Mar 31, 2015
1.1. Basis of preparation of financial statements
The financial statements are prepared under the historical cost
convention on an accrual basis of accounting in accordance with the
generally accepted accounting principles, Accounting Standards referred
to in section 133 the Act, read with rule 7 of the Companies (Accounts)
Rules, 2014 and the relevant provisions thereof.
1.2. Use of estimates
The preparation of financial statement requires management of the
company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosure of contingent
liabilities as at the date of financial statements and reported
1.3. Inventories
Inventories are Valued at lower of cost or net realizable value.
Valuation is ascertained on following basis.
a. Raw materials, stores, spares and consumables on FIFO basis.
b. Semi-finished goods and finished goods, cost includes direct
material and labour and proportion of manufacturing overheads on FIFO
basis. Cost of finished goods includes excise duty.
1.4. Cash and Cash Equivalents:
The cash flow statements is prepared by the "Indirect Method" set out
in Accounting Standard 3 on "Cash Row Statement' and presents the cash
flow by Operating, Investing & Financing activities of the company.
Cash and Cash Equivalents for the purpose of Cash Row Statement
comprise cash at bank and in hand and shortterm Investment with the
Original Maturity of 3 months or less.
1.5. Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation and
impairment, if any. Direct costs are capitalized until fixed assets are
ready for use. Capital work-in-progress comprises of the cost of fixed
assets that are not yet ready for their intended use at the reporting
date. Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment
The depreciation during the year has been provided on straight line
basis as per Schedule II of the Companies act 2013 since the
acquisition of respective fixed assets. ln earlier years depreciation
was provided as per the Schedule XIV of Companies Act 1956. The
depreciation on fixed assets is provided on the straight line method
considering the useful life and residual value of respective fixed
asset.
The useful life of assets as adopted by the company as per Old Schedule
XVI and New schedule II of the Companies act is listed as under.
Particulars Previous Useful Revised Useful
Life Life
Leasehold Land 20 20
Building (Factory) 30 30
Building (Residential) 20 60
Plant and Machinery 19 8
Plant and Machinery (Twin Screw 19 20*
Extruder)
Electrical Installations 20 10
Laboratory Equipment 20 10
Computers, Server & Networking 6 3
Device
Furniture 15 10
Office equipment 20 5
Vehicles - Four Wheeler 10 8
'Based on an independent technical evaluation carried out by external
valuer, the management believes that the useful life of Plant and
machinery estimated best represent the period over which the management
expects to use these assets However the useful lives for these asset is
different from that prescribed in schedule II of the Act.
1.6. Revenue recognition:
a) Revenue from sale of goods is recognised when significant risks and
rewards of ownership have been passed to the buyer and when the
effective control of the seller as the owner is lost. Revenues are
recorded at invoice value, net of value added tax and excise.
b) Interest income is recognized on time proportion basis.
c) Dividend income is recognised when the right to receive payment is
established.
d) Job work income is recognised on completion of job.
1.7 Foreign currency transactions
Exchange differences
Transactions inforeign currencies are recorded at the exchange rates
prevailing on the date of the transaction. Foreign currency monetary
assets and liabilities are translated at year end exchange rates.
a) Exchange differences arising on settlement of transactions and
translation of monetary items other than those covered by (2) below are
recognized as income or expense in the year in which they arise.
Exchange differences considered as borrowing cost are capitalized to
the extent these relate to the acquisition / construction of qualifying
assets and the balance amount is recognized in the Profit and Loss
Statement.
b) Exchange differences relating to long term foreign currency monetary
assets / liabilities are accounted for with effect from April 1,2007 in
the following manner:
-Differences relating to borrowings attributable to the acquisition of
the depreciable Capital Asset are added to / deducted from the cost of
such capital Assets
1.8. Employee Benefits
a) The Company's contribution in respect of provident fund is charged
to Profit and Loss Account each year
b) With respect to gratuity liability, Company contributes to Life
Insurance Corporation of India (LIC) under LIC's Group Gratuity policy.
Gratuity liability as determined on actuarial basis by the independent
valuer is charged to Profit and Loss Account.
1.9. Borrowing Costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset should be capitalised
as part of the cost of that-asset. The amount of borrowing costs
eligible for capitalisation should be determined in accordance with
this Standard. Other borrowing costs should be recognised as an expense
in the period in which they are incurred
To the extent that funds are borrowed specifically for the purpose of
obtaining a qualifying asset, the amount of borrowing costs eligible
for capitalisation on that asset should be determined as the actual
borrowing costs incurred on that Borrowing during the period less any
income on the temporary investment of those borrowings.
1.10. Segment disclosures:
The company operates in a single business segment, i.e. of
manufacturing of compounds, blends & alloys of Engineering Polymers;
and also no geographical segments as company operates only in India.
Accordingly, no separate disclosures required by AS-17 for primary
business segment and geographical segment
1.11. Lease:- Finance Leases
Assets acquired under lease where the company has substantially all the
risk and rewards of ownership are classified as finance lease. Such
leases are capitalised at the inception of lease at lower of the fair
value and present value of minimum lease payments. Each lease rental
paid is allocated between the liability and the interest cost so as to
obtain constant periodic rate of interest on the outstanding liability
for each period.
Operating Leases
Assets acquired as leases where a significant portion of risks and
rewards of ownership are retained by the lessor are classified as
operating lease. Operating lease charges are recognised in the Profit
and Loss account on a straight line basis over the lease term.
1.12. Earnings per Share
The Company reports basic and diluted earnings per share in accordance
with the Accounting Standard - 20- ' Earning per Share' prescribed by
the Companies (Accounting Standard) Rules 2006.Basic Earning per Share
is computed by dividing the net profit or loss for the year by the
weighted average number of Equity Share outstanding during the year.
Diluted earnings per share is computed by dividing the net profit or
loss for the year by the weighted number of equity shares outstanding
during the year as adjusted for the effects of all dilutive potential
equity share.
1.13. Taxes on Income
Provision for taxation comprises of Current Tax and Deferred Tax
Current tax has provision has been made the basis of reliefs and
deduction available under Income Tax Act 1961 Deferred tax resulting
from "timing differences* between taxable and accounting income is
accounted for using the tax rates and laws that are enacted or
substantively enacted as on the balance sheet date. The deferred tax
assets is recognized and carried forward only to the extent the assets
can be realized in future. However, where there is unabsorbed
depreciation or carry forward losses under taxation laws, deferred tax
assets are recognized only if there is virtual certainty of realization
of such assets. Deferred tax assets are reviewed as at each Balance
sheet date.
1.14. Impairment of Assets:-
The Company tests for impairments at the close of the accounting period
if and only if there are indications that suggest a possible reduction
in the recoverable value of an asset. If the recoverable value amount
of an Asset, i.e. the net realisable value or the economic value in use
of a cash generating unit, is lower than the carrying amount of the
Asset the difference is provided for as impairment However, if
subsequently the position reverses and the recoverable amount become
higher than the then carrying value the provision to the extent of the
then difference is reversed, but not higher than the amount provided
for.
1.15. Provisions, Contingent Liabilities and Contingent Assets:-
Provision is recognized only when there is a present obligation as a
result of past events and when reliable estimates of the amount of the
obligation can be made. Contingent liability is disclosed for:-
a) Possible Obligations which will be confirmed only by future events
not wholly within the control of the company or
b) Present obligations arising from past events where it is not
probable that an outflow of resources will be required to settle the
obligation or reliable estimates of the amount of the obligation cannot
be made. Contingent Assets are not recognized in the financial
statements since this may result in the recognition of income that may
never be realized.
Mar 31, 2012
1. ACCOUNTING CONVENTIONS
These Financial statements are prepared under historical cost
conventions on accrual basis in accordance with the Generally Accepted
Accounting principles in India and Accounting Standard (AS) as notified
under (Accounting Standard) Rules, 2006 except accounting of Bonus
which is accounted as cash basis.
2. FIXED ASSETS & DEPRECIATION / AMORTISATION
a Fixed Assets are stated at historical cost (net of Cenvat credit)
less accumulated depreciation / amortization thereon and impairment
losses if any. Depreciation is provided on Straight Line Method at the
rates specified in Schedule XIV to the Companies Act, 1956.
b Capital Assets under erection / install-tien (including advances) are
reflected in Balance Sheet under "Capital Work in progress". - '
3. INVENTORIES
Cost of Inventories have been computed to include all cost of
Purchases, Cost of Conversion and other costs incurred in bringing the
inventories to their present location and condition.
I. Raw materials and components, stores and spares are valued at Cost
The costs are ascertained using the First in First out (FIFO).
ii. Work-in-progress and finished goods are valued at the lower of
Cost or Net Realizable Value.
iii. Scrap is valued at Net Realizable Value.
4. REVENUE RECOGNITION:
a) Sales of products and services are recognized when risk and rewards
of ownership of the products are passed on to the customers, which is
generally on dispatch of goods. Sales are inclusive of Excise Duty but
excluding sales tax / Value Added Tax. Revenue from job charges is
recognized on dispatch of material and in accordance with terms of job
work.
b) Interest incomes are recognised on time proportion basis.
c) Where material received for processing from customers under
arrangement to dispatch the end product, its invoice value to be
treated as sales and the equivalent amount to be treated as purchases
5. FOREIGN CURRENCY TRANSACTIONS:
All the foreign currency transactions are recorded at the rates
prevailing on the date of transaction. Exchange differences other than
related to fixed assets are recognised in the profit and loss account.
Current assets and liabilities as on Balance sheet date are converted
at the exchange rates prevailing on that date. Exchange difference
relating to Fixed assets are adjusted to carrying cost of fixed
assets..
6. BENEFITS TO EMPLOYEE
The Company's contribution in respect of provident fund is
charged to Profit and Loss Account each year.
With respect to gratuity liability, Company contributes to Life
Insurance Corporation of India (LIC) under Group Gratuity policy.
Provision for the year in respect of Gratuity is made on the basis of
actuarial valuation as at the end of the year. Gratuity liability so
determined is charged to Profit and Loss Account..
Retirement benefits are expensed to revenue as incurred.
Contribution to Providend Fund is made in accordance with the Rules of
the Fund.
Leave encashment is provided in the year in which it has accrued.
7. TAXES ON INCOME
a. Provision for taxation comprises of Current Tax and Deferred Tax
Current tax has provision has been made the basis of reliefs and
deduction available under Income Tax Act, 1961 .Deferred tax resulting from "timing differences" between taxable and accounting income is
accounted for using the tax rates and laws that are enacted or
substantively enacted as on the balance sheet date. The deferred tax
assets is recognized and carried forward only to the extent the assets
can be realized in future. However, where there is unabsorbed
depreciation or carry forward losses under taxation laws, deferred
tax assets are recognized only if there is virtual certainty
of realization of such assets. Deferred tax assets are reviewed as at
each Balance sheet date.
b. Minimum Alternative Tax (MAT) paid iiyiccordance to the tax laws,
which gives rise to future economic benefits in the form of adjustment
of future income tax liability, is considered as an asset if there is
convincing evidence that the company will pay normal income tax after
the tax holiday period. Accordingly, MAT is recognised as an asset in
the balance sheet when it is probable that the future economic benefit
associated with it will flow to company& the asset can be measured
reliably.
8. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS -
Provision is recognized only when there is a present obligation as a
result of past events and when reliable estimates of the amount of the
obligation can be made. Contingent liability is disclosed for:-
(I) Possible Obligations which will be confirmed only by future events
not wholly within the control of the company or
(II) Present obligations arising from past events where it is not
probable that an outflow of resources will be required to settle the
obligation or reliable estimates of the amount of the obligation cannot
be made. Contingent Assets are not recognized in the financial
statements since this may result in the recognition of income that may
never be realized.
9. USE OF ESTIMATES
The presentation of Financial Statements in conformity with the
generally accepted principles requires estimates and assumptions to be
made that affect the reported amount of assets and liabilities on the
date of financial statements and the reported amount of revenues and
expenses during the period. Difference between the actual result and
estimates are recognized in the period in which reason are known/
materialized.
The preparation of financial statements requires management of the
Company to make estimates & assumptions that affect the reported
balances of Assets & Liabilities and disclosure of contingent
liabilities at the date of financial statements and reported amounts of
revenues and expenses during the period.
10. SEGMENT DISCLOSURES
The company operates in a single business segment, i.e. of
manufacturing of compounds, blends & alloys of Engineering Polymers.
Further, the company currently operates only India and does not have
operations outside India. Accordingly, no separate disclosures for
primary business segment and geographical segment are required to be
given.
11. IMPAIRMENT OF ASSETS
The company assesses at each Balance Sheet date, whether there is any
indication that asset may be impaired. If any such indication exists,
the company estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable amount of the cash
generating unit to which the asset
belongs, is less than its carrying amount, the carrying amount is
adjusted to the amount of recoverable amount.
12. BORROWING COSTS
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. Other
borrowing costs are recognized as an expense in the period in which
they are incurred.
13. LEASES
Rentals applicable to operating leases where substantially all of the
benefits and risks of ownership remain with the lesser are charged
against profits as perthe terms sf the lease agreement over the lease
period.
Mar 31, 2010
1. ACCOUNTING CONVENTIONS
These Financial statements are prepared under historical cost
conventions on accrual basis in accordance with the Generally Accepted
Accounting principles in India and Accounting Standard (AS) as notified
under (Accounting Standard) Rules, 2006 except accounting of Bonus
which is accounted as cash basis.
2. FIXED ASSETS & DEPRECIATION / AMORTISATION
a Fixed Assets are stated at historical cost (net of Cenvat credit)
less accumulated depreciation / amortization thereon and impairment
losses if any. Depreciation is provided on Straight Line Method at the
rates specified in Schedule XIV to the Companies Act, 1956.
b Capital Assets under erection / installation (including advances) are
reflected in Balance Sheet under "Capital Work in progress".
3. INVENTORIES
Cost of Inventories have been computed to include all cost of
Purchases, Cost of Conversion and other costs incurred in bringing the
inventories to their present location and condition.
I. Raw materials and components, stores and spares are valued at cost.
The costs are ascertained
using the First in First out (FIFO). ii. Work-in-progress and
finished goods are valued at the lower of cost or Net Realizable Value.
iii. Scrap is valued at Net Realizable Value.
4. REVENUE RECOGNITION:
a) Sales of products and services are recognized when risk and rewards
of ownership of the products are passed on to the customers, which is
generally on dispatch of goods. Sales are inclusive of Excise Duty but
excluding sales tax / Value Added Tax. Revenue from job charges is
recognized on dispatch of material and in accordance with terms of job
work.
b) Interest incomes are recognised on time proportion basis.
c) Where material received for processing from customers under
arrangement to dispatch the end product, its invoice value to be
treated as sales and the equivalent amount to be treated as purchases
5. FOREIGN CURRENCY TRANSACTIONS:
All the foreign currency transactions are recorded at the rates
prevailing on the date of transaction. Exchange differences other than
related to fixed assets are recognised in the profit and loss account.
Current assets and liabilities as on balance sheet date are converted
at the exchange rates prevailing on that date. Exchange difference
relating to Fixed assets are adjusted to carrying cost of fixed assets.
6. BENEFITS TO EMPLOYEE
(a) The Companys contribution in respect of provident fund is charged
to Profit and Loss Account each year.
(b) With respect to gratuity liability, Company contributes to Life
Insurance Corporation of India (LIC) under LICs Group Gratuity policy.
Gratuity liability as determined on actuarial basis is charged to
Profit and Loss Account.
Retirement benefits are expensed to revenue as incurred.
Contribution to Provident Fund is made in accordance with the Rules of
the Fund. The Company participates in a Group Gratuity cum Life
Assurance Scheme administered by the Life Insurance Corporation of
India (LIC). Provision for the year in respect of Gratuity is made on
the basis of actuarial valuation as at the end of the year.
Leave encashment is provided in the year in which it has accrued.
7. TAXES ON INCOME
a.Provision for taxation comprises of Current Tax and Deferred Tax
.Current tax has provision has
been made the basis of reliefs and deduction available under Income Tax
Act, 1961.Deferred tax resulting from Ãtiming differencesà between
taxable and accounting income is accounted for using the tax rates and
laws that are enacted or substantively enacted as on the balance sheet
date. The deferred tax assets is recognized and carried forward only to
the extent the assets can be realized in future. However, where there
is unabsorbed depreciation or carry forward losses under taxation laws,
deferred tax assets are recognized only if there is virtual certainty
of realization of such assets. Deferred tax assets are reviewed as at
each Balance sheet date.
b.Minimum Alternative Tax (MAT) paid in accordance to the tax laws,
which gives rise to future economic benefits in the form of adjustment
of future income tax liability, is considered as an asset if there is
convincing evidence that the company will pay normal income tax after
the tax holiday period. Accordingly, MAT is recognised as an asset in
the balance sheet when it is probable that the future economic benefit
associated with it will flow to company& the asset can be measured
reliably.
8. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
Provision is recognized only when there is a present obligation as a
result of past events and when reliable estimates of the amount of the
obligation can be made. Contingent liability is disclosed for:- (I)
Possible Obligations which will be confirmed only by future events not
wholly within the
control of the company or (II) Present obligations arising from past
events where it is not probable that an outflow of resources will be
required to settle the obligation or reliable estimates of the amount
of the obligation cannot be made. Contingent Assets are not recognized
in the financial statements since this may result in the recognition of
income that may never be realized.
9. USE OF ESTIMATES
The presentation of Financial Statements in conformity with the
generally accepted principles requires estimates and assumptions to be
made that affect the reported amount of assets and liabilities on the
date of financial statements and the reported amount of revenues and
expenses during the period. Difference between the actual result and
estimates are recognized in the period in which reason are known /
materialized.
The preparation of financial statements requires management of the
Company to make estimates & assumptions that affect the reported
balances of Assets & Liabilities and disclosure of contingent
liabilities at the date of financial statements and reported amounts of
revenues and expenses during the period.
10. SEGMENT DISCLOSURES
The company operates in a single business segment, i.e. of
manufacturing of compounds, blends & alloys of Engineering Polymers.
Further, the company currently operates only India and does not have
operations outside India. Accordingly, no separate disclosures for
primary business segment and geographical segment are required to be
given.
11. IMPAIRMENT OF ASSETS
The company assesses at each Balance Sheet date, whether there is any
indication that asset may be impaired. If any such indication exists,
the company estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable amount of the cash
generating unit to which the asset belongs, is less than its carrying
amount, the carrying amount is adjusted to the amount of recoverable
amount.
12. BORROWING COSTS
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. Other
borrowing costs are recognized as an expense in the period in which
they are incurred.
13. LEASES
Rentals applicable to operating leases where substantially all of the
benefits and risks of ownership remain with the lesser are charged
against profits as per the terms of the lease agreement over the lease
period.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article