Accounting Policies of Indian Toners & Developers Ltd. Company
Mar 31, 2018
1 ACCOUNTING POLICIES
i) General Corporate Information:
Indian Tonners & Developers Limited is a Company domiciled and incorporated in India under the Indian Companies Act, 2013 and is in the business of manufacturing of Toners only. The Companyâs manufacturing units are located at Rampur & Sitarganj.
ii) First-time adoption - mandatory exceptions and optional exemptions
Overall Principle
These standalone Financial Statements of âIndian Toners & Developers Limited for the year ended March 31, 2018 have been prepared in accordance with Ind AS. For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with April 1, 2016 as the transition date.
The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes there to and accounting policies and principles. The accounting policies set out in Note1 have been applied in preparing the standalone financial statements for the year ended March 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs Balance Sheet, Statement of Profit and Loss and Cash flow, reconcilation of other comprehensive income is set out in note 45.1, 45.2, 45.3, 45.4, 45.5 & 45.6.
iii) Basis of preparation of financial statements:
a) The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the provisions of section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 under historical cost convention on the accrual basis except for certain financial instruments which are measured at fair value, the provision of Companies Act. 2013 (âActâ) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).
For all periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).
The company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Reconciliations and descriptions of the effect of the transition have been summarized in note 45.1, 45.2, 45.3, 45.4, 45.5 & 45.6.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.
b) Functional and Presentation currency
These financial statements are presented in Indian Rupees (INR), which is the Companyâs functional currency. All financial information presented in INR has been rounded to the nearest Lakhs (upto two decimals), except as stated otherwise.
iv) Use of Estimates
The preparation of the Financial Statements in conformity with Ind AS requires the management to make estimates, judgments and assumptions. These estimates, judgment and assumptions affect the application of accounting policies and the reported amount of Assets and Liabilities and disclosure of Contingent Liabilities on the date of the Financial Statements and reported amounts of revenues and expenses for the year. Accounting estimate could change from year to year. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in estimates are reflected in the financial statements in the period in which the changes are made and if material, their effects are disclosed in the notes to financial statements.
v) Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is current when it is:
- Expected to be realized or intended to sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realized within twelve months after the reporting period; or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the reporting period; or
- There is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
vi) Property, Plant and Equipments
a) Initial recognition and measurement
An item of property, plant and equipments recognized as an asset if and only if it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.
Property, plant and equipment are considered at deemed cost, less accumulated depreciation/amortizaton and accumulated impairment losses, if any except Land which was shown at Fair value. Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes & duties. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by management. The company depreciates property, plant and equipment over their estimated useful lives using the straight-line method.
When parts of an item of property, plant and equipment have different useful lifes, they are recognized separately.
Stores and spare parts having life more than 12 months are capitalised at their respective carrying amount with the main asset and are being depreciated over remaining life of main asset prospectively.
Property, Plant and Equipments which are not ready for intended use as on the date of Balance Sheet are disclosed as âCapital Work-In-Progressâ.
The Company assesses at each balance sheet date whether there is any indication that a Property, plant and equipment may have been impaired. If any such indication exists, the Company estimates the recoverable amount of the Property, plant and equipment. If such recoverable amount of the Property, plant and equipment or the recoverable amount of the cash generating unit to which the Property, plant and equipment belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the Asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.
b) Subsequent costs
Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of Property, Plant and Equipment are recognized in profit or loss as incurred.
c) Derecognition
Property, Plant and Equipments are derecognized when no future economic benefits are expected from their use or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized in the statement of profit and loss.
d) Depreciation/amortization
Depreciation is recognized in statement of profit or loss on a straight-line basis over the estimated useful lifes of each part of an item of Property, Plant and Equipment. Leasehold lands are amortized over the lease term unless it is reasonably certain that the Company will obtain ownership by the end of the lease term.
Depreciation on additions to/deductions from property, plant and equipment during the year is charged on pro-rata basis from/up to the date on which the asset is available for use/disposed.
Depreciation on revalued Assets is calculated on their respective revalued amounts and is computed on the basis of remaining useful life as estimated by the valuer on straight line method.
The company, based on technical assessment made by technical expert and management estimate, depreciates certain items of property, plant and equipment over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
The property, plant and equipment acquired under finance leases is depreciated over the assetâs useful life or over the shorter of the assetâs useful life and the lease term if there is no reasonable certainty to obtain ownership at the end of the lease term.
The Company has elected to continue with the carrying value of all of its property, plant and equipment recognized as of April 1, 2016 measured as per the previous IGAAP and use that carrying value as its deemed cost as of the transition date except the Land which was considered at Fair Value.
vii) Intangible Assets
Intangible Assets are recorded at the consideration paid for acquisition less accumulated amortization and accumulated impairment, if any. Amortization is recognized at Straight Line Basis over their estimated useful lifeâs. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquire separately are carried at cost less accumulated impairment losses.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of profit and loss within other income/ expenses.
The Company has elected to continue with the carrying value of all of its Intangible Assets recognized as of April 1, 2016 measured as per the previous IGAAP and use that carrying value as its deemed cost as of the transition date.
Depreciation
Intangible assets that are acquired by the company are measured initially at cost. After initial recognition, intangible assets are carried at its cost less any accumulated amortization and any accumulated impairment loss. Intangible assets are amortized on Straight Line Basis over a period of 3 years.
viii) Financial Instrument
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
Financial Assets
I Initial recognition and measurement
All financial assets are recognized initially at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs are attributable to the acquisition or issue of the financial asset, otherwise charged to Statement of Profit & Loss.
II Subsequent measurement
Financial assets are subsequently classified and measured at:
- Financial assets at amortised cost
- Financial assets at fair value through profit and loss (FVTPL)
- Financial assets at fair value through other comprehensive income (FVTOCI).
a) Trade Receivables
Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised cost, using the effective interest rate (EIR) method net of any expected credit losses wherever applicable. The EIR is the rate that discounts estimated future cash income through the expected life of financial instrument.
b) Debt instruments
i) Measured at amortized cost
A âdebt instrumentâ is measured at the amortized cost if both the following conditions are met:
(a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the EIR method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the statement of profit or loss.
ii) Measured at FVTOCI (Fair Value through OCI)
A âdebt instrumentâ is classified as at the FVTOCI if both of the following criteria are met:
(a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and
(b) The assetâs contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the OCI. However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to profit and loss. Interest earned while holding FVTOCI debt instrument is reported as interest income using the EIR method.
iii) Measured at FVTPL (Fair value through profit or loss)
Debt instruments does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. The Company elects to classify the debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as âaccounting mismatchâ). Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.
III Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Companyâs balance sheet) when:
- The contractual rights to receive cash flows from the asset have expired, or
- The Company has transferred its contratcual rights to receive cash flows from the asset.
IV Impairment of Financial Asset
Expected credit losses are recognized for all financial assets subsequent to initial recognition in Statement of Profit & Loss other than financials assets in FVTPL category.
For recognition of impairment loss on financial assets other than Trade receivables, the company determines whether there has been a significant increase in the credit risk since initial recogniton.
Financial liabilities
I Initial recognition and measurement
All financial liabilities are recognized at fair value . Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.
II Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. Amortized cost is calculated by taking into account any discount or premium on acquisition and any material transaction that are any integral part of the EIR. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
III Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.
ix) Revenue Recognition
Revenue from sale of products is recognized when the significant risks and rewards of ownership of the products are transferred to the buyer, recovery of the consideration is reasonably assured and the amount of revenue can be measured reliably. Revenues include excise duty and are shown net of sales tax, value added tax and discounts, if any.
Dividend income is recognized when the right to receive the income is established. Income from interest on deposits is recognized on time proportionate basis.
x) Employee Benefits
The companyâs contribution to provident fund and pension fund, are charged on accrual basis to Statement of Profit & Loss.
a) Expenses and Liabilities in respect of employee benefits are recorded in accordance with Indian Accounting Standard 24 - Employee Benefits issued by the ICAI.
b) Short-term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.
c) Post employment and other long term employee benefits are recognised as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.
Defined benefit costs which are recognized in the statement of profit and loss are categorized as follows:
- Service cost (including current service cost, past service cost. as well as gains and losses on curtailments and settlements); and
- Net interest expense or income; and
Defined contribution plans
Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities and will have no legal or constructive obligation to pay further amounts. Provident Fund and Employee State Insurance are Defined Contribution Plans in which company pays a fixed contribution and will have no further obligation beyond the monthly contributions and are recognised as an expenses in Statement of Profit & Loss.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Company pays Gratuity as per provisions of the Gratuity Act, 1972. Leave Encashment payable at the end of the employment is also a post employment defined benefit plan. The Companyâs net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity dates approximating the terms of the Companyâs obligations and that are denominated in the same currency in which the benefits are expected to be paid. The calculation is performed annually by a qualified actuary using the projected unit credit method. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Any actuarial gains or losses pertaining to components of re-measurements of net defined benefit liability/ (asset) are recognized in OCI in the period in which they arise.
The retirement benefit obligation recognized in the standalone Balance Sheet represents the actual deficit or surplus in the Companyâs defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reduction in future contributions to the plans.
The liability for termination benefit is recognized at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.
xi) Excise Duty, Custom Duty & Cenvat Credit
The excise duty liability in respect of closing inventory of finished goods is provided for and included as part of inventory. The amount of CENVAT credits in respect of materials consumed for sales is deducted from cost of materials consumed. Amount of custom duty paid on raw materials (including in transit) is included in the value thereof.
xii) Valuation of Inventories
Inventories are stated at lower of cost or net realisable value. The cost for the purpose of valuation is computed on the basis of weighted average price. The cost of work-in-progress and finished goods comprises of raw materials, direct labour, other direct costs, cost of conversion and appropriate portion of variable and fixed production overheads and such other costs incurred as to bring the inventory to its present location and condition inclusive of excise duty wherever applicable. Net realisable value is the estimate of the selling price in the ordinary course of business, less the estimated costs of completion/reprocessing and the estimated cost necessary to make the sale.
xiii) Foreign Currency Transactions and Translations
a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on/or closely approximating to the date of the transaction.
b) Conversion: Foreign currency monetary items, if any are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.
c) Exchange Difference: Exchange differences arising on the settlement of monetary items, if any or on reporting such monetary items of the Company at rates different from those at which they were initially recorded during the year or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
d) Foreign Exchange Forward Contracts: Monetary Assets and Liabilities, if any are restated at the rate prevailing at the period end or at the spot rate at the inception of forward contract where forward cover for specific asset/liability has been taken and in respect of such forward contracts the difference between the contract rate and the spot rate at the inception of the forward contract is recognized as income or expense in Statement of Profit and Loss over the life of the contract. All other outstanding forward contracts on the closing date are mark to market and resultant loss is recognized as expense in the Statement of Profit and Loss. Mark to market gains, if any, are ignored. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognized as income or as expense for the period.
xiv) Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed in respect of possible obligations that may arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent Assets are neither recognized nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the assets and related income are recognized in the period in which the change occurs.
xv) Cash & Cash Equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of less than three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of cash in hand and balance with banks including margin money.
xvi) Borrowing Cost
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.
xvii) Income Tax
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period.
Current Tax
Current tax expenses is based on the provisions of Income Tax Act, 1961 and judicial interpretations thereof as at the Balance Sheet date and takes into consideration various deductions and exemptions to which the Company is entitled to as well as the reliance placed by the Company on the legal advices received by it. Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.
Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the current year and reversal of timing differences for earlier years. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each Balance Sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized. Deferred tax assets and deferred tax liabilities are offsets when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing tax laws.
xviii) Leases As Lessee
Accounting for finance leases
Leases of Property, Plant and Equipment, if any, where the Company, as lessee has substantially all risks and rewards of ownership are classified as finance lease. On initial recognition, assets held under finance leases are recorded as Property, Plant and Equipment and the related liability is recognized under borrowings. At inception of the lease, finance leases are recorded at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability.
Accounting for operating leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating lease. Payments made under operating leases are recognized as an expense over the lease term.
xix) Earning Per Share
Basic Earning Per Share is calculated by dividing the net profit for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, net profit after tax during the year and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.
xx) Fair value measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the company. The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is signifi cant to the fair value measurement as a whole) at the end of each reporting period. The Company determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations.
xxi) Cash Flow Statement
Cash Flow are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the company are segregated.
xxii) Key accounting estimates and judgements
The preparation of the Companyâs financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
xxiii) Business Combinations
Business Combinations are accounted for using Ind AS 103.It requires the indefiable intangible assets and contingent consideraton to be fair valued in order to ascertain the net fair value of identifiable assets, liablities and contingent liablities of the acquiree.Significant estimates are require to be made in determining the value of contingents consideration and intangible assets. These valuation are conducted by independent valuation expert.
xxiv) Recent accounting pronouncement issued but not yet effective upto the date of issuance of financial statements
In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) Rules, 2015, notifying Ind AS 115, âRevenue from Contracts with Customersâ. This Ind AS is in accordance with the IFRS 15. However, considering the challenges and difficulties, MCA deferred the applicability of this Ind AS and made it implemented from April 01, 2018.
This Ind AS obliges the Company to book its revenue from customers on the 5 step model as below :-
Step -1: Identify the contract with the customer
Step -2: Identify the performance obligations in the contract
Step -3: Determine the transaction price
Step- 4: Allocate the transaction price to the performance obligations
Step -5: Recognise Revenue when (or as) the entity satisfies a performance obligation.
On the basis of the operations of the Company, the Company is in the process of evaluation of applicability of this Ind AS.
Mar 31, 2017
INDIAN TONERS &DEVELOPERS LIMITEDNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH2017 NOTE:-1 SIGNIFICANT ACCOUNTING POLICIES
GENERAL INFORMATION
Indian Toners & Developers Limited (hereinafter referred to as âthe Companyâ) is a manufacturer of Toners only. The Companyâs manufacturing facilities are located at Rampur (Uttar Pradesh).
1.1 BASIS OF PREPARATION & PRESENTATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on an accrual basis and under historical cost convention and in compliance with all material aspect, with the applicable accounting principles in India, and comply with the applicable accounting standards notified under Section 133 and the other relevant provisions of the Companies Act 2013 and the rules made there under.
All the Assets and Liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be less than 12 months.
1.2 USE OF ESTIMATES
In preparing Companyâs financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined.
1.3 PROPERTY , PLANT &EQUIPMENT (FIXED ASSETS)
a) Tangible Assets are stated at cost net of recoverable taxes, trade discounts less accumulated depreciation provided for. The cost of tangible assets comprises its purchase price, and any cost attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from foreign exchange rate variations attributable to the assets. Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.
b) Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. The cost comprises of purchase price, and any cost directly attributable to bringing the assets to its working condition for the intended use.
c) With effect from the current year( F.Y.2016-17) pursuant to the amendment in AS-10 Property, Plant & Equipment, Spares parts having life more than 12 months are capitalized at their respective carrying amount with the main asset and are being depreciated over remaining life to the main asset prospectively.
1.4 DEPRECIATION AND AMORTIZATION OF FIXED ASSETS TANGIBLE ASSETS
a) Depreciation is provided on tangible assets on straight line method on all assets based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
b) Plant & Machinery is depreciated treating it as continuous process Plant (except R & D Plant), at rates and in the manner as per Part-C of Schedule II to the Companies Act, 2013(as amended).Depreciation on assets added / deducted during the year is charged on proportionate basis with reference to the date of additions / deductions.
c) Depreciation on R&D Plant & Machinery is charged, treating the same as non-continuous, in the same manner as mentioned above.
d) Fixed assets individually costing up to rupees five thousand are depreciated at the rate of 100 percent.
INTANGIBLE ASSETS
Softwareâs are amortized on straight line method over a period of three years.
1.5 IMPAIRMENT OF ASSETS
The carrying amount of fixed assets are reviewed at each Balance Sheet date if there is any indication of impairment based upon internal / external factors. Any impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
1.6 LEASES
Operating Leases: There is only one operating lease i.e. the Companyâs corporate office at Jasola, New Delhi and rentals of the same are expensed out on accrual basis.
1.7 RESEARCH & DEVELOPMENT
. Research costs are expensed as and when incurred and presented under the respective heads of expenditure.
Capital expenditure on Research &Developments is treated in the same manner as Fixed Assets .The Revenue expenditure on R&D is charged off in the year in which the same are incurred.
1.8 EMPLOYEE BENEFITS
⢠Contributions payable for provident fund and employee state insurance, which are defined contribution plans are charged to statement of profit & loss.
⢠Gratuity and leave encashment which are defined benefits plans are accrued, recognized and calculated on unit credit method, based on actuarial valuation, as at balance sheet data provided by L.I.C. and by an independent actuarial valuer respectively.
⢠The Company has opted for a group gratuity cum Life Assurance Scheme of the Life Insurance Corporation of India for employees and the annual contribution for it is charged to the statement of profit & loss on the accrual basis.
⢠All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits such as salaries, wages and bonus etc. and recognized in the statement of profit & loss in the period in which the employee renders the related service.
1.9 INVESTMENTS
Investments that are readily and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. Current investments are carried at lower of cost and fair value. Non-current investments are carried at cost. However, provision of diminution is made to recognize as decline, other than temporary, in the value of investment, such reduction being determined and made for each investment individually.
1.10 INVENTORY VALUATION
Inventories are valued at lower of cost or net realizable value except scrap, which is valued at net estimated realizable value.
The methods of determining cost of various categories of inventories are as follows:
Cost includes all direct costs, cost of conversion and appropriate portion of variable and fixed production overheads and such other costs incurred as to bring the inventory to its present location and condition inclusive of excise duty wherever applicable. Cost formula used is based upon weighted average cost.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
1.11 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rate prevailing on or closely approximating to the date of transaction. Current Assets and Liabilities are restated at the closing rate or at the forward rate where forward cover for specific asset / liability has been taken. The difference between the closing rate and the exchange rate at the date of the transaction is recognized as income or expense in the Statement of profit & loss. In respect of forward exchange contracts, the difference (being premium / discounts) between the contract rate and the rate on the date of transaction is recognized as income or expense in the Statement of profit & loss over the life of the contract.
1.12 TAXATION
Current tax is provided at the rates in force, on the taxable profits arrived at with reference to the provisions of Income Tax Act, 1961.
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and is written - down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.
1.13 BORROWING COST
Borrowing Costs are charged to Statement of profit & loss, except when funds are specially borrowed to acquire fixed assets, in that case the same is capitalized till the date the subject assets are ready for the intended use.
1.14 EXCISE DUTY PROVISION ON CLOSING STOCKS OF FINISHED GOODS.
The Company has the practice of providing for the liability on account of import duty on Raw material / Stores / Spares in transit or in Bonded Warehouse at the year end and providing for liability on account of Excise duty on stock of finished goods (other than stocks meant for Exports on which no Excise Duty is payable) lying in the factory premises.
1.15 PROVISIONS AND CONTINGENT LIABILITY
The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligations. A disclosure of the contingent liability, if determinable, is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. But where is a possible obligation, but the likelihood of outflow of resources is remote, no provision / disclosure is made.
1.16 REVENUE RECOGNITION
(a) Revenue from sale of goods is recognized when the goods are dispatched to the customers and is stated at gross of excise duty and net of sales returns and sales tax.
(b) Gain / Loss on investments in Growth / Dividend plans of Mutual Funds are accounted for on sale / redemption of units.
(c) Dividend income is recognized when the right to receive the income is established
(d) Income from interest on deposits and loans is recognized on time proportionate method.
1.17 EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2016
GENERAL INFORMATION
Indian Toners & Developers Limited (hereinafter referred to as ''the Company'') is a manufacturer of Toners only.The Company''s manufacturing facilities are located at Rampur (Uttar Pradesh).
1.1 BASIS OF PREPARATION & PRESENTATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on an accrual basis and under historical cost convention and in compliance with all material aspect, with the applicable accounting principles in India, the applicable accounting standards notified under Section 133 and the other relevant provisions of the Companies Act 2013 and the rules made under.
All the Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent the Company has ascertained its operating cycle to be less than 12 months.
1.2 USE OF ESTIMATES
In preparing Company''s financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period the same is determined.
1.3 TANGIBLE AND INTANGIBLE FIXED ASSETS
a) Tangible Assets are stated at cost net of recoverable taxes, trade discounts less accumulated depreciation provided for. The cost of tangible assets comprises its purchase price, borrowing cost and any cost attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from foreign exchange rate variations attributable to the assets. Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.
b) Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. The cost comprises of purchase price, borrowing costs, any cost directly attributable to bringing the assets to its working condition for the intended use.
1.4 DEPRECIATION AND AMORTIZATION OF FIXED ASSETS TANGIBLE ASSETS
a) Depreciation is provided on tangible assets on straight line method on all assets based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
b) Plant & Machinery is depreciated treating it as continuous process Plant (except R & D Plant), at rates and in the manner as per Part-C of Schedule II to the Companies Act, 2013 (as amended). Depreciation on assets added / deducted during the year is charged proportionate with reference to the date of additions / deductions.
c) Depreciation on R&D Plant & Machinery is charged, treating the same as non-continuous, in the same manner as mentioned above.
d) Fixed assets individually costing up to rupees five thousand are depreciated at the rate of 100 percent. INTANGIBLE ASSETS
a) Softwareâs are amortized on straight line method over a period of three years.
1.5 IMPAIRMENT OF ASSETS
The carrying amount of fixed assets are reviewed at each Balance Sheet date if there is any indication of impairment based upon internal / external factors. Any impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
1.6 LEASES
Operating Leases: There is only one operating lease i.e. the Company''s corporate office at Jasola, New Delhi and rentals of the same are expensed out on accrual basis.
1.7 RESEARCH & DEVELOPMENT
Research costs are expensed as incurred and presented under the natural heads of expenditure.
Capital expenditure on Research & Developments is treated in the same manner as Fixed Assets. The Revenue expenditure on R&D is charged off in the year in which the same are incurred.
1.8 EMPLOYEE BENEFITS
- Contributions payable for provident fund and employee state insurance, which are defined contribution plans are charged to statement of profit & loss.
- Gratuity and leave encashment which are defined benefits plans are accrued, recognized and calculated on unit credit method, based on actuarial valuation, as at balance sheet data provided by L.I.C. and by an independent actuarial value respectively.
- The Company has opted for a group gratuity cum Life Assurance Scheme of the Life Insurance Corporation of India for employees and the annual contribution for it is charged to the statement of profit & loss on the accrual basis.
- All employee benefits payable wholly within twelve months of rendering the service are classified as shortterm employee benefits such as salaries, wages and bonus etc. and recognized in the statement of profit & loss in the period in which the employee renders the related service.
1.9 INVESTMENTS
Investments that are readily and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. Current investments are carried at lower of cost and fair value. Non-current investments are carried at cost. However, provision of diminution is made to recognize as decline, other than temporary, in the value of investment, such reduction being determined and made for each investment individually.
1.10 INVENTORYVALUATION
Inventories are valued at lower of cost or net realizable value except scrap, which is valued at net estimated realizable value.
The methods of determining cost of various categories of inventories are as follows:
Rawmater^ Weighted average method _and packing Materials__
Work-in -process and finished goods Variable Cost at weighted average including an appropriate share of variable and fixed production overheads. Fixed production over heads are included based on normal capacity of production facilities.
Cost includes all direct costs, cost of conversion and appropriate portion of variable and fixed production overheads and such other costs incurred as to bring the inventory to its present location and condition inclusive of excise duty wherever applicable. Cost formula used is based upon weighted average cost.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
1.11 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rate prevailing on or closely approximating to the date of transaction. Current Assets and Liabilities are restated at the rate prevailing at the period end or at the forward rate where forward cover for specific asset / liability has been taken. The difference between the period end rate and the exchange rate at the date of the transaction is recognized as income or expense in the
Statement of profit & loss. In respect of forward exchange contracts, the difference (being premium / discounts) between the contract rate and the rate on the date of transaction is recognized as income or expense in the Statement of profit & loss over the life of the contract.
1.12 TAXATION
Current tax is provided at the rates in force, on the taxable profits arrived at with reference to the provisions of Income Tax Act, 1961.
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and is written - down or written- up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.
1.13 BORROWING COST
Borrowing Costs are charged to Statement of profit & loss, except when funds are specially borrowed to acquire fixed assets, in which case the same is capitalized till the date the subject assets are ready for the intended use.
1.14 Excise Duty Provision on closing stocks of Finished Goods. The Company has the practice of providing for the liability on account of import duty on Raw material / Stores / Spares in transit or in Bonded Warehouse at the year end and providing for liability on account of Excise duty on stock of finished goods (other than stocks meant for Exports on which no Excise Duty is payable) lying in the factory premises.
1.15 PROVISIONS AND CONTINGENT LIABILITY
The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligations. A disclosure of the contingent liability, if determinable, is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. But where is a possible obligation, but the likelihood of outflow of resources is remote, no provision / disclosure is made.
1.16 REVENUE RECOGNITION
(a) Revenue from sale of goods is recognized when the goods are dispatched to the customers and is stated gross of excise duty and net of sales returns and sales tax.
(b) Gain / Loss on investments in Growth / Dividend plans of Mutual Funds are accounted for on sale / redemption of units.
(c) Dividend income is recognized when the right to receive the income is established.
(d) Income from interest on deposits and loans is recognized on time proportionate method.
1.17 EARNINGS PER SHARE
Basics earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2015
1.1 BASIS OF ACCOUNTING
The financial statements have been prepared on an accrual basis and
under historical cost convention and in compliance with all material
aspect, with the applicable accounting principles in India. The
applicable accounting standards notified under Section 133 and the
other relevant provisions of the Companies Act 2013.
All the Assets and Liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in Schedule III of the Companies Act, 2013. Based on
the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalent the
Company has ascertained its operating cycle to be less than 12 months.
1.2 TANGIBLE AND INTANGIBLE FIXED ASSETS
a) Tangible Assets are stated at cost net of recoverable taxes, trade
discounts less accumulated Depreciation provided for. The cost of
tangible assets comprises its purchase price, borrowing cost and any
cost attributable to bringing the asset to its working condition for
its intended use, net charges on foreign exchange contracts and
adjustments arising from foreign exchange rate variations attributable
to the assets.
Projects under which assets are not ready for their intended use are
disclosed under Capital Work-in- Progress.
b) Intangible assets are stated at cost of acquisition net of
recoverable taxes less accumulated amortization. The cost comprises of
purchase price, borrowing costs, any cost directly attributable to
bringing the assets to its working condition for the intended use.
1.3 DEPRICIATION AND AMORTIZATION OF FIXED ASSETS TANGIBLE ASSETS
a) Depreciation is provided on tangible assets on straight line method
on all assets based on useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013.
b) Plant & Machinery is deprecated treating it as continuous process
Plant (except R & D Plant), at rates and in the manner as per Part-C of
Schedule II to the Companies Act, 2013 as amended vide notification no.
GSR 237(E), dated 31.03.2014, w.e.f. 01.04.2014. Depreciation on assets
added / deducted during the year is charged proportionate with
reference to the date of additions / deductions.
c) Depreciation on R&D Plant & Machinery is charged, treating the sane
as non-continuous, in the same manner as mentioned above.
d) Fixed assets individually costing up to rupees five thousand are
depreciated at the rate of 100 percent.
INTANGIBLE ASSETS
a) Intangible assets, represented by product development are amortized
over a period of five years from the quarter in which the same is put
to its commercial use.
b) Software's are amortized on straight line method over a period of
three years.
1.4 IMPAIRMENT OF ASSETS
The carrying amount of fixed assets are revised at each Balance Sheet
date if there is any indication of impairment based upon internal /
external factors. Any impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
1.5 LEASES
Operating Leases: There is only one operating lease i.e. the Company's
corporate office at Jasola, New Delhi and rentals of the same are
expensed on mercantile basis.
1.6 RESEARCH & DEVELOPMENT
Research costs are expensed as incurred and presented under the natural
heads of expenditure.
Capital expenditure on Research & Developments is treated in the same
manner as Fixed Assets. The Revenue expenditure on R &D (other than on
product development) is charged off in the year in which the same are
incurred. However, expenditure on development of new product is
recognized as intangible asset to the extent it is expected that such
asset will generate future economic benefits.
1.7 EMPLOYEE BENEFITS
* Contributions payable for provident fund and employee state
insurance, which are defined contribution plans are charged to
statement of profit & loss.
* Gratuity and leave encashment which are defined benefits plans are
accrued, recognized and calculated on unit credit method, based on
actuarial valuation, as at balance sheet date provided by L.I.C. and by
an independent actuarial valuer respectively.
* The Company has opted for a group gratuity - cum Life Assurance
Scheme of the Life Insurance Corporation of India for employees and the
annual contribution for it is charged to the statement of profit & loss
on the accrual basis.
* All employee benefits payable wholly within twelve months of
rendering the service are classified as short-term employee benefits
such as salaries, wages and bonus etc. one recognized in the statement
of profit & loss in the period in which the employee renders the
related service.
1.8 INVESTMENTS
Investments that are readily and are intended to be held for not more
than one year from the date, on which such investments are made, are
classified as current investments. Current investments are carried at
lower of cost and fair value. Non-current investments are carried at
cost. However, provision of diminution is made to recognize as decline,
other than temporary, in the value of investment, such reduction being
determined and made for each investment individually.
1.9 INVENTORY VALUATION
Inventories are valued at lower of cost or net realizable value except
scrap, which is valued at net estimated realizable value.
The methods of determining cost of various categories of inventories
are as follows:
Raw Materials Stores & power & Fuel Weighted average method
and packing Materials
Work-in -process and finished goods Variable Cost at weighted
average including an
appropriate share of
variable and fixed
production overheads.
Fixed production over
heads are included
based on normal capacity
of production facilities.
Cost includes all direct costs, cost of conversion and appropriate
portion of variable and fixed production over heads and such other
costs incurred as to bring the inventory to its present location and
condition inclusive of excise duty wherever applicable. Cost formula
used is based upon weighted average cost. Net realizable value is the
estimated selling price in the ordinary course of business, less the
estimated costs of completion and the estimated costs necessary to make
the sale.
1.10.FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rate
prevailing on / or closely approximating to the date of transaction.
Current Assets and Liabilities are restated at the rate prevailing at
the period end or at the forward rate where forward cover for specific
asset / liability has been taken. The difference between the period end
rate and the exchange rate at the date of the transaction is recognized
as income or expense in the Statement of profit & loss. In respect of
forward exchange contracts, the difference (being premium / discounts)
between the contract rate and the rate on the date of transaction is
recognized as income or expense in the Statement of profit & loss over
the life of the contract.
1.11. TAXATION
Current tax is provided at the rates in force, on the taxable profits
arrived at with reference to the provisions of Income Tax Act, 1961.
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written - down or written-up
to reflect the amount that is reasonably / virtually certain (as the
case may be) to be realized.
1.12. BORROWING COST
Borrowing Costs are charged to Statement of profit & loss, except when
funds are specially borrowed to acquire fixed assets, in which case the
same is capitalized till the date the subject assets are ready for the
intended use.
1.13. The Company has the practice of providing for the liability on
account of import duty on Raw material / Stores / Spares in transit or
in Bonded Warehouse at the year end and providing for liability on
account of Excise duty on stock of finished goods (other than stocks
meant for Exports on which no Excise Duty is payable) lying in the
factory premises.
1.14. PROVISIONS AND CONTINGENT LIABILITY
The Company recognizes a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligations. A disclosure of the contingent liability, if determinable,
is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. But
where is a possible obligation, but the likelihood of outflow of
resources is remote, no provision / disclosure is made.
1.15. REVENUE RECOGNITION
(a) Revenue from sale of goods is recognized when the goods are
dispatched to the customers and is stated gross of excise duty and net
of sales returns and sales tax.
(b) Gain / Loss on investments in Growth / Dividend plans of Mutual
Funds are accounted for on sale / redemption of units.
(c) Dividend income is recognized when the right to receive the income
is established.
(d) Income from interest on deposits and loans is recognized on time
proportionate method.
1.16. USE OF ESTIMATES
In preparing Company's financial statements in conformity with
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amount of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Any revision to accounting
estimates is recognized in the period the same is determined
1.17. EARNINGS PER SHARE
Basics earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2014
GENERAL INFORMATION
Indian Toners & Developers Limited (hereinafter referred to as ''the
Company'') is a manufacturer of Toners only.The Company''s manufacturing
facilities are located at Rampur (Uttar Pradesh).
1.1 BASIS OF ACCOUNTING
The financial statements have been prepared on an accrual basis and
under historical cost convention and in compliance in all material
aspect, with the applicable accounting principles in India. The
applicable accounting standards notified under Section 211(3C) and the
other relevant provisions of the Companies Act 1956.
All the Assets and Liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule VI of the Companies Act, 1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalent the
Company has ascertained its operating cycle to be less than 12 months.
1.2 TANGIBLE AND INTANGIBLEFIXED ASSETS
a) Fixed Assets are stated at cost less accumulated Depreciation
provided for.
b) i) Depreciation is provided on straight line method treating the
Plant as continuous process Plant
(except R & D Plant), at rates and in the manner as per Schedule XIV to
the Companies Act, 1956 as amended vide notification dated 16th
December, 1993. Depreciation on assets added / deducted during the year
is charged proportionate with reference to the date of additions /
deductions.
ii) Depreciation on R & D plants & machinery is charged, treating the
same as non  continuous, in the same manner as mentioned above.
c) Intangible assets, represented by product development are amortized
over a period of five years from the quarter in which the same is put
to its commercial use.
d) Fixed assets individually costing up to rupees five thousand are
depreciated at the rate of 100 percent.
e) Software are amortised on straight line method over a period of
three years.
1.3 IMPAIRMENT OF ASSETS
The carrying amount of fixed assets are revised at each Balance Sheet
date if there is any indication of impairment based upon internal /
external factors. Any impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
1.4 RESEARCH & DEVELOPMENT
Research costs are expensed as incurred and presented under the natural
heads of expenditure.
Development cost including regulatory cost and legal expenses leading
to Product Registration/Market Authorization relating to the new and/or
improved product is recognized as an intangible asset to the extent
that it is expected that such asset will generate future economic
benefits,adequate technical, financial and other resources required to
complete the development and to use orsell the asset are available and
the expenditure attributable to the asset during its development can be
measured reliably.
Capital expenditure on Research &Developments istreated in the same
manner as Fixed Assets.The Revenue expenditure on R &D(other than on
product development)is charged off in the year in which the same are
incurred. However, expenditure on development of new product is
recognized as intangible asset to the extent it is expected that such
asset will generate future economic benefits.
1.5 EMPLOYEE BENEFITS
- Contributions payable for provident fund and employee state
insurance, which are defined contribution plans are charged to
statement of profit & loss.
- Gratuity and leave encashment which are defined benefits plans are
accrued, recognized and calculated on unit credit method, based on
actuarial valuation, as at balance sheet date provided by L.I.C. and by
an independent actuarial valuer respectively.
- The Company has opted for a group gratuity  cum Life Assurance
Scheme of the Life Insurance Corporation of India for employees and the
annual contribution for it is charged to the statement of profit & loss
on the accrual basis.
- All employee benefits payable wholly within twelve months of
rendering the service are classified as short-term employee benefits
such as salaries, wages and bonus etc. one recognized in the statement
of profit & loss in the period in which the employee renders the
related service.
1.6 INVESTMENTS
Investments that are readily and are intended to be held for not more
than one year from the date, on which such investments are made, are
classified as current investments. Current investments are carried at
lower of cost and fair value. Non-current investments are carried at
cost. However, provision of diminution is made to recognize as decline,
other than temporary, in the value of investment, such reduction being
determined and made for each investment individually.
1.7. INVENTORY VALUATION
Inventories are valued at lower of cost or net realizable value except
scrap, which is valued at netestimated realizable value.
The methods of determining cost of various categories of inventories
are as follows:
Raw materials, Stores & Spares, Power & Fuel Weighted average method
and packing Materials
Variable Cost at weighted average includingan Work-in -process and
finished goods appropriate share of variable and fixedproduction
overheads. Fixed productionoverheads are included based on
normalcapacity of production facilities.
Cost includes all direct costs, cost of conversion and appropriate
portion of variable and fixed productionoverheads and such other costs
incurred as to bring the inventory to its present location and
conditioninclusive of excise duty wherever applicable. Cost formula
used is based upon weighted average cost.
Net realizable value is the estimated selling price in the ordinary
course of business, less theestimated costs of completion and the
estimated costs necessary to make the sale.
1.8. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rate
prevailing on / or closely approximating to the date of transaction.
Current Assets and Liabilities are restated at the rate prevailing at
the period end or at the forward rate where forward cover for specific
asset / liability has been taken. The difference between the period end
rate and the exchange rate at the date of the transaction is recognized
as income or expense in the Statement of profit & loss. In respect of
forward exchange contracts, the difference (being premium / discounts)
between the contract rate and the rate on the date of transaction is
recognized as income or expense in the Statement of profit & loss over
the life of the contract.
1.9. TAXATION
Current tax is provided at the rates in force, on the taxable profits
arrived at with reference to the provisions of Income Tax Act, 1961.
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets.
Deferred tax assets are reviewed at each balance sheet date and is
written  down or written-up to reflect the amount that is reasonably /
virtually certain (as the case may be) to be realized.
1.10.BORROWING COST
Borrowing Costs are charged to Statement of profit & loss, except when
funds are specially borrowed to acquire fixed assets, in which case the
same is capitalized till the date the subject assets are ready for the
intended use.
1.11.The Company has the practice of providing for the liability on
account of import duty on Raw material / Stores / Spares in transit or
in Bonded Warehouse at the year end and providing for liability on
account of Excise duty on stock of finished goods (other than stocks
meant for Exports on which no Excise Duty is payable) lying in the
factory premises.
1.12.PROVISIONS AND CONTINGENT LIABILITY
The Company recognizes a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligations. A disclosure of the contingent liability, if determinable,
is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. But
where is a possible obligation, but the likelihood of outflow of
resources is remote, no provision / disclosure is made.
1.13. REVENUE RECOGNITION
(a) Revenue from sale of goods is recognized when the goods are
dispatched to the customers and is stated gross of excise duty and net
of sales returns and sales tax.
(b) Gain / Loss on investments in Growth / Dividend plans of Mutual
Funds are accounted for on sale / redemption of units.
(c) Dividend income is recognized when the right to receive the income
is established.
(d) Income from interest on deposits and loans is recognized on time
proportionate method.
1.14.USE OF ESTIMATES
In preparing Company''s financial statements in conformity with
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amount of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Any revision to accounting
estimates is recognized in the period the same is determined
1.15. EARNINGS PER SHARE
Basics earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2013
1.1 BASIS OF ACCOUNTING
The financial statements have been prepared on an accrual basis and
under historical cost convention and in compliance in all material
aspect, with the applicable accounting principles in India . The
applicable accounting standards notified under Section 211 (3C) and the
other relevant provisions of the Companies Act 1956.
All the Assets and Liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule VI of the Companies Act, 1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalent the.
Company has ascertained its operating cycle to be less than 12 months.
1.2 TANGIBLE AND INTANGIBLEFIXED ASSETS
a) Fixed Assets are stated at cost less accumulated Depreciation
provided for.
b) i) Depreciation is provided on straight line method treating the
Plant as continuous process Plant
(except R&D Plant), at rates and in the manner as per Schedule XIV to
the Companies Act, 1956 as amended vide notification dated 16th
December, 1993. Depreciation on assets added / deducted during the year
is charged proportionate with reference to the date of additions /
deductions.
ii) Depreciation on R & D plants & machinery is charged, treating the
same as non - continuous, in the same manner as mentioned above.
c) Intangible assets, represented by product development are amortized
over a period of five years from the quarter in which the same is put
to its commercial use,
d) Fixed assets individually costing up to rupees five thousand are
depreciated at the rate of 100 percent.
e) Software are amortised on straight line method over a period of
three years.
1.3 IMPAIRMENT OF ASSETS
The carrying amount of fixed assets are revised at each Balance Sheet
date if there is any indication of impairment based upon internal /
external factors. Any impairment loss is recognized whereverthe
carrying amount of an asset exceeds its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
1.4 RESEARCH & DEVELOPMENT
Research costs are expensed as incurred and presented under the natural
heads of expenditure.
Development cost including regulatory cost and legal expenses leading
to Product Registration/Market Authorization relating to the new and/or
improved product is recognized as ah intangible asset to the extent
that it is expected that such asset wilt generate future economic
benefrts.adequate technical, financial and other resources required to
complete the development and to use orsell the asset are available and
the expenditure attributable to the asset during its development can be
measured reliably
Capital expenditure on Research &Developments istreated in the same
manner as Fixed Assets.The Revenue expenditure on R &D(other than on
product developments charged off in the year in which the same are
incurred. However, expenditure on development of new product is
recognized as intangible asset to the extent it is expected that such
asset will generate future economic benefits.
1.5 EMPLOYEE BENEFITS
- Contributions payable for providentfund and employee state insurance,
which are defined contribution plans are charged to statement of profit
& loss.
- Gratuity and leave encashment which are defined benefits plans are
accrued, recognized and calculated on unit credit method, based on
actuarial valuation, as at balance sheet date provided by L.I.C. and by
an independent actuarial valuer respectively.
- The Company has opted for a group gratuity - cum Life Assurance
Scheme of the Life insurance Corporation of India for employees and the
annual contribution for it is charged to the statement of profit & loss
on the accrual basis.
- All employee benefits payable wholly within twelve months of
rendering the service are classified as short-term employee benefits
such as salaries, wages and bonus etc. one recognized in the statement
of profit & loss in the period in which the employee renders the
related service.
1.6 INVESTMENTS
Investments that are readily and are intended to be held for not more
than one year from the date, on which such investments are made, are
classified as current investments. Current investments are carried at
lower of cost and fair value. Non-current investments are carried at
co;t However, provision of diminution is made to recognize as decline,
other than temporary, in the value of investment, such reduction being
determined arid made for each investment individually.
1.7.INVENTORYVALUAT10N
Inventories are valued at lower of cost or net realizable value except
scrap, which is valued at netestimated realizable value.
The methods of determining cost of various categories of inventories
are as follows:
Cost includes all direct costs, cost of conversion and appropriate
portion of variable and fixed productionoverheads and such other costs
incurred as to bring the inventory to its present location and
conditioninclusive of excise duty wherever applicable. Cost formula
used is based upon weighted average cost.
Net realizable value is the estimated selling price in the ordinary
course of business, less theestimated costs of completion and the
estimated costs necessary to make the sale. 1.8.FOREIGN
CURRENCYTRANSACTtONS
Transactions in foreign currency are recorded at the exchange rate
prevailing on / or closely approximating to the date of transaction.
Current Assets and Liabilities are restated at the rate prevailing at
the period end or at the forward rate where forward cover for specific
asset / liability has been taken. The difference between the period end
rate and the exchange rate at the date of the transaction is recognized
as income or expense in the Statement of profit & loss. In respect of
forward exchange contracts, the difference (being premium / discounts)
between the contract rate and the rate on the date of transaction is
recognized as income or expense in the Statement of profit & loss over
the life of the contract.
1.9.TAXATION
Current tax is provided at the rates in force, on the taxable profits
arrived at with reference to the provisions of Income Tax Act, 1961.
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been«nacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written-down or written-up
to reflect the amount that is reasonably / virtually certain (as the
case may be) to be realized.
1.10.BQRRQWINGC0ST
Borrowing Costs are charged to Statement of profit & loss, except when
funds are specially borrowed to acquire fixed assets, In which case the
same is capitalized till the date the subject assets are ready for the
intended use.
t.11 .The Company has the practice of providing for the liability on
account of import duty on Raw material / Stores / Spares in transit or
in Bonded Warehouse at the year end and providing for liability on
account of Excise duty on stock of finished goods (other than stocks
meant for Exports on which no Excise Duty is payable) lying in the
factory premises.
1.12.PRQVISI0NS ANP CONTINGENT LIABILITY
The Company recognizes a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligations. A disclosure of the contingent liability, if determinable,
is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. But
where is a possible obligation, but the likelihood of outflow of
resources is remote, no provision / disclosure is made.
1.13. REVENUE RECOGNITION
(a) Revenue from sale of goods is recognized when the goods are
dispatched to the customers and is stated gross of excise duty and net
of sales returns and sales tax.
(b) Gain / Loss on investments in Growth / Dividend plans of Mutual
Funds are accounted for on sale / redemption of units.
(c) Dividend income is recognized when the right to receive the income
is established.
(d) Income from interest on deposits and loans is recognized on time
proportionate method.
1.14.USE QF ESTIMATES
In preparing Company''s financial statements in conformity with
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amount of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Any revision to accounting
estimates is recognized in the period the same is determined
1.15. EARNINGS PER SHARE
Basics earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
1.16. LEASES
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items, are classified as
operating leases. Lease payment in respect of such leases are
recognized as expenses in the Statement of profit & loss on a straight
line basis over the lease terms or extended term.
Mar 31, 2012
1.1 BASIS OF ACCOUNTING
The financial statements have been prepared on an accrual basis and
under historical costconvention and in compliance in all material
aspect, with the applicable accounting principles in India .The
applicable accounting standards notified under Section 211 (3C) and the
other relevant provisions of the Companies Act 1956.
All the Assets and Liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in Schedule VI of the Companies Act, 1956. Based on
the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalent the
Company has ascertained its operating cycle to be less than 12 months.
1.2 FIXED ASSETS
a) Fixed Assets are stated at cost less accumulated Depreciation
provided for.
b) i) Depreciation is provided on straight line method treating the
Plant as continuous process Plant (except R & D Plant), at rates and in
the manner as per Schedule XIV to the Companies Act, 1956 as amended
vide notification dated 16th December, 1993. Depreciation on assets
added / deducted during the year is charged proportionate with
reference to the date of additions / deductions, ii) Depreciation on R
& D plants & machinery is charged, treating the same as non -
continuous, in the same manner as mentioned above,
c) Intangible assets, represented by product development are amortized
over aperiod of five years from the quarter in which the same is put to
its commercial use.
d) Fixed assets individually costing up to rupees five thousand are
depreciated at the rate of 100 percent,
e) Software are amortised on straight line method over a period of
three years.
1.3 IMPAIRMENT OF ASSETS
The carrying amount of fixed assets are revised at each Balance Sheet
date if there is any indication of impairment based upon internal /
external factors. Any impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
1.4 RESEARCH & DEVELOPMENT
Capital expenditure on Research & Developments istreated in the same
manner as Fixed Assets.The Revenue expenditure on R & D (other than on
product developments charged off in the year in which the same are
incurred. However, expenditure on development of new product is
recognized as intangible asset to the
- extent it is expected that such asset will generate future economic
benefits.
1.5 EMPLOYEE BENEFITS
- Contributions payable for provident fund and employee state
insurance, which are defined contribution plans are charged to
statement of profit & loss.
- Gratuity and leave encashment which are defined benefits plans are
accrued, recognized and calculated on unit credit method, based on
actuarial valuation, as at balance sheet date provided by L.I.C. and by
an independent actuarial valuer respectively.
- The Company has opted for a group gratuity - cum Life Assurance
Scheme of the Life Insurance Corporation of India for employees and the
annual contribution for it is charged to the statement of profit & loss
on the accrual basis.
- All employee benefits payable wholly within twelve months of
rendering the service are classified as short-term employee benefits
such as salaries,wages and bonus etc. one recognized in the statement
of profit & loss in the period in which the employee renders the
related service. '
1.6 INVESTMENTS
(a) Investments are classified into Current & long term investments.
Current investments are stated at lower of cost and fair value. Long
Term Investments are stated at cost. However, provision of diminution
in value is made for decline other than temporary in nature.
(b) Gain / Loss on investments in Growth / Dividend plans of Mutual
Funds are accounted for on sale / redemption of units.
(c) Dividend from the Units of Mutual Funds is accounted for when the
Company becomes legally entitled to it '
1.7.INVENTORY VALUATION
a) Finished goods: Lower of cost or net realizable value.
b) Raw Materials, Stores & Spares, Power & Fuel and packing Materials:
At the lower of cost or net realization value.
c) Stock in process: Lower of cost or net realizable value.
d) Raw material and stores & spares and packing materials costs are
computed on weighted average basis.
e) Finished goods and work in process include cost of conversion and
other costs incurred in bringing the inventories to their present
locations and condition.
1.8.FQREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rate
prevailing on / or closely approximating to the date of transaction.
Current Assets and Liabilities are restated at the rate prevailing at
the period end or at the forward rate where forward cover for specific
asset / liability has been taken. The difference between the period end
rate and the exchange rate at the date of the transaction is recognized
as income or expense irr the Statement of profit & loss. In respect of
forward exchange contracts, the difference (being premium / discounts)
between the contract rate and the rate on the date of transaction is
recognized as income or expense in the Statement of profit & loss over
the life of the contract.
1.9.TAXATION
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written - down or written-up
to reflect the amount that is reasonably / virtually certain (as the
case may be) to be realized.
Current tax is provided at the rates in force, on the taxable profits
arrived at with reference to the provisions of Income Tax Act, 1961. .
1.10. BORROWING COST
Borrowing Costs are charged to Statement of profit & loss, except when
funds are specially borrowed to acquire fixed assets, in which case the
same is capitalized till the date the subject assets are ready for the
intended use.
1.11 The Company has the practice of providing for the liability on
account of import duty on Raw material / Stores / Spares in transit or
in Bonded Warehouse at the year end and providing for liability on
account of Excise duty on stock of finished goods (other than stocks
meant for Exports on which no Excise Duty is payable) lying in the
factory premises.
1.12. PROVISIONS AND CONTINGENT LIABILITY
The Company recognizes a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligations. A disclosure of the contingent liability, if determinable,
is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. But
where is a possible obligation, but the likelihood of outflow of
resources is remote, no provision / disclosure is made. .
1.13. REVENUE RECOGNITION
Revenue from sale of goods is recognized when the goods are dispatched
to the customers and is stated gross of excise duty and net of sales
returns and sales tax.
1.14 USE OF ESTIMATES
In preparing Company's financial statements in conformity with
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amount of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Any revision to accounting estimates is recognized in the period the
same is determined.
1.15: EARNINGS PER SHARE
Basics earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
1.16. LEASES
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items, are classified as
operating leases. Lease payment in respect of such leases are
recognized as expenses in the Statement of profit & loss on a straight
line basis over the lease terms or extended term.
Mar 31, 2010
1. Basis of Accounting
The Company follows mercantile system of Accounting and recognizes all
significant items of income and expenditure on accrual basis and these
accounts have been prepared in accordance with the Accounting Standards
issued by the Institute of Chartered Accountants of India as well as
notified by the Government of India, applicable to it.
2. FIXED ASSETS:
a) Fixed Assets are stated at cost less Depreciation provided for.
b) i) Depreciation on all Assets is charged on straight line method
treating the Plant as continuous process Plant (except R&D Plant), at
rates and in the manner as per Schedule XIV to the Companies Act, 1956
as amended vide notification dated 16th December, 1993. Depreciation on
assets added / deducted during the year is charged proportionate with
reference to the date of additions / deductions. ii) Depreciation on R
& D plants & machinery is charged, treating the same as non -
continuous. in the same manner as mentioned above.
3. IMPAIRMENT OF ASSETS
The carrying amount of fixed assets are revised at each Balance Sheet
date if there is any indication of impairment based upon internal /
external factors. Any impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is greater of asset but selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of
capital.
4. RESEARCH & DEVELOPMENT:
Capital expenditure on Research & Developments is treated in the same
manner as Fixed Assets The Revenue expenditure on R & D are charged off
in the year in which the same are incurred.
5. EMPLOYEE BENEFITS:
Contribution payable for provident fund and employee state insurance
which is defined contribution scheme, is charged to profit & loss
account.
Gratuity and leave encashment which are defined benefits are accrued
calculated on unit credit method based on actuarial valuation as at
balance sheet date provided by LLC. and by an indepen- dent actuarial
valuer respectively.
The Company has opted for a group gratuity-cum Life Assurance Scheme of
the Life Insurance Corporation of India for employees and the annual
contribution for it is charged to the profit & loss account on the
accrual basis.
6. INVESTMENTS
(a) All the Long Term Investments are stated at cost. All the current
investments are stated at cost or market rate whichever is lower as at
the date of annual accounts. However, provision of diminution in value
is made for declines otherthan temporary in nature.
(b) Income / Loss on investments in Growth / Dividend plans of Mutual
Funds is accounted for on sale / redemption of units.
( c) Dividend Income from the Units of Mutual Funds is accounted for
when the Company becomes legally entitled to it.
7. INVENTORY VALUATION:
a) Stock of Finished goods: At cost or net realisable value whichever
is lower.
b) Stock of Raw Materials, Stores & Spares, Power & Fuel and packing
Materials : At or below cost.
c) Stock in process : At cost or net realisable value whichever is
lower.
d Stock of Laser Printers, etc (trading goods) :At cost or net
realizable value which ever is lower Cost of raw material and stores &
spares and packing materials is computed on Weighted Average basis
Finished goods and work in process include cost of conversion and other
costs incurred in bringing the inventories to their present locations
and condition.
8. FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currency are recorded at the exchange rate
prevailing on / or closely approximating to the date of transactions.
Current Assets and Liabilities are restated at the rate prevailing at
the period end or at the forward rate where forward cover for specific
asset / liability has been taken. The difference between the period end
rate and the exchange rate at the date of the transaction is recognized
as income or expense in the Profit and Loss Account. In respect of
forward exchange contracts, the difference (being premium / discounts)
between the contract rate and the rate on the date of transaction
is-recognized as income or expense in the Profit and Loss Account over
the life of the contract.
9. TAXATION
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written - down or written-up
to reflect the amount that is reasonably / virtually certain (as the
case may be) to be realized. Current tax is provided at the rates in
force, on the taxable profits arrived at with reference to the
provisions of Income Tax Act, 1961.
10. BORROWING COST:
Borrowing Costs are charged to Profit & Loss Account, except when funds
are specially borrowed to acquire fixed assets, in which case the same
is capitalized till the date the subject assets are ready for the
intended use.
11. EXPORT BENEFITS:
Entitlements of Export Incentives (such as Advance Licences) on goods
exported during the year are accounted for on accrual basis and such
benefits are accounted through other Income and the correspond- ing
debit is given to Export Benefit receivable /Adjustable Account which
is adjusted to cost of Raw Material as and when goods are imported.
12. The Company has the practice of providing for the liability on
account of import duty on Raw material / Stores / Spares in transit or
in Bonded Warehouse at the year end and providing for liability on
account of Excise duty on stock of finished goods (other than stocks
meant for Exports on which no Excise Duty is payable) lying in the
factory premises.
13. PROVISIONS AND CONTINGENT LIABILITY
The Company recognizes a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligations. A disclosure of the contingent liability, if determinable,
is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. But
where is a possible obligation but the likelihood of outflow of
resources is remote, no provision / disclosure is made.
14. REVENUE RECOGNITION
Revenue from sale of goods is recognized when the goods are dispatched
to the customers and is stated net of excise duty, sales returns and
sales tax.
15. USE OF ESTIMATES
In preparing Companys financial statements in conformity with
accounting principles generally accepted h India, management is
required to make estimates and assumptions that affect the reported
amount of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Any revision to accounting
estimates is recognized in the period the same is determined.
16. EARNINGS PER SHARE
Basics earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
17. LEASES
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased items, are classified as
operating leases. Lease payment in respect of such leases are
recognized as an expenses in the Profit & Loss Account on a straight
line bases over the lease terms or extended term.
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
More Information on Indian Toners & Developers Ltd.
-
Indian Toners & Developers Ltd. Tools
- Bulk Deals
-
Indian Toners & Developers Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
-
Indian Toners & Developers Ltd. Key Financial Ratios
- Ratios
-
Indian Toners & Developers Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Indian Toners & Developers Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Indian Toners & Developers Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Indian Toners & Developers Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
