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Accounting Policies of Tirupati Inks Ltd. Company

Mar 31, 2014

Corporate Information

The Company was incorporated as S P Leasing Limited on April 10, 1984 in New Delhi as Public Limited Company under the Companies Act, 1956. The name of the company was changed to Jyotirgamaya Promoters Limited on May 1, 2008. Subsequently, the name of the company was changed to Tirpuati Inks Limited on March 27, 2009 pursuant to the Scheme of Amalgamation approved by the Honor''able High Court of Delhi on November 19, 2008.The company is engaged in the manufacturing of Printing Inks & its Allied Products and provides complete packaging solutions. The Company has its manufacturing units located at Jammu and Greater Noida. The Equity Shares of the company stand listed on BSE Limited and Delhi Stock Exchange Limited.

1.01 Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and provisions of the Companies Act, 1956, as adopted consistently by the company. The Company follows the Mercantile System of accounting and recognizes items of income and expenditure on accrual basis.

1.02 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses for the years presented. Actual results could differ from those estimates.

1.03 Recognition of Income and Expenditure

Sales are recognized when goods are supplied and are recorded net of returns/rebates and Sales Tax / VAT and inclusive of Excise Duty.

Expenses are accounted for on accrual basis and provision is made for all known losses and expenses. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.04 Fixed Assets and Depreciation

The Fixed Assets are stated at cost (Net of CENVAT and VAT where applicable) less accumulated depreciation. Depreciation is provided on additions and deletions on pro-rata basis on Straight Line Method at the rates provided in Schedule XIV of the Companies Act, 1956. Direct costs are capitalized. All pre-operative expenses, on the commencement of commercial production attributable to the fixed assets are capitalized.

1.05 Impairment of Assets

Whenever events indicate that assets may be impaired, the assets are subject to a test of recoverability based on estimates of future cash flows arising from continuing use of such assets and from its ultimate disposal.

A provision for impairment loss is recognized where it is probable that the carrying value of an asset exceeds the amount to be recovered through use or sale of the asset.

1.06 Inventories

Inventories are valued at lower of cost and net realizable value.

a. Raw Materials : Average Cost Method

b. Finished Goods & Work in Progress : Includes conversion and other cost incurred in bringing the inventories to their present location and condition.

1.07 Retirement Benefits

a. The company contributes to the employees provident fund maintained under the Employees Provident Fund Scheme of the Central Government and the same is charged to Profit & Loss A/c.

b. Gratuity is a post employment benefit and is in the nature of defined benefit plan. The liability recognized

in the Balance Sheet in respect of Gratuity is the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses. The defined benefit obligation is calculated at the close of the financial year on the basis of actuarial valuation by the independent Actuary, using Projected Unit Cost Method (PUC). Actuarial gains & losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit & loss in the year in which such gains or losses arise.

1.08 Insurance Claims

Insurance claims are accounted for at the time of lodging the claim with the Insurance company. In case claim amount is greater than the book value of the assets lost/damaged, the accounting of claim is restricted to the respective book values of the assets lost/damaged.

1.09 Taxation

Tax expense comprises of Current and Deferred Tax. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.

Deferred Tax is recognized, subject to the considerations of prudence, on timing differences, being the difference between taxable income that originate in one period and are capable of reversal in one or more subsequent periods.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give futures economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the company.

1.10 Foreign Currency Transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

Monetary items in the form of Current Assets and Current Liabilities in foreign currency, outstanding at the close of the financial year are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resultant gain or loss is accounted during the year.

1.11 Contingent Liabilities

Provision in respect of present obligation arising out of past events are made in accounts when reliable estimates can be made of the amount of the obligation. Contingent Liabilities, if material, are disclosed by way of Notes to Accounts.

1.12 Miscellaneous Expenditure

Borrowing costs attributable to acquisition or construction of qualifying assets are capitalized as part of the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the Profit & Loss A/c.


Mar 31, 2013

1.01 Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and provisions of the Companies Act, 1956, as adopted consistently by the company. The Company follows the Mercantile System of accounting and recognizes items of income and expenditure on accrual basis.

1.02 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses for the years presented. Actual results could differ from those estimates.

1.03 Recognition of Income and Expenditure

Sales are recognized when goods are supplied and are recorded net of rebates and Sales Tax / VAT and inclusive of Excise Duty.

Expenses are accounted for on accrual basis and provision is made for all known losses and expenses. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.04 Fixed Assets and Depreciation

The Fixed Assets are stated at cost (Net of CENVAT and VAT where applicable) less accumulated depreciation. Depreciation is provided on additions and deletions on pro-rata basis on Straight Line Method at the rates provided in Schedule XIV of the Companies Act, 1956. Direct costs are capitalized. All pre-operative expenses, on the commencement of commercial production attributable to the fixed assets are capitalized.

1.05 Impairment of Assets

Whenever events indicate that assets may be impaired, the assets are subject to a test of recoverability based on estimates of future cash flows arising from continuing use of such assets and from its ultimate disposal.

A provision for impairment loss is recognized where it is probable that the carrying value of an asset exceeds the amount to be recovered through use or sale of the asset.

1.06 Inventories

Inventories are valued at lower of cost and net realizable value.

a. Raw Materials : Average Cost Method

b. Finished Goods & Work in Progress : Includes conversion and other cost incurred in bringing the inventories to their present location and condition.

1.07 Retirement Benefits

a. The company contributes to the employees provident fund maintained under the Employees Provident Fund Scheme of the Central Government and the same is charged to Profit & Loss A/c.

b. Gratuity is a post employment benefit and is in the nature of defined benefit plan. The liability recognized in the Balance Sheet in respect of Gratuity is the present value of the defined benefit obligation as at the Balance Sheet date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses. The defined benefit obligation is calculated at the balance sheet date on the basis of actuarial valuation by the independent Actuary, using Projected Unit Cost Method (PUC). Actuarial gains & losses arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit & loss in the year in which such gains or losses arise.

1.08 Insurance Claims

Insurance claims are accounted for at the time of lodging the claim with the Insurance company. In case claim amount is greater than the book value of the assets lost/damaged, the accounting of claim is restricted to the respective book values of the assets lost/damaged.

1.09 Taxation

Tax expense comprises of Current and Deferred Tax. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.

Deferred Tax is recognized, subject to the considerations of prudence, on timing differences, being the difference between taxable income that originate in one period and are capable of reversal in one or more subsequent periods.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give futures economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the company.

1.10 Foreign Currency Transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

Monetary items in the form of Current Assets and Current Liabilities in foreign currency, outstanding at the close of the year are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resultant gain or loss is accounted during the year.

1.11 Contingent Liabilities

Provision in respect of present obligation arising out of past events are made in accounts when reliable estimates can be made of the amount of the obligation. Contingent Liabilities, if material, are disclosed by way of Notes to Accounts.

1.12 Miscellaneous Expenditure

Costs incurred in connection with raising capital are adjusted against the Securities Premium Account.

1.13 Borrowing costs attributable to acquisition or construction of qualifying assets are capitalized as part of the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the Profit & Loss A/c.


Mar 31, 2010

1. Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of The Companies Act, 1956, as adopted consistently by the company. The Company follows the Mercantile System of accounting and recognizes items of income and expenditure on accrual basis.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses for the years presented. Actual results could differ from those estimates.

3. Recognition of Income and Expenditure

Sales are recognized when goods are supplied and are recorded net of rebates and Sales Tax / VAT and inclusive of Excise Duty.

Expenses are accounted for on accrual basis and provision is made for all known losses and expenses. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

4. Fixed Assets and Depreciation

The Fixed Assets are stated at cost (Net of CENVAT and VAT where applicable) less accumulated depreciation. Depreciation is provided on additions and deletions on pro-rata basis on Straight Line Method at the rates provided in Schedule XIV of The Companies Act, 1956.

5. Impairment of Assets

Whenever events indicate that assets may be impaired, the assets are subject to a test of recoverability based on estimates of future cash flows arising from continuing use of such assets and from its ultimate disposal.

A provision for impairment loss is recognized where it is probable that the carrying value of an asset exceeds the amount to be recovered through use or sale of the asset.

6. Inventories

Inventories are valued at lower of cost and net realizable value.

a) Raw Materials : Average cost method

b) Finished Goods & Work in Progress : Includes conversion and other cost incurred in bringing

the inventories to their present location and condition.

7. Retirement Benefits

a. The company contributes to the employees provident fund maintained under the Employees Provident Fund Scheme of the Central Government and the same is charged to Profit & Loss A/c.

b. Provision for Retirement Benefits is provided on the basis of actuarial valuation carried out at the year end.

8. Taxation

Tax expense comprises of Current and Deferred Tax. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.

Deferred Ta x is recognized, subject to the considerations of prudence, on timing differences, being the difference between taxable income that originate in one period and are capable of reversal in one or more subsequent periods.

9. Contingent Liabilities

Since no Contingent Liabilities are known to the company hence no provision is provided in the books of accounts.

10. Borrowing costs attributable to acquisition or construction of qualifying assets are capitalized as part of the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the Profit & Loss A/c.



 
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