Parasrampuria Synthetics Ltd. कंपली की लेखा नीति

Mar 31, 2015

1. Preparation & disclosure of financial statements

The Company has adopted schedule 111 of Companies Act, 2013 for preparation and presentation of its Financial Statements.

2. General

The accounts have been prepared on historical cost convention, in accordance with disclosure requirements of the Companies Act, 2013 and on going concern basis.

3. Revenue Recognition

a) Income and Expenditure are accounted for on accrual basis

b) Sales include Excise Duty, and are net of returns, rebates & discounts and Sales tax. Sale of Scrap/ Unusable Waste has been accounted for as and when realized.

c) Insurance claims are booked on the basis of best estimates/loss as surveyed/assessed. d) Job Work Income is recognized on the basis of actual production.

4. Foreign Exchange Transaction

a) Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

b) Current Assets and Current Liabilities denominated in Foreign Currency and outstanding at the end of the year, are converted at the exchange rate prevailing at the year end.

c) Gains and losses on foreign exchange transactions are recognised in respective heads of accounts of Statement of Profit & Loss on the basis of exchange rate prevailing at the year end.

5. Inventories

a) Inventories of finished goods, goods in process, by-products, raw materials and store & spares are valued at lower of cost or net realisable value.

b) Valuation of finished goods lying in excise godowns is done including Excise Duty,

c) For the material lying in custom warehouse, no provision for custom duty and other related expenses is made.

6. Investments

Long Term Investments are stated at cost. Any diminution in value, other than temporary, is duly accounted for. Current Investments are valued at lower of cost or market value/fair values.

7. Fixed Assets

a) Fixed Assets are stated at historical cost which includes expenditure incurred on acquisition, construction and/or installation and other financial cosidirectly attributable to such assets up to the date of commencement of commercial production.

b) Expenses relating to leased assets prior to commencement of production to the extent not financed by Leasing Company, including pre-lease charges, are capitalised.

8. Depreciation

a) Depreciation has been provided as per Written down Value Method at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013 except in respect of the following assets, where useful life is different than those prescribed in Schedule II are used.

Particular Depreciation

* Premium on Lease hold Land Over the period of Lease Term

Due to transition from schedule XIV to schedule II, depreciation on assets existing as on 31.03.2014, has been provided in such a way so that assets should be depreciated after considering salvage value of five percent of original cost of the assets over a useful life of assets as prescribed under schedule II of the companies Act, 2013.

Assets of which useful life has already been expired but depreciation charged till previous financial year was less than 95% of original cost of the assets, difference of 95% of Original Cost and depreciation charged till last year, has been charged to profit and loss account as depreciation.

Assets on which depreciation has already been Charged above of 95% of Original Cost of the assets till previous financial year and written down value of the assets is less than 5% of Original Cost, salvage value has been considered remaining WDV as on first day of current financial year.

b) The assets which have reached 5% of their book value are not depreciated further and are carried forward at the same value.

c) Depreciation on the amount of adjustment made to the Fixed Assets on account of Foreign Exchange Fluctuation is provided for over the remaining useful life of the assets.

9. Preoperative Expenditure

a) Expenditure incurred during construction period (net of income, if any) on new projects is carried forward as Preoperative Expenditure and is allocated to Fixed Assets on achievement of commercial production of project in the ratio of respective cost of various categories of fixed assets.

b) Interest paid on funds borrowed for on-going projects specifically and others is carried forward as Pre-operative Expenditure for projects pending commercial production and capitalized for projects on achieving commercial production during the year based on utilisation of the funds.

10. Leases

in respect of Operating Leases, lease rent payable as per respective lease agreements are charged to Statement of Profit & Loss. In respect of finance leases, leased assets are capitalised in the books of account with relevant liabilities for minimum lease payments.

11. Taxes on Income

Provision for current tax is made considering the provisions of Income Tax Act, 1961. In accordance with Accounting Standard AS-22" Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred tax is accounted for at the current rate of tax or tax rates substantively enacted by the balance sheet date on timing differences between book profits and tax Profits to the extent that the timing differences are expected to crystallise. Deferred tax assets in respect of unabsorbed depreciation and tax losses are accounted for when there is virtual certainty of realization.

12. Government Grants

Revenue grants are recognized in the profit & loss account, Capital grants not related to any Specific fixed assets are credited to capital reserve.

13. Contingent Liabilities

Contingent liabilities are estimated on the basis of available information and are disclosed in Notes to accounts.

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Mar 31, 2011

1. General

The accounts have been prepared on historical cost convention, in accordance with disclosure requirements of the Companies Act, 1956 and on going concern basis.

2. Revenue Recognition

a) Income and Expenditure are accounted for on accrual basis

b) Sales include Excise Duty, and are net of returns, rebates & discounts and Sales tax. Sale of Scrap/ Unusable Waste has been accounted for as and when realized.

c) Insurance claims are booked on the basis of best estimates/loss as surveyed/assessed.

d) Export benefits in the form of draw backs and others are recognized on accrual basis to the extent there is certainty of ultimate realization.

e) Job Work Income is recognized on the basis of actual production.

3. Foreign Exchange Transactions

a) Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

b) Current Assets and Current Liabilities denominated in Foreign Currency and outstanding at the end of the year, are converted at the exchange rate prevailing at the year end.

c) Gains and losses on foreign exchange transactions are recognised in respective heads of accounts of Profit & Loss Account on the basis of exchange rate prevailing at the year end.

4. Inventories

a) Inventories of finished goods, goods in process, by-products, raw materials and store & spares are valued at lower of cost or net realisable value.

b) Valuation of finished goods lying in excise godowns is done including Excise Duty,

c) For the material lying in custom warehouse, no provision for custom duty and other related expenses is made.

5. Investments

Long Term Investments are stated at cost. Any diminution in value, other than temporary, is duly accounted for. Current Investments are valued at lower of cost or market value/fair values.

6. Fixed Assets

a) Fixed Assets are stated at historical cost which includes expenditure incurred on acquisition, construction and/or installation and other financial cost directly attributable to such assets up to the date of commencement of commercial production.

b) Expenses relating to leased assets prior to commencement of production to the extent not financed by Leasing Company, including pre-lease charges, are capitalised.

7. Depreciation

a) Depreciation has been provided as per Written down Value Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

b) The assets which have reached 5% of their book value are not depreciated further and are carried forward at the same value.

c) Depreciation on the amount of adjustment made to the Fixed Assets on account of Foreign Exchange Fluctuation is provided for over the remaining useful life of the assets.

d) Premium on lease hold land is amortized over the period of lease.

e) The Company has been technically advised that Cotton Spinning Unit and Terry Towel Unit of the Company can be categorized as continuous process plant within the meaning of Foot Note No.7 to Schedule XIV of the Companies Act, 1956 and has accordingly provided depreciation.

8. Preoperative Expenditure

a) Expenditure incurred during construction period (net of income, if any) on new projects is carried forward as Preoperative Expenditure and is allocated to Fixed Assets on achievement of commercial production of project in the ratio of respective cost of various categories of fixed assets.

b) Interest paid on funds borrowed for on-going projects specifically and others is carried forward as Pre-operative Expenditure for projects pending commercial production and capitalized for projects on achieving commercial production during the year based on utilisation of the funds.

9. Leases

In respect of Operating Leases, lease rent payable as per respective lease agreements are charged to Profit & Loss Account. In respect of finance leases, leased assets are capitalised in the books of account with relevant liabilities for minimum lease payments.

10. Gratuity

The Company is in the process of adopting Accounting Standard AS-15 (revised), any implications arising there from will be taken care of in due course.

11. Taxes on Income

Provision for current tax is made considering the provisions of Income Tax Act, 1961. In accordance with Accounting Standard AS-22"Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred tax is accounted for at the current rate of tax or tax rates substantively enacted by the balance sheet date on timing differences between book profits and tax Profits to the extent that the timing differences are expected to crystallise. Deferred tax assets in respect of unabsorbed depreciation and tax losses are accounted for when there is virtual certainty of realization.

12. Government Grants

Revenue grants are recognized in the profit & loss account, Capital grants not related to any Specific fixed assets are credited to capital reserve.

13. Contingent Liabilities

Contingent liabilities are estimated on the basis of available information and are disclosed in Notes to accounts.

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Mar 31, 2010

1. General

The accounts have been prepared on historical cost convention, in accordance with disclosure requirements of the Companies Act, 1956 and on going concern basis.

2. Revenue Recognition

a) Income and Expenditure are accounted for on accrual basis

b) Sales include Excise Duty, and are net of returns, rebates & discounts and Sales tax. Sale of Scrap/ Unusable Waste has been accounted for as and when realized.

c) Insurance claims are booked on the basis of best estimates/loss as surveyed/assessed.

d) Export benefits in the form of draw backs and others are recognized on accrual basis to the extent there is certainty of ultimate realization.

e) Job Work Income is recognized on the basis of actual production.

3. Foreign Exchange Transactions

a) Transactions denominated in foreign currency are normally accounted for at the exchange rate prevailing at the time of transaction.

b) Current Assets and Current Liabilities denominated in Foreign Currency and outstanding at the end of the year, are converted at the exchange rate prevailing at the year end.

c) Gains and losses on foreign exchange transactions are recognised in respective heads of accounts of Profit & Loss Account on the basis of exchange rate prevailing at the year end.

4. Inventories

a) Inventories of finished goods, goods in process, by-products, raw materials and store & spares are valued at lower of cost or net realisable value.

b) Valuation of finished goods lying in excise godowns is done including Excise Duty.

c) For the material lying in custom warehouse, no provision for custom duty and other related expenses is made.

5. Investments

Long Term Investments are stated at cost. Any diminution in value, other than temporary, is duly accounted for Current Investments are valued at lower of cost or market value/fair values.

6. Fixed Assets

a) Fixed Assets are stated at historical cost which includes expenditure incurred on acquisition, construction and/or installation and other financial cost directly attributable to such assets up to the date of commencement of commercial production.

b) Expenses relating to leased assets prior to commencement of production to the extent not financed by Leasing Company, including pre-lease charges, are capitalised.

7. Depreciation

a) Depreciation has been provided as per Written down Value Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

b) The assets which have reached 5% of their book value are not depreciated further and are carried forward at the same value.

c) Depreciation on the amount of adjustment made to the Fixed Assets on account of Foreign Exchange Fluctuation is provided for over the remaining useful life of the assets.

d) Premium on lease hold land is amortized over the period of lease.

e) The Company has been technically advised that Cotton Spinning Unit and Terry Towel Unit of the Company can be categorized as continuous process plant within the meaning of Foot Note No.7 to Schedule XIV of the Companies Act, 1956 and has accordingly provided depreciation.

8. Preoperative Expenditure

a) Expenditure incurred during construction period (net of income, if any) on new projects is carried forward as Preoperative Expenditure and is allocated to Fixed Assets on achievement of commercial production of project in the ratio of respective cost of various categories of fixed assets.

b) Interest paid on funds borrowed for on-going projects specifically and others is carried forward as Pre-operative Expenditure for projects pending commercial production and capitalized for projects on achieving commercial production during the year based on utilisation of the funds.

9. Leases

In respect of Operating Leases, lease rent payable as per respective lease agreements are charged to Profit & Loss Account. In respect of finance leases, leased assets are capitalised in the books of account with relevant liabilities for minimum lease payments.

10. Gratuity

The Company is in the process of adopting Accounting Standard AS-15 (revised), any implications arising there from will be taken care of in due course.

11. Taxes on Income

Provision for current tax is made considering the provisions of Income Tax Act, 1961. In accordance with Accounting Standard AS-22"Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred tax is accounted for at the current rate of tax or tax rates substantively enacted by the balance sheet date on timing differences between book profits and tax Profits to the extent that the timing differences are expected to crystallise. Deferred tax assets in respect of unabsorbed depreciation and tax losses are accounted for when there is virtual certainty of realization.

12. Government Grants

Revenue grants are recognized in the profit & loss account, Capital grants not related to any Specific fixed assets are credited to capital reserve.

13. Contingent Liabilities

Contingent liabilities are estimated on the basis of available information and are disclosed in Notes to accounts.