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Accounting Policies of Roto Pumps Ltd. Company

Mar 31, 2015

System of Accounting

Unless otherwise stated hereunder the financial accounts of the Company have been drawn up on historical cost convention and on accrual basis.

Use of Estimates

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period in which they are materialise.

Sales

Sales are net of taxes and sales returns but inclusive of excise duty and exchange rates fluctuations.

Fixed Assets

Fixed Assets are capitalised at cost of acquisition and subsequent improvements thereto including taxes, duties etc other than Cenvat credit wherever applicable. Freight & other incidental expenses related to acquisition and installation are added to cost. In case of write-up due to revaluation are shown at such higher amount.

Depreciation

Depreciation on all assets has been charged by written down value method in accordance with the useful life of the assets as prescribed in Schedule II to the Companies Act ,2013.

In respect of revalued assets, the incremental depreciation attributable to the Revaluation is transferred to Revaluation Reserve.

Inventories

Inventories have been valued as follows -

Raw Materials : At cost *

Finished Goods : At lower of the cost and net realisable value **

Work in Progress : At cost *

Stores, Tools & : At cost *

Other Materials

* The cost has been arrived at by using 'FIFO' method.

** The cost of finished goods has been determined by considering standard conversion cost.

Impairment of Assets

The Company determines whether there is any indication of impairment of the carrying amount of the company's assets. The recoverable amount of such assets are estimated, if any indication exists , and impairment losses recognised wherever the carrying amount of the assets exceeds its recoverable amount.

Employees' Benefits

-Company's contribution to Provident Fund and Family Pension Fund are charged to profit & loss account.

-Provision for Gratuity and Leave Encashment benefits, in respect of employees governed by Indian rules and regualtions is made on the basis of actuarial valuation as at the end of the year in conformity with the Acccoutning standard-15 (Revised) issued by the Institute of Chartered Accountants of India and the provision for leave encashment ( including long term leave ) in respect of employees at foreign branches is made as per law prevalent in foreign country.

-Contribution to Employee Group Gratuity Trust for the current year are charged to Profit & Loss account and for the past years are adjusted in the Provision for Gratuity a/c.

Foreign Currency Transactions

Transactions in foreign currency are accounted for at the exchange rates prevailing at the date of transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currency are recognised in the profit and loss account. Exchange differences arising on account of monetary liabilities related to fixed assets are adjusted in the cost of assets. Bank Guarantee in foreign currency are translated at the exchange rate prevailing at the year end.

Foreign Branch Operation's Translations

The activities of the Foreign Branches are an integral part of the operations of the company and hence the foreign branch financial statements are translated in accordance with accounting standard applicable to Integral Foreign Operation as given under:

Income & Expenditure items by applying to the foreign currency amount, the exchange rate at the date of transaction. The rate used is an average rate for calendar month and used for all transaction occurring during that calendar month.

Fixed Assets are recorded at the exchange rate prevailing on the date of transaction.

Depreciation on the fixed assets in Indian rupees, which are reported using the exchange rate at the date of transaction.

Inventories related to stocks transfer from reporting enterprise are shown at the cost of reporting enterprises plus expenses incurred to bring the material at the shelf of foreign branch's warehouse and local bought out inventories are translated at the exchange rate prevailing at year end.

Other current assets and liabilities are converted at the exchange rates prevailing at the year end.

The exchange difference on translation of Foreign Branch financial statements are recognised in profit & loss account.

Research & Development

Revenue expenditure pertaining to research and development is charged to revenue in the year in which it is incurred. Capital Expenditure is treated as forming part of Fixed Assets.

Government Grants

i) Revenue grants are accounted for in Profit & Loss Account.

ii) Capital grants other than relating to specific fixed assets are credited to Capital Reserve.

Miscellaneous Expenditure

Public Issue Expense, Deferred Revenue Expenses & other expenses on intangible assets are recognised & amortised as per the Accounting Standard no. 26 on Intangible Assets issued by the Institute of Chartered Accountants of India.

Borrowing Cost

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing cost are charged to Profit and Loss Account.

Provision for Deferred and Current tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.


Mar 31, 2014

System of Accounting

Unless otherwise stated hereunder the financial accounts of the Company have been drawn up on historical cost convention and on accrual basis.

Use of Estimates

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period in which they are materialise.

Sales

Sales are net of taxes and sales returns but inclusive of excise duty and exchange rates fluctuations.

Fixed Assets

Fixed Assets are capitalised at cost of acquisition and subsequent improvements thereto including taxes, duties etc other than Cenvat credit wherever applicable. Freight & other incidental expenses related to acquisition and installation are added to cost. In case of write-up due to revaluation are shown at such higher amount.

Depreciation

Depreciation on all assets has been charged by written down value method in accordance with the rates and manner specified in Schedule XIV to the Companies Act, 1956.

In respect of revalued assets, the incremental depreciation attributable to the Revaluation is transferred to Revaluation Reserve.

Inventories

Inventories have been valued as follows -

Raw Materials : At cost *

Finished Goods : At lower of the cost and net realisable value **

Work in Progress : At cost *

Stores, Tools & Other Materials : At cost *

* The cost has been arrived at by using ''FIFO'' method.

**The cost of finished goods has been determined by considering standard conversion cost.

Impairment of Assets

The Company determines whether there is any indication of impairment of the carrying amount of the company''s assets. The recoverable amount of such assets are estimated, if any indication exists, and impairment losses recognised wherever the carrying amount of the assets exceeds its recoverable amount.

Employees'' Benefits

* Company''s contribution to Provident Fund and Family Pension Fund are charged to profit & loss account.

* Provision for Gratuity and Leave Encashment benefits, in respect of employees governed by Indian rules and regualtions is made on the basis of actuarial valuation as at the end of the year in confirmity with the Acccoutning standard-15 (Revised) issued by the Institute of Chartered Accountants of India and the provision for leave encashment ( including long term leave ) in respect of employees at foreign branches is made as per law prevalent in foreign country.

* Contribution to Employee Group Gratuity Trust for the current year are charged to Profit & Loss account and for the past years are adjusted in the Provision for Gratuity a/c.

Foreign Currency Translations

Transactions in foreign currency are accounted for at the exchange rates prevailing at the date of transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currency are recognised in the profit and loss account. Exchange differences arising on account of monetary liabilities related to fixed assets are adjusted in the cost of assets. Bank Guarantee in foreign currency are translated at the exchange rate prevailing at the year end.

Foreign Branch Operation''s Translations

The activities of the Foreign Branches are an integral part of the operations of the company and hence the foreign branch financial statements are translated in accordance with accounting standard applicable to Integral Foreign Operation as given under:

Income & Expenditure items by applying to the foreign currency amount, the exchange rate at the date of transaction. The rate used is an average rate for calendar month and used for all transaction occurring during that calendar month.

Fixed Assets are recorded at the exchange rate prevailing on the date of transaction.

Depreciation on the fixed assets in Indian rupees, which are reported using the exchange rate at the date of transaction.

Inventories related to stocks transfer from reporting enterprise are shown at the cost of reporting enterprises plus expenses incurred to bring the material at the shelf of foreign branch''s warehouse and local bought out inventories are translated at the exchange rate prevailing at year end.

Other current assets and liabilities are converted at the exchange rates prevailing at the year end.

The exchange difference on translation of Foreign Branch financial statements are recognised in profit & loss account.

Research & Development

Revenue expenditure pertaining to research and development is charged to revenue in the year in which it is incurred. Capital Expenditure is treated as forming part of Fixed Assets.

Government Grants

i) Revenue grants are accounted for in Profit & Loss Account.

ii) Capital grants other than relating to specific fixed assets are credited to Capital Reserve.

Miscellaneous Expenditure

Public Issue Expense, Deferred Revenue Expenses & other expenses on intangible assets are recognised & amortised as per the Accounting Standard no. 26 on Intangible Assets issued by the Institute of Chartered Accountants of India.

Borrowing Cost

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing cost are charged to Profit and Loss Account.

Provision for Deferred and Current tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act,1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.


Mar 31, 2012

1. System of Accounting

Unless otherwise stated heieunder the financial accounts of the Company have been drawn up on historical cost convention and on accrual basis.

2. Use of Estimates

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period in which they are materialise.

3. Sales

Sales are net of taxes and sales returns but inclusive of excise duty and exchange rates fluctuations.

4. Fixed Assets

Fixed Assets are capitalised at cost of acquisition and subsequent improvements thereto including taxes, duties etc other than Cenvat credit wherever applicable. Freight & other incidental expenses related to acquisition and installation are added to cost. In case of write-up due to revaluation are shown at such higher amount.

5. Depreciation

(i) Depreciation on all assets has been charged by written down value method in accordance with the rates and manner specified in Schedule XIV to the Companies Act, 1956.

(ii) In respect of revalued assets, the incremental depreciation attributable to the Revaluation is transferred to Revaluation Reserve.

6. Inventories

Inventories have been valued as follows - Raw Materials : At cost*

Finished Goods : At lower of the cost and net realisable value **

Work in Progress : At cost*

Stores, Tools & Other Materials : At cost*

*The cost has been arrived at by using â€Â˜FIFO' method.

**The cost of finished goods has been determined by considering standard conversion cost.

7. Impairment of Assets

The Company determines whether there is any indication of impairment of the carrying amount of the company's assets. The recoverable amount of such assets are estimated, if any indication exists, and impairment losses recognised wherever the carrying amount of the assets exceeds its recoverable amount.

8. Employees' Benefits

- Company's contribution to Provident Fund and Family Pension Fund are charged to profit & loss account.

- Provision for Gratuity and Leave Encashment benefits, in respect of employees governed by Indian rules and regualtions is made on the basis of actuarial valuation as at the end of the year in confirmity with the Acccoutning standard-15 (Revised) issued by the Institute of Chartered Accountants of India and the provision for leave encashment (including long term leave) in respect of employees at foreign branches is made as per law prevalent in foreign country.

- Contribution to Employee Group Gratuity Trust for the current year are charged to Profit & Loss account and for the past years are adjusted in the Provision for Gratuity a/c.

9. Foreign Currency Transactions

Transactions in foreign currency are accounted for at the exchange rates prevailing at the date of transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currency are recognised in the profit and loss account. Exchange differences arising on account of monetary liabilities related to fixed assets are adjusted in the cost of assets. Bank Guarantee in foreign currency are translated at the exchange rate prevailing at the year end.

10. Foreign Branch Operation's Translations

The activities of the Foreign Branches are an integral part of the operations of the company and hence the foreign branch financial statements are translated in accordance with accounting standard applicable to Integral Foreign Operation as given under:

Income & Expenditure items by applying to the foreign currency amount, the exchange rate at the date of transaction. The rate used is an average rate for calendar month and used for all transaction occurring during that calendar month.

Fixed Assets at the exchange rate prevailing on the date of transaction.

Depreciation on the fixed assets in Indian rupees, which are reported using the exchange rate at the date of transaction.

Inventories related to stocks transfer from reporting enterprise are shown at the cost of reporting enterprises plus expenses incurred to bring the material at the shelf of foreign branch's warehouse and local bought out inventories are translated at the exchange rate prevailing at year end.

Other current assets and liabilities are converted at the exchange rates prevailing at the year end.

The exchange difference on translation of Foreign Branch financial statements are recognised in profit & loss account.

11. Research & Development

Revenue expenditure pertaining to research and development is charged to revenue in the year in which it is incurred. Capital Expenditure is treated as forming part of Fixed Assets.

12. Government Grants

i) Revenue grants are accounted for in Profit & Loss Account.

ii) Capital grants other than relating to specific fixed assets are credited to Capital Reserve.

13. Miscellaneous Expenditure

Public Issue Expense, Deferred Revenue Expenses & other expenses on intangible assets are recognised & amortised as per the Accounting Standard no. 26 on Intangible Assets issued by the Institute of Chartered Accountants of India.

14. Borrowing Cost

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing cost are charged to Profit and Loss Account.

15. Provision for Deferred and Current tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act,1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.


Mar 31, 2011

1 System of Accounting

Unless otherwise stated hereunder the financial accounts of the Company have been drawn up on historical cost convention and on accrual basis.

2 Use of Estimates

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period in which they are materialise.

3 Sales

Sales are net of taxes and sales returns but inclusive of excise duty and exchange rates fluctuations.

4 Fixed Assets

Fixed Assets are capitalised at cost of acquisition and subsequent improvements thereto including taxes, duties etc other than Cenvat credit wherever applicable. Freight & other incidental expenses related to acquisition and installation are added to cost. In case of write-up due to revaluation are shown at such higher amount.

5 Depreciation

i) Depreciation on all assets has been charged by written down value method in accordance with the rates and manner specified in Schedule XIV to the Companies Act, 1956.

ii) In respect of revalued assets, the incremental depreciation attributable to the Revaluation is transferred to Revaluation Reserve.

6 Inventories

Inventories have been valued as follows -

Raw Materials : At cost *

Finished Goods : At lower of the cost and net realisable value **

Work in Progress : At cost *

Stores, Tools & Other Materials : At cost *

* The cost has been arrived at by using 'FIFO' method.

** The cost of finished goods has been determined by considering standard conversion cost.

7 Impairment of Assets

The Company determines whether there is any indication of impairment of the carrying amount of the company's assets. The recoverable amount of such assets are estimated, if any indication exists, and impairment losses recognised wherever the carrying amount of the assets exceeds its recoverable amount.

8 Employees' Benefits

Company's contribution to Provident Fund and Family Pension Fund are charged to profit & loss account.

Provision for Gratuity and Leave Encashment benefits, in respect of employees governed by Indian rules and regulations is made on the basis of actuarial valuation as at the end of the year in confirmity with the Acccoutning standard-15 (Revised) issued by the Institute of Chartered Accountants of India and the provision for leave encashment (including long term leave) in respect of employees at foreign branches is made as per law prevalent in foreign country.

Contribution to Employee Group Gratuity Trust for the current year are charged to Profit & Loss account and for the past years are adjusted in the Provision for Gratuity a/c.

9 Foreign Currency Translations

a Foreign Currency Transactions

Transactions in foreign currency are accounted for at the exchange rates prevailing at the date of transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currency are recognised in the profit and loss account. Exchange differences arising on account of monetary liabilities related to fixed assets are adjusted in the cost of assets. Bank Guarantee in foreign currency are translated at the exchange rate prevailing at the year end.

b Foreign Branch Operation's Translations

The activities of the Foreign Branches are an integral part of the operations of the company and hence the foreign branch financial statements are translated in accordance with accounting standard applicable to Integral Foreign Operation as given under:

i) Income & Expenditure items by applying to the foreign currency amount, the exchange rate at the date of transaction.

The rate used is an average rate for calendar month and used for all transaction occurring during that calendar month.

ii) Fixed Assets at the exchange rate prevailing on the date of transaction.

iii) Depreciation on the fixed assets in Indian rupees, which are reported using the exchange rate at the date of transaction.

iv) Inventories related to stocks transfer from reporting enterprise are shown at the cost of reporting enterprises plus expenses incurred to bring the material at the shelf of foreign branch's warehouse and local bought out inventories are translated at the exchange rate prevailing at year end.

v) Other current assets and liabilities are converted at the exchange rates prevailing at the year end.

vi) The exchange difference on translation of Foreign Branch financial statements are recognised in profit & loss account.

10 Research & Development

Revenue expenditure pertaining to research and development is charged to revenue in the year in which it is incurred. Capital Expenditure is treated as forming part of Fixed Assets.

11 Government Grants

i) Revenue grants are accounted for in Profit & Loss Account.

ii) Capital grants other than relating to specific fixed assets are credited to Capital Reserve.

12 Miscellaneous Expenditure

Public Issue Expense, Deferred Revenue Expenses & other expenses on intangible assets are recognised & amortised as per the Accounting Standard no. 26 on Intangible Assets issued by the Institute of Chartered Accountants of India.

13 Borrowing Cost

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing cost are charged to Profit and Loss Account.

14 Provision for Deferred and Current tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.


Mar 31, 2010

1 System of Accounting

Unless otherwise stated hereunder the financial accounts of the Company have been drawn up on historical cost convention and on accrual basis.

2 Use of Estimates

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period in which they materialise.

3 Sales

Sales are net of taxes and sales returns but inclusive of excise duty and exchange rates fluctuations.

4 Fixed Assets

Fixed Assets are capitalised at cost of acquisition and subsequent improvements thereto including taxes, duties etc other than Cenvat credit wherever applicable. Freight & other incidental expenses related to acquisition and installation are added to cost. In case of write-up due to revalution, Fixed Assets are shown at such higher amount.

5 Depreciation

i) Depreciation on all assets has been charged by written down value method in accordance with the rates and manner specified in Schedule XIV to the Companies Act, 1956.

ii) In respect of revalued assets, the incremental depreciation attributable to the Revaluation is transferred to Revaluation Reserve.

6 Inventories

Inventories have been valued as follows -

Raw Materials : At cost *

Finished Goods : At lower of the cost and net realisable value **

Work in Progress : At cost *

Stores, Tools & Other Materials : At cost *

* The cost has been arrived at by using FIFO method.

** The cost of finished goods has been determined by considering standard conversion cost.

7 Impairment of Assets

Impairment loss is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an assetss net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continue use of an asset and from its disposal as the end of its useful life.

8 Employees Benefits

Companys contribution to Provident Fund and Family Pension Fund are charged to profit & loss account. Provision for Gratuity and Leave Encashment benefits, in respect of employees governed by Indian rules and regualtions is made on the basis of actuarial valuation as at the end of the year in confirmity with the Acccoutning standard-15 (Revised) issued by the Institute of Chartered Account of India and the provision for leave encashment

(including long term leave) in respect of employee at foreign branches is made as per law previlent in foreign country. Contribution to Employee Group Gratuity Trust for the current year are charged to Profit & Loss accounl and for the past years are adjusted in the Provision for Gratuity a/c.

9 Foreign Currency Translations

a Foreign Currency Transactions

Transactions in foreign currency are accounted for at the exchange rates prevailing at the date of transaction Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the Profit & Loss Account. Exchange differences arising on account of monetary liabilities related to fixed assets are adjusted in the cost ol assets. Bank Guarantee in foreign currency are translated at the exchange rate prevailing at the year end.

b Foreign Branch Operations Translations

The activities of the Foreign Branches are an integral part of the operations of the company and hence the foreign branch financial statements are translated in accordance with accounting standard applicable tc Integral Foreign Operation as given under:

I) Income & Expenditure items by applying to the foreign currency amount, the exchange rate at the date ol transaction. The rate used is an average rate for calendar month and used for all transaction occurring during that calendar month.

ii) Fixed Assets at the exchange rate prevailing on the date of transaction.

iii) Depreciation on the fixed assets in Indian rupees, which are reported using the exchange rate at the date of transaction.

iv) Inventories related to stocks transfer from reporting enterprise are shown at the cost of reporting enterprises plus expenses incurred to bring the material at the shelf of foreign branchs warehouse and local bought inventories are translated at the exchange rate prevaing at the yearend.

v) Other current assets and liabilities are converted at the exchange rates prevailing at the year end.

vi) The exchange difference on translation of Foreign Branch financial statements are recognised in profit & loss account.

10 Research & Development

Revenue expenditure pertaining to research and development is charged to revenue in the year in which it is incurred. Capital Expenditure is treated as formirrg part of Fixed Assets.

11 Government Grants

i) Revenue grants are accounted for in Profit & Loss Account.

ii) Capital grants other than relating to specific fixed assets are credited to Capital Reserve.

12 Miscellaneous Expenditure

Public Issue Expense, Deferred Revenue Expenses & other expenses on intangible assets are recognised & amortised as per the Accounting Standard no. 26 on Intangible Assets issued by the Institute of Chartered Accountants of India.

13 Borrowing Cost

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition

construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing cost are charged to profit & loss A/c.

14 Provision for Deferred and Current tax

Provisipn for current tax is made after taking into consideration benefits admissible under the provisions of the Income,Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

15 Others

I) Contingent liabilities not provided for, are disclosed by way of notes.

II) Contingencies which can be reasonably ascertained are provided for.