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Accounting Policies of Universal Prime Aluminium Ltd. Company

Mar 31, 2014

SYSTEM OF ACCOUNTING

The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

OWN FIXED ASSETS

Own Fixed Assets are stated at cost less accumulated depreciation / impairment loss, if any

LEASED ASSETS :

Lease hold assets are stated at lease cost/premium paid less amount written off for the period of lease expires. Cost of Leasehold land is written of equally over the period of lease. Lease hold is taken on lease for the period of 99 years & 1/99 % is written off every years.

CAPITAL WORK-IN-PROGRESS

Interest, administrative and other pre-operative expenses are carried forward under capital work- in-progress to be allocated to the respective fixed assets on installation of the same.

INVESTMENTS

Long-term investments are stated at cost. In case, there is a permanent diminution in the value of investment, provision for the same is made in the accounts.

INVENTORIES

Inventories of stores and spare parts are valued at or below cost after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

Finished goods and material-in-process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Inventories of raw material are valued at cost or net realizable value which is lower after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

REVENUE RECOGNITION :

Dividend income is recognized as & when received.

Interest income is recognized on time proportion basis (on mercantile system of accounting) taking into account the amount outstanding from time to time & rate applicable.

BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of the assets are capitalised as part of the cost of respective assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the revenue.

DEPRECIATION / AMORTISATION

Premium on leasehold land is amortised over the period of lease.

Depreciation on Fixed (TANGIBLE) Assets is provided on Straight Line Method on pro-rata basis with reference to month of addition/ deletion of respective assets at the rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation on Intangible Assets such as software purchased is written off over a period of three years.

FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transaction. Foreign currency assets and liabilities, other than for financing fixed assets are stated at the rate of exchange prevailing at the year end and resultant gains/losses are recognised in the Profit and Loss Account except in cases covered by forward foreign exchange contracts, these are translated at the contracted rates and resultant gains/ losses are recognised over the life of the contracts.

RETIREMENT BENEFITS

Liability in respect of retirement benefits is provided and charged to Profit and Loss Account as follows:

Provident/Family Pension Fund: at a specified percentage of salary/wages for eligible employees, if any Leave Encashment: as determined on the basis of accumulated leave at the credit of the employee as at the year end, as per Company''s Rules.

Gratuity liability as at the year-end is provided as per the provisions of ''The Payment of Gratuity Act, 1972

PROVISION FOR CURRENT & DEFERRED INCOME TAX

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The deferred tax liability for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that this would be realised in future.Net of assets minus liability is provided in books as deferred tax liability.


Mar 31, 2013

SYSTEM OF ACCOUNTING

The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

OWN FIXED ASSETS

Own Fixed Assets are stated at cost less accumulated depreciation / impairment loss, if any

LEASED ASSETS :

Lease hold assets are stated at lease cost/premium paid less amount written off for the period of lease expires. Cost of Leasehold land is written of equally over the period of lease. Lease hold is taken on lease for the period of 99 years & 1/99% is written off every years.

CAPITAL WORK-IN-PROGRESS

Interest, administrative and other pre-operative expenses are carried forward under capital work- in-progress to be allocated to the respective fixed assets on installation of the same.

INVESTMENTS

Long term investments are stated at cost. In case, there is a permanent diminution in the value of investment, provision for the same is made in the accounts.

INVENTORIES

Inventories of stores and spare parts are valued at or below cost after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

Finished goods and material-in-process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Inventories of raw material are valued at cost or net realizable value which is lower after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

REVENUE RECOGNITION :

Dividend income is recognized as & when received. Interest income is recognized on time proportion basis (on mercantile system of accounting) taking into account the amount outstanding from time to time & rate applicable.

BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of the assets are capitalised as part of the cost of respective assets upto the date when such asset is ready for its intended use. Other borrowing costs are charged to the revenue.

DEPRECIATION / AMORTISATION

Premium on leasehold land is amortised over the period of lease.

Depreciation on Fixed (TANGIBLE) Assets is provided on Straight Line Method on pro-rata basis with reference to month of addition/deletion of respective assets at the rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation on Intangible Assets such as software purchased is written off over a period of three years.

FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transaction. Foreign currency assets and liabilities, other than for financing fixed assets are stated at the rate of exchange prevailing at the year end and resultant gains/losses are recognised in the Profit and Loss Account except in cases covered by forward foreign exchange contracts, these are translated at the contracted rates and resultant gains/losses are recognised over the life of the contracts.

RETIREMENT BENEFITS

Liability in respect of retirement benefits is provided and charged to Profit and Loss Account as

follows :

Provident/Family Pension Fund : at a specified percentage of salary/wages for eligible employees, if any

Leave Encashment : as determined on the basis of accumulated leave at the credit of the employee as at the year end, as per Company''s Rules.

Gratuity liability as at the year-end is provided as per the provisions of The Payment of Gratuity Act,1972 PROVISION FOR CURRENT & DEFERRED INCOME TAX

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The deferred tax liability for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that this would be realised in future. Net of assets minus liability is provided in books as deferred tax liability.


Mar 31, 2012

SYSTEM OF ACCOUNTING

The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

OWN FIXED ASSETS

Own Fixed Assets are stated at cost less accumulated depreciation impairment loss, if any LEASED ASSETS :

Lease hold assets are stated at lease cost/premium paid less amount written off for the period of lease expires. Cost of Leasehold land is written of equally over the period of lease. Lease hold is taken on lease for the period of 99 years & 1/99% is written off every years.

CAPITAL WORK-IN-PROGRESS

Interest, administrative and other pre-operative expenses are carried forward under capital work- in-progress to be allocated to the respective fixed assets on installation of the same.

INVESTMENTS

Long term investments are stated at cost. In case, there is a permanent diminution in the value of investment, provision for the same is made in the accounts.

INVENTORIES

Inventories of stores and spare parts are valued at or below cost after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

Finished goods and material-in-process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Inventories of raw material are valued at cost or net realizable value which is lower after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

REVENUE RECOGNITION :

Dividend income is recognized as & when received. Interest income is recognized on time proportion basis (on mercantile system of accounting) taking into account the amount outstanding from time to time & rate applicable.

BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of the assets are capitalised as part of the cost of respective assets upto the date when such asset is ready for its intended use. Other borrowing costs are charged to the revenue.

DEPRECIATION / AMORTISATION

Premium on leasehold land is amortised over the period of lease.

Depreciation on Fixed (TANGIBLE) Assets is provided on Straight Line Method on pro-rata basis with reference to month of addition/deletion of respective assets at the rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation on Intangible Assets such as software purchased is written off over a period of three years.

FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transaction. Foreign currency assets and liabilities, other than for financing fixed assets are stated at the rate of exchange prevailing at the year end and resultant gains/losses are recognised in the Profit and Loss Account except in cases covered by forward foreign exchange contracts, these are translated at the contracted rates and resultant gains/losses are recognised over the life of the contracts.

RETIREMENT BENEFITS

Liability in respect of retirement benefits is provided and charged to Profit and Loss Account as follows :

Provident/Family Pension Fund : at a specified percentage of salary/wages for eligible employees, if any

Leave Encashment : as determined on the basis of accumulated leave at the credit of the employee as at the year end, as per Company's Rules.

Gratuity liability as at the year-end is provided as per the provisions of 'The Payment of Gratuity Act,1972'.

PROVISION FOR CURRENT & DEFERRED INCOME TAX

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The deferred tax liability for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that this would be realised in future. Net of assets minus liability is provided in books as deferred tax liability.

The Company is in the process of obtaining/compiling information from the suppliers about the applicability of Small scale/Ancillary Industrial Suppliers as defined under the "Industrial (Development and Regulation) Act, 1951" and "Interest on delayed payments to Small Scale/Ancillary Industrial Undertakings Act. 1993." Accordingly, the information relating to their dues/over dues could not be furnished. Further, the company has not received any information from its vendor regarding their status under Micro Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, required under the Act have not been made.

Stock of Raw Materials, Qty. 13568 kgs. under process of the value of Rs. 10,29,268/- (Previous year Rs. 10,29,268/-), is lying with a third party since long time around before 1995. The Company has filed legal case against the said party but the case is not yet came on before Trial court for hearing, and party is also not traceable, hence management is not hopeful of receipt of money/ recovery of the said material and accordingly inventory is valued at nominal value @ Rs. 1/- per kg. considering it as net realisable value, and balance is shown decrease in invetory.


Mar 31, 2011

SYSTEM OF ACCOUNTING

The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

CAPITAL WORK-IN-PROGRESS

Interest, administrative and other pre-operative expenses are carried forward under capital work-in- progress to be allocated to the respective fixed assets on installation of the same.

INVESTMENTS

Long term investments are stated at cost. In case, there is a permanent diminution in the value of investment, provision for the same is made in the accounts.

INVENTORIES

Inventories of stores and spare parts are valued at or below cost after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

Finished goods and material-in-process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Inventories of raw material are valued at cost or net realizable value which is lower after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of the assets are capitalised as part of the cost of respective assets upto the date when such asset is ready for its intended use. Other borrowing costs are charged to the revenue.

DEPRECIATION/AMORTISATION

Premium on leasehold land is amortised over the period of lease.

Depreciation on Fixed Assets is provided on Straight Line Method on pro-rata basis with reference to month of addition/ deletion of respective assets at the rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation on Intangible Assets such as software purchased is written off over a period of three years.

FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transaction. Foreign currency assets and liabilities, other than for financing fixed assets are stated at the rate of exchange prevailing at the year end and resultant gains/losses are recognised in the Profit and Loss Account except in cases covered by forward foreign exchange contracts, these are translated at the contracted rates and resultant gains/ losses are recognised over the life of the contracts.

RETIREMENT BENEFITS

Liability in respect of retirement benefits is provided and charged to Profit and Loss Account as follows : Provident/Family Pension Fund : at a specified percentage of salary/wages for eligible employees.

Leave Encashment: as determined on the basis of accumulated leave at the credit of the employee as at the year end, as per Company's Rules.

Gratuity liability as at the year end is provided as per the provisions of The Payment of Gratuity Act, 1972'.

INCOME TAX

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that this would be realised in future.


Mar 31, 2010

SYSTEM OF ACCOUNTING

The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

CAPITAL WORK-IN-PROGRESS

Interest, administrative and other pre-operative expenses are carried forward under capital work-in- progress to be allocated to the respective fixed assets on installation of the same.

INVESTMENTS

Long term investments are stated at cost. In case, there is a permanent diminution in the value of investment, provision for the same is made in the accounts.

INVENTORIES

Inventories of stores and spare parts are valued at or below cost after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

Finished goods and material-in-process include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Inventories of raw material are valued at cost or net realizable value which is lower after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on first in first out basis for all items of inventory.

BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of the assets are capitalised as part of the cost of respective assets upto the date when such asset is ready for its intended use. Other borrowing costs are charged to the revenue.

DEPRECIATION /AMORTISATION

Premium on leasehold land is amortised over the period of lease.

Depreciation on Fixed Assets is provided on Straight Line Method on pro-rata basis with reference to month of addition/ deletion of respective assets at the rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation on Intangible Assets such as software purchased is written off over a period of three years.

FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transaction. Foreign currency assets and liabilities, other than for financing fixed assets are stated at the rate of exchange prevailing at the year end and resultant gains/losses are recognised in the Profit and Loss Account except in cases covered by forward foreign exchange contracts, these are translated at the contracted rates and resultant gains/ losses are recognised over the life of the contracts.

RETIREMENT BENEFITS

Liability in respect of retirement benefits is provided and charged to Profit and Loss Account as follows :

Provident/Family Pension Fund : at a specified percentage of salary/wages for eligible employees.

Leave Encashment : as determined on the basis of accumulated leave at the credit of the employee as at the year end, as per Companys Rules.

Gratuity liability as at the year end is provided as per the provisions of The Payment of Gratuity Act, 1972.

INCOME TAX

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that this would be realised in future.

 
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