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Accounting Policies of Tokyo Plast International Ltd. Company

Mar 31, 2016

a) Basis of Accounting:

The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties.

The financial statements are prepared under historical cost convention, on a going concern basis, in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 204.

All assets and liabilities have been classified as current or noncurrent as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 203. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 2 months for the purpose o current/non-current classification of assets and liabilities

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables, employee benefits provision for income taxes, the useful lives of depreciable fixed assets and provisions for impairment.

Future results could differ due to changes in these estimates and the difference between the actual results and the estimates are recognized in the period in which the results are known/materialize.

b) Fixed Assets:

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cofto Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.

c) Depreciation:

Depreciation on Tangible Fixed Assets is provided on Straight Line Method” Till March 3 1, 204 depreciation is charged as per rates prescribed in Schedule XIV to the Companies Act, B56. From April 01 204 it is based on useful life of the assets as prescribed in Schedule II to the Companies Act, 203 and in the manner prescribed by Schedule II of the Companies Act 203.

Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

d) Impairment of Asset :

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Where there is an indication of impairment of the company^ assets, the carrying amount of the same are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Impairment loss, if any, is recognized in the Statement of Profit or Loss.

e) Valuation of Inventories:

Inventories are valued at Cost or Net Realizable Value whichever is less. Cost is determined using FIFO (First in first out) method..

Cost includes:

(I) Raw Materials - At cost of purchase plus cost incurred on bringing the inventories to their present location and present condition.

(ii) Semi-Finished Goods - Valued at material cost plus estimated conversion cost.

(iii) Finished Goods - Valued at Material cost plus estimated conversion cost

Revenue Recognition Sales

Sales are accounted on dispatch of products to customers Export Benefits

Benefits on account export of goods under various export bents scheme are accounted in the year exports.

f) Employees Benefits

i) Gratuity:

The Liability is ascertained and provided for as per Actuarial Valuation

ii) Bonus:

Bonus is accounted on accrual basis.

iii) Provident fund :

Provident F und is charged to the profit & loss account

g) Investments:

Long Term and unquoted investments are valued at historical cost. Provision for diminution in the value of investments will be made only when there is any indication of diminution of permanent nature .

h) Foreign Exchange Transactions:

Transactions made in foreign currency during the year are translated at rates closely approximating those ruling at the transaction date. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment or realizations. Current assets and liabilities denominated in foreign currency as at the Balance Sheet date are converted at the exchange rates prevailing on the 3tt M arch of the financial year. Exchange differences are recognized in the Profit and Loss Account. Pursuant to the adoption o Companies(Accounting Standard ) Rule , 2016, with effect from April 2017.

Forwarded contracts are accounted on the basis of principles laid down under Accounting Standards 3Q 3 1 and 32 issued by the Institute of Chartered Accountants of India.

i) Taxation:

Current Tax Provision has been made in accordance with the Income Tax Act, 961

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates / laws that have been enacted or substantively enacted by the Balance Sheet date and are reviewed for appropriateness of their respective carrying values at each Balance sheet date. The major Component is Depreciation

j) Provisions and Contingent Liabilities :

Provisions are recognized when the company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when a company has possible obligation or a present obligation and it is uncertain as to whether a cash outflow will be required to settle the obligation.


Mar 31, 2015

A) Basis of Accounting:

The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

The financial statements are prepared under historical cost convention, on a going concern basis, in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables, employee benefits, provision for income taxes, the useful lives of depreciable fixed assets and provisions for impairment. Future results could differ due to changes in these estimates and the difference between the actual results and the estimates are recognised in the period in which the results are known/materialise.

b) Fixed Assets:

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.

c) Depreciation:

Depreciation on Tangible Fixed Assets is provided on "Straight Line Method". Till March 31, 2014 depreciation is charged as per rates prescribed in Schedule XIV to the Companies Act, 1956. From April 01, 2014 it is based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 and in the manner prescribed by Schedule II of the Companies Act 2013.

Intangible assets are amortised over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

d) Impairment of Asset :

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Where there is an indication of impairment of the company's assets, the carrying amount of the same are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Impairment loss, if any, is recognized in the Statement of Profit or Loss.

e) Valuation of Inventories:

Inventories are valued at Cost or Net Realisable Value whichever is less. Cost is determined using FIFO (First in first out) method..

Cost includes:

(I) Raw Materials - At cost of purchase plus cost incurred on bringing the inventories to their present location and present condition.

(ii) Semi-Finished Goods - Valued at material cost plus estimated conversion cost.

(iii) Finished Goods - Valued at Material cost plus estimated conversion cost

Revenue Recognition

Sales

Sales are accounted on dispatch of products to customers

Export Benefits

Benefits on account of export of goods under various export benefits scheme are accounted in the year of exports.

f) Employees Benefits

i) Gratuity:

The Liability is ascertained and provided for as per Actuarial Valuation

ii) Bonus:

Bonus is accounted on accrual basis.

iii) Provident fund :

Provident Fund is charged to the profit & loss account when the contributions to the respective funds are due.

g) Investments:

Long Term and unquoted investments are valued at historical cost. Provision for diminution in the value of investments will be made only when there is any indication of diminution of permanent nature .

h) Foreign Exchange Transactions:

Transactions made in foreign currency during the year are translated at rates closely approximating those ruling at the transaction date. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment or realizations. Current assets and liabilities denominated in foreign currency as at the Balance Sheet date are converted at the exchange rates prevailing on the 31st March of the financial year. Exchange differences are recognized in the Profit and Loss Account. Pursuant to the adoption of Companies(Accounting Standard ) Rule , 2006, with effect from April 1, 2007.

Forwarded contracts are accounted on the basis of principles laid down under Accounting Standards 30, 31 and 32 issued by the Institute of Chartered Accountants of India.

i) Taxation:

Current Tax Provision has been made in accordance with the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates / laws that have been enacted or substantively enacted by the Balance Sheet date and are reviewed for appropriateness of their respective carrying values at each Balance sheet date. The major Component is Depreciation

j) Provisions and Contingent Liabilities :

Provisions are recognized when the company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when a company has possible obligation or a present obligation and it is uncertain as to whether a cash outflow will be required to settle the obligation.

24.b :The Company's exposure in its subsidiary, Tokyo Plast Global FZE was tested for diminution in the value as on March 31, 2015. Consequently, the Company recognised a provision of Rs. 36.51 lakhs for its subsidiary Tokyo Plast Global FZE which includes diminution in the value of equity investment of Rs. 12.17 lakhs and loans extended amounting to Rs. 24.33 lakhs.


Mar 31, 2012

A) Basis of Accounting:

The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

The financial statements are prepared under historical cost convention, on a going concern basis, in accordance with Generaly Accepted Accounting Principles in India and are in accoradance with the requirements of the Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India.

Estimates and assumptions used in the preparation of the financial statements are based upon Management's evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

b) Fixed Assets:

Fixed Assets are stated at cost less Accumulated Depreciation. Cost Comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use and also comprises of borrowing costs attributable to acquisition and construction of assets up to the date when such asset is ready for its intended use.

c) Depreciation:

Depreciation on fixed assets is provided for on the "Straight Line Method" as per the rates and in the manner prescribed by Schedule XIV of the Companies Act, 1956.

d) Impairment of Asset:

In accordance with AS 28 on 'Impairment of Assets' issued by the Institute of Chartered Accountants of India, where there is an indication of impairment of the companies assets, the carrying amounts of the companies assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss if any, is recognized in the Profit & loss account.

e) Valuation of Inventories:

Inventories are valued as under:

(I) Raw Materials -At Cost

(ii) Semi-Finished Goods - Valued at material cost plus estimated conversion cost.

(iii) Finished Goods - Valued at Material cost plus estimated conversion cost

Revenue Recognition Sales

Sales are accounted on despatch of products to customers

Export Benefits

Benefit on account of entitlement to import goods free of duty under the "Duty Entitlement Pass Book under Duty Exemption Scheme" is accounted in the year of export.

f) Employees Benefits i) Gratuity:

The Liability is ascertained and provided for as per Actuarial Valuation

ii) Bonus:

Bonus is accounted on accrual basis.

iii) Provident fund:

Provident Fund is charged to the profit & loss account when the contributions to the respective funds are due.

g) Investments:

Long Term and unquoted investments are valued at historical cost. Provision for diminution in the value of investments will be made only when there is any indication of diminution of permanant nature.

h) Foreign Exchange Transactions:

Transactions made in foreign currency during the year are translated at rates closely approximating those ruling at the transaction date. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment or realizations. Current assets and liabilities denominated in foreign currency as at the Balance Sheet date are converted at the exchange rates prevailing on the 31st March of the financial year. Exchange differences are recognized in the Profit and Loss Account. Pursuant to the adoption of Companies(Accounting Standard) Rule, 2006, with effect from April 1,2007.

Forwared conracts are accounted on the basis of principles laid down under Accounting Standards 30,31 and 32 issued by the Institute of Chartered Accountants of India.

i) Taxation:

Current Tax Provision has been made in accordance with the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profit as per the financial statements.Deferred tax assets and liabilities are measured as per the tax rates / laws that have been enacted or substantively enacted by the Balance Sheet date and are reviewed for appropriateness of their respective carrying values at each Balance sheet date.The major Component is Depreciation

j) Provisions and Contingent Liabilities:

Provisions are recognized when the company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when a company has possible obligation or a present obligation and it is uncertain as to whether a cash outflow will be required to settle the obligation.


Mar 31, 2010

A) Basis of Accounting:

The financial statements are prepared under historical cost convention, on a going concern basis, in accordance with Generaly Accepted Accounting Principles in India and are in accoradance with the requirements of the Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India.

b) Fixed Assets:

Fixed Assets are stated at cost. Cost Comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use and also comprises of borrowing costs attributable to acquisition and construction of assets up to the date when such asset is ready for its intended use.

c) Depreciation:

Depreciation on fixed assets is provided for on the "Straight Line Method" as per the rates and in the manner prescribed by Schedule XIV of the Companies Act, 1956.

d) Impairment of Asset :

In accordance with AS 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, where there is an indication of impairment of the companies assets, the carrying amounts of the companies assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss if any, is recognized in the Profit & loss account.

e) Valuation of Inventories:

Inventories are valued as under:

(i) Raw Materials - At Cost

(ii) Semi-Finished Goods - Valued at material cost plus estimated conversion cost.

(iii) Finished Goods - Valued at Material cost plus estimated conversion cost

Revenue Recognition Sales

Sales are accounted on despatch of products to customers

Export Benefits

Benefit on account of entitlement to import goods free of duty under the "Duty Entitlement Pass Book under Duty Exemption Scheme" is accounted in the year of export.

f) Retirement Benefits

i) Gratuity:

Gratuity is accounted on cash basis.

ii) Bonus:

Bonus is accounted on accrual basis.

iii) Provident fund :

Provident Fund is charged to the profit & loss account when the contributions to the respective funds are due.

g) Investments:

Long Term and unquoted investments are valued at cost. No depreciation is provided in respect of diminution in the market value of shares held as long term investment as the diminution is considered temporary.

h) Foreign Exchange Transactions:

Transactions made in foreign currency during the year are translated at rates closely approximating those ruling at the transaction date. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment or realizations. Current assets and liabilities denominated in foreign currency as at the Balance Sheet date are converted at the exchange rates prevailing on the 31st March of the financial year. Exchange differences are recognized in he Profit and Loss Account. Pursuant to the adoption of Companies(Accounting Standard ) Rule, 2006, with effect from April 1, 2007.

Monetary items covered by forward contracts are valued at the spot rate at the inception of the transaction. The premium or discount arising at the inception of such forward contract is ammortised as expense or income over the life of the contract.

i) Taxation:

Current Tax Provision has been made in accordance with the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profit as per the financial statements.Deferred tax assets and liabilities are measured as per the tax rates / laws that have been enacted or substantively enacted by the Balance Sheet date and are reviewed for appropriateness of their respective carrying values at each Balance sheet date.The major Component is Depreciation

j) Provisions and Contingent Liabilities :

Provisions are recognized when the company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when a company has possible obligation or a present obligation and it is uncertain as to whether a cash outflow will be required to settle the obligation.

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