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Accounting Policies of Stylam Industries Ltd. Company

Mar 31, 2015

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Mar 31, 2014

1.Basis of Accounting:

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2.Fixed Assets:

Fixed Assets are stated at cost of acquisition/construction net of CENVAT applicable CENVAT credit. The cost includes Purchase price and all other attributable costs of bringing the assets to its working condition for its intended use

3.Depreciation:

a. Depreciation on fixed assets is provided on straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

b. Depreciation has been provided on Triple shift working basis.

4.Basis of Valuation of Inventories:

a. Raw Material :At lower of cost or net realizable value

b. Work in Progress :At lower of estimated cost or net realizable value

c. Finished Goods :At lower of cost or net realizable value

d. Consumable, Stores, Oil & Fuel :At lower of cost or net realizable value

5.Recognition of Income and Expenditure:

a. The revenue from sale of goods is recognized at the time of sale of goods.

b. Expenditure is recognized on accrual basis. However, certain income/ expenses which are indeterminable are accounted for as and when settled/ finalized.

6.Retirement & Other Benefits

a. Retirement Benefits The Gratuity and Leave Encashment is provided on yearly basis. The contribution to Provident Fund is made on monthly basis at prescribed rates.

b. Other Benefits The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

7.Foreign Currency Transactions

Transactions in foreign currencies for import and export of Raw materials, Capital goods and Finished goods are recorded at the rates prevailing on the date of transactions. Exchange gain or loss on conversion of liabilities incurred to acquire capital assets is adjusted to the cost of such assets. Exchange gain or losses on transactions of revenue nature are recognized in the Profit and Loss account.

8.Taxes on Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

9.Earning Per Share:

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the number of equity shares outstanding at the year-end.

10.Events Occuring after the Balance Sheet Data

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts

11.Forward Contracts

The company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the company and the company does not use those for trading or speculation purpose

12.Contingent Liabilities

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent Liabilities and same are disclosed in Notes on Accounts.


Mar 31, 2012

1. Basis of Accounting :

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition/construction net of applicable CENVAT credit. The cost includes Purchase price and all other attributable costs of bringing the assets to its working condition for its intended use.

3. Depreciation:

a. Depreciation on fixed assets is provided pro-rata to the period of use, using the straight-line method based at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

b. Depreciation has been provided on Triple shift working basis.

4. Basis of Valuation of Inventories:

a. Raw Material: At lower of cost or net realizable value.

b. Work In Progress: At lower of estimated cost or net realizable value

c. Finished Goods: At lower of cost or net realizable value

d. Consumable, Stores, Oil & Fuel: At lower of cost or net realizable value.

5. Recognition of Income and Expenditure:

a. The revenue from sale of goods is recognized at the time of sale of goods.

b. Expenditure is recognized on accrual basis. However, certain income / expenses which are indeterminable are accounted for as and when settled / finalized.

6. Retirement & Other Benefits

a. Retirement Benefits

The Gratuity and Leave Encashment is provided on yearly basis. The contribution to Provident Fund is made on monthly basis at prescribed rates.

b. Other Benefits

The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

7. Foreign Currency Transactions

Foreign currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of Profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

8. Taxes On Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

9. Earnings per share:

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the number of equity shares outstanding at the year-end.

10. Events Occurring After The Balance Sheet Date

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts.

11. Forward Contracts

The company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the Company and the Company does not use those for trading or speculation purposes.

Effective April1, 2008, the Company adopted AS30, 'Financial Instruments: Recognition and Measurement', to the extent that the adoption did not conflict with existing accounting standards and other authoritative pronouncements of the Company Law and other regulatory requirements.

12. Contingent Liabilities

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent Liabilities and the same are disclosed in Notes on Accounts.

The company has capital reserves of Rs.26,68,000 as on 3lst March, 2012 which includes capital reserve against State subsidy of Rs.26,00,000 and capital reserve against generator subsidy of Rs.68,000,

During the current year the company has made adjustment as addition to general reserve on account of Minimum Alternative Tax entitlement of Rs. 15,77,878 paid during the previous financial year. The company has transferred hundred percent of the current year profits amounting to Rs. 2,81,59,574 available for distribution to the general reserve.


Mar 31, 2010

1. Basis of Accounting:

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2. Fixed Assets:

2.1. Fixed Assets are stated at cost of acquisition/construction net of applicable CENVAT credit. The cost includes. Purchase price and all other attributable costs of bringing the assets to its working condition for its intended Use.

2.2. The cost of acquisition of imported machinery have been adjusted for exchange fluctuations arising due to difference in exchange rate.

2.3. The Company has capitalized the financing cost for the entire tenure of finance taken for setting up the project.

3. Depreciation:

3.1. Depreciation on fixed assets is provided pro-rata to the period of use, using the straight-line method based at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

3.2. Depreciation has been provided on Triple shift working basis.

3.3. Depreciation on additions made during the year has been provided on pro-rata basis.

3.4. Depreciation on Interest Capitalized has been appropriated from General Reserve.

4. Basis of Valuation of Inventories:

RAW MATERIAL

At lower of cost or net realizable value

WORK IN PROGRESS

At lower of estimated cost or net realizable value

FINISHED GOODS

At lower of cost or net realizable value

CONSUMABLE, STORES, oil & fuel At lower of cost or net realizable value

5. Recognition of Income and Expenditure:

5.1. The revenue from sale of goods is recognized at the time of sale of goods.

5.2. Expenditure is recognized on accrual basis. However, certain income / expenses which are indeterminable are accounted for as and when settled / finalized.

6. INVESTMENTS

Investments are stated at Cost.

7. RETIREMENT & OTHER BENEFITS

7.1. Retirement Benefits

The Gratuity and Leave Encashment is provided on yearly basis as per records. The contribution to Provi- dent Fund is made on monthly basis at the prescribed rates.

7.2. Other Benefits

The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies for import and export of Raw materials, finished goods and Capital goods are recorded at the rates prevailing on the date of transactions. Exchange gain or loss on conversion of

liabilities incurred to acquire capital assets is adjusted to the cost of such assets. Exchange gain or losses on transactions of revenue nature are recognized in the Profit and Loss account.

9. Taxes on Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recog- nized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

10. Earning Per Share

Basic earning per share is calculated by dividing the net profit for the period attributable to equity share- holders by the number of equity shares outstanding at the year-end.

11. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts

12. CONTINGENT LIABILITIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent Liabilities and same are disclosed in Notes on Accounts.