Mar 31, 2014
A) Basis of preparation of financial Statements
The Accounts have been prepared to comply in all material aspects with
applicable accounting principles in India, the applicable Accounting
Standards notified under Section 211(3c) of the Companies Act, 1956 and
the relevant provisions thereof.
The company follows the mercantile system of accounting and recognizes
the income and expenditure on the accrual system.
All 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 Revised Schedule-VI to the Companies Act, 1956.
Based on the nature of products and the time between acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current/ non-current classification of assets
and liabilities.
b) Use of Estimates
The preparation of consolidated financial statements in conformity with
the generally accepted accounting principles (''GAAP'') IN India requires
management to make estimates and assumptions that affect the reported
amounts of income and expenses of the period, assets and liabilities
and disclosures relating to contingent liabilities as of the date of
the consolidated financial statements. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in future periods.
c) Tangible fixed assets
Fixed Assets have been stated at cost net of Cenvat credit less
accumulated depreciation. Cost of acquisition or construction is
inclusive of direct cost, incidental expenses and borrowing cost
related to such acquisition or construction.
d) Depreciation on tangible fixed assets
Depreciation on fixed assets is provided on written down value method
at the rates and in the manner prescribed in schedule- XIV of the
Companies Act, 1956 except the Plant and Machinery and Dies and Moulds
purchased by parent company Polycon International Limited during the
period from 01-04-2006 to 31-03-2009 and the same were transferred in
pursuance to scheme of Demerger to Demerged company Vinayak Polycon
International Limited. - Straight Line Method at all the units.
Additions/deletions to fixed assets during the year are being
depreciated on prorate from the date on which such assets are being
capitalized/deleted.
e) Impairment of tangible assets
Impairment loss is provided to the extent that the carrying amount(s)
of assets exceed their recoverable amount(s). Recoverable amount is
the higher of an asset''s net selling price and its value in use. Value
in use is the present value of estimated future cash-flows expected to
arise from the continuing use of the asset and from its disposal at the
end of its useful life. Net selling price is the amount obtainable from
sale of the asset in an arm''s length transaction between knowledgeable,
willing parties, less the costs of disposal.
f) Investments
Investment are stated at cost.
g) Inventories
Inventories are valued at lower of cost or net realizable value as per
stock taken, verified, valued and certified by the management.
h) Revenue Recognition
I ) sales are recognised when the substantial risks and rewards of
ownership in the goods are transferred to the buyer, upon supply of
goods, and are recorded net of trade discounts, rebates, sales taxes
and excise duties (on goods manufactured and outsourced). It does not
include inter-divisional transfers.
II) Interest is recognized using the time proportion method.
III) Other items of income are accounted as and when right to receive
arise.
i) Expenditure
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities.
j) Retirement and other employee benefits
The Company contributes towards Provident fund and Family pension fund
which are defined contribution schemes. Liability in respect thereof is
determined on the basis of contribution required to be made under the
statutes/rules.
Gratuity Liability, a defined benefit scheme, and provision for
compensated absences is accrued and provided for on the basis of
actuarial valuations made at the year end.
k) Borrowing costs
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. all
other borrowing costs are charged to revenue.
l) Taxes on Income
Tax expense comprises of both current and deferred tax at the
applicable enacted/substantively enacted rates. Current tax represents
the amount of income-tax payable/recoverable in respect of the taxable
income/loss for the reporting period. Deferred tax represents the
effect of timing differences between taxable income and accounting
income for the reporting period that originate in one period and are
capable of reversal in one or more subsequent periods.
m) Provisions and contingencies
A provision is recognized when the Company has a legal and constructive
obligation as a result of a past event, for which it is probable that
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. A contingent liability is disclosed when
the Company has a possible or present obligation where it is not
probable that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
n) Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transactions. Foreign Currency Liabilities
are stated at rates prevailing at the year end if any. Any other
exchange differences are recognized as revenue item.
o) Cenvat Credit/Value Added Tax
Cenvat/Value Added tax benefit is accounted for by reducing the
purchase cost of material/fixed assets.
1.1) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs. 10. the equity shares have rights, preferences and restrictions
which are in accordance with the provisions of law, in particular the
Companies Act, 1956
Mar 31, 2013
A) Basis of preparation of financial Statements
The Accounts have been prepared to comply in all material aspects with
applicable accounting principles in India, the applicable Accounting
Standards notified under Section 211(3c) of the Companies Act, 1956 and
the relevant provisions thereof.
All assets and liabilities have been classified as current or
non-current as per the CompanyÂs normal operating cycle and other
criteria set out in Revised Schedule-VI to the Companies Act, 1956.
Based on the nature of products and the time between acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current/ non-current classification of assets
and liabilities.
b) Use of Estimates
The preparation of consolidated financial statements in conformity with
the generally accepted accounting principles (ÂGAAPÂ) IN India
requires management to make estimates and assumptions that affect the
reported amounts of income and expenses of the period, assets and
liabilities and disclosures relating to contingent liabilities as of
the date of the consolidated financial statements. Actual results could
differ from those estimates. Any revision to accounting estimates is
recognised prospectively in future periods.
c) Tangible fixed assets
Fixed Assets have been stated at cost net of Convert credit less
accumulated depreciation. Cost of acquisition or construction is
inclusive of direct cost, incidental expenses and borrowing cost
related to such acquisition or construction.
d) Depreciation on tangible fixed assets_
Depreciation on fixed assets is provided on written down value method
at the rates and in the manner prescribed in schedule-XIV of the
Companies Act, 1956 except the Plant and Machinery and Dies and Moulds
purchased by parent company Polycon International Limited during the
period from 01 -04-2006 to 31 -03-2009 and the same were transferred in
pursuance to scheme of Demerger to Demerged company Vinayak Polycon
International Limited. - Straight Line Method at all the units.
Additions/deletions to fixed assets during the year are being
depreciated on prorate from the date on which such assets are being
capitalized/deleted.
e) Impairment of tangible assets
Impairment loss is provided to the extent that the carrying amount(s)
of assets exceed their recoverable amount(s). Recoverable amount is
the higher of an assetÂs net selling price and its value in use.
Value in use is the present value ol estimated future cash-flows
expected to arise from the continuing use of the asset and from its
disposal at the end ol its useful life. Net selling price is the amount
obtainable from sale of the asset in an armÂs length transaction
between knowledgeable, willing parties, less the costs of disposal.
f) Investments
Investment are stated at cost.
g) Inventories
Inventories are valued at lower of cost or net realizable value as per
stock taken, verified, valued and certified by the management.
h) Revenue Recognition
sales are recognised when the substantial risks and rewards of
ownership in the goods are transferred to the buyer, upon supply of
goods, and are recorded net of trade discounts, rebates, sales taxes
and excise duties (on goods manufactured and outsourced). It does not
include inter- divisional transfers.
i) Expenditure
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities.
j) Retirement and other employee benefits
The Company contributes towards Provident fund and Family pension fund
which are defined contribution schemes. Liability in respect thereof is
determined on the basis of contribution required to be made under the
statutes/rules.
Gratuity Liability, a defined benefit scheme, and provision for
compensated absences is accrued and provided for on the basis of
actuarial valuations made at the year end.
k) Borrowing costs
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. all other
borrowing costs are charged to revenue.
l) Taxes on Income
Tax expense comprises of both current and deferred tax at the
applicable enacted/substantively enacted rates. Current tax represents
the amount of income-tax payable/recoverable in respect of the taxable
income/loss for the reporting period. Deferred tax represents the
effect of timing differences between taxable income and accounting
income for the reporting period that originate in one period and are
capable of reversal in one or more subsequent periods.
m) Provisions and contingencies
A provision is recognized when the Company has a legal and constructive
obligation as a result of a past event, for which it is probable that
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. A contingent liability is disclosed when
the Company has a possible or present obligation where it is not
probable that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
n) Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transactions. Foreign Currency Liabilities
are stated at rates prevailing at the yearend if any. Any other
exchange differences are recognized as revenue item.
o) Convert Credit/Value Added Tax
Convert/Value Added tax benefit is accounted for by reducing the
purchase cost of material/fixed assets.
Mar 31, 2012
A) Basis of preparation of financial Statements
The Accounts have been prepared to comply in all material aspects with
applicable accounting principles in India' the applicable Accounting
Standards notified under Section 211 (3c) of the Companies Act' 1956
and the relevant provisions thereof.
All 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 Revised Schedule-VI to the Companies Act' 1956.
Based on the nature of products and the time between acquisition of
assets for processing and their realisation in cash and cash
equivalents' the Company has ascertained its operating cycle as 12
months for the purpose of current/non- current classification of assets
and liabilities.
b) Use of Estimates
The preparation of consolidated financial statements in conformity with
the generally accepted accounting principles
- ('GAAP') IN India requires management to make estimates and
assumptions that affect the reported amounts of income and expenses of
the period' assets and liabilities and disclosures relating to
contingent liabilities as of the date of the consolidated financial
statements. Actual results could differ from those estimates. Any
revision to accounting estimates is recognised prospectively in future
periods.
c) Tangible fixed assets
Fixed Assets have been stated at cost net of Cenvat credit less
accumulated depreciation. Cost of acquisition or construction is
inclusive of direct cost' incidental expenses and borrowing cost
related to such acquisition or construction.
d) Depreciation on tangible fixed assets
Depreciation on fixed assets is provided on written down value method
at the rates and in the manner prescribed in schedule-XIV of the
Companies Act' 1956 except the Plant and Machinery and Dies and Moulds
purchased by parent company Polycon International Limited during the
period from 01-04-2006 to 31-03-2009 and the same were transferred in
pursuance to scheme of Demerger to Demerged company Vinayak Polycon
International Limited. - Straight Line Method at all the units.
Additions/deletions to fixed assets during the year are being
depreciated on prorate from the date on which such assets are being
capitalized/deleted.
e) Impairment of tangible assets
Impairment loss is provided to the extent that the carrying amount(s)
of assets exceed their recoverable amount(s). Recoverable amount is
the higher of an asset's net selling price and its value in use. Value
in use is the present value of estimated future cash-flows expected to
arise from the continuing use of the asset and from its disposal at the
end of its useful life. Net selling price is the amount obtainable from
sale of the asset in an arm's length transaction between knowledgeable'
willing parties' less the costs of disposal.
f) Investments Investment are stated at cost.
g) Inventories
Inventories are valued at lower of cost or net realizable value as per
stock taken' verified' valued and certified by the management.
h) Revenue Recognition
Sales are recognised when the substantia! risks and rewards of
ownership in the goods are transferred to the buyer' upon supply of
goods' and are recorded net of trade discounts' rebates' sales taxes
and excise duties (on goods manufactured and outsourced). It does not
include inter- divisional transfers.
i) Expenditure
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities.
j) Retirement and other employee benefits
The Company contributes towards Provident fund and Family pension fund
which are defined contribution schemes. Liability in respect thereof is
determined on the basis of contribution required to be made under the
statutes/rules. Gratuity Liability' a defined benefit scheme' and
provision for compensated absences is accrued and provided for on the
basis of actuarial valuations made at the year end.
k) Borrowing costs
Borrowing costs that are attributable to the acquisition' construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. all other
borrowing costs are charged to revenue.
I) Taxes on Income
Tax expense comprises of both current and deferred tax at the
applicable enacted/substantively enacted rates. Current tax represents
the amount of income-tax payable/recoverable in respect of the taxable
income/loss for the reporting period. Deferred tax represents the
effect of timing differences between taxable income and accounting
income for the reporting period that originate in one period and are
capable of reversal in one or more subsequent periods.
m) Provisions and contingencies
A provision is recognized when the Company has a legal and constructive
obligation as a result of a past event' for which it is probable that
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. A contingent liability is disclosed when
the Company has a possible or present obligation where it is not
probable that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
n) Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transactions. Foreign Currency Liabilities
are stated at rates prevailing at the year end if any. Any other
exchange differences are recognized as revenue item.