after the year-end till the adoption of accounts

m. CASH & CASH EQUIVALENTS

For the purpose of Cash Flow Statement cash and cash equivalents includes cash in hand, demand deposit with the bank, other short term highly liquid investments within original maturities of 3 months or less.


Mar 31, 2014

I. Basis of Accounting

The financial statements are prepared to comply in all material aspects with Indian Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of power conferred under section 642(1)(a) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

ii. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialise.

iii. Accounting Policies:

a. SALES:

Sale of goods is recognized at the time of dispatch of finished goods to the customers and is net of excise duty, sales return, rate difference and cash discounts. Consignment sales are recognized on receipt of account sales from the agents.

b. PURCHASES AND EXPENSES:

Purchases include cost of materials, transportation charges, Entry Tax and are net of refund of Sales Tax, credit availed under the Cenvat Scheme and State VAT during the year and other claims and discounts. Expenses on which Service Tax is charged are account for net of Service Tax.

c. RETIREMENT BENEFITS

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the employee has rendered services.

ii) Post employment benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using market yields of government bonds, at the balance sheet date, as the discounting rate.

iii) Other long term employee benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. Estimated liability on account of long term benefits is discounted to the present value using the market yield on government bonds as on the date of balance sheet.

iv) Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit & Loss.

d. DEPRECIATION:

Depreciation is provided on written down method at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rata basis. Asset costing up to Rs 5,000 each are fully depreciated in the year of acquisition. Lease hold Land is amortized over its Lease period.

e. FIXED ASSETS:

Fixed Assets are stated at acquisition cost less accumulated depreciation. Cost includes inward freight, duties, taxes and incidental expenses related to acquisition and installation incurred up to the date of commissioning of assets.

f. IMPAIRMENT OF ASSETS:

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash- generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.

g. INVENTORIES:

(i) Raw materials, Packing Material, Stores & Spares are valued at lower of cost or net realisable value. Cost of

materials is ascertained on First in First out basis

(i) Finished and Semi-finished goods produced by the Company are valued at lower of cost or net realisable value.

h. ACCOUNTING FOR TAXES ON INCOME

The accounting treatment followed for taxes on income is to provide for current and deferred tax. Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income TaxAct, 1961. Deferred Tax resulting from the difference between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as on Balance Sheet date. The Deferred Tax is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

i. INVESTMENTS

Long-term investments are carried at cost less provision, if any, for dimnunition in value other than temporary. Current investments are carried individually, at lower of cost and fairvalue.

j. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Aqualifying asset is one that necessarily takes substantial period oftimetoget ready for intended use. All other borrowing costs are charged to revenue.

k. EARNINGS PER SHARE

Earning per shares (EPS) are computed on the basis of net profit after tax. The number of shares used in computing basic EPS is weighted average number of shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effect of potential diluted equity shares.

l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent liability if any is disclosed by way of notes on account. Provision is made in accounts in respect of those contingencies which are likely to materialize in to liabilities after the year-end till the adoption of accounts by the Board of Directors and which have material effect on the position stated in the balance sheet. Contingent Assets are neither recognized nor disclosed in the financial statements.

m. CASH &CASH EQUIVALENTS

For the purpose of Cash Flow Statement cash and cash equivalents includes cash in hand, demand deposit with the bank, othershort term highly liquid investments within original maturities of 3 months or less.


Mar 31, 2013

I. Basis of Accounting

The financial statements are prepared to comply in all material aspects with Indian Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of power conferred under section 642(1 )(a) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

ii. Accounting Policies:

a. SALES

Sale of goods is recognized at the time of dispatch of finished goods to the customers and is net of excise duty, sales return, rate difference and cash discounts. Consignment sales are recognized on receipt of account sales from the agents.

b. PURCHASES AND EXPENSES

Purchases include cost of materials, transportation charges, Entry Tax and are net of refund of Sales Tax, credit availed under the Cenvat Scheme and State VAT during the year and other claims and discounts. Expenses on which Service Tax is charged are account for net of Service Tax.

c. RETIREMENT BENEFITS

I) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the employee has rendered services.

ii) Post employment benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using market yields of government bonds, at the balance ieet date, as the discounting rate.

iii) Other long term employee benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. Estimated liability on account of long term benefits is discounted to the present value using the market yield on government bonds as on the date of balance sheet.

iv) Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit & Loss.

d. DEPRECIATION:

Depreciation is provided on written down method at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rata basis. Asset costing up to Rs 5,000 each are fully depreciated in the yearof acquisition. Lease hold Land is amortized over its Lease period.

e. FIXEDASSETS:

Fixed Assets are stated at acquisition cost less accumulated depreciation. Cost includes inward freight, duties, taxes and incidental expenses related to acquisition and installation incurred up to the date of commissioning of assets.

f. IMPAIRMENT OF ASSETS:

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash- generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.

g. INVENTORIES:

(i) Raw materials, Packing Material, Stores & Spares are valued at lower of cost or net realisable value.

(i) Finished and Semi-finished goods produced by the Company are valued at lower of cost or net realisable value.

(hi) Cost of materials given in g (i) is ascertained on First in First out basis.

h. ACCOUNTING FOR TAXES ON INCOME

The accounting treatment followed for taxes on income is to provide for current and deferred tax. Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from the difference between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as on Balance Sheet date. The Deferred Tax is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

i. INVESTMENTS

Long-term investments are carried at cost less provision, if any, for dimnunition in value other than temporary

j. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

k. EARNINGS PER SHARE

Earning per shares(EPS) are computed on the basis of net profit after tax. The number of shares used in computing basic EPS is weighted average number of shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effect of potential diluted equity shares

I. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent liability if any is disclosed by way of notes on account. Provision is made in accounts in respect of those contingencies which are likely to materialize in to liabilities after the year-end till the adoption of accounts by the Board of Directors and which have material effect on the position stated in the balance sheet. Contingent Assets are neither recognized nor disclosed in the financial statements.

m. CASH & CASH EQUIVALENTS

For the purpose of Cash Flow Statement cash and cash equivalents includes cash in hand, demand deposit with the bank, other short term highly liquid investments within original maturities of 3 months or less.


Mar 31, 2010

1.01 Accounting Convention:

The financial statements are prepared to comply in all material aspects with Indian Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisons of the Companies Act, 1956. The Financial Statements has been prepared under historical cost conventions, on accrual basis. The Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.02 Accounting Policies:

a. SALES:

Sale of goods is recognized at the time of dispatch of finished goods to the customers and is net of excise duty, sales return, rate difference and cash discounts. Consignment sales are recognized on receipt of account sales from the agents.

b. PURCHASES:

Purchases include cost of materials, transportation charges, Entry Tax and are net of refund of Sales Tax, credit availed under the Cenvat Scheme and State VAT during the year and other claims and discounts.

c. RETIREMENT BENEFITS

I) Contributions payable by the Company to the concerned government authorities in

respect of provident fund, family pension fund and employee state insurance are charged to the profit and loss account.

ii) The Company is having Group Gratuity Scheme with Life Insurance Corporation of India. The net present value of the Companys obligation towards Gratuity to employees is funded and actuarially determined as at the Balance Sheet date based on the Projected Unit Credit Method. However as per the Actuarial valuation the fair value of plan assets as at 31.03.2010 is more than the present value of obligation as at 31.03.2010, therefore no adjustment have been made in the Balance Sheet. Further the amount of premium of Rs. 68387.00 paid to LIC is debited to Profit and Loss Account.

iii) Provision for leave encashment in in respect of unavailed leave standing to the credit of employees is made on accrual basis. In accordance with revised AS-15 as per the actuarial valuation made, the provision of leave encashement is less as compared to actual liability provided in the accounts. Hence the management is of the opinion that provision is to be made on accrual basis.

d. DEPRECIATION:

Depreciation is provided on written down method at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rata basis. Lease hold lands including site development are not depreciated.

e. FIXED ASSETS:

All Fixed Assets are valued at cost less depreciation. Pre-operative expenses including trial run expenses (net of revenue) are capitalized. Interest on borrowings and financing cost during the period of construction is added to the cost of fixed assets. Leasehold land is stated at cost.

f. IMPAIRMENT OF ASSETS:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which is identified as impaired.

g. INVENTORIES:

(i) Raw materials, Packing Material, Stores & Spares and Fuel are valued at lower of cost or net realisable value.

(ii) Finished and Semi-finished goods produced by the Company are valued at lower of cost or net realisable value.

(iii) Cost of materials given in g (i) is ascertained on First in First out basis. Work in Progress and finished goods are valued on full absorption cost basis.

h. ACCOUNTING FOR TAXES ON INCOME

Provision for current income tax is made in accordance with the provisions of Income Tax Act, 1961. In accordance with Accounting Standard (AS)-22 "Accounting for Taxes on Income", Deferred Tax resulting from timing differences between book & tax profit is accounting for at the current rate of tax to the extent that the timing differences are expected to crystalise. Deffered Tax Assets are recognised only when there is virtual certainty of sufficient future profits available to realise such assets.

i. INVESTMENTS

Long-term investments are carried at cost less provision, if any, for dimnunition in value other than temporary.

j. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

k. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent liability if any is disclosed by way of notes on account. Provision is made in accounts in respect of those contingencies which are likely to materialize in to liabilities after the year-end till the adoption of accounts by the Board of Directors and which have material effect on the position stated in the balance sheet. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
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