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Accounting Policies of Tirupati Industries (India) Ltd. Company

Mar 31, 2014

A) Basis of Accounting

The Financial Statements have been prepared on historical cost convention on accrual basis and in accordance with the applicable accounting standards notified under the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956. Accounting policies not specifically referred to otherwise, are consistent and in consonance with the generally accepted accounting principles.

b) Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

c) Recognition of Income & Expenditure

The company follows the accrual basis of accounting except in the following cases where the same are recorded on ascertainment of rights and obligation.

i) Grants and Subsidy Received

ii) Insurance Claim

iii) Ex-gratia

Sales and Purchases are recognized when complete and titles in goods is passed and are exclusive of MVAT collected, freight, discounts, rebates and returns.

d) 1. Fixed Assets: Fixed Assets are carried at cost of acquisition and amounts adjusted on Revaluation less accumulated Depreciation.

2. Intangible Assets - Brand Development expenditure: Expenditure on development of internally generated Brands had been carried under the head Intangible Asset under Development till 31st March 2013, has been written off in current year to bring it in consonance with Accounting Standard 26.

Depreciation

(i) Depreciation on Fixed Assets has been provided on Written Down Value at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(ii) Depreciation on revalued assets includes an additional charge on account of revaluation. The additional depreciation is transferred to the Profit and Loss Account from Revaluation Reserve.

e) Borrowing Costs

Borrowing costs are recognized as an expense in the period in which they are incurred except the borrowing cost attributable to be acquisitions / constructions of qualifying assets which are capitalized as a part of the cost of the fixed assets, up to the date, the assets are ready for its intended use.

f) Inventories

Inventory of Finished goods and Raw Materials, are valued at lower of cost or net realizable value. The full amount of purchase of consumables, stores and spare parts is debited in the accounts as and when purchased and treated as consumed in the same year.

g) Investments

Investments those are intended to be held for more than a year from the date of acquisition are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long-term investments being current investments are valued at cost or fair value whichever is lower.

h) Retirement Benefit

Company''s contribution to Provident Fund for the year is charged to Profit and Loss Account. The liability for gratuity and leave encashment in respect of permanent employees has been provided in books on the basis of estimated liabilities as on the date of the Balance Sheet.

i) Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

j) Accounting for Taxes on Income

Current Taxes

Provision for current income tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

MAT Credit Entitlement

Minimum Alternative Tax (MAT) paid in accordance to the tax laws, which give rise to future economic benefits in the form of adjustment in future income tax liability, is considered as an asset if there is convincing evidences that the group will pay normal income tax after the tax holiday period. Accordingly, MAT is recognize as an asset in the balance sheet when it is probable that the future economic benefits associated with it will flow to the company and the asset can be measured reliably.

k) Impairment of Assets

Impairment of assets is ascertained at each Balance Sheet Date in respect of Company''s Fixed Assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds recoverable amount.

l) Foreign Currency Transactions

Transactions of Foreign Currency are recorded at the exchange rate prevailing at the date of transaction.

Monetary Assets / Liabilities outstanding at the close of financial year are stated at the exchange rate at the close of the year and the gain / loss is accounted in the Profit & Loss Account.

m) Earnings Per Share

The basic Earning Per Share (EPS) is computed by dividing the net profit after tax for they are attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The company does not have dilutive potential equity shares.


Mar 31, 2013

A) Basis of Accounting

The Financial Statements have been prepared on historical cost convention on accrual basis and in accordance with the applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. Accounting policies not specifically referred to otherwise, are consistent and in consonance with the generally accepted accounting principles. These accounts have been prepared as per the revised Schedule VI to the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

c) Recognition of Income & Expenditure

The company follows the accrual basis of accounting except in the following cases where the same are recorded on ascertainment of rights and obligation. i) Grants and Subsidy Received ii) Insurance Claim iii) Ex-gratia

Sales and Purchases are recognized when complete and titles in goods is passed and are exclusive of MVAT collected, freight, discounts, rebates and returns.

d) 1. Fixed Assets

Fixed Assets are carried at cost of acquisition and amounts adjusted on Revaluation less accumulated Depreciation.

2. Intangible Assets: Brand Development expenditure

Expenditure on development of internally generated Brands have been carried under the head Intangible Asset under Development and the same will be capitalized on or before 31st March 2014.

Depreciation

(i) Depreciation on Fixed Assets has been provided on Written Down Value at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(ii) Depreciation on revalued assets includes an additional charge on account of revaluation. The additional depreciation is transferred to the Profit and Loss Account from Revaluation Reserve.

e) Borrowing Costs

Borrowing costs are recognized as an expense in the period in which they are incurred except the borrowing cost attributable to be acquisitions / constructions of qualifying assets which are capitalized as a part of the cost of the fixed assets, up to the date, the assets are ready for its intended use.

f) Inventories

Inventory of Finished goods and Raw Materials, are valued at lower of cost or net realisable value. The full amount of purchase of consumables, stores and spare parts is debited in the accounts as and when purchased and treated as consumed in the same year.

g) Investments

Investments those are intended to be held for more than a year from the date of acquisition are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

h) Retirement Benefit

Company''s contribution to Provident Fund for the year is charged to Profit and Loss Account. The liability for gratuity and leave encashment in respect of permanent employees has been provided in books on the basis of estimated liabilities as on the date of the Balance Sheet. Gratuity & Leave Encashment in respect of temporary staff has not been provided in books as they are not eligible for the same.

i) Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

j) Accounting for Taxes on Income

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

MAT Credit Entitlement

Minimum Alternative Tax (MAT) paid in accordance to the tax laws, which give rise to future economic benefits in the form of adjustment in future income tax liability, is considered as an asset if there is convincing evidences that the group will pay normal income tax after the tax holiday period. Accordingly, MAT is recognized as an asset in the balance sheet when it is probable that the future economic benefits associated with it will flow to the group and the asset can be measured reliably.

k) Impairment of Assets

Impairment of assets is ascertained at each Balance Sheet Date in respect of Company''s Fixed Assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds recoverable amount.

l) Foreign Currency Transactions

Transactions of Foreign Currency are recorded at the exchange rate prevailing at the date of transaction. Monetary Assets / Liabilities outstanding at the close of financial year are stated at the exchange rate at the close of the year and the gain / loss is accounted in the Profit & Loss Account.

m) Earnings Per Share

The Basic Earning Per Share (EPS) is computed by dividing the net profit after tax for they are attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The company does not have dilutive potential equity shares.


Mar 31, 2011

A. Basis of Accounting :

The Financial Statements have been prepared on historical on accrul basis and in accordance with the applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. Accounting policies not specifically referred to otherwise, are consistent and in consonance with the generally accepted accounting principles.

b. Use of estimates :

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/materialize.

c. Recognition of Income & Expenditure :

The company follows the accrual basis of accounting except in the following cases where the same are recorded on ascertainment of rights and obligation.

i) Grants and Subsidy Received

ii) Insurance Claim

iii) Ex-gratia

Sales and Purchases are recognised when complete and titles in goods is passed and are exclusive of MVAT collected, freight, discounts, rebates and returns.

d. Fixed Assets:

Fixed Asstes are carried at cost of acquisition and amounts adjusted on Revaluation less accumulated Depreciation. The cost incurred on shifting the machineries from Taloja Factory to Khopoli factory has been capitalized on appropriate basis on installation of relevant machineries.

e. Depreciation:

(I) Depreciation on Fixed Assets has been provided on Written Down Value at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(ii) Depreciation on revalued assets includes an additional charge on account of revaluation. The additional depreciation is transferred to the Profit and Loss Account from Revaluation Reserve.

(iii) Depreciatrion is Provided on Plants shifted from Taloja to Khopoli only after they were installed.

f. Borrowing Costs :

Borrowing Costs are recognised as an expense in the period in which they are incurred except the borrowing cost attributable to be acquisitions / constructions of qualifying assets which are capitalised as a part of the cost of the fixed assets, up to the date, the assets are ready for its intended use.

g. Inventories:

Inventory of Finished goods and Raw Materials, are valued at lower of cost or net realisable value.

The full amount of purchase of stores and spare parts is debited in the accounts as and when purchased and treated as consumed in the same year.

h. Investments:

Investments those are intended to be held for more than a year from the date of acquisition are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

i. Retirement Benefit :

Company''s contribution to Provident Fund for the year is charged to Profit and Loss Account. The liability for gratuity and leave encashment in respect of permanent employees has been provided in books on the basis of estimated liabilities as on the date of the Balance Sheet. Gratuity & Leave Encashment in respect of temporary staff has not been provided as the same is not applicable in the opinion of the management.

j. Contingent Liabilities :

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligatin. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

k. Accounting for Taxes on Income :

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income-tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets resulting from "timing difference" between taxble and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

1. Impairment of Assets :

Impairment of assets is ascertained at each Balance Sheet Date in respect of Company''s Fixed Assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds recoverable amount.

m. Earning Per Share :

The basic Earning Per Share (EPS) is computed by dividing the net profit after tax for they are attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The company does not have dilutive potential equity shares.


Mar 31, 2010

A. Basis of Accounting :

The Financial Statements have been prepared on historical cost convention on accrual basis and in accordance with the applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. Accounting policies not specifically referred to otherwise, are consistent and in consonance with the generally accepted accounting principles.

b. Use of estimates :

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/materialize.

c. Recognition of Income & Expenditure :

The company follows the accrual basis of accounting except in the following cases where the same are recorded on ascertainment of rights and obligation.

i) Grants and Subsidy Received

ii) Insurance Claim

iii) Ex-gratia

Sales and Purchases are recognised when complete and titles in goods is passed and are exclusive of MVAT collected, freight, discounts, rebates and returns.

d. Fixed Assets :

Fixed Assets are carried at cost of acquisition and amounts adjusted on Revaluation less accumulated Depreciation. The cost incurred on shifting the machineries from Taloja Factory to Khopoli factory has been capitalized on appropriate basis on installation of relevant machineries.

e. Depreciation :

(I) Depreciation on Fixed Assets has been provided on Written Down Value at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(ii) Depreciation on revalue assets includes an additional charge on account of revaluation. The additional depreciation is transferred to the Profit and Loss Account from Revaluation Reserve.

(iii) No Depreciation is provided on plants shifted from Taloja to Khopoli and remaining uninstalled as on 31.03.2010.

f. Borrowing Costs :

Borrowing Costs are recognised as an expense in the period in which they are incurred except the borrowing cost attributable to be acquisitions / constructions of qualifying assets which are capitalised as a part of the cost of the fixed assets, up to the date, the assets are ready for its intended use.

g. Inventories :

Inventory of Finished goods and Raw Materials, are valued at lower of cost or net realisable value.

The full amount of purchase of stores and spare parts is debited in the accounts as and when purchased and treated as consumed in the same year.

h. Investments :

Investments those are intended to be held for more than a year from the date of acquisition are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

I. Retirement Benefit :

Company's contribution to Provident Fund for the year is charged to Profit and Loss Account. The liability for gratuity and leave encashment in respect of permanent employees has been provided in books on the basis of estimated liabilities as on the date of the Balance Sheet. Gratuity & Leave Encashment in respect of temporary staff has not been provided in books as they are not eligible for the same.

j. Contingent Liabilities :

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

k. Accounting for Taxes on Income :

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income-tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

l. Impairment of Assets :

Impairment of assets is ascertained at each Balance Sheet Date in respect of Company's Fixed Assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds recoverable amount.

m. Earning Per Share :

The basic Earning Per Share (EPS) is computed by dividing the net profit after tax for they are attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The company does not have dilutive potential equity shares.


Mar 31, 2001

A. METHOD OF ACCOUNTING

The accounts of the Company are prepared under the Historical Cost Convention modified by revaluation of Fixed Assets.

b. DEPRECIATION

Depreciation has been provided on the Written Down Value method at the rates specified under:

(i) The Income Tax rules prevalent earlier, upto 30th June, 1987 and

(ii) The Schedule XIV of the Companies Act. 1956 after 1st July 1987.

Depreciation on revalued assets includes an additional charge on account of revaluation. The Additional Depreciation is transferred to the Profit and Loss Account from Revaluation Reserve.

c. FIXED ASSETS

Fixed Assets are carried at cost of acquisition and amounts adjusted on Revaluation less accumulated Depreciation. Leasehold Land is amortized over the period of the Lease.

d. INVENTORY

Inventories are valued at lower of cost or net realizable value except oils and Methyl Esters, which are valued at net realizable value. Scrap of the machinery is valued at net realizable value. Valuation of Oils & Methyl Ester are not according to Accounting standard AS-2 as provided By the institute of Chartered Accountants of India, effect on Profit & Loss is unascertainable.

e. STORES & SPARE PARTS

The full amount of purchase of stores and spare parts is debited in the accounts as and when purchased and treated as consumed in the same year.

f. GRATUITY & LEAVE ENCASHMENT

The liability for gratuity in respect of employees was accounted in the books on cash basis upto 31st March. 1992. From 1992-93 the liability for gratuity payable to eligible employees has been Accounted for on accrual basis based on 15 days salary last drawn for each completed years of service or part thereof in excess of 6 months, though not based on actuarial valuation. Leave encashment for accumulated leave has been accounted for on Cash basis on the basis of last salary drawn.

g. INVESTMENTS Investments are stated at cost.

h. FOREIGN CURRENCY TRANSACTION:

Transaction n foreign Exchange are accounted at the Exchange rate prevailing at the date of the transactions.

i. CONTINGENT LIABILITIES

All known liabilities are provided for in accounts except liability of contingent nature, which have been adequately disclosed in the accounts.