MTZ Polyfilms Ltd. कंपली की लेखा नीति

Mar 31, 2010

Not Available

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Mar 31, 2009

1. Nature of Operations

The Company is engaged in the manufacture and sale of PET Fiim.

2. Basis of Preparation of Financial Statements

(a) The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

(b) The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

3. Fixed Assets

Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price (net of rebates and discounts), import duties, levies (net of CENVAT and VAT) and any directly attributable cost(s) of bringing the assets to their working condition for intended use.

4. Recognition of Income and Expenditure

(a) Revenue/Income and cost/expenditure are generally accounted on accrual basis as they are earned or incurred.

(b) CENVAT Credit is accounted for on accrual basis (except in case of capital items) at the time of receipt of input material in the factory.

(c) Sales are inclusive of Excise Duty and Taxes.

5. Research and Development

Research and Development expenses are charged to revenue in the year in which they are incurred. Capital expenditure on Research and Development is treated as addition to Fixed Assets

6. Depreciation

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

7. Investments

Investments are stated at cost of acquisition less provision for diminution in value, if such diminution is other than temporary in nature.

8. Inventories

(a) Raw Materials

At cost on FIFO basis.

(b) Stores and Spares

At cost on FIFO basis.

(c) Stock-in-Process At estimated cost.

(d) Finished Goods

At cost or market value, whichever is lower.

9. Foreign Currency Transactions

Foreign Currency Transactions are normally recorded at the exchange rate prevailing at the time of the transactions. Assets and liabilities represented in foreign currency as at the date of the Balance Sheet have been restated at the exchange rate prevailing on such date. Gains or losses arising on settlement of transactions/re-statement of assets or liabilities have been charged to the Profit and Loss Account or capitalized as part of the asset cost, depending on the nature of transactions.

10. Retirement Benefits

Provision for Gratuity and Leave Encashment is made on the basis of actuarial valuation at the end of the year in conformity with Accounting Standard-15, Accounting for Retirement Benefits of Employees.

Contribution to Provident Fund is accounted for on accrual basis.

11. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction 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 intended use. However, in the case of a qualifying asset, the active development of which is interrupted for an extended period, the capitalization of borrowing costs is suspended and charged to the Profit and Loss Account.

12. Related Party Transactions

Tne Company has entered into transactions with related parties within the meaning of Accounting Standard-18, Related Party Disclosures. The Company has also entered into transactions with Key Management Personnel in their capacity as employees of the Company. Details of transactions are furnished in the Notes to Accounts.