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Accounting Policies of Uniply Industries Ltd. Company

Mar 31, 2015

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a. These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b. The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements. Management believes that these estimate and assumptions are reasonable and prudent. However, actual results could differ from estimate.

2. FIXED ASSETS

a. Fixed Assets are stated at cost of construction or acquisition less accumulated depreciation. All other expenses including taxes, duties, freight incurred to bring the fixed assets to a working condition are also treated as the cost of the fixed assets

b. Fixed Assets are stated at acquisition cost less accumulated depreciation or amortization and cumulative impairment.

3. INVESTMENTS

Investments are made in long term basis and valued at cost of acquisition to the company. Provision, if any, for diminution in value, thereof is made, wherever such diminution is other than temporary.

4. RETIREMENT BENEFITS TO EMPLOYEES

Defined Contribution Plans

The Company's contribution to Provident Fund is deposited with Regional Provident Fund Commissioner and is charged to the Profit & Loss Account every year.

Defined Benefit Plan

The Net Present Value of the Company's obligation towards Gratuity to employees is actuarially determined based on the projected unit credit method. Actuarial gains & losses are recognized in the Profit & Loss account.

5. INVENTORIES

Inventories are valued at cost or net realisable value, whichever is lower. Cost for the purpose of valuation of stocks purchased is determined by using the FIFO method, net of Cenvat credit (if any)

Raw Materials: Raw materials are valued at cost or net realisable value, whichever is lower.

Work-in-progress: Work in progress is valued at cost of raw materials and overheads up to the stage of completion.

Finished Goods: Finished goods are valued at the lower of the cost or net realisable value.

6. DEPRECIATION

Depreciation on Fixed assets is provided on straight line method at the rates based on the useful life of the asset in the manner prescribed under Part C of Schedule II of the Companies Act 2013.

7. FOREIGN CURRENCY TRANSACTIONS

a. Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions.

b. Monetary items denominated in foreign currencies (such as cash, receivable, payable etc.) outstanding at the end of reporting period, are translated at exchange rate prevailing as at the end of reporting period.

c. Non-monetary items denominated in foreign currency, (such as Investment, Fixed Assets etc.) are valued at exchange rate prevailing on the date of transaction. Any gains or losses arising due to differences in exchange rates at the date of translation or settlement are accounted for in the statement of Profit & Loss under the Exchange Gain/ Loss account.

8. REVENUE RECOGNITION

Revenue from sale of goods is recognized when sufficient risks and rewards are transferred to customers, which is generally on dispatch of goods and sales are stated net of returns and discounts.

a. Dividend income is recognized when the company's right to receive dividend is established.

b. Interest Income is recognized on time proportion basics

9. PRIOR PERIOD ITEMS

Significant items of income and expenditure which relate to prior accounting periods (if any) are shown as appropriation of the Profit under the head "Prior Period Items", other than those occasioned by events occurring during or after the close of the year and which are treated as relatable to the current year.

10. TAXES ON INCOME

Provision for current tax made as per the provisions of the Income Tax Act, 1961.

a. Deferred Tax Liability or Asset resulting from "timing difference" between book and taxable profit is accounted for considering the tax rate and laws that have been enacted or substantively enacted as on the balance sheet date.

b. Deferred Tax Asset is recognized and carried forward only to the extent that there is virtual certainty with convincing evidence that there will be sufficient future income to recover such deferred tax asset.

a) State Bank of India - Term Loan - II from bank carries interest @ 16.10% p.a. The balance outstanding is repayable in Quarterly Installment before 30.06.2015 The loan is secured by hypothecation of fixed assets of the company. Further, the loan has been guaranteed by Managing Director of the company.

b) Hire Purchase loan from HDFC Bank - Crane Loan is secured by hypothecation of respective asset, hire purchase loan is repayable in 10 EMI of Rs.53,650/-.

c) Hire Purchase loan from HDFC Bank - Car Loan is secured by hypothecation of respective asset.

d) Hire Purchase Loan from Kotak Mahindra Prime Ltd - Car Loan is secured by hypothecation of respective asset.

e) Inter corporate loan carries interest rate of 15% p.a. and repayable after 12 months from balance sheet date.


Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1.1 The Financial Statements are prepared under historical cost convention in accordance with the mandatory accounting standards notifi ed by the Central Government Company (Accounting Standard) Rules, 2006 and Relevant Provision of Companies Act, 1956.

1.2 The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements. Management believes that these estimate and assumptions are reasonable and prudent. However, actual results could differ from estimate.

2. FIXED ASSETS

2.1 Fixed Assets are stated at cost of construction or acquisition less accumulated depreciation. All other expenses including taxes, duties, freight incurred to bring the fixed assets to a working condition is also treated as the cost of the fixed assets. However cenvat credit availed in respect of the fixed assets is deducted from the cost of the fixed asset.

2.1 Fixed Assets are stated at acquisition cost less accumulated depreciation or amortization and cumulative impairment.

3. INVESTMENTS

Investments are made in long term basis and valued at cost of acquisition to the company. Provision, if any, for diminution in value, thereof is made, wherever such diminution is other than temporary.

4. INVENTORIES

Inventories are valued at cost or net realisable value, whichever is lower. Cost for the purpose of valuation of stocks purchased is determined by using the FIFO method, net of Cenvat credit (if any)

a) Raw Materials: Raw materials are valued at cost or net realisable value, whichever is lower.

b) Work-in-progress: Work in progress is valued at cost of raw materials and overheads up to the stage of completion.

c) Finished Goods: Finished goods are valued at the lower of the cost or net realisable value.

5. RETIREMENT BENEFITS TO EMPLOYEES defined Contribution Plans

The Company''s contribution to Provident Fund is deposited with Regional Provident Fund Commissioner and is charged to the Profit & Loss Account every year.

defined Benefit Plan

The Net Present Value of the Company''s obligation towards Gratuity to employees is actuarially determined based on the projected unit credit method. Actuarial gains & losses are recognized in the Profit & Loss account.

6. DEPRECIATION

Depreciation on Fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

7. GOVERNMENT GRANTS

Government grants in the nature of promoters'' contribution are credited to Capital Reserve and treated as part of Shareholder''s Fund.

8. FOREIGN CURRENCY TRANSACTIONS

8.1 Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions.

8.2 Monetary items denominated in foreign currencies (such as cash, receivable, payable etc.) outstanding at the end of reporting period, are translated at exchange rate prevailing as at the end of reporting period.

8.3 Non-monetary items denominated in foreign currency, (such as Investment, Fixed Assets etc.) are valued at exchange rate prevailing on the date of transaction. Any gains or losses arising due to differences in exchange rates at the date of translation or settlement are accounted for in the statement of Profit & Loss under the Exchange Gain/ Loss account.

9. REVENUE RECOGNITION

9.1 Revenue from sale of goods is recognized when sufficient risks and rewards are transferred to customers, which is generally on despatch of goods and sales are stated net of returns and discounts.

9.2 Dividend income is recognized when the company''s right to receive dividend is established.

9.3 Interest Income is recognized on time proportion basis.

10. PRIOR PERIOD ITEMS

significant items of income and expenditure which relate to prior accounting periods (if any) are shown as appropriation of the Profit under the head "Prior Period Items", other than those occasioned by events occurring during or after the close of the year and which are treated as relatable to the current year.

11. TAXES ON INCOME

11.1 Provision for current tax made as per the provisions of the Income Tax Act, 1961.

11.2 Deferred Tax Liability or Asset resulting from "timing difference" between book and taxable profit is accounted for considering the tax rate and laws that have been enacted or substantively enacted as on the balance sheet date.

11.3 Deferred Tax Asset is recognized and carried forward only to the extent that there is virtual certainty with convincing evidence that sufficient future income will be available against which deferred tax assets can be realized.

11.4 The carrying amount of deferred tax assets are reviewed at each reporting date and are adjusted for its appropriateness.

Sub Note 2.1.1 :- Reconciliation of Shares

a) The company has issued only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share.

b) During the year company has issued 29,50,000 equity shares of Rs.10/- each fully paid and alloted on 25.03.2014.

a) State Bank of India - Term Loan - II from bank carries interest @ 16.10% p.a. The balance outstanding is repayable in 4 Principal Quarterly Installment of Rs. 20 lacs in the next year. The loan is secured by hypothecation of fixed assets of the company. Further, the loan has been guaranteed by Managing Director of the company.

b) Hire Purchase loan from HDFC Bank - Crane Loan is secured by hypothecation of respective asset, hire purchase loan is repayable in 22 EMI of Rs.53,650/-.

c) Hire Purchase loan from HDFC Bank - Car Loan is secured by hypothecation of respective asset, hire purchase loan is repayable in 17 EMI of Rs.14,653/-.

d) Hire Purchase Loan from Kotak Mahindra Prime Ltd - Car Loan is secured by hypothecation of respective asset, hire purchase loan is repayable in 21 EMI of Rs.21,380/-

e) Inter corporate loan carries interest rate of 15% p.a. and repayable after 12 months from balance sheet date.


Mar 31, 2013

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1.1 The Financial Statements are prepared under historical cost convention in accordance with the mandatory accounting standards notified by the Central Government Company (Accounting Standard) Rules, 2006 and Relevant Provision of Companies Act, 1956.

1.2 The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements. Management believes that these estimate and assumptions are reasonable and prudent. However, actual results could differ from estimate.

2. FIXED ASSETS

2.1 Fixed Assets are stated at cost of construction or acquisition less accumulated depreciation. All other expenses including taxes, duties, freight incurred to bring the fixed assets to a working condition are also treated as the cost of the fixed assets. However cenvat credit availed in respect of the fixed assets is deducted from the cost of the fixed asset.

2.1 Fixed Assets are stated at acquisition cost less accumulated depreciation or amortization and cumulative impairment.

3. INVESTMENTS

Investments are made in long term basis and valued at cost of acquisition to the company. Provision, if any, for diminution in value, thereof is made, wherever such diminution is other than temporary.

4. INVENTORIES

Inventories are valued at cost or net realisable value, whichever is lower. Cost for the purpose of valuation of stocks purchased is determined by using the FIFO method, net of Cenvat credit (if any)

a) Raw Materials: Raw materials are valued at cost or net realisable value, whichever is lower.

b) Work-in-progress: Work in progress is valued at cost of raw materials and overheads up to the stage of completion.

c) Finished Goods: Finished goods are valued at the lower of the cost or net realisable value.

5. RETIREMENT BENEFITS TO EMPLOYEES

Defined Contribution Plans

The Company''s contribution to Provident Fund is deposited with Regional Provident Fund Commissioner and is charged to the Profit & Loss Account every year.

Defined Benefit Plan

The Net Present Value of the Company''s obligation towards Gratuity to employees is actuarially determined based on the projected unit credit method. Actuarial gains & losses are recognized in the Profit & Loss account.

6. DEPRECIATION

Depreciation on Fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

7. GOVERNMENT GRANTS

Government grants in the nature of promoters'' contribution are credited to Capital Reserve and treated as part of Shareholder''s Fund.

8. FOREIGN CURRENCY TRANSACTIONS

8.1 Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions.

8.2 Monetary items denominated in foreign currencies (such as cash, receivable, payable etc.) outstanding at the end of reporting period, are translated at exchange rate prevailing as at the end of reporting period.

8.3 Non-monetary items denominated in foreign currency, (such as Investment, Fixed Assets etc.) are valued at exchange rate prevailing on the date of transaction. Any gains or losses arising due to differences in exchange rates at the date of translation or settlement are accounted for in the statement of Profit & Loss under the Exchange Gain/ Loss account.

9. REVENUE RECOGNITION

9.1 Revenue from sale of goods is recognized when sufficient risks and rewards are transferred to customers, which is generally on despatch of goods and sales are stated net of returns and discounts.

9.2 Dividend income is recognized when the company''s right to receive dividend is established.

9.3 Interest Income is recognized on time proportion basis.

10. PRIOR PERIOD ITEMS

Significant items of income and expenditure which relate to prior accounting periods (if any) are shown as appropriation of the Profit under the head "Prior Period Items", other than those occasioned by events occurring during or after the close of the year and which are treated as relatable to the current year.

11. TAXES ON INCOME

11.1 Provision for current tax made as per the provisions of the Income Tax Act, 1961.

11.2 Deferred Tax Liability or Asset resulting from "timing difference" between book and taxable profit is accounted for considering the tax rate and laws that have been enacted or substantively enacted as on the balance sheet date.

11.3 Deferred Tax Asset is recognized and carried forward only to the extent that there is virtual certainty with convincing evidence that there will be sufficient future income to recover such deferred tax asset.


Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts have been prepared by using historical cost convention and on the basis of going concern, with revenues recognized and expenses accounted on accrual basis except those with significant uncertainties.

1.2 FIXED ASSETS

Fixed Assets are stated at cost of construction or acquisition less accumulated depreciation. All other expenses including taxes, duties, freight incurred to bring the fixed assets to a working condition is also treated as the cost of the fixed assets. However Cenvat availed in respect of the fixed assets is deducted from the cost of the fixed asset.

1.3 INVESTMENTS

Investments are made in long term basis and valued at cost of acquisition to the company. Provision, if any, is made to recognize a decline other than a temporary decline, in the value of investments.

1.4 INVENTORIES

Inventories are valued at cost or net realisable value, whichever is lower. Cost for the purpose of valuation of stocks purchased is determined by using the FIFO method, net of Cenvat credit (if any)

a) Raw Materials: Raw materials are valued at cost or net realisable value, whichever is lower.

b) Work-in-progress: Work in progress is valued at cost of raw materials and overheads up to the stage of the completion.

c) Finished Goods: Finished goods are valued at the lower of the cost or net realisable value.

1.5 RETIREMENT BENEFITS TO EMPLOYEES Defined Contribution Plans

The Company s Contribution to Provident Fund is deposited with Regional Provident Fund Commissioner and is charged to the Profit & Loss Account every year.

Defined Benefit Plan

The Net Present Value of the Company s obligation towards Gratuity to employees is actuarially determined based on the projected unit credit method. Actuarial gains & losses are recognized in the Profit & Loss account.

1.6 DEPRECIATION

Depreciation on Fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.7 GOVERNMENT GRANTS

Capital subsidy received has been shown as capital reserve in Balance Sheet. Export incentives received are accounted on accrual basis and are shown as income.

1.8 FOREIGN CURRENCY TRANSACTIONS

a) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transactions and in case of purchases of materials and sale of goods, the exchange gains/losses on settlement during the year, are adjusted to respective accounts.

b) Foreign Currency Current Assets and Current Liabilities (if any) are recorded at the actual transaction rate. The gain or loss arising out of settlement/transaction of the assets and liabilities at the closing rates at the year end are recognized as income/ expenditure in the profit and loss account.

1.9 SALES

Sales are stated net of returns and discounts.

1.10 PRIOR PERIOD ITEMS

Significant items of income and expenditure which relate to prior accounting periods (if any) are shown as appropriation of the Profit under the head Prior Period Items , other than those occasioned by events occurring during or after the close of the year and which are treated as relatable to the current year.

1.11 TAXES ON INCOME

Current tax is determined on the amount of tax payable in respect of taxable income for the year. The deferred tax charge or credit is recognized using current tax rate.

a) State Bank of India - Term Loan from bank carries interest @ 14% p.a. The loan is repayable in 4 Principal Monthly Installment (for 31.03.2011 16 PMI) of Rs.3,13,000/-. The loan is secured by hypothecation of plant & machinery created out of this term loan. Further, the loan has been guaranteed by Managing Director of the company.

b) State Bank of India - Working Capital Loan I from bank carries interest @ 15.25% p.a. The loan is repayable in 13 Principal Monthly Installment (for 31.03.2011 25 PMI)of Rs.8,34,000/-. The loan is secured by hypothecation of all current assets and fixed assets of the company. Further, the loan has been guaranteed by Managing Director of the company.

c) State Bank of India - Working Capital Loan II from bank carries interest @ 14.75% p.a. The loan is repayable in 25 Principal Monthly Installment (for 31.03.2011 37 PMI) of Rs.7,83,000/-. The loan is secured by hypothecation of current assets and Fixed assets of the company. Further, the loan has been guaranteed by Managing Director of the company.

d) Hire Purchase Loan from Indusind Bank is secured by hypothecation of respective asset, hire purchase loan is repayable in 8 EMI ( for 31.03.2011 in 20 EMI) of Rs.23,362/-

e) Deferred Sale Tax Loan is interest free and payable in 9 years from the month of availment. The outstanding loan as on 31.03.2012 is repayable in 21 monthly installments.

f) Inter corporate loan from Raimcom Sales Pvt Ltd (ICD) carries interest rate of 15% p.a. and repayable by 31.03.2014.

Cash Credit and Short Term Credit from State Bank of India is secured by hypothecation of stock, receivable and other current assets of the company, first paripasu charge on fixed assets of the company. Further secured by personal guarantee of the managing director of company.

The cash credit is repayable on demand and carries interest @ 16% p.a.


Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts have been prepared by using historical cost convention and on the basis of going concern, with revenues recognized and expenses accounted on accrual basis except those with significant uncertainties.

2. FIXED ASSETS

Fixed Assets are stated at cost of construction or acquisition less accumulated depreciation except land which has been revalued during the year. All other expenses including taxes, duties, freight incurred to bring the fixed assets to a working condition is also treated as the cost of the fixed assets. However Cenvat availed in respect of the fixed assets is deducted from the cost of the fixed asset.

3. INVESTMENTS

Investments are made in long term basis and valued at cost of acquisition to the company. Provision, if any, is made to recognize a decline other than a temporary decline, in the value of investments.

4. INVENTORIES

Inventories are valued at cost or net realisable value, whichever is lower. Cost for the purpose of valuation of stocks purchased is determined by using the FIFO method, net of Cenvat credit (if any)

a) Raw Materials: Raw materials are valued at cost or net realisable value, whichever is lower.

b) Work-in-progress: Work in progress is valued at cost of raw materials and overheads up to the stage of the completion.

c) Finished Goods: Finished goods are valued at the lower of the cost or net realisable value.

5. RETIREMENT BENEFITS TO EMPLOYEES Defined Contribution Plans

The Companys Contribution to Provident Fund is deposited with Regional Provident Fund Commissioner and is charged to the Profit & Loss Account every year.

Defined Benefit Plan

The Net Present Value of the Companys obligation towards Gratuity to employees is actuarially determined based on the projected unit credit method. Actuarial gains & losses are recognized in the Profit & Loss account.

6. DEPRECIATION

Depreciation on Fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

7. GOVERNMENT GRANTS

Capital subsidy received has been shown as capital reserve in Balance Sheet. Export incentives received are accounted on accrual basis and are shown as income.

8. FOREIGN CURRENCY TRANSACTIONS

a) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transactions and in case of purchases of materials and sale of goods, the exchange gains/ losses on settlement during the year, are adjusted to respective accounts.

b) Foreign Currency Current Assets and Current Liabilities (if any) are recorded at the actual transaction rate. The gain or loss arising out of settlement/transaction of the assets and liabilities at the closing rates at the year end are recognized as income/expenditure in the profit and loss account.

9. SALES

Sales are stated net of returns and discounts.

10. PRIOR PERIOD ITEMS

Significant items of income and expenditure which relate to prior accounting periods (if any) are shown as appropriation of the Profit under the head "Prior Period Items", other than those occasioned by events occurring during or after the close of the year and which are treated as relatable to the current year.

11. TAXES ON INCOME

Current tax is determined on the amount of tax payable in respect of taxable income for the year. The deferred tax charge or credit is recognized using current tax rate.

 
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