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Accounting Policies of Premier Pipes Ltd. Company

Mar 31, 2014

(a) Accounting Convention

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India. The financial statements have been prepared on an accrual basis following the historical cost convention, except for certain fixed assets which have been adjusted by revaluation.

The Accounting Policies adopted in the preparation of financial statements are consistent with those of previous years.

(b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the results of operations during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Further results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which these gets materialised.

(c) Fixed Assets & Depreciation

Fixed Assets are stated at cost or at revalued amounts less accumulated depreciation. Cost comprises the purchase price (net of CENVAT/VAT) and any attributable cost of bringing the assets to its working condition for its intended use.

Depreciation on fixed assets is provided on all the assets (including amounts added on revaluation) on Straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

Depreciation for additions to/deductions from fixed assets is calculated pro rata from/to the month of addition/deductions.

The carrying amount of cash generating units/assets is reviewed at the balance sheet date to determine whether there is any indication of impairment. lf such indication exists the recoverable amount is estimated as the net selling price or value in use, whichever is higher. lmpairment loss, if any is recognised whenever carrying amount exceeds the recoverable amount.

(d) Investments

Investments that are held for more than a year from the date of acquisition are classified as long term Investments and are carried at cost. Provision for diminution in value of lnvestment is made to recognize a decline in the value of the Investments.

(e) Revenue Recognition

Revenue form sale of goods is recognised when significant risk and rewards of ownership is transferred to customers. Sales are stated inclusive of excise duty and net of rebates, trade discounts and Sales Tax/Vat.

Service Income is recognised on an accrual basis as per the contractual terms with the customers, net of service tax.

Interest Income is recognised on a time proportion basis taking into account the amount, outstanding and the rate applicable. lnterest income is included under the head "Other lncome" in the statement of Profit and Loss.

(f) Valuation of Inventories

Raw Materials & Stores & Spares are valued at cost on first in first out/weighted average basis, which ever is lower and includes freight, taxes and duties, net of CENVAT/VAT credit, wherever applicable.

Finished goods are valued at lower of cost and net realisable value, Cost includes an appropriate portion of manufacturing and other overheads, wherever applicable, Excise Duty on finished products is included in the value of finished products inventory. By-products are stated at estimated market value.

(g) Employee Benefits

The Company has contributed to provident fund & ESIC which are considered as defined contribution Plans. The contributions paid/payable under the scheme is recognised in the Profit and Loss Account in the financial year to which it relates.

No liability in respect of present liability or future payment of gratuity has been ascertained and provided in the accounts. The liability for leave encashment has not been actually determined. The Company continues to account for such liability on actual payment basis.

(h) Borrowing Costs

Borrowing Cost is charged to statement of Profit and Loss except cost of borrowing for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset.

(i) Taxes on Income

Current year tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961.

(j) Provisions and contingent liabilities

Provisions in respect of present obligation arising out of past events are made in accounts when reliable estimates can be made of the amount of the obligation, Contingent Liabilities (if material) are disclosed in the notes for present obligation arising from past events, when it is not possible that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation can not be made and possible obligation arising from past events which will be confirmed only by future events not wholly within the control of the company.


Mar 31, 2013

(a) Accounting Convention

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India. The financial statements have been prepared on an accrual basis following the historical cost convention, except for certain fixed assets which have been adjusted by revaluation.

The Accounting Policies adopted in the preperation of financial statements are consistent with those of previous years.

(b) Use of Estimates

The preparation of financial statements in confirmity with generally accepted accounting principles in India (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the results of operations during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Further results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which these gets materialised.

(c) Fixed Assets & Depreciation

Fixed Assets are stated at cost or at revalued amounts less accumulated depreciation. Cost comprises the purchase price (net of CENVAT/VAT) and any attributable cost of bringing the assets to its working condition for its intended use.

Depreciation on fixed assets is provided on all the assets (including amounts added on revaluation) on Straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

Depreciation for additions to/deductions from fixed assets is calculated prorata from/to the month of addition/deductions. Fixed assets individually costing Rs. 5000.00 or less is depreciated in full in the year of addition.

The carrying amount of cash generating units/assets is reviewed at the balance sheet date to determine whether there is any indication of impairment, If such indication exists the recoverable amount is estimated as the net selling price or value in use, whichever is higher. Impairment loss, if any is recognised whenever carrying amount exceeds the recoverable amount.

(d) Investments

Long Term Investments are stated at cost.

(e) Revenue Recognition

Revenue form sale of goods is recognised when significant risk and rewards of ownership is transferred to customers. Sales are stated inclusive of excise duty and net of rebates, trade discounts and Sales Tax/Vat.

Service Income is recognised on an accrual basis as per the contractual terms with the customers, net of service tax.

Interest Income is recognised on a time proportion basis taking into account the amount, outstanding and the rate applicable. Interest income is included under the head "Other Income" in the statement of Profit and Loss.

(f) Valuation of Inventories

Raw Materials & Stores & spares are valued at cost on first in first out /weighted average basis, which ever is lower and includes freight, taxes and duties, net of CENVAT/VAT credit, wherever applicable.

Finished goods are valued at of cost and net realisable value, Cost includes an appropriate portion of manufacturing and other overheads, wherever applicable, Excise Duty on finished products is included in the value of finished products inventory. By-products are stated at estimated market value.

(g) Employee Benefits

The Company has contributed to provident fund & ESIC which are considered as defined contribution Plans. The contributions paid/payable under the scheme is recognised in the Profit and Loss Account in the financial year to which it relates.

Retirement benefits in the form of gratuity and leave encashment are considered as defined benefit obligations and are provided for on the basis of an acturial valuation, using the projected unit credit method, as at the date of the balance sheet. Any gain/loss, if any, are immediat ely recognised in the Profit and Loss Account.

(h) Borrowing Costs

Borrowing Cost is charged to statement of Profit and Loss except cost of borrowing for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset.

(i) Taxes on Income

Current year tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961.

(o) Provisions and contingent liabilities

Provisions in respect of present obligation arising out of past events as made in accounts when reliable estimates can be made of the amount of the obligation, Contingent Liabilities (if material) are disclosed in the notes for present obligation arising from past events, when it is not possible that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation can not be made and possible obligation arising from past events which will be confirmed only by future events not wholly within the control of the company.


Mar 31, 2012

(a) Accounting Convention

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India. The financial statements have been prepared on an accrual basis following the historical cost convention, except for certain fixed assets which have been adjusted by revaluation.

(b) Use of Estimates

The preparation of financial statements in confirmity with generally accepted accounting principles in India (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the results of operations during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Further results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which these gets materialised.

(c) Fixed Assets & Depreciation

Fixed Assets are stated at cost or at revalued amounts less accumulated depreciation. Cost comprises the purchase price (net of CENVATA/AT) and any attributable cost of bringing the assets to its working condition for its intended use.

Depreciation on fixed assets is provided on all the assets (including amounts added on revaluation) on Straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

The carrying amount of cash generating units/assets is reviewed at the balance sheet due to determine whether there is any indication of impairment, if such indication exist the recoverable amount is estimated as the net selling price or value in use, whichever is higher. Impairment loss, if any is recognised whenever carrying amount exceeds the recoverable amount.

(d) Investment

Long Term Investments are stated at cost.

(e) Revenue Recognition

Revenue form sale of goods is recognised when significant risk and rewards of ownership is transferred to customers. Sales are stated inclusive of excise duty and net of rebates, trade discounts arid Sales Tax / Vat.

Service Income is recognised on an accrual basis as per the contractual terms with the customers, net of service tax.

Interest Income is recognised on a time proportion basis taking into account the amount, outstanding and the rate applicable. Interest income is included under the head "Other Income" in the statement of Profit and Loss.

(f) Valuation of Inventories

Raw Materials & Stores are valued at cost on first in first out/weighted average basis, which is lower and includes freight, taxes and duties, net of CENVAT/VAT credit, wherever applicable.

(g) Employee Benefits

The Company has contributed to provident fund & ESIC which are considered as defined contribution Plants. The contributions paid/payable under the scheme is recognised in the Profit and Loss Account in the financial year to which it relates.

Retirement benefits in the form of gratuity and leave encashment are considered as defined benefit obligations and are provided for on the basis of an actual valuation, using the projected unit credit method, as the date of the balance sheet. Any gain/loss, if any, are immediately recognised in the Profit and Loss Account.

(h) Borrowing Costs

Borrowing Cost is charged to statement of Profit and Loss except cost of borrowing for acquisition of qualifying assets which is capitalised till the date of commercial use of the asset.

(i) Taxes on Income

Current year tax is the amount of tax payable on the estimated taxable income for the current year as the provisions of Income Tax Act, 1961.

(j) Provisions and contingent liabilities

Provisions in respect of present obligation arising of past events as made in accounts when reliable estimates can be made of the amount of the obligation, Contingent Liabilities (if material) are disclosed in the notes for present obligation arising from past events, when it is not possible that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation can not be made and possible obligation arising from past events which will be confirmed only by future events not wholly within the control of the company.


Mar 31, 2011

(a) Accounting Convention

The Company maintains its accounts on accrual basis following the historical cost convention, except that Land, Building & Plant & Machinery have been shown on revalued amounts.

(b) Fixed Assets & Depreciation

- Fixed Assets are carried at cost of acquisition/revalued amounts less depreciation.

- Depreciation has been calculated for the year on all the assets (including amounts added on revaluation) of the Company on straightline method at the rates specified in Schedule XIV of the Companies Act, 1956.

(c) Investments

Investments are stated at cost.

(d) Valuation of Inventories

- Cost has been taken on FIFO basis.

- Raw Materials & Stores & Spares have been valued at cost.

- Finished Goods are stated at lower of the cost and net realisable value

- By- products are stated at estimated market value.

(e) Other Income

- Income from Job Work Charges is accounted for as per terms of relevant arrangement.

- Interest is accounted for on accrual basis.

- Income from services (Commission) are accounted for on accrual basis.


Mar 31, 2010

(A)Accounting Convention

The Company maintains its accounts on accrual basis following the historical cost convention, except that Land, Building & Plant & Machinery have been shown on revalued amounts.

(b) Fixed Assets & Depreciation

-Fixed Assets are carried at cost of acquisition/revalued amounts less depreciation.

- Depreciation has been calculated for the year on all the assets (including amounts added on revaluation) of the Company on straightline method at the rates specified in Schedule XIV of the CompaniesAct, 1956.

(C) investments

Investments are stated at cost.

(D) Valuation of Inventories

- Cost has been taken on FIFO basis.

- Raw Materials & Stores & Spares have been valued at cost.

- Finished Goods are stated at lower of the cost and net realisable value

- By- products are stated at estimate markefValue.

(E) Other Income

- Income from Job Work Charges is accounted for as per terms of relevant arrangement.

- Interest is accounted for on accrual basis.

- Income from services (Commission) are accounted for on accrual basis.


Mar 31, 2009

(a) Accounting Convention :

The Company maintains its accounts on accrual basis following the historical cost convention, except that Land, Building & Plant & Machinery have been shown on revalued amounts.

(b) Fixed Assets & Depreciation :

- Fixed Assets are carried at cost of acquisition / revalued amounts less depreciation.

- Depreciation has been calculated for the year on all the assets (including amounts added on revaluation) of the Company on straightline method at the rates specified in Schedule XIV of the Companies Act, 1956.

(c) Investments:

- Investments are stated at cost.

(d) Valuation of Inventories :

- Cost has been taken on FIFO basis.

- Raw Materials & Stores & Spares have been valued at cost.

- Finished Goods are stated at lower of the cost and net realisable value

- By- products are stated at estimated market value.

(e) Other Income :

- Income from Job Work Charges is accounted for as per terms of relevant arrangement.

- Interest is accounted for on accrual basis.

 
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