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Accounting Policies of Plastiblends India Ltd. Company

Mar 31, 2015

A Basis of Accounting

The financial statements are prepared on an accrual basis in accordance with generally accepted accounting principles under the historical cost convention.

B Fixed Assets, Depreciation

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use. Borrowing cost attributable to acquisition and installation of fixed assets are capitalised and included in cost of fixed assets.

From the current year depreciation is provided on a pro- rata basis on the straight method over the useful lives of the assets as prescribed by Schedule II of the Companies Act, 2013 as against the past practice of computing depreciation at rates with reference to the life of assets subject to the minimum of rates provided by Schedule XIV of the Companies Act, 1956

Intangible Fixed Assets and Amortization

Intangible assets, have finite useful life and are amortized over expected useful economic life.

C Investments(Non-current)

Investments are Long term & are carried at cost. There is no permanent diminution in value.

D Current Assets:

a. Inventories

Inventories are valued at Lower of Weighted Moving Average cost or estimated net realisable value & are net of CENVAT & VAT. Finished goods are valued at cost or market value, whichever is less & is inclusive of Central excise duty thereon. Cost includes cost of conversion and other costs incurred in bringing the inventories at their present location and condition. Cost of conversion for the purpose of valuation of WIP and finished goods includes fixed and variable production overheads incurred in converting the material into their present condition and location.

b. Sundry Debtors, Loans & Advances are stated after making adequate provisions for doubtful debts, if any.

E Revenue Recognition

Revenue comprises sale of Masterbatches ,Labour Charges, Traded items, interest and dividend. Revenue in respect of sale of goods is recognised at the time of despatch of goods from factory. Revenue is disclosed exclusive of sales tax, service tax, VAT or other taxes, as applicable. Sales of services (Labour charges) is recognised on completed contract basis.

Income from Investment

i) Dividend income is recognized when the Company's right to receive dividend is established.

ii) Interest is accrued over the period of investment.

F Government Grant

Grants received against specific Fixed Assets are adjusted to the cost ot the assets & those in the nature of Promoters Contribution are credited to Capital Reserves.

G Foreign Currency Transactions

Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which transaction occurred. Outstanding balances of foreign currency monetary items are reported using the period end rates. Exchange differences arising as a result of the above are recognised as income or expense in the Statement of profit and loss except the following.

In pursuance to Notification No. G.S.R. 225 (E) 31.03.2009 issued by the Ministry of Corporate Affairs for amending Accountiong Standard 11 "The Effect of changes in Foreign Exchange Rates", the Company has opted the option of capitalising Foreign Exchange gain/ loss on long term foreign currency monetary assets.

H Payments & Benefits to Employees

(a) Short term employee benefits are recognized as an expense in statement of Profit and Loss of the year in which the employee has rendered services.

(b) Post employment and other long term benefits are recognised as an expense in statement of Profit and Loss of the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using acturial valuation. Acturial gains and losses in respect of post employment and other long term benefits are charged to statement of Profit and Loss.

I Operating Lease

Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the statement of Profit and Loss as incurred.

J Tax Expense

Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is accounted for by computing the tax effect of timing differences which arise between book profits and tax profits and is accounted for at current rates of tax. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

K Provisions and Contingent Liabilities

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

There is no default,continuing or otherwise as at the Balance Sheet Date, in repayment of any of the above borrowings.

There is no default,continuing or Otherwise as at the Balance Sheet Date, in repayment of any of the above borrowings.


Mar 31, 2014

A Basis of Accounting

The financial statements are prepared on an accrual basis in accordance with generally accepted accounting principles under the historical cost convention.

B Fixed Assets, Depreciation

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use. Borrowing cost attributable to acquisition and installation of fixed assets are capitalised and included in cost of fixed assets.

Depreciation on fixed assets is computed on the straight-line method at rates prescribed under Schedule XIV of the Companies Act, 1956.

From the financial year 2010-11, Individual assets valuing for less than Rs.5,000/- are entirely depreciated in the year of acquisition.

Intangible Fixed Assets and Amortization

Intangible assets, have finite useful life and are amortized over expected useful economic life. C Investments(Non-current)

Investments are Long term & are carried at cost. There is no permanent diminution in value. D Current Assets:

a. Inventories

Raw Material, Packing Materials and Work in progress are valued on Moving Average cost basis, at cost and are net of CENVAT & VAT, Finished goods are valued at cost or market value, whichever is less & is inclusive of Central excise duty thereon. Cost includes cost of conversion and other costs incurred in bringing the inventories at their present location and condition. Cost of conversion for the purpose of valuation of WIP and finished goods includes fixed and variable production overheads incurred in converting the material into their present condition and location.

Stock in Trade is valued at Moving Average Cost.

Stock of Stores & Spares are valued at Moving Average Cost basis.

b. Sundry Debtors, Loans & Advances are stated after making adequate provisions for doubtful debts, if any.

E Revenue Recognition

Revenue comprises sale of Masterbatches .Labour Charges, Traded items, interest and dividend. Revenue in respect of sale of goods is recognised at the time of despatch of goods from factory. Revenue is disclosed exclusive of sales tax, service tax, VAT or other taxes, as applicable. Sales of services (Labour charges) is recognised on completed contract basis.

Income from Investment

i) Dividend income is recognized when the Company''s right to receive dividend is established.

ii) Interest is accrued over the period of investment.

F Government Grant

Grants received against specific Fixed Assets are adjusted to the cost ot the assets & those in the nature of Promoters Contribution are credited to Capital Reserves.

G Foreign Currency Transactions

Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which transaction occurred. Outstanding balances of foreign currency monetary items are reported using the period end rates. Exchange differences arising as a result of the above are recognised as income or expense in the Statement of profit and loss except the following.

In pursuance to Notification No. G.S.R. 225 (E) 31.03.2009 issued by the Ministry of Corporate Affairs for amending Accountiong Standard 11 "The Effect of changes in Foreign Exchange Rates", the Company has opted the option of capitalising Foreign Exchange gain/loss on long term foreign currency monetary assets.

H Payments & Benefits to Employees

(a) Short term employee benefits are recognized as an expense in statement of Profit and Loss of the year in which the employee has rendered services.

(b) Post employment and other long term benefits are recognised as an expense in statement of Profit and Loss of the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using acturial valuation. Acturial gains and losses in respect of post employment and other long term benefits are charged to statement of Profit and Loss.

I Operating Lease

Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the statement of Profit and Loss as incurred.

J Tax Expense

Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is accounted for by computing the tax effect of timing differences which arise between book profits and tax profits and is accounted for at current rates of tax. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

K Provisions and Contingent Liabilities

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


Mar 31, 2013

A Basis of Accounting

The financial statements are prepared on an accrual basis in accordance with generally accepted accounting principles under the historical cost convention.

B Fixed Assets, Depreciation

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use. Borrowing cost attributable to acquisition and installation of fixed assets are capitalised and included in cost of fixed assets.

Depreciation on fixed assets is computed on the straight-line method at rates prescribed under Schedule XIV of the Companies Act, 1956.

From the financial year 2010-11, Individual assets valuing for less than Rs.5,000/- are entirely depreciated in the year of acquisition.

Intangible Fixed Assets and Amortization

Intangible assets, have finite useful life and are amortized over expected useful economic life. C Investments

Investments are long term investments and are carried at cost. There is no permanent diminution in value. D Current Assets:

a. Inventories

Raw Material, Packing Material and Work-in-progress are valued on Moving Average Cost basis and are net of CENVAT and VAT. Finished goods are valued at cost or market value, whichever is less and is inclusive of Central excise duty thereon. Cost includes cost of conversion and other costs incurred in bringing the inventories at their present location and condition. Cost of conversion for the purpose of valuation of WIP and finished goods includes fixed and variable production overheads incurred in converting the material into their present condition and location.

Stock in Trade is valued at cost.

From financial year 2012-13, Stock of Stores & Spares are valued at Moving Average Cost basis which was shown under consumption of Store & Spares.

b. Sundry Debtors, Loans and Advances are stated after making adequate provisions for doubtful debts, if any.

E. Revenue Recognition

Revenue comprises sale of Masterbatches, Labour Charges, Traded items, interest and dividend. Revenue in respect of sale of goods is recognised at the time of despatch of goods from factory. Revenue is disclosed exclusive of sales tax, service tax, VAT or other taxes, as applicable. Sales of services (Labour charges) is recognised on completed contract basis.

Income from Investment

i) Dividend income is recognized when the Company''s right to receive dividend is established.

ii) Interest is accrued over the period of investment.

F Foreign Currency Transactions

Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which transaction occurred. Outstanding balances of foreign currency monetary items are reported using the period end rates. Exchange differences arising as a result of the above are recognised as income or expense in the Statement of Profit and Loss except the following:

In pursuance to Notification No. G.S.R. 225 (E) 31.03.2009 issued by the Ministry of Corporate Affairs for amending Accounting Standard 11 "The Effect of Changes in Foreign Exchange Rates", the Company has opted the option of capitalising Foreign Exchange gain/loss on long term foreign currency monetary assets.

G Payments and Benefits to Employees

(a) Short term employee benefits are recognized as an expense in the Statement of Profit and Loss of the year in which the employee has rendered services.

(b) Post employment and other long term benefits are recognised as an expense in the Statement of Profit and Loss of the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss.

H Operating Lease

Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the Statement of Profit and Loss as incurred.

I Tax Expense

Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is accounted for by computing the tax effect of timing differences which arise between book profits and tax profits and is accounted for at current rates of tax. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

J Provisions and Contingent Liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a 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 that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2012

A Basis of Accounting

The financial statements are prepared on an accrual basis in accordance with generally accepted accounting principles under the historical cost convention.

B Fixed Assets, Depreciation

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use. Borrowing cost attributable to acquisition and installation of fixed assets are capitalised and included in cost of fixed assets.

Depreciation on fixed assets is computed on the straight-line method at rates prescribed under Schedule XIV of the Companies Act, 1956.

From the financial year 2010-11, Individual assets valuing for less than Rs. 5,000/- are entirely depreciated in the year of acquisition.

Intangible Fixed Assets and Amortization

Intangible assets, have finite useful life and are amortized over expected useful economic life.

C Investments (Non-current)

Investments are Long term and are carried at cost. There is no permanent diminution in value.

D Current Assets:

a. Inventories

Raw Material, Finished Goods and Work in progress are valued on FIFO basis, at cost or market value, whichever is less and is net of CENVAT and VAT (Finished goods are valued at cost or market value, whichever is less and is inclusive of central excise duty thereon.) Cost includes cost of conversion and other costs incurred in bringing the inventories at their present location and condition. Cost of conversion for the purpose of valuation of WIP and finished goods includes fixed and variable production overheads incurred in converting the material into their present condition and location. Stock-in-Trade is valued at cost.

b. Sundry Debtors, Loans and Advances are stated after making adequate provisions for doubtful debts, if any.

E. Revenue Recognition

Revenue comprises sale of Masterbatches, DEPB License, Labour Charges, Traded items, interest and dividend. Revenue in respect of sale of goods is recognised at the time of despatch of goods from factory. Revenue is disclosed exclusive of sales tax, service tax, VAT or other taxes, as applicable. Income from Investment

i) Dividend income is recognized when the Company's right to receive dividend is established.

ii) Interest is accrued over the period of investment.

F Foreign Currency Transactions

Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which transaction occurred. Outstanding balances of foreign currency monetary items are reported using the period end rates. Exchange differences arising as a result of the above are recognised as income or expense in the Statement of Profit and Loss except the following.

In pursuance to Notification No. G.S.R. 225 (E) 31.03.2009 issued by the Ministry of Corporate Affairs for amending Accounting Standard 11 "The Effect of Changes in Foreign Exchange Rates", the Company has opted the option of capitalising Foreign Exchange gain/loss on long term foreign currency monetary assets.

G Payments and Benefits to Employees

(a) Short term employee benefits are recognized as an expense in the Statement of Profit and Loss of the year in which the employee has rendered services.

(b) Post employment and other long term benefits are recognised as an expense in the Statement of Profit & Loss of the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit & Loss.

H Operating Lease

Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the Statement of Profit & Loss as incurred.

I Tax Expense

Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is accounted for by computing the tax effect of timing differences which arise between book profits and tax profits and is accounted for at current rates of tax. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

J Provisions and Contingent Liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a 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 that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2011

A. Basis of Accounting

The financial statements are prepared on an accrual basis in accordance with generally accepted accounting principles under the historical cost convention.

B. Fixed Assets, Depreciation

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use. Borrowing cost attributable to acquisition and installation of fixed assets are capitalised and included in cost of fixed assets.

Depreciation on fixed assets is computed on the straight-line method at rates prescribed under Schedule XIV of the Companies Act, 1956. From the current financial year 2010-11, individual assets valuing for less than Rs. 5,000/- are entirely depreciated in the year of acquisition.

C. Investments

Long term investments are carried at cost less any permanent diminution in value (if any), determined separately for each individual investment.

D. Current Assets:

a. Inventories

Raw Material, Finished Goods and Work in progress are valued on FIFO basis, at cost or market value whichever is less, and is net of CENVAT & VAT (Finished goods are valued at cost or market value, whichever is less & is inclusive of Central excise duty thereon). Cost includes cost of conversion and other costs incurred in bringing the inventories at their present location and condition. Cost of conversion for the purpose of valuation of WIP and finished goods includes fixed and variable production overheads incurred in converting the material into their present condition and location.

b. Sundry Debtors, Loans & Advances are stated after making adequate provisions for doubtful debts, if any.

E. Revenue Recognition

Revenue comprises sale of Masterbatches, Strapping, Labour Charges, Traded items, interest and dividend.

Revenue in respect of sale of goods is recognised at the time of despatch of goods from factory. Revenue is disclosed exclusive of sales tax, service tax, VAT or other taxes, as applicable.

Income from Investment

i) Dividend income is recognized when the Company's right to receive dividend is established.

ii) Interest is accrued over the period of investment.

F. Foreign Currency Transactions

Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which transaction occurred. Outstanding balances of foreign currency monetary items are reported using the period end rates. Exchange differences arising as a result of the above are recognised as income or expense in the Profit and Loss Account except the following.

In pursuance to Notification No G.S.R 225 (E) 31.03.2009 issued by the Ministry of Corporate Affairs for amending Accounting Standard 11 "The Effects of Changes in Foreign Exchange Rates", the Company has opted the option of capitalising Foreign Exchange gain/loss on long term foreign currency monetary assets.

G. Payments & Benefits to Employees

(a) Short term employee benefits are recognized as an expense in the Profit and Loss Account of the year in which the employee has rendered services.

(b) Post employment and other long term benefits are recognised as an expense in the Profit and Loss Account of the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

H. Operating Lease

Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the Profit and Loss Account as incurred.

I. Tax Expense

Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is accounted for by computing the tax effect of timing differences which arise between book profits and tax profits and is accounted for at current rates of tax. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

J. Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires outflow of resources, which can be reliably estimated. Contingent liabilities are not recognised but are disclosed in notes.


Mar 31, 2010

1. ACCOUNTING POLICIES : A) Basis of Preparation of Financial Statements : The financial statements are prepared under the historicai cost convention on accrual basis and in accordance with the generally accepted accounting principles and comply with accounting standards referred to in Section 211 (3C) and other provisions of the Companies Act, 1956. B) 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 financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which results are known / materialised i) FIXED ASSETS : Fixed Assets include all expenditure of capital nature and are shown at cost less depreciation. Depreciation on Assets is being provided on straight line method at the rates prescribed by Schedule XIV of the Companies Act, 1956. Borrowing costs attributable to acquisition & installation of fixed assets are capitalised & included in cost of assets as appropriate. Depreciation in respect of additions to assets is charged on pro-rata basis with reference to the period of use of such Assets.

ii) INVESTMENTS : All Investments are long term and are stated at cost.

iii) CURRENT ASSETS : INVENTORIES : Raw Materials, Packing Materials, Finished Goods & Stock-in-process are valued on FIFO basis, at cost or market value whichever is less and is net of CENVAT & VAT. Cost includes cost of conversion & other costs incurred in bringing inventories at their present location and condition. Cost of conversion for the purpose of valuation of WIP and Finished Goods includes Fixed & Variable production overheads incurred in converting the material into their present condition & location. Machinery Spares & Maintenance Materials are charged out as expenses in the year of purchase. SUNDRY DEBTORS, LOANS & ADVANCES : They are stated after making adequate provisions for doubtful debts, if any. Balances in debtors, deposits, creditors are subject to balance confirmation / reconciliation, if any.

C) REVENUE ITEMS : i) INCOME : Sales comprises sale of goods, labour job receipts, DEPB License and traded items. Revenus in respect of sale of goods is recognised at the point of despatch to the customer. Interest income is recognised on time proportion basis. Dividends are recorded when right to receive payment is established.

ii) EXPENSES :

Transactions in Foreign Currency are recorded in the financial statements based on the exchange rate existing at the time of the transaction. Year end rates / forward contracted rates are considered to recognise impact of foreign exchange loss / profit on unsettled transactions in foreign currency.

iii) RETIREMENT BENEFITS :

Liabilities under Superannuation are fully funded with the Life Insurance Corporation of India, through the Employees Superannuation Fund.

Liability of Gratuity is recognised on the basis of contribution to Kotak Life Insurance under Kotak Gratuity Group Plan. Companys contribution to Provident and Other Funds have been charged to revenue.

Previlege Leave entitlements are recognised as liability, in the calander year of rendering of services, as per the rules of the Company.

D) TAXATION:

1. Provision for Taxation is made on the Basis of the Taxable Profits computed for the current Accounting Period (Reporting Period) in accordance with the Income-Tax Act, 1961.

2. Deferred Tax resulting from timing differences between Book Profits and Tax Profits are accounted for at the current rates of tax to the extent the timing difference are expected to, in case of Deferred Tax Liabilities with reasonable certainity and in case of Deferred Tax Assets with virtual certainity that there would be adequate future taxable income against which such Deferred Tax Assets can be realised.

Accounting policies not specifically referred to are consistent with Generally Accepted Accounting Practices.

 
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