Jalpac India Ltd. कंपली की लेखा नीति

Mar 31, 2013

1.1 The company follows the Mercantile System of Accounting and recognizes Income and Expenditure on Accrual basis. Accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to otherwise are in consonance with generally accepted accounting principles.

1.2 The preparation of financial statements in conformity with generally accepted accounting principles requires manage- ment to make estimates and assumptions in certain circumstances, affecting amounts reported in these financial statements and related notes. Actual results could differ from these estimates.

1.3 Sales are recognized when goods are dispatched from the factory and are recorded net of discounts/ claims, rebates and sales tax, but include excise duty, job work, export incentives such as duty draw-back and premium/loss on sale of

D.E.P.B. credits.

1.4 Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses. Where the recoverable amount of the fixed assets is lower than its carrying amount a provision is made for the impairment loss. Post impairment depreciation is provided on the revised carrying value of the assets over its remaining useful life.

1.5 Expenditure during construction period is included under capital work-in-progress and the same are allocated to the respective fixed assets on the completion of the construction period. Administrative and other expenses (including interest) during construction/implementation of the projects / expansion are allocated to the different projects/centre''s as per allocation made by the Management.

1.6 Borrowing cost incurred is charged to Profit & Loss account of the year in which it is incurred, except interest on borrowing for qualifying fixed assets which is capitalized up to the date when such assets are ready for its intended use.

1.7 Foreign currency transactions are recorded in the books by applying the exchange rate as on the date of transaction. Monetary Assets and Liabilities related to foreign currency transactions remaining unsettled are translated at exchange rate prevailing at year end. The difference in translation of monetary assets and liabilities are recognized in profit & loss account.

1.8 Long Term Investments are stated at cost less provision for diminution in value other than temporary in nature.

1.9 Inventories are valued at lower of cost and net realizable value (except waste /scrap which is valued at net realizable value). The cost is computed on weighted average basis. Finished goods and process stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

1.10 Depreciation on fixed assets is provided on Straight Line Method at the rates given in Schedule XIV of the Companies Act, 1956. In respect of assets added/disposed off during the year depreciation is provided on prorate basis with reference to the month of addition/disposal. Continuous process plant as defined in Schedule XIV has been considered on technical evaluation.

1.11 Grants from the Government relating to fixed assets are shown as a deduction from gross value of fixed assets and those in the nature of project capital subsidy are credited to capital reserve. Other Government grants including incentives, duty drawbacks, etc., are credited to Profit & Loss Account or deducted from related expenses.

1.12 Provision for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with Income Tax Act, 1961. In accordance with the Accounting Standard-22, (Accounting for Taxes on Income), as notified under the Companies (Accounting Standards) Rules, 2006, deferred tax resulting from timing differences between book and tax profits is accounted for, at the prevailing rate of tax, to the extent that the timing differences are expected to crystallize.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is a virtual certainty supported by convincing evidence that such assets will be realized. Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization.

1.13 Defined Contribution Plans: Company''s contributions paid/payable during the year to Provident Fund is considered as defined contribution plan and the contributions are recognized in the Profit and Loss of the year when the contribution to the respective funds are due. There are no other obligations other than the contributions payable to the respective trusts/authorities.

Defined Benefit Plans: Company''s liabilities towards gratuity and leave encashment are provided for on the basis of actuarial valuation determined using the projected unit credit method as at the balance sheet date. Liability in respect of Gratuity to workers is funded with LIC.

Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

1.14 Contingent Liabilities if material disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements .A provision is recognized when an enterprises has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation (s), in respect of which a reliable estimate can be made for the amount of obligation.

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Mar 31, 2010

1. The company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual basis. Accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to otherwise are in consonance with generally accepted accounting principles.

2. Sales are recognised when goods are dispatched from the factory and are recorded net of discpunts/ claims, rebates and sales tax, but include excise duty, job work, export incentives such as duty draw-back and premium/loss on sale of D.E.P.B. credits.

3 Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses. Where the recoverable amount of the fixed assets is lower than its carrying amount a provision is made for the impairment loss. Post impairment depreciation is provided on the revised carrying value of the assets over its remaining useful life.

4 Expenditure during construction period are included under capital work-in-progress and the same are allocated to the respective fixed assets on the completion of the construction period. Administrative and other expenses (including interest) during construction/implementation of the projects /expansion are allocated to the different projects/centres as per allocation made by the Management.

5 Borrowing cost incurred is charged to Profit & Loss account of the year in which it is incurred, except interest on borrowing for qualifying fixed assets which is capitalised upto the date when such assets are ready for its intended use.

6 Foreign currency transactions are recorded in the books by applying the exchange rate as on the date of transaction. Monetary Assets and Liabilities related to foreign currency transactions remaining unsettled are translated at exchange rate prevailing at year end. The difference in translation of monetary assets and liabilities are recognized in profit & loss account.

7 Long Term Investments are stated at cost less provision for diminution in value other than temporary in nature.

8 Inventories are valued at lower of cost and net realizable value except waste /scrap which is valued at net realizable value. The cost is computed on weighted average basis. Finished goods and process stock include cost of conversion and other costs incurred in bringing the inventories td their present location and condition.

9 Depreciation on fixed assets is provided on Straight Line Method at the rates given in Schedule XIV of the Companies Act, 1956. In respect of assets added/disposed off during the year depreciation is provided on prorata basis with reference to the month of addition/disposal. Continuous process plant as defined in Schedule XIV has been considered on technical evaluation.

10 Grants from the Government relating to fixed assets are shown as a deduction from gross value of fixed assets and those in. the nature of project capital subsidy are credited to capital reserve. Other Government grants including incentives, duty drawbacks, etc., are credited to Profit & Loss Account or deducted from related expenses.

11 Provision for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with Income Tax Act, 1961. In accordance with the Accounting Standard-22, (Accounting for Taxes on Income), as notified under the Companies (Accounting Standards) Rules, 2006, deferred tax resulting from timing differences between book and tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

12 Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is a virtual certainty supported by convincing evidence that such assets will be realized. Deferred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization.

13 Defined Contribution Plans: Companys contributions paid/payable during the year to Provident Fund is considered as defined contribution plan and the contributions are recognized in the Profit and Loss of the year when the contribution to the respective funds are due. There are no other obligations other than the contributions payable to the respective trusts/authorities.

Defined Benefit Plans: Companys liabilities towards gratuity and leave encashment are provided for on the basis of actuarial valuation determined using the projected unit credit method as at the balance sheet date. Liability in respect of Gratuity to workers is funded with LIC.

Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

14. Contingent Liabilities if material disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements .A provision is recognised when an enterprises has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation (s), in respect of which a reliable estimate can be made for the amount of obligation.