Accounting Policies of Mukat Pipes Ltd. Company

Mar 31, 2014

A) Method of Accounting

The Company maintains its accounts on mercantile basis. However, certain escalations and other claims which are not ascertainable/acknowledged by customers / suppliers are taken into account only on such acknowledgment by customers / suppliers.

b) Fixed Assets

Fixed Assets are stated at Historical Cost of Acquisition or Construction Cost less Depreciation. Attributable cost and expenses of bringing the assets to working condition for their intended use are capitalized.

c) Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rate and in the manner prescribed in Schedule XIV to the Companies Act.1956

d) Inventories

Inventories are valued as under :-

i) Raw material and other Inventories At Cost.

ii) Work in Process At Estimated Cost.

iii) Finished Goods At Cost or Market Value whichever is lower.

iv) Scrap At Market Value.

e) Gratuity

The company has provided for Gratuity liability on estimated basis. No Actuarial Valuation has been made.

f) Income Recognition

I) Sale is inclusive of Excise Duty but excludes Sales Tax/VAT. The export benefits are recognized as income on the basis of actual exports.

ii) Excise duty liability on manufactured goods lying in the factory premises in not provided for and is also not included in the valuation of stock.

g) Foreign Currencies

There has been no transaction in Foreign Exchange

---

Mar 31, 2013

A) Method of Accounting

The Company maintains its accounts on mercantile basis. However, certain escalations and other claims which are not ascertainable/acknowledged by customers / suppliers are taken into account only on such acknowledgment by customers / suppliers.

b) Fixed Assets

Fixed Assets are stated at Historical Cost of Acquisition or Construction Cost less Depreciation. Attributable cost and expenses of bringing the assets to working condition for their intended use are capitalized.

c) Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rate and in the manner prescribed in Schedule XIV to the Companies Act,1956

d) Inventories

Inventories are valued as under :- i) Raw material and other Inventories At Cost. ii) Work in Process At Estimated Cost.

iii) Finished Goods At Cost or Market Value whichever is lower.

iv) Scrap At Market Value.

e) Gratuity

The company has provided for Gratuity liability on estimated basis. No Actuarial Valuation has been made.

f) Income Recognition

i) Sale is inclusive of Excise Duty but excludes Sales Tax/VAT. The export benefits are recognized as income on the basis of actual exports.

ii) Excise duty liability on manufactured goods lying in the factory premises is not provided for and is also not included in the valuation of stock.

g) Foreign Currencies

There has been no transaction in Foreign Exchange

---

Mar 31, 2012

A) Method of Accounting

The Company maintains its accounts on mercantile basis. However, certain escalations and other claims which are not ascertainable/acknowledged by customers / suppliers are taken into account only on such acknowledgment by customers / suppliers.

b) Fixed Assets

Fixed Assets are stated at Historical Cost of Acquisition or Construction Cost less Depreciation. Attributable cost and expenses of bringing the assets to working condition for their intended use are capitalized.

c) Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rate and in the manner prescribed in Schedule XIV to the Companies Act.1956.

d) Inventories

Inventories are valued as under :- i) Raw material and other Inventories At Cost ii) Work in Process At Estimated Cost

iii) Finished Goods At Cost or Market Value whichever is lower

iv) Scrap At Market Value

e) Gratuity

The company has provided for Gratuity liability on estimated basis. No Actuarial Valuation has been made.

f) Income Recognition

i) Sale is inclusive of Excise Duty but excludes Sales Tax/VAT. The export benefits are recognized as income on the basis of actual exports. ii) Excise duty liability on manufactured goods lying in the factory premises in not provided for and is also not included in the valuation of stock.

g) Foreign Currencies

There has been no transaction in Foreign Exchange