Accounting Policies of Polymechplast Machines Ltd. Company

Mar 31, 2015

1. Method of Accounting:

a) The Financial Statements have been prepared in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013. The accounting policies applied by the company are consistent with those used in the previous year.

b) The financial statements are prepared on the basis of historical cost convention and are based on the fundamental accounting assumption of going concern.

c) The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

2. Revenue Recognition:

Sales include inter-divisional transfers, sale of scrap; Sales out source products and invoices for price escalation as per contracts with the relevant customers on accrual basis. Insurance claims arising out of accident covered under the respective insurance policies and prima facie admitted by the insurance companies are recognized on receipt basis. Duty draw-back recognized on cash basis.

3. Fixed Assets:

Fixed Assets are stated at cost (net of CENVAT) including freight and other incidental expenses less accumulated depreciation calculated till the current year. Expenditure incurred on improvement or replacement, which in the opinion of the management is likely to substantially increase the life of the assets future benefits from it, is capitalized.

4. appreciation:

Depreciation has been provided on straight line basis on the useful life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. Depreciation on addition/deletion or discarded fixed assets during the year is calculated on pro rate basis.

5. Investment:

Long-term investments are valued at cost. Diminution in the value of investments is to be provided for where management is of the opinion that diminution is of permanent nature.

6. Inventories:

Stock of raw materials and stores is valued at cost. Inventories of finished goods are valued at lower of costs or net realizable value inclusive of excise duty. Work in process is valued at cost representing material, labour and apportioned overheads as certified by the management. Other inventories are valued at cost.

7. Retirement Benefits:

Provident Fund : The Company has schemes of Retirement Benefits for Provident Fund, in respect of which, the company's contribution are charged to Profit & Loss Account. The contributions towards Provident Fund are made to Statutory Authority.

Gratuity Scheme : Liabilities for Gratuity is provided through a policy taken from Life Insurance Corporation of India (LIC) by an approved trust formed for the purpose. The contribution to the trust is made on the basis of actuarial valuation made by LIC to cover the year's liability and such contribution is charged to the Profit & Loss A/c.

Leave Encashment : Liability for leave encashment is provided in accordance with the rules of the company at prevailing salary rate for the entire un-availed leave balance as at the balance sheet date.

8. Foreign Currency Conversion:

Foreign currency transactions are recorded at the rates prevailing at the time or transaction. The exchange rate difference arising at the time of actual payment or receipt are recognized as income or expense and transferred to exchange rate difference account, so far as revenue Items are concerned. Monetary Assets and Monetary Liabilities relating to foreign currency transaction remaining unsettled at the end of the year are translated at the closing rates, and difference arising there from, If any, is transferred to profit & loss account.

9. Borrowing Cost:

Borrowing Cost attributable to acquisition and construction of qualifying Assets, which takes substantial period of time to get ready for its Intended use, are capitalized as part of the cost of respective assets up to the date when such asset is ready for its intended use. Borrowing Cost for the borrowings taken for working of the company, i.e. on working capital liabilities are charged to revenue in the year, in which it is incurred on accrual basis.

10. Tax Expenses:

Tax Expenses comprise of current tax & deferred tax.

Current Tax has been provided at the actual rates prevailing in the financial year as per Income Tax Act, 1961 while Deferred Tax is recognized on timing difference; being the difference between taxable incomes and accounting income that originate in one period and are reversible in one or more subsequent period and is calculated using the rates enacted or substantively enacted at the balance sheet date.

Deferred Tax Assets are realized only to the extent there is reasonable certainty of realization of such assets. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities.

11. Impairment of Assets:

At the end of the year management has reviewed the recoverable value of all the assets. If the carrying cost of the asset exceeds the recoverable value, impairment loss for the same has been provided for.

12. Financial Expenses:

Financial charges are charged to statement of profit and loss.

13. Product Warranty Expenses:

Product Warranty expenses has been accounted as and when actual liability is determined.

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Mar 31, 2014

1. Method of Accounting:

The Financial Statements are prepared as a going-concern under historical cost convention on an accrual basis except those with significant uncertainty and in accordance with the Companies Act, 1956. Accounting Policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

2. Revenue Recognition:

Sales include inter-divisional transfers, sale of scrap; Sales Outsource Products and Invoices for price escalation as per contracts with the relevant customers on accrual basis. Insurance claims arising out of accident covered under the respective Insurance policies and prima facie admitted by the insurance companies are recognized on receipt basis Duty draw-back recognized on cash basis.

3. Fixed Assets:

Fixed Assets are stated at cost (net of CENVAT) less accumulated depreciation up to the year. Expenditure incurred on improvement or replacement, which in the opinion of the management is likely to substantially increase the life of the assets and future benefits from it, is capitalized.

4. Depreciation:

Depreciation is charged on Straight Line basis at rates specified in Schedule XIV of the Companies Act. 1956. Depreciation on Addition/Deletion or Discarded Fixed Assets during the year is charged on monthly pro data basis.

5. Investment:

Long-term investments are valued at cost.

6. Inventories:

Stock of raw materials and stores is valued at cost. Inventories of finished goods are valued at lower of costs or net realizable value inclusive of excise duty. Work in process is valued at cost representing material, labour and apportioned overheads as certified by the management. Other inventories are valued at cost.

7. Retirement Benefits:

Provident Fund :The Company has schemes of Retirement Benefits for Provident Fund, in respect of which, the company's contribution are charged to Profit and Loss Account. The contributions towards Provident Fund are made to Statutory Authority.

Gratuity Scheme : Liabilities for Gratuity is provided through a policy taken from Life Insurance Corporation of India (LIC) by an approved trust formed for the purpose. The contribution to the trust is made on the basis of actuarial valuation made by LIC to cover the year's liability and such contribution is charged to the Profit & Loss A/c.

Leave Encashment : Liability for leave encashment is provided in accordance with the rules of the company at prevailing salary rate for the entire un-availed leave balance as at the balance sheet date.

8. Foreign Currency Conversion:

Foreign currency transactions are recorded at the rates prevailing at the time or transaction. The exchange rate difference arising at the time of actual payment or receipt are recognized as income or expense and transferred to exchange rate difference account, so far as revenue Items are concerned. Monetary Assets and Monetary Liabilities relating to foreign currency transaction remaining unsettled at the end of the year are translated at the closing rates, and difference arising there from, If any, is transferred to profit & loss account.

9. Borrowing Cost:

Borrowing Cost attributable to acquisition and construction of qualifying Assets, which takes substantial period of time to get ready for its Intended use, are capitalized as part of the cost of respective assets up to the date when such asset is ready for its intended use. Borrowing Cost for the borrowings taken for working of the company, i.e. on working capital liabilities are charged to revenue in the year, in which it is incurred on accrual basis.

10. Tax Expenses:

Tax Expenses include current tax & deferred tax have provided actual rates prevailing in the financial year as per Income Tax act 1961.

Deferred Tax is recongnized on timing difference: being the difference between taxable Incomes and accounting income that originate in one period and are reversible in one or more subsequent period.

Deferred Tax Assets & Liabilities are provided on the basis of virtual certainty of business. However the rate for calculating differed tax has applied which is enacted in the subsequent financial year as per Income Tax act 1961.

11. Impairment of Assets:

At the end of the year management identified all the assets and reviewed fair value/market value of the assets which is compared to carrying value/value in use of the assets. If, Fair Value or Market Value is less than carrying value/value in use of assets than impairment has been provided and if the Fair Value or Market Value is more than it's carrying value/value in use than no impairment provided in the books. Hence as perworking said above at the end of the year impairment loss has been provided.

12. Financial Expenses:

Financial charges are charged to profit and loss account.

13. Product Warranty Expenses:

Product Warranty expenses has been accounted as and when actual liability is determined.

Notes Forming part of Financial Statements.

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Mar 31, 2013

1. Method of Accounting:

The Financial Statements are prepared as a going-concern under historical cost convention on an accrual basis except those with significant uncertainty and in accordance with the Companies Act, 1956. Accounting Policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

2. Revenue Recognition:

Sales include inter-divisional transfers, sale of scrap, Sales Outsource Products and Invoices for price escalation as per Contracts with the relevant customers on accrual basis. Insurance Claims, Insurance claims arising out of accident covered under the respective Insurance policies and prima facie admitted by the insurance companies are recognized on receipt basis, except duty draw-back recognized on cash basis.

3. Fixed Assets:

Fixed Assets are stated at cost (net of CENVAT) less accumulated depreciation up to the year. Expenditure incurred on improvement or replacement, which in the opinion of the management is likely to substantially increase the life of the assets and future benefits from it, is capitalized.

4. Depreciation:

Depreciation is charged on Straight Line basis at rates specified in Schedule XIV of the Companies Act. 1956. Depreciation on Addition/Deletion or Discarded Fixed Assets during the year is charged on monthly pro rata basis.

5. Investment:

Long-term investments are valued at cost.

6. Inventories:

Stock of raw materials and stores is valued at cost. Inventories of finished goods are valued at lower of costs or net realizable value inclusive of Excise Duty. Work in process is valued at cost representing material, labour and apportioned overheads as certified by the management. Other inventories are valued at cost.

7. Retirement Benefits:

Provident Fund: The Company has schemes of Retirement Benefits for provident Fund, in respect of which, the company''s contribution are charged to Profit and Loss Account. The contributions towards Provident Fund are made to Statutory Authority.

Gratuity scheme: Liabilities for Gratuity is provided through a policy taken from Life Insurance Corporation of India (LIC) by an approved trust formed for the purpose. The contribution to the trust is made on the basis of actuarial valuation made by LIC to cover the year''s liability and such contribution is charged to the Profit & Loss A/c.

Leave Encashment : Liability for leave encashment is provided in accordance with the rules of the company at prevailing salary rate for the entire unavailed leave balance as at the balance sheet date.

8. Foreign Currency Conversion:

Foreign currency transactions are recorded at the rates prevailing at the time or transaction. The exchange rate difference arising at the time of actual payment or receipt are recognized as Income or expense and transferred to exchange rate difference account, so far as revenue Items are concerned. Monetary assets and Monetary Liabilities relating to foreign currency transaction remaining unsettled at the end of the year are translated at the closing rates, and difference arising there from, If any, is transferred to profit & Loss Account.

9. Borrowing Cost:

Borrowing Cost attributable to acquisition and construction of qualifying Assets, which takes substantial period of time to get ready for its Intended use, are capitalized as part of the cost of respective assets up to the date when such asset is ready for its intended use. Borrowing cost for the borrowings taken for working of the company, i.e. on working capital liabilities are charged to revenue in the year, in which it is incurred on accrual basis.

10. Tax Expenses:

Tax Expenses include current tax & deferred tax have provided actual rates prevailing in the financial year as per Income tax act 1962.

Deferred Tax is recongnized on timing difference: being the difference between taxable Incomes and accounting Income that originate in one period and are reversible in one or more subsequent period.

Deferred taxAssets & Liabilities are provided on the basis of virtual certainty of business. However the rate for calculating differed tax has applied which is enacted in the subsequent financial year as per income tax act 1962.

11. Impairment of Assets:

At the end of the year management identified all the assets and reviewed fair value/market value of the assets which is compared to carrying value/value in use of the assets. If Fair Value or Market Value is less than carrying value/value in use of assets than impairment has been provided and if the Fair Value or Market Value is more than it''s carrying value/value in use than no impairment provided in the books, Hence as per working said above at the end of the year impairment loss has been provided.

12. Financial Expenses:

Financial charges are charged to profit and lossaccount.

13. Product warranty expenses:

Product Warranty expenses has been accounted as and when actual liability is determined. Notes to Financial Statement for the year ended 31st March, 2013.

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Mar 31, 2012

1. Method of Accounting :

The Financial Statements are prepared as a going-concern under historical cost convention on an accrual basis except those with significant uncertainty and in accordance with the Companies Act, 1956. Accounting Policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

2. Revenue Recognition:

Sales include inter-divisional transfers, sale of scrap, Sales Outsource Products and Invoices for price escalation as per Contracts with the relevant customers on accrual basis. Insurance Claims, Insurance claims arising out of accident covered under the respective Insurance Policies and Prima Facie Admitted by the Insurance Companies are recognized on receipt basis.

3. Fixed Assets:

Fixed Assets are stated at cost (net of CENVAT) less accumulated depreciation up to the year. Expenditure incurred on improvement or replacement, which in the opinion of the management is likely to substantially increase the life of the assets and future benefits from it, is capitalized.

4. Depreciation:

Depreciation is charged on Straight Line basis at rates specified in Schedule XIV of the Companies Act. 1956. Depreciation on Addition/Deletion or Discarded Fixed Assets during the year is charged on monthly pro rata basis.

5. Investment:

Long-term investments are valued at cost.

6. Inventories:

Stock of raw materials and stores is valued at cost. Inventories of finished goods are valued at lower of costs or net realizable value inclusive of Excise Duty. Work in process is valued at cost representing material, labour and apportioned overheads as certified by the management. Other inventories are valued at cost.

7. Retirement Benefits:

Provident Fund : The Company has schemes of Retirement Benefits for provident Fund, in respect of which, the company's contribution are charged to Profit and Loss Account. The contributions towards Provident Fund are made to Statutory Authority.

Gratuity scheme: Liabilities for Gratuity is provided through a policy taken from Life Insurance Corporation of India (LIC) by an approved trust formed for the purpose. The contribution to the trust is made on the basis of actuarial valuation made by LIC to cover the year's liability and such contribution is charged to the Profit & Loss A/c.

Leave Encashment : Liability for leave encashment is provided in accordance with the rules of the company at prevailing salary rate for the entire unavailed leave balance as at the balance sheet date.

8. Foreign Currency Conversion :

Foreign currency transactions are recorded at the rates prevailing at the time or transaction. The exchange rate difference arising at the time of actual payment or receipt are recognized as Income or expense and transferred to exchange rate difference account, so far as revenue Items are concerned. Monetary assets and Monetary Liabilities relating to foreign currency transaction remaining unsettled at the end of the year are translated at the closing rates, and difference arising there from, If any, is transferred to profit & Loss Account.

9. Borrowing Cost:

Borrowing Cost attributable to acquisition and construction of qualifying Assets, which takes substantial period of time to get ready for its Intended use, are capitalized as part of the cost of respective assets up to the date when such asset is ready for its intended use. Borrowing cost for the borrowings taken for working of the company, i.e. on working capital liabilities are charged to revenue in the year, in which it is incurred on accrual basis.

10. Tax Expenses:

Tax Expenses include current tax & deferred tax have provided actual rates prevailing in the financial year as per Income tax act 1962.

Deferred Tax is recongnized on timing difference: being the difference between taxable Incomes and accounting Income that originate in one period and are reversible in one or more subsequent period.

Deferred tax Assets & Liabilities are provided on the basis of virtual certainty of business. However the rate for calculating differed tax has applied which is enacted in the subsequent financial year as per income tax act 1962.

11. Impairment of Assets:

At the end of the year management identified all the assets and reviewed fair value/market value of the assets which is compared to carrying value/value in use of the assets. If Fair Value of Market Value is less than carrying value/value in use of assets than impairment has been provided and if the Fair Value or Market Value is more than it's carrying value/value in use than no impairment provided in the books, Hence as per working said above at the end of the year impairment loss has been provided.

12. Financial Expenses:

Financial charges are charged to profit and loss account.

13. Product warranty expenses:

Product Warranty expenses has been accounted as and when actual liability is determined.

b) Details of Shareholders Holding more than 5% shares in the company.

There are no shareholders holding more than 5% shares in the company during the F.Y.2011 -12 & 2010-11.

c) Terms/rights attached to equity shares

The company has only class of equity shares having at par value of Rs.10 per share. On show hands, each holder of equity shares is entitled to one vote per share. On a poll the voting rights of a holder of equity shares shall be as specified in Section 87 of the Companies Act, 1956.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, During the year ended 31st March 2012 (as well as year ended 31st March 2011), company has not declared dividend.

If the company shall be wound up and the assets available for distribution among the members as such shall be distributed so that as nearly as may be the losses shall be borne by the members in proportion to the capital paid-up or which ought to have been paid-up at the commencement of the winding up on the shares held by them respectively. And if in a winding-up the assets available for distribution among the members shall be more than sufficient to repay the whole of the capital paid-up at the commencement of the winding-up the excess shall be distributed winding-up is paid-up or which to have been paid-up on the shares held by them respectively, But this Article is to be without prejudice to the rights of the holders of shares issued upon special terms and conditions.

d) Out of the unpaid call money of Rs.67,76,000/- as per previous year, company has received Rs. 6,12,000/- (PY Rs. 1,98,500/-) from shareholders upto 31st Mach 2012. The balance amount of Rs.61,64,000/-(PY 67,76,000/-) are shown as unpaid call money.(Directors and Officers unpaid call money is Rs. NIL) in the Balance sheet.

a) Inventories of Finished goods are valued at lower of cost or Net Realisable Value inclusive of excise duty, work in-process is valued at cost representing material, labour and apportioned overheads as certified by the management, Other inventories are valued at cost.