Home  »  Company  »  Unison Metals Ltd.  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Unison Metals Ltd. Company

Mar 31, 2015

A. Basis of Accounting:

The financial statements have been prepared under the historical cost convention, on accrual basis, in accordance with the generaly accepted accounting principles ( GAAP ) in India and applicable Accounting Standards referred to under section 133 of the companies act 2013 read with rule 7 of the companies ( Accounts ) rules 2014.

B. Fixed Assets:

Fixed assets are stated at cost of acquisition less accumulated depreciation.

C. Depreciation / Amortisation

Depreciation on tangible fixed assets is provided for on the basis of straight line method (Except on plant & machinery at written down value method )as per the useful life specified in Schedule- II of the Companies Act, 2013 on pro rata basis.

D. Inventories:

Raw Materials, Finished goods, Semi finished goods, scraps and stores & spares and trading goods are stated at lower of cost and net realisable value. The cost of inventories is computed on FIFO basis.Cost includes vat.

E. Investments :

Investments are stated at cost. Provision for diminution in the value of long term investments is made, only if, such a decline is other than temporary in nature, in the opinion of the management.

F. Retirement Benefits:

(1) Contribution to provident fund and provision for leave encashment is charged to profit & loss Account.

(2) Provision for gratuity liability is made based on actuarial valuation as at the Balance Sheet date and is charged to profit & loss account.

(3) All other short term benefits for employees are recognized as an expense at the undiscounted amount in the Statement of profit & loss of the year in which the related service is rendered.

G. Preliminary Expenses:

Preliminary expenses incurred are charged to revenue.

H. Foreign Currency Transactions :

Transaction denominated in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. In respect of transaction covered by forward exchange contracts, the difference between the forward rate and the exchange rate at the date of the transaction is recognized as income or expenses over the life of the contract. Any income or expense on account of exchange rate difference either on settlement or on translation is recognized in Statement of Profit & Loss. Assets & Liabilities remaining unsettled at the end of the year, other than covered by forward exchange contracts are translated at exchange rate prevailing at the end of the year and the difference is adjusted in Statement of Profit & Loss.

I. Borrowing Cost :

Fixed asset which necessarily takes substantial period of time to get ready for its intended use is qualifying asset, Borrowing costs that are attributable to the acquisition or construction of such qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are recognized as expense in the period in which they are incurred.

J. Taxes on Income:

a) Tax on income for the current period is determined on the basis of estimated taxable income computed in accordance with the provisions of the Income Tax Act,1961.

b) Deferred tax is recognized on timing difference between the accounting income and the estimated taxable income for the period and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

c) Deferred tax assets are recognized for timing differences of items other then unabsorbed depreciation and carry forward losses only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax asset can be realized. But, if there are unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only if there is virtual certainty that sufficient future taxable income will be available to realize deferred tax assets.

K. Impairment of Assets :

The carrying amount of assets is reviewed at each balance sheet date to determine whether there is any indication of impairment of assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized whenever the carrying amount of an assets or its cash generating unit exceeds its recoverable amount.

L. Use of Estimates :

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual result and estimates are recognized in the period in which the results are known / materialized.

M. Provisions, Contingent Liabilities and Contingent Assets

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and that probability requires an outflow of resources.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Where there is a possible obligation or a present in respect of which the likelihood of outflow of resources is remote, no disclosure is made.

N. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.


Mar 31, 2014

A. Basis of Accounting:

The financial statements have been prepared under the historical cost convention, on accrual basis, in accordacne with the generally accepted accounting principles (GAAP) in India and applicable Accounting Standards as notified under section 211 (3C) of the Companies Act, 1956 (which continue to be applicable in respect of Section 133 of the Companies Act 2013 in terms of general circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs.

B. Fixed Assets:

Fixed assets are stated at cost of acquisition less accumulated depreciation.

C. Depreciation:

Depreciation on fixed assets is provided on the basis of straight line method (except on plant & machineries at written down value method) at the rates prescribed in Schedule -XIV of the Companies Act,1956 as applicable on prorata basis except that considering the useful life based on technical evaluation by the management, higher rate of 15% is provided then the prescribed rate of @9.50% on all vehicles.

D. Inventories:

Raw Materials, Finished goods, Semi finished goods, scraps and stores & spares are stated at lower of cost and net realisable value. The cost of inventories is computed on FIFO basis.Cost includes vat.

E. Investments :

Investments are stated at cost. Provision for diminution in the value of long term investments is made, only if, such a decline is other than temporary in nature, in the opinion of the management.

F. Retirement Benefits:

1) Contribution to provident fund and provision for leave encashment is charged to profit & loss Account.

2) Provision for gratuity liabilty is made based on actuarial valuation as at the Balance Sheet date and is charged to profit & loss account.

3) All other short term benefits for employees are recognised as an expense at the undiscounted amount in the Statement of profit & loss of the year in which the related service is rendered.

G. Preliminary Expenses:

Preliminary expenses incurred are charged to revenue.

H. Foreign Currency Transactions :

Transaction denominated inf Foreign Currency are recorded at the exchange rate previling on the date of transaction. In respect of transaction covered by forward exchange contracts, the difference between the forward rate and the exchange rate at the date of the transaction is recognized as income or expenses over the life of the contract. Any income or expense on account of exchange rate difference either on settlement or on translation is recognized in Statement of Profit & Loss. Assets & Liabilities remaining unsettled at the end of the year, other than covered by forward exchange contracts are translated at exchange rate prevailing at the end of the year and the difference is adjusted in Statement of Profit & Loss.

I. Borrowing Cost :

Fixed asset which necessarily takes substantial period of time to get ready for its intended use is qualifying asset, Borrowing costs that are attributable to the acquisition or construction of such qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are recognized as expense in the period in which they are incurred.

J. Taxes on Income:

a) Tax on income for the current period is determined on the basis of estimated taxable income computed in accordance with the provisions of the Income Tax Act,1961.

b) Deferred tax is recognized on timing difference between the accounting inome and the estimated taxable income for the period and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

c) Deferred tax assets are recognized for timing differences of items other then unabsorbed depriciation and carry forward losses only to the extent that there is reasonable certainity that sufficient future taxable income will be available against which deffered tax asset can be realized. But, if there are unabsorbed depriciation and carry forward of losses, deffered tax assets are recognized only if there is vitual certainity that sufficient future taxable income will be available to realize deffered tax assets.

K. Impairment of Assets :

The carrying amount of assets is reviewed at each balance sheet date to determine whether there is any indication of impairment of assets.If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized whenever the carrying amount of an assets or its cash generating unit exceeds its recoverable amount.

L. Use of Estimates :

The presentation of financial statements requires certain estimates and assumptions.These estimates and assumptions affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.Differences between the actual result and estimates are recognized in the period in which the results are known / materialized.

M. Provisions, Contingent Liabilities and Contingent Assets

Provision involving substrantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and that probability requires an outflow of resources.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Where there is a possible obligation or a present in respect of which the likelihood of outflow of resources is remote, no disclosure is made.

N. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

1.3 Terms/Rights attached to Shares :

Each holder of Equity Shares of face value of Rs.10 each is entitled to one vote per share. The dividend is declared and paid on being proposed by the Board of Directors after the approval of the Shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company the holders of equity shares will be entitled to remaining assets of the company after payment or distribution of all liabilities. The distri- bution to equity share holders will be in propotion to the number of Equity Shares held by the Shareholders.

Loan from Directors in note 3B(i) repayable after 31-03-2015 bearing inerest @ 12% p.a Loan from share holders and others in note 3B(ii) repayable after 31-03-2015 bearing inerest @ 12% p.a

Loan from Bodies Corporate in note 3B(iii) repayable after 31-03-2015 bearing inerest @ 12% p.a Loan from Others in note 3B(iv) repayable after 31-03-2015 bearing no inerest

10.a Investment in Mangalam Steel & Alloys Ltd (MSAL), incorporated in Vietnam for manufacturing of Stainless Steel products in which company has 40% stake. During the year the MSAL is not an asso- ciate under accounting standard 18-"Related party disclosers" as there is no participation in the financial and / or operating policy decisions of MSAL. Due to loses, mismanagement by working director (General Director) at Vietnam and disputes & deadlock in Management, the plant is closed during financial year 2011-2012 and the creditors of MSAL have filed petition to Commence bank- ruptcy proceedings at Vietnam with Vietnamese authorities in 2012-2013 After considering the overall appreciation in market value of Fixed assets, company has provided further Rs.18,50,974/- for diminution in value of such investment during the year.

11a Advance to others include given to All Kerala Social Welfare Society of Rs.95 lacs for purchase of Scrap, a raw-material for our manufacturing activity in F.Y.2010 2011, But the raw material was not supplied, and the agreement for sale was cancelled by the party and against which the said party issued a cheque of Rs. 110 lacs (including interest which is not accounted as income), but the cheque bounced. Company filled criminal case u/s 138 of Negotiable Instrument Act, in court at Ahmedabad in financial year 2011-2012 and the party gave undertaking to the Honorable Court to pay or settle it. Presently the party having not fulfilled his commitment, Honourable Court has issued arrest warrant against Mr. Ibrahim Kutty of All Kerala Welfare Soceity. Accordingly company expect to realize the whole amount at the earliest however the same is considered as long term.

23b Share of profit exculding interest from partnership firm for the current year named CHANDANPANI ENTERPRISE shall be accounted for on the finality of the accounts of the partnership firm for the year ended 31/03/2014

Profit from partnership firm of Rs. 1,81,315 /- (previous year loss Rs.4,96,632/-) from the said firm in Note-19 pertains to year ended 31-03-2013, Interest for the current year 31-03-2014Rs.9,62,448 /- ( Prior Year 31-03-13 Rs.9,46,957 ) is part of interest income in Note-19 to these finanicial statment.

 
Subscribe now to get personal finance updates in your inbox!