Accounting Policies of Deccan Polypacks Ltd. Company

Mar 31, 2015

Corporate Information:

Deccan Polypacks Ltd (the Company) is a Company registered under Companies Act, 1956 and is located at Sy.No.142/A, IDA Bollaram, Via Miyapur, Jinnaram Mandal, Medak District, Telangana- 502 325. The Company is engaged in manufacturing PP/HDPE Woven Sacks. Equity Shares of the Company are listed on Bombay Stock Exchange.

2.1 Accounting Convention :

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the Generally Accepted Accounting Principles (GAAP) that are followed in India. GAAP comprises the mandatory accounting standards as prescribed by Companies (Accounting Standards) Rules 2006 [which continue to apply under Companies Act, 2013("the Act")] and other applicable provisions of the Act. All incomes and expenditures, having a material bearing on the financial statements, are recognized on an accrual basis.

2.2 Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates

2.3 Fixed Assets :

(i) Fixed Assets are stated at cost. Cost includes all costs incidental to acquisition, installation and commissioning of the assets until they are ready for intended use.

(ii) Fixed assets are assessed for any indication of impairment at the end of each financial year. On such indication, the impairment loss, being the excess of carrying value over the recoverable value of the assets, is charged to Statement of Profit & Loss, in the respective financial years. The impairment loss recognized in earlier years is reversed in cases where the recoverable value exceeds the carrying value, upon the reassessment in subsequent years.

Depreciation :

Depreciation on Tangible Fixed Assets is provided on straight line method as per the useful life prescribed in Schedule II to the Companies Act, 2013

2.4 Inventories :

The method of valuation of inventories is as under:

i) Raw Materials, Stores and Spares. Work-in-process and Finished Goods :

At lower of cost and net realisable value. Cost includes manufacturing expenses and factory overheads.

"Cost for the purpose of valuation of raw materials (except additives valued at weighted average) is calculated on FIFO basis and for stores and spares and work-in-process on the basis of weighted average method".

2.5 Retirement Benefits :

Provident Fund is administered through Regional Provident Fund Commissioner.

Gratuity and Leave encashment are accounted on accrual basis.

2.6 Customs Duty Drawback Export incentives, Insurance Claims etc., are recognized only when it is reasonably certain that the ultimate collection will be made.

2.7 Government Grants :

Capital investment subsidy received by the company is treated as Capital Reserve.

2.8 Borrowings Costs :

Borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing cost incurred for acquiring, construction or production of assets are capitalized as part of the cost of such assets.

2.9 Income taxes :

i) Deferred income tax is provided, using the liability method, on all timing differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes.

ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted at the balance sheet date.

2.10 Contingent Liabilities :

Contingent Liabilities arising from claims, litigation, assessment, fines , penalties etc., are provided for when it is probable that a liability may be incurred and the amount can be reliably estimated.

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Mar 31, 2013

1.1 Accounting Convention : The financial statements have been prepared on the basis of going concern, under the historical cost convention. The company follows accrual system of accounting and recognises income and expenditure on accrual basis unless otherwise stated.

1.2 Fixed Assets:

i). Fixed Assets are stated at cost. Cost includes all costs incidental to acquisition, installation and commissioning of the assets until they are ready for intended use.

ii) Fixed assets are assessed for any indication of impairment at the end of each financial year. On such indication, the impairement loss, being the excess of carrying value over the recoverable value of the assets, is charged to Profit & Loss Account, in the respective financial years. The impairment loss recognized in earlier years is reversed in cases where the recoverable value exceeds the carrying value, upon the reassessment in subsequent years. ,

1.3 Depreciation:

Depreciation on Fixed Assets is provided on straight line method in accordance with the provisions of Schedule XIV of the Companies Act, 1956 as amended from time to time.

1.4. Foreign Currency Translation :

Foreign currency transactions have been translated at the Exchange Rate Prevalent on the date of transaction. Gain/Loss arising out of fluctuation in the exchange rates on realization is treated as income/ expenditure.

1.5 Inventories:

The method of valuation of inventories is as under:

i) Raw Materials, Stores and Spares.

Work-in-process and Finished Goods:

At lower cost and net realisable value.

Cost includes manufacturing expenses and factory overheads.

"Cost for the purpose of valuation of raw materials (except additives valued at weighted average) is calculated on FIFO basis and for stores and spares and work-in-process on the basis of weighted average method"

1.6 Retirement Benefits:

Provident Fund is administered through Regional Provident Fund Commissioner, Group Gratuity Scheme is administered through a scheme with Life Insurance Corporation of India. The contributions to the above said funds are charged against revenue. Leave encashment payable at the time of retirement is charged to Profit and Loss account based on the assumption that such benefits are payable to all the employees at the end of accounting year.

1.7 Customes Duty Drawback Export incentives, Insurance Claims etc., are recognized only when it is reasonably certain that the ultimate collection will be made.

1.8 Government Grants:

Capital investment subsidy received by the company is treated as Capital Reserve.

1.9 Borrowings costs:

Borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing cost incurred for acquiring, construction or production of assets are capitalized as part of the cost of such assets.

1.10 Income taxes:

i) Deferred income tax is provided, using the liability method, on all timing differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes.

ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted at the balance sheet date.

iii) Minimum Alternate Tax (MAT) Credit entitlement:

Mat Credit entitlement represents the amounts paid in a year under Section 115JA/115JB of the Income Tax Act 1961 (''IT ACT'') which is in excess of the tax payable, computed on the basis of normal provisions of the IT Act.

Such excess amount can be carried for set off in future periods in accordance with die relevant provisions of me IT Act. Since such credit represents a resource controlled by die company as a result of past events and mere is evidence as at me reporting date mat the Company will pay normal income tax during the specified period, when such credit would be adjusted, me same has been disclosed as ''MAT Credit entitlement" in the balance sheet with a corresponding credit to the profit and loss account, as a separate line item.

Such assets are reviewed at each balance sheet date and written down to reflect me amount mat will not be available as a credit to be set off in future, based on me applicable taxation law men in force.

1.11 Contingent Liabilities:

Contingent Liabilities arising from claims, litigation, assessment, fines, penalties etc., are provided for when it is probable mat a liability may be incurred and the amount can be reliably estimated.

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Mar 31, 2012

1.1 Accounting.Convention : The financial statements have been prepared on the basis of going concern, under the historical cost convention. The company follows accrual system of accounting and recognises income and expenditure on accrual basis unless otherwise stated.

1.2 Fixed Assets:

i) Fixed Assets are stated at cost. Cost includes all costs incidental to acquisition, installation and commissioning of the assets until they are ready for intended use.

ii) Fixed assets are assessed for any indication of impairment at the end of each financial year. On such indication, the impairement loss, being the excess of carrying vajue over the recoverable value of the assets, is charged to Profit & Loss Account, in the respective financial years. The impairment loss recognized in earlier years is reversed iri cases where the recoverable value exceeds the carrying value, upon the reassessment in subsequent years.

1.3 Depreciation:

Depreciation on Fixed Assets is provided on straight line method in accordance with the provisions of Schedule XIV of the Companies Act, 1956 as amended from time to time.

1.4. Foreign Currency Translation:

Foreign currency transactions have been translated at the Exchange Rate Prevalent on the date of transaction. Gain/Loss arising out of fluctuation in the exchange rates on realization is treated as income/ expenditure.

1.5 Inventories:

The method of valuation of inventories is as under:

i) Raw Materials, Stores and Spares.

Work-in-process and Finished Goods :

At lower cost and net realisable value.

Cost includes manufacturing expenses and factory overheads.

"Cost for the purpose of valuation of raw materials (except additives valued at weighted average) is calculated on FIFO basis and for stores and spares and work-in-process on the basis of weighted average method"

1.6 Retirement Benefits:

Provident Fund is administered through Regional Provident Fund Commissioner, Group Gratuity Scheme is administered through a scheme with Life Insurance Corporation of India. The contributions to the above said funds are charged against revenue. Leave encashment payable at the time of retirement is charged to Profit and Loss account based on the assumption that such benefits are payable to all the employees at the end of accounting year.

1.7 Customes Duty Drawback Export incentives, Insurance Claims etc., are recognized only when it is reasonably certain that the ultimate collection will be made.

1.8 Government Grants:

Capita) investment subsidy received by the company is treated as Capital Reserve.

1.9 Borrowings costs:

Borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing cost incurred for acquiring, construction o. production of assets are capitalized as part of the cost of such assets.

1.10 Income taxes*

i) Deferred income tax is provided, using the liability method, on all timing differences at the balance sheet date between the tax base

of assets and liabilities and their carrying amounts for financial reporting purposes.

iil Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted at the balance sheet date.

1.11 Contingent Liabilities:

Contingent Liabilities arising from claims, litigation, assessment, fines, penalties etc., are provided for when it is probable that a liability may be incurred and the amount can be reliably estimated.

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Mar 31, 2010

A) Accounting Convention : The financial statements have been prepared on the basis of going concern, under the historical cost convention. The company follows accrual system of accounting and recognizes income and expenditure on accrual basis unless otherwise stated.

b) Fixed Assets :

(i) Fixed Assets are stated at cost. Cost includes all costs incidental to acquisition, installation & commissioning of the assets until they are ready for intended use.

(ii) Fixed assets are assessed for any indication of impairment at the end of each financial year. On such indication, the impairment Joss, being the excess of carrying value over the recoverable value of the assets, is charged to Profit & Loss account, in the respective financial years. The impairment loss recognized in earlier years is reversed in cases where the recoverable value exceeds the carrying value, upon the reassessment in subsequent years.

c) Depreciation : Depreciation on Fixed Assets is provided.pn straight line method in accordance with the provisions of Schedule XIV of the Companies Act, 1956 as amended from time to time.

d) Foreign Currency Translation: Foreign currency transactions have been translated at the Exchange Rate Prevalent on the date of transaction. Gain/Loss arising out of fluctuation in the exchange rates on realization is treated as income/expenditure.

e) Inventories : The method of valuation of inventories is as under: (i) Raw Materials, Stores and Spares, Work-in-process and Finished Goods : At lower of cost and net Realisable value.

Cost includes manufacturing expenses and factory > overheads.

"Cost for the purpose of valuation of raw materials (except additives valued at weighted average) is calculated on FIFO basis and for stores and spares and work-in-process on the basis of weighted average method".

f). Retirement Benefits : Provident Fund is administered through Regional Provident Fund Commissioner. Group Gratuity Scheme is administered through a scheme with Life Insurance Corporation of India. The contributions to the above said funds are charged against revenue. Leave encashment payable at the time of retirement is charged to profit and loss account based on the assumption that such benefits are payable to all the employees at the end of the accounting year.

g) Customs Duty Drawback, Export incentives, Insurance claims etc. are recognized only when it is reasonably certain that the ultimate collection will be made.

h) Government Grants : Capital investment subsidy received by the Company is treated as Capital Reserve.

i) Borrowing costs : Borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing cost incurred for acquiring, construction or production of assets are capitalized as part of the cost of such assets.

j) Income taxes:

i) Deferred income tax is provided, using the liability method, on all timing differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes.

ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted at the balance sheet date.

k) Contingent Liabilities : Contingent Liabilities arising from claims, litigation, assessment, fines, penalties etc., are provided for when it is probable that a liability may be incurred and the amount can be reliably estimated.