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Accounting Policies of Rathi Graphic Technologies Ltd. Company

Mar 31, 2015

I. Accounting Convention

The accounts of the Company have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and comply with the mandatory accounting standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are presented in Indian rupees rounded off to nearest decimal.

During the year ended March 2015, the Schedule III notified under the Companies Act, 2013 has become applicable to the Company for presentation of its financial statements. The Schedule III has a significant impact on the presentation and disclosures made in the financial statements. The Company has also reclassified/ regrouped the previous year figures in accordance with the requirements applicable in the current year.

All Assets and Liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

II. TANGIBLE FIXED ASSETS AND DEPRECIATION

a) Ta) Tangible Fixed Assets are stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation /amortization / impairment. The cost of fixed assets includes effect of exchange difference on long term foreign currency borrowings, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowings cost directly attributable to fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. Interest on loans and other financial charges in respect of qualifying assets and expenditure incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on Trial Runs up to the date of commencement of commercial production are capitalized.

b) Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013, as per Straight Line Method (SLM).

III. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investment is classified as long-term investments. However, that part of long-term investments which is expected to be realized within 12 months after reporting date is also presented under ‘current assets' as "current portion of long-term investments" in consonance with the current-non-current classification scheme as prescribed in Schedule III to the Companies Act, 2013.

Long- term investments are valued at cost. Any decline other than temporary, in the value of long-term investments, is adjusted in the carrying value of such investments. Current investments are carried forward at lower of cost and fair value

Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on the basis of weighted average carrying amount of investments disposed of.

IV. VALUATION OF INVENTORIES

Inventories are valued as per AS-2 (Valuation of Inventories) issued by the ICAI as under:

a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.

b) Stock of Work in process is valued at cost of Raw Material and proportionate direct manufacturing expenses.

c) Stock of stores, spares and packing material are valued at cost by adopting FIFO Method.

d) Stocks of finished goods are valued at lower of cost or net realizable value. Cost includes raw material cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid / payable thereon.

V. RESEARCH AND DEVELOPMENT EXPENDITURE

The capital expenditures are debited to the respective heads under fixed assets. The revenue expenditure is charged to revenue account and disclosed separately.

VI. BORROWING COSTS

Borrowing costs attributable to acquisition, construction of qualifying assets are capitalized as part of cost of the relevant assets upto the date the asset is put to use. All other borrowing costs are recognized as an expense in the year in which they are incurred.

VII. FOREIGN CURRENCY TRANSACTIONS

Transactions for foreign currency are recorded at the exchange rate prevailing on the date of transaction. For the foreign currency transactions outstanding at the end of the year, the exchange rate differences are being recognized at year end. However, foreign currency transactions which are settled up to the date of balance sheet, the exchange fluctuation is therefore accounted for on actual basis.

VIII. IMPAIRMENT OF ASSETS

In case of indication of impairment of the carrying amount of the Company's assets, an asset's recoverable amount is estimated. Impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

Reversal of impairment Loss recognized in prior periods is recorded when there is an indication that the impairment loss recognized for the assets no longer exists or has decreased.

Post impairment depreciation is provided on the revised carrying value of the assets over its remaining useful life.

IX. Earnings per Share

Basic Basic earnings per share are calculated by dividing the net profit/(loss) for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding.

X. REVENUE RECOGNITION

a) Sales are recognized on dispatch of goods to customers. Sales represents invoiced value of goods sold and services rendered, net of sales tax but inclusive of excise duty.

b) Profit / Loss on sale of Fixed Assets are recognized in the year of sale.

c) Interest is accounted on accrual basis.

d) Dividend is accounted on receipt basis.

XI. EMPLOYEE BENEFIT

a) Short-term employee benefits:

All employee benefit falling due within twelve months of the end of the period in which the employee render the related services are classified as short term employee benefits, which include benefits like salaries, wages etc. are recognized as expenses in the period in which the employee renders the related service and measured accordingly.

b) Post-employment benefits:

Post employment benefit plans are classified into defined contribution plans and defined benefit plans in line with the requirements of AS-15 on "Employee Benefit".

Gratuity and Leave Encashment

Gratuity and leave encashment which are defined benefits are recognized in the Statement of Profit and Loss based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary.

XII. DEFERRED REVENUE EXPENDITURE

Deferred revenue expenditure is written off over a period of six year.

XIII. MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure is written off over a five year


Mar 31, 2014

I. Accounting Convention

The accounts of the Company have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and comply with the mandatory accounting standards notified under the Companies (Accounting Standards) Rules, 2006, as amended, and with the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian rupees rounded off to nearest decimal.

All Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and Liabilities.

II. tangible fixed assets and depreciation

a) Tangible Fixed Assets are stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation /amortization / impairment. The cost of fixed assets includes effect of exchange difference on long term foreign currency borrowings, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowings cost directly attributable to fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. Interest on loans and other financial charges in respect of qualifying assets and expenditure incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on Trial Runs up to the date of commencement of commercial production are capitalized.

b) Depreciation is provided on Straight Line Method at rates mentioned and in the manner specified in Schedule XIV to the Companies Act, 1956, as

amended by Notification No.GSR 756 (E) dated 15th December, 1993 of the Ministry of Law, Justice & Company Law Affairs, Department of Company Affairs.

III. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investment is classified as long-term investments. However, that part of long-term investments which is expected to be realized within 12 months after reporting date is also presented under ''current assets'' as "current portion of long-term investments" in consonance with the current-non-current classification scheme of revised Schedule VI.

Long- term investments are valued at cost. Any decline other than temporary, in the value of long-term investments, is adjusted in the carrying value of such investments. Current investments are carried forward at lower of cost and fair value

Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on the basis of weighted average carrying amount of investments disposed of.

IV. VALUATION OF INVENTORIES

Inventories are valued as per AS-2 (Valuation of Inventories) issued by the ICAI as under:

a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.

b) Stock of Work in process is valued at cost of Raw Material and proportionate direct manufacturing expenses.

c) Stock of stores, spares and packing material are valued at cost by adopting FIFO Method.

d) Stocks of finished goods are valued at lower of cost or net realizable value. Cost includes raw material cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid / payable thereon.

V. RESEARCH AND DEVELOpMENT EXpENDITURE

The capital expenditures are debited to the respective heads under fixed assets. The revenue expenditure is charged to revenue account and disclosed separately.

VI. BORROWING COSTS

Borrowing costs attributable to acquisition, construction of qualifying assets are capitalized

as part of cost of the relevant assets upto the date the asset is put to use. All other borrowing costs are recognized as an expense in the year in which they are incurred.

VII. FOREIGN CURRENCY TRANSACTIONS

Transactions for foreign currency are recorded at the exchange rate prevailing on the date of transaction. For the foreign currency transactions outstanding at the end of the year, the exchange rate differences are being recognized at year end. However, foreign currency transactions which are settled up to the date of balance sheet, the exchange fluctuation is therefore accounted for on actual basis

VIII. IMPAIRMENT OF ASSETS

In case of indication of impairment of the carrying amount of the Company''s assets, an asset''s recoverable amount is estimated. Impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

Reversal of impairment Loss recognized in prior periods is recorded when there is an indication that the impairment loss recognized for the assets no longer exists or has decreased.

Post impairment depreciation is provided on the revised carrying value of the assets over its remaining useful life.

IX. Earnings per Share

Basic earnings per share are calculated by dividing the net profit/(loss) for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding

X. REVENUE RECOGNITION

a) Sales are recognized on dispatch of goods to customers. Sales represents invoiced value of

goods sold and services rendered, net of sales tax but inclusive of excise duty.

b) Profit/Loss on sale of Fixed Assets are recognized in the year of sale.

c) Interest is accounted on accrual basis.

d) Dividend is accounted on receipt basis.

XI. EMPLOYEE BENEFIT

a) Short-term employee benefits:

All employee benefit falling due within twelve months of the end of the period in which the employee render the related services are classified as short term employee benefits, which include benefits like salaries, wages etc. are recognized as expenses in the period in which the employee renders the related service and measured accordingly

b) Post-employment benefits:

Post employment benefit plans are classified into defined contribution plans and defined benefit plans in line with the requirements of AS-15 on "Employee Benefit".

Gratuity and Leave Encashment

Gratuity and leave encashment which are defined benefits are recognized in the Statement of Profit and Loss based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary

XII. DEFERRED REVENUE EXpENDITURE

Deferred revenue expenditure is written off over a period of six year.

XIII. MISCELLANEOUS EXpENDITURE

Miscellaneous Expenditure is written off over a five year


Mar 31, 2013

I. Accounting Convention

The accounts of the Company have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and comply with the mandatory accounting standards notified under the Companies (Accounting Standards) Rules, 2006, as amended, and with the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian rupees rounded off to nearest decimal.

All Assets and Liabilities have been classified as current or non-current as per the_Xompany''s normal operating cycle and other criteria set out in the revised schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and Liabilities.

II. TANGIBLE FIXED ASSETS AND DEPRECIATION

a) Tangible Fixed Assets are stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation /amortization / impairment. The cost of fixed assets includes effect of exchange difference on long term foreign currency borrowings, freight and other incidental expenses related to the acquisition and installation of the respective assets, Borrowings cost directly attributable to fixed assets which necessarily taire a substantial period of time to get ready for their intended use are capitalized. Interest on loans and other financial charges in respect of qualifying assets and expenditure incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on Trial Runs up to the date of commencement of commercial production are capitalized.

b) Depreciation is provided on Straight Line Method at rates mentioned and in the manner specified in Schedule XIV to the Companies Act, 1956, as amended by Notification No.GSR 756 (E) dated 15fh December, 1993 of the Ministry of Law, Justice & Company Law Affairs, Department of Company Affairs.

III. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investment is classified as long-term investments. However, that part of long-term investments which is expected to be realized within 12 months after reporting date is also presented under ''current assets'' as "current portion of long-term investments" in-consonance with the current-non-current classification scheme of revised Schedule VI.

Long- term investments are valued at cost. Any decline other than temporary, in the value of long-term investments, is adjusted in the carrying value of such investments. Current investments are carried forwai L at lower of cost and fair value Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on the basis of weighted average carrying amount of investments disposed of.

IV. VALUATION OF INVENTORIES

inventories are valued as per AS-2 (Valuation of Inventories) issued by the iCAl as under:

a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.

b) Stock of Work in process is valued at cost of Raw Material and proportionate direct manufacturing expenses.

c) Stock of stores, spares and packing material are valued at cost by adopting FIFO Method.

d) Stocks of finished goods are valued at lower of cost or net realizable value. Cost includes raw material cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid / payable thereon.

V. RESEARCH AND DEVELOPMENT EXPENDITURE

The capital expenditures are debited to the respective heads under fixed assets. The revenue expenditure is charged to revenue account and disclosed separately.

VI. BORROWING COSTS

Borrowing costs attributable to acquisition, construction of qualifying assets are capitalized as part of cost of the relevant assets upto the date the asset is put to use. All other borrowing costs are recognized as an expense in the year in which''they are ihcurfed.

Vli. FOREIGN CURRENCY TRANSACTIONS

I Transactions for foreign currency are recorded at the exchange rate prevailing on the date of transaction. Forthe foreign currency transactions outstanding at the end of the year, the exchange rate differences are being recognized at year end. However, foreign currency transactions which are settled up to the date of balance sheet, the exchange fluctuation is therefore accounted for on actual basis,

VIM. IMPAIRMENT OF ASSETS

In case of indication of impairment of the carrying amount of the Company''s assets; an asset''s recoverable amount is estimated. Impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

Reversal of Impairment Loss recognized in prior periods is recorded when there is an indication that the impairment loss recognized for the assets no longer exists or has decreased.

Post Impairment depreciation is provisions on revised carrying value of the assets over its remaining useful life.

IX. Earhings per Share .

Basic earnings per shared are calculated by i _ dividing the net profitf(toss) for the period Lb ii. attributable to the equity shareholders by the I weighted average number of equity shares

outstanding

X REVENUE RECOGNlflONT

a) Sales- are recognized on dispatch of goods to customers. Sales represents invoiced value of f goods sold and services rendered, net of sales recognized in the year of sale.

c) Interest is accounted on basis.

XI. EMPLOYEE BENEFIT ^

a) Short-term employee benefits:

All employee benefit falling due within twelve months of the end of the period in which the employee render the related services are classified as short term employee benefits, which include benefits like salaries, wages etc. are recognized as expenses in the period in which the employee renders the related service and measured accordingly.

b) Post-employment benefits:

Post employment benefit plans are classified into defined contribution plans and defined benefit plans in line with the requirements of A''S-15 on "Employee Benefit".

Gratuity and Leave Encashment

Gratuity and leave encashment which are defined benefts are recognized in the Statement of Profit and Loss based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary.

XM/DEFRRED revenue EXPENDITURE

Deferred revenue expenditure is written off over a period of six year.

XIII. MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure is Written off over a five year.

Notes:

a) The Term Loan from State Bank of Bikaner ancUaipur is secured by first hypothecation charge by covering entire Fixed Assets of the Company. Gollaterai security by extending of 2nd charge over Company''s entire Current Assets {present and future) and personal Guarantee of one Director.

b) Balance of Term Loan-l is payable In 1 quarterly instalments started from April, 2013 (Previous year repayable in 7 quarterly instaiment from April,2012).

c) Balance of Term Loan-11 is payable in 14 quarterly instalments started from April, 2013 (Previous year repayable in 18 quarterly instaiment from April,2012).

b) Car Loan are secured against hypothecation of vehicles purchase thereunder. Repayment of monthly installment till the tenure of loan concerned.


Mar 31, 2010

1. BASIS OF ACCOUNTING

a) The financial statements of the Company are prepared under the historical Cost Convention using Accrual Method of Accounting.

b) The financial statements have been prepared in accordance with the mandatory Accounting Standards and relevant presentation requirements of the Companies Act, 1956.

2. FIXED ASSETS AND DEPRECIATION

a) Fixed assets are accounted for at cost of acquisition inclusive of freight, duties, taxes, erection, installation and other incidentals related to acquisitions and exclusive of Excise Modvat recoverable on purchase of Capital Goods.

b) Cost of fixed Assets acquired from outside India are converted into Indian rupees at the exchange rates prevailing on the date of disbursements.

c) Depreciation on fixed Assets is provided on Straight Line Method considering single shift working in accordance with the rates specified in schedule XIV of the Companies Act, 1956 as amended by Notification No. GSR 756(E) dated 16 December, 1993 of the Ministry of Law, Justice & Company Law Affairs, Department of Company Affairs.

d) Stock of finished goods are valued at Lower of cost of net realizable value. Cost includs raw materials cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid / payable thereon.

3. INVESTMENT

Investments are taken at cost.

4. SALES

Sales represents invoiced value of goods sold and services rendered, net of sales tax but inclusive of excise duty.

5 INVENTORIES

Inventories are valued as per AS-2 (Valuation of Inventories) issued by the ICAI as under:

a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.

b) Stock of Work in process is valued at cost of Raw Material and proportionate direct manufacturing expenses.

c) Stock of stores, spares and packing material are valued at cost by adopting FIFO Method.

d) Stock of finished goods are valued at lower of Cost or net realizable value. Cost includes raw materials cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid/payable thereon.

6. RESEARCH AND DEVELOPMENT EXPENDITURE

The capital expenditures are debited to the respective heads under fixed assets. The revenue expenditure is charged to revenue account and disclosed separately.

7. BORROWING COSTS

Borrowing costs attributable to acquisition, construction

of qualifying assets are capitalized as part of cost of the relevant asset up to the date the asset is put to use. All other borrowing costs are recognized as an expense in the year in which they are incurred.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions for foreign currency are recorded at the exchange rate prevailing on the date of transaction. For the foreign currency transactions outstanding at the end of the year, the exchange rate difference are being recognized at year end. However, foreign currency transactions which are settled up to the date of balance sheet, the exchange fluctuation is therefore accounted for on actual basis.

9. RETIREMENT BENEFIT PLANS:

Future liability for gratuity and leave encashment is determined on the basis of actuarial valuation at year end.

10. PROVISION FOR CURRENT AND DEFFEREDTAX :

Provision for current tax liability is estimated as per the provisions of the Income Tax Act, 1961

Deferred tax is recognized subject to the consideration of prudence on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more period.

11. IMPAIRMENT OF ASSETS:

In case of indication of impairment of the carrying amount of the Companys assets, an assets recoverable amount is estimated impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

Reversal of Impairment loss recognized in prior periods is recorded when there is an indication that the impairment loss recognized for the asset no longer exist or has decreased.

Post Impairment depreciation is provided on the revised carrying value of the asset over its remaining useful life.

12. REVENUE RECOGNITION

i) Sales are recognized on dispatch of goods to customers.

ii) Profit / Loss on sale of investment and Fixed Assets are recognized in the year of sale.

13. DEFERRED REVENUE EXPENDITURE

Deferred revenue expenditure is written off over a period of six year.

14.MISCELLENOUS EXPENDITURE

Miscellaneous Expenditure is written off over a five year.

 
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