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Accounting Policies of Pithampur Poly Products Ltd. Company

Mar 31, 2015

1 Accounting Convention

1.1 The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014, and the relevant provisions of the Companies Act, 2013, as applicable.

1.2 The financial statements have been prepared on the basis of historical cost convention, and on the accounting principle of a going concern.

1.3 The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

2 Use of estimates

The preparation of financial statements, in conformity with the generally accepted accounting principles [GAAP], requires management to make estimates and assumptions that are considered in the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of financial statements and reported amounts of revenues and expenses for the year. Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known / materialize.

3 Fixed Assets

3.1 Fixed Assets are stated at cost, less accumulated depreciation and impairment, if any. Direct cost are capitalized untill such assets are ready for use.

3.2 Tangible Fixed Assets, that are not yet ready for their intended use, are carried at costs, comprising direct cost, and other incidental/ attributable expenses and reflected under capital work in progress.

3.3 Intangible Assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

4 Investments

Investments are either classified as current or long term, based on Management's intention. Current investment are carried at lower of cost and fair value of each investment individually. Long term investments are carried individually at cost. However, provision for diminution is made to recognize a decline, if any, otherthan temporary, in the carrying value of the investment.

5 Inventories

Cost of inventory comprises all cost of purchase, cost of conversion and other cost incurred for bringing the inventory to their present condition and location.

Inventories are valued as under:

i. Raw Material, Stores and Spares are valued at cost or net realisable value whichever is lower.

ii. Work-In-Progress are valued at average raw material cost plus average cost of processing for various operations performed up to estimated stage of process.

iii. Finished goods are valued at cost or net realisable value whichever is lower.

6 Accounting for taxes on income

6.1 Provision for Income-Tax is made on the basis of the estimated taxable income for the accounting year in accordance with the Income-Tax Act, 1961.

6.2 The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a virtual certainty that these would be realised in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

7 Depreciation

Depreciation on fixed assets is provided on the written down value method in the manner prescribed under Schedule II to the Companies Act, 2013.

During the year, the company has revised estimated useful life of certain items of fixed assets in accordance with the useful life specified in Part-C of Schedule II of the Companies Act, 2013.

8 Retirement Benefits

Short-Term Employee Benefits are accounted for in the period during which the services have been rendered. The company's contribution to the Provident Fund and ESIC is remitted to the respective Government Authorities prescribed for this purpose on a fixed percentage of eligible employee's salary and charged to Statement of Profit and Loss. The company is providing for Gratuity and Leave Encashment benefits on the basis of actuarial valuation made at the end of the year. However, the funds for the same are retained by the company only.

9 Revenue Recognition

Revenue are recognised, on accrual basis. Job Work Receipts is recognised on completion of job and invoicing thereof.

10 Provisions and Contingent Liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation ora present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

11 Impairment of Assets

An asset is treated impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

12 Cash Flow Statement

Cash flow statement are reporterd using the indirect method, whereby profit / (loss) before extra-ordinary items / exceptional items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities of the Company are segregated based on available information.

13 Earnings per share

Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.




Mar 31, 2014

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leavies and other directly attributable cost upto the date, the asset is put to working condition for its inten- ded use. Cenvat Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expanditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in-progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance thereof from the factory premises and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting statndard AS-2 as issued of ICAI.

8. Amortization of Miscellanious Expenditures

The companies amortizes preliminary and public issue expenses equally over a period of ten accounting period.

9. Foreign Currency Transaction

There are no foreign currency transaction during the year.

10. Research and Devlopment

The company does not have a separate research & devlopment department and has not incurred any expenditure on research & devlopment.

11. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.


Mar 31, 2013

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leavies and other directly attributable cost upto the date, the asset is put to working condition for its inten- ded use. Cenvat Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expanditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in-progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance thereof from the factory premi- ses and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting statndard AS-2 as issued of ICAI.

8. Retirement Benefits

Employees retirement benefits are accounted on actual basis.

9. Amortization of Miscellanious Expenditures

The companies amortizes preliminary and public issue expenses equally over a period of ten accounting period.

10. Foreign Currency Transaction

Foreign currency transactions during the accounting period are translated at the rates prevalent on the date of payment/receipt. The exchange difference is credited;charged to Profit & Loss account in case of revenue items.

11. Research and Devlopment

The company does not have a separate research & devlopment department and has not incurred any expenditure on research & devlopment.

12. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.


Mar 31, 2012

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leaves and other directly attributable cost up to the date, the asset is put to working condition for its intended use. Civet Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expenditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in-progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance there of from the factory premises and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting standard AS-2 as issued of ICAI.

8. Retirement Benefits

Employees retirement benefits are accounted on actual basis.

9. Amortization of Miscellaneous Expenditures

The companies amortizes preliminary and public issue expenses equally over a period often accounting period.

10. Foreign Currency Transaction

Foreign currency transactions during the accounting period are translated at the rates prevalent on the date of payment/receipt. The exchange difference is credited; charged to Profit & Loss account in case of revenue items.

11. Research and Development

The company does not have a separate research & development department and has not incurred any expenditure on research & development.

12. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.


Mar 31, 2010

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leavies and other directly attributable cost upto the date, the asset is put to working condition for its intended use. Cenvat Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expenditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in-progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance thereof from the factory premi- ses and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting standard AS-2 as issued of ICAI.

8. Retirement Benefits

Employees retirement benefits are accounted on actual basis.

9. Amortization of Miscellaneous Expenditures

The companies amortizes preliminary and public issue expenses equally over a period of ten accounting period.

10. Foreign Currency Transaction

Foreign currency transactions during the accounting period are translated at the rates prevalent on the date of payment/receipt. The exchange difference is credited; charged to Profit & Loss account in case of revenue items.

11. Research and Development

The company does not have a separate research & development department and has not incurred any expenditure on research & development.

12. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.


Mar 31, 2009

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leavies and other directly attributable cost upto the date, the asset is put to working condition for its intended use. Cenvat Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expanditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in- progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance thereof from the factory premises and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting statndard AS-2 as issued of ICAI.

8. Retirement Benefits

Employees retirement benefits are accounted on actual basis.

9. Amortization of Miscellanious Expenditures

The companies amortizes preliminary and public issue expenses equally over a period of ten accounting period.

10. Foreign Currency Transaction

Foreign currency transactions during the accounting period are translated at the rates prevalent on the date of payment/receipt. The exchange difference is credited;charged to Profit & Loss account in case of revenue items.

11. Research and Devlopment

The company does not have a separate research & devlopment department and has not incurred any expenditure on research & devlopment.

12. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.

 
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