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Accounting Policies of Premier Polyfilm Ltd. Company

Mar 31, 2015

1.1 Basis of Accounting :

The Company follows the Mercantile system of Accounting under historical cost convention except otherwise stated. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.2 Use of Estimates :

The Preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.3 Fixed Assets :

Fixed Assets are valued at cost of net of CENVAT less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized.

1.4 Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as Current Investments. All other investments are classified as Long Term Investments. Long Term Investments are carried at cost.

However, provision for diminution in value is made to recognize a decline other than temporary in value of the long term

investments

1.5 Borrowing Cost :

Borrowing Costs attributable to the acquisition, construction of qualifying assets are capitalized as the part of the cost of such assets up to the date when such assets are ready for intended use. A qualifying asset is one that takes substantial period of time for completion. Other borrowing costs are charged as an expense in the year in which these are incurred.

1.6 Inventories :

i) Raw Materials and Stores & Spares are valued at lower of cost and net realizable value.

ii) Work-in-progress is valued at actual material cost plus estimated manufacturing cost.

iii) Finished Goods are valued at lower of cost and net realizable value.

1.7 Revenue Recognition :

Revenue from the sale of goods are recognized upon passing of title to the customers which generally coincides with their delivery.

1.8 Depreciation :

Depreciation on Fixed assets except Leasehold Land is provided on Straight Line Method according to the useful lives of the assets

and procedure prescribed in Schedule of the Companies Act, 2013.

However, Lease hold Land is amortized every year at a uniform rate over the period of lease

1.9 Foreign Currency Transaction :

Foreign Currency Transactions are recorded at the exchange rates prevailing on the date of transactions. Foreign currency balance of monetary items as on the balance sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year. Any income or expenses on account of exchange difference either on settlement or on translation is recognized as Revenue.

1.10 Retirement Benefits :

The Company has Defined Contribution plans for post employment benefits namely provident Fund Contribution which is made at the prescribed rates to the Provident Fund Commissioner and is charged to the Profit and Loss Account. There are no other obligation other than the contribution payable.

The Company has defined benefit plans namely leave encashment as Compensated Absence and Gratuity for employees.

The liability for Gratuity and Compensated Absence is determined on the basis of an actuarial valuation at the end of the year. Gains and losses arising out of actuarial evaluation are recognized immediately in the Profit and Loss as income or expense.

1.11 Provision for Current and Deferred Tax :

Provision for Current Tax is made for an amount of Rs. 17,000,000 after taking into consideration of benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are reversible in one or more subsequent periods . Deferred Tax assets are recognized and carried forward 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 realized.

1.12 Impairment of Assets :

As 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 an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.13 Provision, Contingent liabilities and Contingent assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.14 Segment Reporting :

The Company is mainly engaged in manufacturing and sale of PVC Films and Sheets. From the operations of the Company, it is considered as a single business Products and accordingly segment reporting on business segment is not required. The company has identified its geographical segments based in the areas in which the customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical segments. Hence , segment reporting on geographical segments is not prepared.

1.15 The Balance Sheet and Profit and Loss Account have complied the accounting standards according to Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.


Mar 31, 2014

1.1 Basis of Accounting :

The Company follows the Mercantile system of Accounting under historical cost convention except otherwise stated. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.2 Use of Estimates :

The Preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.3 Fixed Assets :

Fixed Assets are valued at cost of net of CENVAT less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised.

1.4 Inventories :

i) Raw Materials and Stores & Spares are valued at lower of cost and net realisable value.

ii) Work-in-progress is valued at actual material cost plus estimated manufacturing cost.

iii) Finished Goods are valued at lower of cost and net realisable value.

1.5 Revenue Recognition :

Revenue from the sale of goods are recognised upon passing of title to the customers which generally coincides with their delivery.

1.6 Depreciation :

Depreciation on Fixed assets excepting Leasehold Land is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956(as amended upto date). However, Leasehold Land is amortised every year at a uniform rate over the period of lease.

1.7 Foreign Currency Transaction :

Foreign Currency Transactions are recorded at the exchange rates prevailing on the date of transactions.

Foreign currency balance of monetary items as on the balance sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year. Any income or expenses on account of exchange difference either on settlement or on translation is recognised as Revenue.

1.8 Retirement Benefits :

The Company has Defined Contribution plans for post employment benefits namely Provident Fund Contribution which is made at the prescribed rates to the Provident Fund Commissioner and is charged to the Profit and Loss Account. There are no other obligation other than the contribution payable.

The Company has defined benefit plans namely leave encashment as Compensated Absence and Gratuity for employees. The liability for Gratuity and Compensated Absence is determined on the basis of an actuarial valuation at the end of the year. Gains and losses arising out of actuarial evaluation are recognised immediately in the Profit and Loss as income or expenses.

1.9 Provision for Current and Deferred Tax :

Provision for Current Tax is made for an amount of Rs. 14,060,000 after taking into consideration of benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are reversible in one or more subsequent periods. Deferred Tax assets are recognised and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such defferred tax assets can be realised .

1.10 Impairment of Assets :

As 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 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.

1.11 Provision, Contingent liabilities and Contingent assets :

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.12 Segment Reporting :

The Company is manily engaged in manufacturing and sale of PVC Films and Sheets. From the operations of the Company, it is considered as a single business Products and accordingly segment reporting on business segment is not required. The company has identified its geographical segments based in the areas in which the customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical segments. Hence , segment reporting on geographical segments is not prepared.

1.13 The Balance Sheet and Profit and Loss Account have complied the accounting standards according to sub-section (3C) of Section 211 of the Companies Act, 1956.


Mar 31, 2013

1.1 Basis of Accounting:

The Company follows the Mercantile system of Accounting under historical cost convention except otherwise stated. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

1.2 Use of Estimates :

The Preparation''of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.3 Fixed Assets:

Fixed Assets are valued at cost of net of CENVAT less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised.

1.4 Inventories:

i) Raw Materials and Stores & Spares are valued at lower of cost and net realisable value. ii) Work-in-progress is valued at actual material cost plus estimated manufacturing cost. iii) Finished Goods are valued at lower of cost and net realisable value.

1.5 Revenue Recongnition:

Revenue from the sale of goods are recognised upon passing of title to the coustomers which generally coincides with their delivery.

1.6 Depreciation:

Depreciation on Fixed assets excepting Leasehold Land is provided on Straight Line Method at the rates prescrided in Schedule XIV of the Companies Act, 1956(as amended upto date). However, Leasehold Land is amortised every year at a uniform rate over the period of lease.

1.7 Foreign Currency Transaction:

Foreign Currency Transactions are recorded at the exchange rates prevailing on the date of transactions. Foreign currency balance of monetary items as on the balance sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year. Any income or expenses on account of exchange difference either on settlement or on translation is recognished as Revenue.

1.8 Retirement Benefits:

The Company has Defined Contribution plans for post employment benefits namely Provident Fund Contribution which is made at the prescribed rates to the Provident Fund Commissioner and is charged to the Profit and Loss Account. There are no other obligation other than the contribution payable.

The Company has defined benefit plans namely leave encashment as Compensated Absence and Gratuity for employees. The liability for Gratuity and Compensated Absence is determined on the basis of an actuarial valuation at the end of the year. Gains and losses arising out of actuarial evaluation are recognished immediately in the Profit and Loss as income or expenses.

1.9 Provision for Current and Deferred Tax:

Provision for Current Tax is made for an amount of Rs. 66,00,000 after taking into consideration of benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are reversible in one or more subsequent periods. Deferred Tax assets are recognised and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such defferred tax assets can be realised.

1.10 Impairment of Assets:

As 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 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.

1.11 Provision, Contingent liabilities and Contingent assets:

Provisions involving substaintial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.12 Segment Reporting:

The Company is manily engaged in manufacturing and sale of PVC Films and Sheets. From the operations of the Company, it is considered as a single business Products and accordingly segment reporting on business segment is not required. The company has identified its geographical segments based in the areas in which the customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical segments. Hence, segment reporting on geographical segments is not prepared.

1.13 The Balance Sheet and Profit and Loss Account have complied the accounting standards according to sub-section (3C) ofSection211 of the Companies Act, 1956.


Mar 31, 2012

1.1 Basis of Accounting :

The Company follows the Mercantile system of Accounting under historical cost convention except otherwise stated. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.2 Use of Estimates :

The Preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.3 Fixed Assets :

Fixed Assets are valued at cost of net of CENVAT less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized.

1.4 Inventories :

i) Raw Materials and Stores & Spares are valued at lower of cost and net realizable value.

ii) Work-in-progress is valued at actual material cost plus estimated manufacturing cost.

iii) Finished Goods are valued at lower of cost and net realizable value.

1.5 Revenue Recognition :

Revenue from the sale of goods are recognized upon passing of title to the customers' which generally coincides with their delivery.

1.6 Depreciation :

Depreciation on Fixed assets excepting Leasehold Land is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956(as amended up to date). However, Leasehold Land is amortized every year at a uniform rate over the period of lease.

1.7 Foreign Currency Transaction :

Foreign Currency Transactions are recorded at the exchange rates prevailing on the date of transactions. Foreign currency balance of monetary items as on the balance sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year. Any income or expenses on account of exchange difference either on settlement or on translation is recognized as Revenue.

1.8 Retirement Benefits :

The Company has Defined Contribution plans for post employment benefits namely provident Fund Contribution which is made at the prescribed rates to the Provident Fund Commissioner and is charged to the Profit and Loss Account. There are no other obligation other than the contribution payable. The Company has defined benefit plans namely leave encashment as Compensated Absence and Gratuity for employees. The liability for Gratuity and Compensated Absence is determined on the basis of an actuarial valuation at the end of the year. Gains and losses arising out of actuarial evaluation are recognized immediately in the Profit and Loss as income or expenses.

1.9 Provision for Current and Deferred Tax :

Provision for Current Tax is made for an amount of Rs. 4,900,000 after taking into consideration of benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are reversible in one or more subsequent periods. Deferred Tax assets are recognized and carried forward 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 realized.

1.10 Impairment of Assets :

As 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 an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.11 Provision, Contingent liabilities and Contingent assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.12 Segment Reporting :

The Company is mainly engaged in manufacturing and sale of PVC Films and Sheets. From the operations of the Company, it is considered as a single business Products and accordingly segment reporting on business segment is not required. The company has identified its geographical segments based in the areas in which the customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical segments. Hence, segment reporting on geographical segments is not prepared.

1.13 The Balance Sheet and Profit and Loss Account have complied the accounting standards according to sub-section (3C) of Section 211 of the Companies Act, 1956.


Mar 31, 2011

1 Basis of Accounting:

The Company follows the Mercantile system of Accounting under historical cost convention except otherwise stated. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year

2 Use of Estimates

The Preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

3 Fixed Assets :

Fixed Assets are valued at cost of net of CENVAT less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised.

4 Inventories :

i) Raw Materials and Stores & Spares are valued at lower of cost and net realisable value.

ii) Work-in-progress is valued at actual material cost plus estimated manufacturing cost.

iii) Finished Goods are valued at lower of cost and net realisable value.

5 Revenue Recongnition:

Revenue from the sale of goods are recognised upon passing of title to the customers which generally coincides with their delivery.

6 Depreciation :

Depreciation on Fixed assets excepting Leasehold Land is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 (as amended upto date). However, Leasehold Land is amortised every year at a uniform rate over the period of lease.

7 Foreign Currency Transaction :

Foreign Currency Transactions are recorded at the exchange rates prevailing on the date of transactions. Foreign currency balance of monetary items as on the balance sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year. Any income or expenses on account of exchange difference either on settlement or on translation is recognised as Revenue except in cases where they relate to acquisition of fixed assets in which cases they are adjusted to the carrying cost of such assets.

8 Retirement Benefits :

The Company has Defined Contribution plans for post employment benefits namely provident Fund Contribution which is made at the prescribed rates to the Provident Fund Commissioner and is charged to the Profit and Loss Account. There are no other obligation other than the contribution payable.

The Company has defined benefit plans namely leave encashment as Compensated Absence and Gratuity for employees. The liability for Gratuity and Compensated Absence is determined on the basis of an actuarial valuation at the end of the year. Gains and losses arising out of actuarial evaluation are recognised immediately in the Profit and Loss as income or expenses.

9. Provision for Current and Deferred Tax:

Provision for Current Tax is made for an amount of Rs. 24,25,000 after taking into consideration of benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are reversible in one or more subsequent periods . Deferred Tax assets are recognised and carrierd forword only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such defferred tax assets can be realised.

10. Impairment of Assets

As 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 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.

11. Provision, Contingent liabilities and Contingent assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

12. Segment Reporting :

The Company is mainly engaged in manufacturing and sale of PVC Films and Sheets. From the operations of the Company, it is considered as a single business Products and accordingly segment reporting on business segment is not required. The company has identified its geographical segments based in the areas in which the customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical segments. Hence , segment reporting on geographical segments is not prepared.

13. The Balance Sheet and Profit and Loss Account have complied the accounting standards according to sub- section (3C) of Section 211 of the Companies Act, 1956.


Mar 31, 2010

1. Basis of Accounting ¦.

The Company follows the Mercantile System of Accounting under historical cost convention except otherwise stated. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates :

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

3. Fixed Assets :

Fixed Assets are valued at cost of net of CENVAT less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised.

4. Inventories :

i) Raw Materials and Stores & Spares are valued at lower of cost and net realisable value. ii) Work-in-progress is valued at actual material cost plus estimated manufacturing cost. iii) Finished Goods are valued at lower of cost and net realisable value.

5. Revenue Recongnition :

Revenue from the sale of goods are recognised upon passing of title to the customers, which generally coincides with their delivery.

6. Depreciation :

Depreciation on Fixed Assets excepting Leasehold Land is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 (as amended upto date). However, Leasehold Land is amortised every year at a uniform rate over the period of lease.

7. Foreign Currency Transaction :

Foreign currency transactions are recorded at the exchange rates prevailing on the date of transactions. Foreign currency balances of monetary items as on the balance sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year. Any income or expenses on account of exchange difference either on settlement or on translation is recognished as Revenue except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

8. Retirement Benefits :

The comany has Defined Contribution plans for post employment benefits namely Provident Fund Contribution which is made at the prescribed rates to the Provident Fund Commissioner and is charged to the Profit and Loss Account. There are no other obligation other than the contribution payable.

The Company has defined benefit plans namely leave encashment as compensated Absence and Gratuity for employees. The liability for Gratuity and Compensated Absence is determined on the basis of an actuarial valuation at the end of the year. Gains and losses arising out of actuarial evaluation are recognised immediately in the Profit and Loss as income or expenses.

9. Provision for Current and Deferred Tax :

Provision for current Tax is to be made after taking into consideration of benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are reversible in one or more subsequent periods. Deferred Tax assets are recognised and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will he available against which such differed tax assets can be realised.

10. Impairment of Assets :

As 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 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. 11. Provision, Contingent liabilities and Contingent assets :

Provision involving substantial degree of estimation in measurement are recognised when there is a present

obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

12. Segment Reporting :

The Company is mainly engaged in manufacturing and sale of PVC Films and sheets. From the operations of the Company, it is considered as a single business product and accordingly segment reporting on business segment is not required. The company has identified its geographical segments based in the areas in which the customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical segments. Hence, segment reporting on geographical segments is not prepared.

13. The balance Sheet and Profit and Loss Account have complied the accounting standards according to sub- section (3C) of Section 211 of the Companies Act, 1956.



 
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