Hindustan Photo Films Manufacturing Company Ltd. कंपली की लेखा नीति

Mar 31, 2011

1. GENERAL:

The Financial statements are prepared under the historical cost convention and ongoing concern basis. These Statements have been prepared in accordance with applicable mandatory Account Standards and relevant presentational requirements of Companies Act 1956.

2. FIXED ASSETS:

1. Fixed Assets are valued on historical cost.

2. Land

The expenditure on development of land including leasehold land is capitalised as part of the cost of land.

3. INTANGIBLE ASSETS:

Patents are stated at cost of acquisition less accumulated amortization. Patents are amortised over a period not exceeding ten years on straight line basis.

4. DEPRECIATION:

i. Depreciation is provided on straight line basis with regard to assets existing as on 31.03.1987, at the rates specified in the Income Tax Act, 1961 and in respect of assets acquired thereafter, at the rates prescribed in the Schedule - XIV of the Companies Act, 1956. Depreciation is charged on pro-rata basis in respect of additions.

ii. Asset costing less than 5000/- are depreciated at 100%.

iii. Extra shift depreciation is charged on different departments / units working extra shifts in respect of old plant and on single shift basis on polyester plant.

5. INVESTMENTS:

Investments are valued at Cost.

6. CURRENT ASSETS, LOANS AND ADVANCES:

a. Valuation of Inventories

Stores and Spares : At Cost

Loose tools : At Cost Less Depreciation

Raw Materials : At Cost

Imported jumbo raw materials : At Cost or Net Realisable Value whichever is lower

Reclaimable scrap/Anode slime : At Net Realisable Value

Process stock : At Cost or Market value whichever is lower

Finished goods : At Cost or Net Realisable Value whichever is lower

b. Closing stock of Raw materials are valued by including all direct cost incurred in connection with bringing it to the present location. Selling prices (net of discount) as reduced by costs to completion have been adopted in arriving at "net realisable values".

c. Finance charges and administrative overheads are excluded in computing the cost of finished goods and work-in-progress.

d. i. The inventories are valued on FIFO basis except silver content of work-in-progress and scrap which are valued on Quarterly moving average method.

ii. The finished goods as at the end of the year have been taken into account as per the physical verification and the excess /shortage between the physical inventory and the stock records have been suitably adjusted in the accounts. Provision for non-moving materials (obsolete/surplus items, Stores & Spare Parts and Raw Materials) have been made for more than five years old.

iii. The Octroi Duty paid on finished goods is treated as recoverable i.e. as deferred charges in as much as it has not been included in the selling price or in the value of inventories. The Octroi Duty recoverable on duty paid goods lying as Closing Stock is calculated by applying the rate of duty and price prevailing as at the end of the year.

7. SUNDRY DEBTORS:

Sundry Debtor's include Trade Debtors for goods supplied and services rendered.

8. CLAIMS:

i. Sums paid on account of statutory requirements or otherwise but are under dispute are treated as claims recoverable from the concerned authorities on the merits of each case.

ii. Insurance and other claims are treated as recoverable when the claim is preferred and the same is adjusted in the year of settlement

9. RETIREMENT BENEFITS:

i. The company contributed an amount equal to the premium for the policy taken with Life Insurance Corporation, to the Gratuity Trust for onward payment to the Life Insurance Corporation. The Company has taken a policy with LIC of India to cover the Gratuity liability.

ii. Leave Encashment benefit on retirement of employees is accounted on actuarial basis, as per Accounting Standard (AS.15) prescribed by the Institute of Chartered Accountants of India.

iii. Since the Government has suspended the facility of LTC for the employees of Central Government Public Sector Enterprises where wage revision is still pending from 1.1.1992 or 1.1.1997, provision for LTC has not been made during the year.

10. EXCHANGE DIFFERENCES:

i. Foreign Currency Balances (Revenue & Capital) / Loans have been realigned on the basis of exchange rate prevailing as on the date of Balance Sheet.

ii. The exchange differences arising out of current liabilities and current assets are recognized in the Revenue Account

11. MATERIAL COST:

i. The import duty payable on imported materials is accounted on accrual basis. ii. The Excise Duty and Modvat Relief are considered as elements of cost.

12. EMPLOYEE COST:

The Company recognises the liability towards revision or raise in the pay and allowance of its employees in the year in which the government approves the same or notifies to the company.

13. PRIOR PERIOD ITEM:

Expenditure / Income pertaining to prior year(s) is classified as prior period item, only in case where the amount exceeds Rs. 1,00,000/-.

14. EXCISE DUTY:

Excise Duty is accounted for, on clearance of goods and sales includes Excise duty. Such treatment does not affect profitability.

15. REVENUE RECOGNITION:

i. Revenue is recognised on sale of goods, provided the property in the goods is transferred for a price and all significant risks and ownership have been transferred to the buyer and no effective control is retained over the goods transferred, and no significant uncertainty exists regarding collection of consideration that would be derived.

ii. Revenue is recognised in respect of rendering of services provided no significant uncertainty exists regarding the collect ability of consideration that would be derived.

iii. Revenue arising from the use of Company's resources by others is recognised provided no significant uncertainty exists regarding collect ability of the consideration that would be derived.

iv. The sales value includes discount and commissions based on the total realization value. The discount and commissions are booked as expenditures separately.

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Mar 31, 2010

1. GENERAL:

The Financial statements are prepared under the historical cost convention and ongoing concern basis. These Statements have been prepared in accordance with applicable mandatory Account Standards and relevant presentational requirements of Companies Act 1956.

2. FIXED ASSETS:

1. Fixed Assets are valued on historical cost.

2. Land

The expenditure on development of land including leasehold land is capitalised as part of the cost of land.

3. INTANGIBLE ASSETS:

Patents are stated at cost of acquisition less accumulated amortization. Patents are amortised over a period not exceeding ten years on straight line basis.

4. DEPRECIATION:

i. Depreciation is provided on straight line basis with regard to assets existing as on 31.03.1987, at the rates specified in the Income Tax Act, 1961 and in respect of assets acquired thereafter, at the rates prescribed in the Schedule - XIV of the Companies Act, 1956. Depreciation is charged on pro-rata basis in respect of additions. ii. Asset costing less than Rs. 5000/- are depreciated at 100%.

iii. Extra shift depreciation is charged on different departments / units working extra shifts in respect of old plant and on single shift basis on polyester plant.

5. INVESTMENTS:

Investments are valued at Cost.

6. CURRENT ASSETS, LOANS AND ADVANCES:

a. Valuation of Inventories

Stores and Spares : At Cost

Loose tools : At Cost Less Depreciation

Raw Materials At Cost

Imported jumbo raw materials : At Cost or Net Realisable Value whichever is lower

Reclaimable scrap/Anode slime : At Net Realisable Value

Process stock At Cost or Market value whichever is lower

Finished goods : At Cost or Net Realisable Value whichever is lower

b. Closing stock of Raw materials are valued by including all direct cost incurred in connection with bringing it to the present location. Selling prices (net of discount) as reduced by costs to completion have been adopted in arriving at "net realisable values".

c. Finance charges and administrative overheads are excluded in computing the cost of finished goods and work-in-progress.

d. i. The inventories are valued on FIFO basis except silver content of work-in-progress and scrap which are valued on Quarterly moving average method.

ii. The finished goods as at the end of the year have been taken into account as per the physical verification and the excess / shortage between the physical inventory and the stock records have been suitably adjusted in the accounts.

iii. The Octroi Duty paid on finished goods is treated as recoverable i.e. as deferred charges in as much as it has not been included in the selling price or in the value of inventories. The Octroi Duty recoverable on duty paid goods lying as Closing Stock is calculated by applying the rate of duty and price prevailing as at the end of the year.

7. SUNDRY DEBTORS:

Sundry Debtors include Trade Debtors for goods supplied and services rendered.

8. CLAIMS:

i. Sums paid on account of statutory requirements or otherwise but are under dispute are treated as claims recoverable from the concerned authorities on the merits of each case.

ii. Insurance and other claims are treated as recoverable when the claim is preferred and the same is adjusted in the year of settlement

9. RETIREMENT BENEFITS:

i. The Company contributed an amount equal to the premium for the policy taken with Life Insurance

Corporation, to the Gratuity Trust for onward payment to the Life Insurance Corporation. The Company has taken a policy with LIC of India to cover the Gratuity liability.

ii. Leave Encashment benefit on retirement of employees is accounted on actuarial basis, as per Accounting Standard (AS.15) prescribed by the Institute of Chartered Accountants of India.

iii. Since the Government has suspended the facility of LTC for the employees of Central Government Public Sector Enterprises where wage revision is still pending from 1.1.1992 or 1.1.1997, provision for LTC has not been made during the year.

10. EXCHANGE DIFFERENCES:

i. Foreign Currency Balances (Revenue & Capital) / Loans have been realigned on the basis of exchange rate prevailing as on the date of Balance Sheet.

ii. The exchange differences arising out of current liabilities and current assets are recognized in the Revenue Account

11. MATERIAL COST:

i. The import duty payable on imported materials is accounted on accrual basis. ii. The Excise Duty and Modvat Relief are considered as elements of cost.

12. EMPLOYEE COST:

The Company recognises the liability towards revision or raise in the pay and allowance of its employees in the year in which the government approves the same or notifies to the Company.

13. PRIOR PERIOD ITEM:

Expenditure / income pertaining to prior year(s) is classified as prior period item, only in case where the amount exceeds £ 1,00,000/-.

14.EXCISE DUTY:

Excise Duty is accounted for, on clearance of goods and sales includes Excise duty. Such treatment does not affect profitability. 15. REVENUE RECOGNITION: i. Revenue is recognised on sale of goods, provided the property in the goods is transferred for a price and all significant risks and ownership have been transferred to the buyer and no effective control is retained over the goods transferred, and no significant uncertainty exists regarding collection of consideration that would be derived. ii. Revenue is recognised in respect of rendering of services provided no significant uncertainty exists regarding the collectability of consideration that would be derived.

iii. Revenue arising from the use of Companys resources by others is recognised provided no significant uncertainty exists regarding collectability of the consideration that would be derived. iv. The sales value includes discount and commissions based on the total realization value. The discount and commissions are booked as expenditures separately.

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Mar 31, 2009

1. GENERAL:

The Financial statements are prepared under the historical cost convention and ongoing concern basis. Thesi Statements have been prepared in accordance with applicable mandatory Accounting Standards and relevan presentational requirements of Companies Act 1956.

2. FIXED ASSETS:

1. Fixed Assets are valued on historical cost.

2. Land

The expenditure on development of land including leasehold land is capitalised as part of the cost of land.

3. INTANGIBLE ASSETS:

Patents are stated at cost of acquisition less accumulated amortization.

Patents are amortised over a period not exceeding ten years on straight line basis.

4. DEPRECIATION :

i. Depreciation is provided on straight line basis with regard to assets existing as on 31.03.1987, at the rates specified in the Income Tax Act, 1961 and in respect of assets acquired thereafter, at the rates prescribed in the Schedule - XIV of the Companies Act, 1956. Depreciation is charged on pro-rata basis in respect of additions.

ii. Asset costing less than Rs.5000/- are depreciated at 100%.

iii. Extra shift depreciation is charged on different departments / units working extra shifts in respect of old plant and on single shift basis on polyester plant.

5. INVESTMENTS :

Investments are valued at Cost.

6. CURRENT ASSETS, LOANS AND ADVANCES:

i. Valuation of Inventories

a. Stores and Spares At Cost

Loose tools At Cost Less Depreciation

Raw Materials At Cost

Imported jumbo raw materials At Cost or Net Realisable value whichever is lower

Reclaimable scrap/Anode slime : At Net Realisable Value

Process stock At Cost or Market value whichever is lower

Finished goods : At Cost or Net Realisable Value whichever is lower

a. Closing stock of Raw materials are valued by including all direct cost incurred in connection with bringing it to the present location. Selling prices (net of discount) as reduced by costs to completion have been adopted in arriving at "net realisable values".

b. Finance charges and administrative overheads are excluded in computing the cost of finished goods and work-in-progress.

c. i. The inventories are valued on FIFO basis except silver content of work-in-progress and scrap which are valued on Quarterly moving average method.

d. i. The finished goods as at the end of the year have been taken into account as per the physical verification and the excess / shortage between the physical inventory and the stock records have been suitably adjusted in the accounts. Provision for non-moving materials (obsolete/surplus items, Stores & Spare Parts and Raw Materials) have been made for more than five years old.

ii. The Octroi Duty paid on finished goods is treated as recoverable i.e. as deferred charges in as much as it has not been included in the selling price or in the value of inventories. The Octroi Duty recoverable on duty paid goods lying as Closing Stock is calculated by applying the rate of duty and price prevailing as at the end of the year.

7. SUNDRY DEBTORS :

Sundry Debtors include Trade Debtors for goods supplied and services rendered. Outstanding balances of Sundry Debtors are reviewed periodically and due provision is made for debts considered doubtful of recovery for outstandings for more than 3 years.

8. CLAIMS:

i. Sums paid on account of statutory requirements or otherwise but are under dispute are treated as claims recoverable from the concerned authorities on the merits of each case.

ii. Insurance and other claims are treated as recoverable when the claim is preferred and the same is adjusted

in the year of settlement

9. RETIREMENT BENEFITS:

i. The company contributed an amount equal to the premium for the policy taken with Life Insurance Corporation, to the Gratuity Trust for onward payment to the Life Insurance Corporation. The Company has taken a policy with LIC of India to cover the Gratuity liability.

ii. Leave Encashment benefit on retirement of employees is accounted on actuarial basis, as per Accounting Standard (AS. 15) prescribed by the Institute of Chartered Accountants of India.

iii. Since the Government has suspended the facility of LTC for the employees of Central Government Public Sector Enterprises where wage revision is still pending from 1.1.1992 or 1.1.1997, provision for LTC has not been made during the year.

10. EXCHANGE DIFFERENCES:

i. Foreign Currency Balances (Revenue & Capital) / Loans have been realigned on the basis of exchange rate prevailing as on the date of Balance Sheet.

ii. The exchange differences arising out of current liabilities and current assets are recognized in the Revenue Account

11. MATERIAL COST:

i. The import duty payable on imported materials is accounted on accrual basis. ii. The Excise Duty and Modvat Relief are considered as elements of cost.

12. EMPLOYEE COST:

The Company recognises the liability towards revision or raise in the pay and allowance of its employees in the year in which the government approves the same or notifies to the company.

13. PRIOR PERIOD ITEM:

Expenditure / Income pertaining to prior year(s) is classified as prior period item, only in case where the amount exceeds Rs.1, 00,000/-.

14. EXCISE DUTY:

Excise Duty is accounted for, on clearance of goods and sales includes Excise duty. Such treatment does not affect profitability.

15. REVENUE RECOGNITION:

i. Revenue is recognised on sale of goods, provided the property in the goods is transferred for a price and all significant risks and ownership have been transferred to the buyer and no effective control is retained over the goods transferred, and no significant uncertainty exists regarding collection of consideration that would be derived.

ii. Revenue is recognised in respect of rendering of services provided no significant uncertainty exists regarding the collectability of consideration that would be derived.

iii. Revenue arising from the use of Companys resources by others is recognised provided no significant uncertainty exists regarding collectability of the consideration that would be derived.

iv. The sales value includes discount and commissions based on the total realization value. The discount and commissions are booked as expenditures separately.