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Accounting Policies of Premier Synthetics Ltd. Company

Mar 31, 2015

Basis of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India {Indian GAAP) to comply with the Accounting Standards notified under Section 211{3C) of the Companies Act, 1956. ('the 1956 Act') which continues to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated September 13,2013 Act, as applicable.

Use of Estimates

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date or the financial statements and the reported income and expenses during the reporting period. Management believes (hat the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates.

Any change in such estimates is recognized prospectively.

General

Accounting policies not specifically referred to otherwise be in consistence with earlier years and in consonance with generally accepted accounting principles.

Expenses and income considered payable and receivable respectively are accounted for on accrual basis.

Sales

Sales are accounted on mercantile basis, when the sale of goods is completed.

Service charges are billed to the customers on completion of their production order.

Valuation of Inventories

Inventories of Raw materials and Work in progress are valued at cost.

Stocks in Trade and Stock of Finished Goods are valued at lower of cost and net realisable value,

Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any, Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use,

Depreciation / Amortization

Depreciation on the fixed assets is charged on straight line method over the estimated useful lives of the assets.

Depredation in respect of additions to/and deletion from assets has been charged on pro-rata basis with reference to the month of addition or deletion

No amortization is made for leasehold land, which are under Perpetual lease.

Fixed Assets costing Rs.5000/-or less are fully depreciated in the year of purchase.

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. Current investments are carried at lower of cost and fair value determined on an Individual investment basis. Long-term Investments are carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of such investments.

Foreign Currency Transactions

Foreign Currency transactions are recorded in the books by applying the exchange rates as on the date of the transaction, Foreign Currency Assets & Liabilities are converted at the exchange rate prevailing on the date of the Balance Sheet and the resultant exchange difference is adjusted to the profit & Loss account except in the case of Foreign Currency Liabilities arising on account of acquisition of Fixed Assets, where such exchange difference is adjusted to the cost of the assets.

Retirement Benefits

Staff benefits arising out of retirement/ death comprising of contributions to Provident Fund, Gratuity Scheme and other post separation benefits are accounted for on the basis of the schemes or by an independent actuarial valuation at the year-end as the case may be.

Taxes on Income

Income Tax is computed in accordance with Accounting Standard 22. 'Accounting for Taxation on Income' issued by the 1CAI.

Provision for current income tax is made In accordance with the provisions of Income tax-Act, 1961.

The differences between taxable income and net profit or loss before tax for the year, as per the financial statements, are identified and the tax effect of the deferred tax asset or deferred lax liability is recorded for timing differences i.e. differences that originate in one accounting period and reverse in another.

Deferred tax assets are recognised only If there is reasonabfe certainty that they will be realized and are reviewed for the appropriateness of their respective carrying val ues at each balance sheet date.

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 provided for in the books but are disclosed by way of notes in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statement.

Earning per share

Basic and diluted earnings per share are computed in accordance with Accounting Standard-20 Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.

Impairment of Assets

Tangible fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment toss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount, which Is the higher of the asset's net selling price or its value in use.

Extra ordinary and exceptional items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such,

On certain occasions, the size, type or Incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure Improves an understanding of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to the financial statements.


Mar 31, 2013

A) General

i) Accounting policies not specifically referred to otherwise be in consistence with earlier years and in consonance with generally accepted accounting principles.

ii) Expenses and income considered payable and receivable respectively are accounted for on accrual basis.

b) Sales

i) Sales are accounted on mercantile basis, when the sale of goods is completed. ii) Service charges are billed to the customers on completion of their production order.

c) Valuation of Inventories

i) Inventories of Raw materials and Work in progress are valued at cost.

ii) Stocks in Trade and Stock of Finished Goods are valued at lower of cost and net realisable value.

d) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchases price and any attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use:

e) Depreciation / Amortization

i) Depreciation on the fixed assets is charged on Straight Line Method at the rates prescribed by Schedule XIV to the Companies Act,

ii) Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata basis with reference to the month of addition or deletion.

iii) No amortization is made for leasehold land, which are under perpetual lease.

f) 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. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of such investments.

g) Foreign Currency Transactions

Foreign Currency transactions are recorded in the books by applying the exchange rates as on the date of the transaction. Foreign Currency Assets & Liabilities are converted at the exchange rate prevailing on the date of the Balance Sheet and the resultant exchange difference is adjusted to the Profit & Loss account except in the case of Foreign Currency Liabilities arising on account of acquisition of Fixed Assets, where such exchange difference is adjusted to the cost of the assets.

h) Retirement Benefits

Staff benefits arising out of retirement/ death comprising of contributions to Provident Fund, Gratuity Scheme and other post separation benefits are accounted for on the basis of the. schemes or by an independent actuarial valuation at the year-end as the case may be.

I) Taxes on Income

i) Income Tax is computed in accordance with Accounting Standard 22, "Accounting for Taxation on Income" issued by the ICAI.

ii) Provision for current income tax is made in accordance with the provisions of Income tax- Act, 1961.

iii) The differences between taxable income and net profit or loss before tax for the year, as per the financial statements, are identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences i.e. differences that originate in one accounting period and reverse in another.

iv) Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

j) Provisions, 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 is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Notes to Accounts. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

A) General

(i) Accounting policies not specifically referred to otherwise be in consistence with earlier years and in consonance with generally accepted accounting principles.

(ii) Expenses and income considered payable and receivable respectively are accounted for on accrual basis.

b) Sales

(i) Sales are accounted on mercantile basis, when the sate of goods is completed.

(Ii) Service charges are billed to the customers on completion of their production order.

c) Valuation of inventories

(i) Inventories of Raw materials and Work in progress are valued at cost.

(ii) Stocks in Trade and Stock of Finished Goods are valued at Sower of cost and net realisable value.

d) Fixed Assets

Fixed assets are stated at cost less accumulated deprecation and impairment losses, if any. Cost comprises the purchases price and any attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use.

e) Depreciation I Amortization

(i) Depreciation on the fixed assets is charged on Straight Line Method at the rates prescribed by Schedule XIV to the Companies Act, 1956, which are based on the estimated useful lives of the assets.

(ii) Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata basis with reference to the month of addition or deletion.

(iii) No amortization is made for leasehold land, which are under perpetual lease.

f) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. Al! other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of such investments.

g) Foreign Currency Transactions

Foreign Currency transactions are recorded in the books by applying the exchange rates as on the date of the transaction. Foreign Currency Assets & Liabilities are converted at the exchange rate prevailing on the date of the Balance Sheet and the resultant exchange difference is adjusted to the profit & Loss account except in the case of Foreign Currency Liabilities arising on account of acquisition of , Fixed Assets, where such exchange difference is adjusted to the cost of the assets.

h) Retirement Benefits

Staff benefits arising out of retirement/ death comprising of contributions to Provident Fund, Gratuity Scheme and other post separation benefits are accounted for on the basis of the schemes or by an independent actuarial valuation at the year-end as the case may be.

i) Taxes on Income

(i) Income Tax is computed in accordance with Accounting Standard 22, "Accounting for Taxation on Income" issued by the ICAI,

(ii) Provision for current income tax is made in accordance with the provisions of Income tax- Act, 1961.

(iii) The differences between taxable income and net profit or loss before tax for the year, as per the financial statements, are identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences i.e. differences that originate in one accounting period and reverse in another.

(iv) Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.


Mar 31, 2011

Basis of Accounting

The financial statements are prepared under historical cost convention on an accrued basis and comply with the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) referred to in Section 211 (3C) of the Companies Act, 1956.

a) General

(i) Accounting policies not specifically referred to otherwise be in consistence with earlier years and in consonance with generally accepted accounting principles.

(ii) Expenses and income considered payable and receivable respectively are accounted for on accrual basis.

b) Sales

(i) Sales are accounted on mercantile basis, when the sale of goods is completed.

(ii) Service charges are accounted when the goods are dispatched to the customers.

c) Valuation of Inventories

(i) Inventories of Raw materials and Work in progress are valued at cost.

(ii) Stocks in Trade and Stock of Finished Goods are valued at lower of cost and net realisable value.

d) Fixed Assets

Fixed assets are stated at cost less accumulated deprecation and impairment losses, if any. Cost comprises the purchases price and any attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use.

e) Depreciation / Amortization

(i) Depreciation on the fixed assets is charged on Straight Line Method at the rates prescribed by Schedule XIV to the Companies Act, 1956, which are based on the estimated useful lives of the assets.

(ii) Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata basis with reference to the month of addition or deletion.

(iii) No amortization is made for leasehold land, which areunder perpetual lease.

f) 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. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of such investments.

g) Foreign Currency Transactions

Foreign Currency transactions are recorded in the books by applying the exchange rates as on the date of the transaction. Foreign Currency Assets & Liabilities are converted at the exchange rate prevailing on the date of the Balance Sheet and the resultant exchange difference is adjusted to the profit & Loss account except in the case of Foreign Currency Liabilities arising on account of acquisition of Fixed Assets, where such exchange difference is adjusted to the cost of the assets. h) Retirement Benefits

Staff benefits arising out of retirement/ death comprising of contributions to Provident Fund, Gratuity Scheme and other post separation benefits are accounted for on the basis of the schemes or by an independent actuarial valuation at the year-end as the case may be. i) Taxes on Income

(i) Income Tax is computed in accordance with Accounting Standard 22, "Accounting for Taxation on Income" issued by the ICAI. (ii) Provision for current income tax is made in accordance with the provisions of Income tax- Act, 1961.

(iii) The differences between taxable income and net profit or loss before tax for the year, as per the financial statements, are identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences i.e. differences that originate in one accounting period and reverse in another.

(iv) Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.


Mar 31, 2010

Basis of Accounting

The financial statements are prepared under historical cost convention on an accrued basis and comply with the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) referred to in Section 211 (3C) of the Companies Act, 1956.

a) General

(i) Accounting policies not specifically referred to otherwise be in consistence with earlier years and in consonance with generally accepted accounting principles.

(ii) Expenses and income considered payable and receivable respectively are accounted for on accrual basis.

b) Sales

(i) Sales are accounted on mercantile basis, when the sale of goods is completed.

(ii) Service charges are accounted when the goods are dispatched to the customers.

c) Valuation of Inventories

(i) Inventories of Raw materials and Work in progress are valued at cost.

(ii) Stocks in Trade and Stock of Finished Goods are valued at lower of cost and net realisable value.

d) Fixed Assets

Fixed assets are stated at cost less accumulated deprecation and impairment losses, if any. Cost comprises the purchases price and any attributable cost of brining the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets to the extent they relate to the period tilt such assets are ready to be put to use.

e) Depreciation / Amortization

(i) Depreciation on the fixed assets is charged on Straight Line Method at the rates prescribed by Schedule XIV to the Companies Act. 1956, which are based on the estimated useful lives of the assets.

(ii) Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata basis with reference to the month of addition or deletion.

(iii) No amortization is made for leasehold land, which are under perpetual lease.

f) 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. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of such investments.

g) Foreign Currency Transactions

Foreign Currency transactions are recorded in the books by applying the exchange rates as on the date of the transaction. Foreign Currency Assets & Liabilities are converted at the exchange rate prevailing on the date of the Balance Sheet and the resultant exchange difference is adjusted to the profit & Loss account except in the case of Foreign Currency Liabilities arising on account of acquisition of Fixed Assets, where such exchange difference is adjusted to the cost of the assets.

h) Retirement Benefits

Staff benefits arising out of retirement/ death comprising of contributions to Provident Fund, Gratuity Scheme and other post separation benefits are accounted for on the basis of the schemes or by an independent actuarial valuation at the year-end as the case may be.

i) Taxes on Income

(i) Income Tax is computed in accordance with Accounting Standard 22, "Accounting for Taxation on Income" issued by the ICAI.

(ii) Provision for current income tax and fringe benefit tax is made in accordance with the provisions of Income tax Act, 1961.

(iii) The differences between taxable income and net profit or loss before tax for the year, as per the financial statements, are identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences i.e. differences that originate in one accounting period and reverse in another.

(iv) Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

 
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