Accounting Policies of Kunststoffe Industries Ltd. Company

Mar 31, 2024

6. Significant Accounting Policies

6.1. Property, Plant and Equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated
at cost less accumulated depreciation and impairment loss, if any.

Cost includes purchase price, borrowing costs if capitalization criteria are met and directly attributable
cost of bringing the asset to its working condition for the intended use.

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for
long-term construction projects if the recognition criteria are met. When significant parts of plant and
equipment are required to be replaced at intervals, the Company depreciates these components
separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost
is recognized in the carrying amount of the plant and equipment as a replacement if the recognition
criteria are satisfied.

All other repair and maintenance costs are recognized in the statement of profit or loss as incurred.

Capital work-in-progress in respect of assets which are not ready for their intended use are carried at
cost, comprising of direct costs, related incidental expenses and attributable interest, if any.

Property, plant and equipment are derecognized either on disposal or when the asset retires from
active use. Losses arising in the case of the retirement of property, plant and equipment and gains or
losses arising from disposal of property, plant and equipment are recognized in the statement of profit
and loss in the year of occurrence.

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value. Depreciation on the property, plant and equipment is provided on straight
line method, over the useful life of the assets, as specified in Schedule II to the Companies Act, 2013.
Property, plant and equipment which are added / disposed of during the year, depreciation is provided
on pro-rata basis.

The assets'' residual values, useful lives and methods of depreciation are reviewed at each financial
year end and adjusted prospectively, if appropriate.

6.2. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial Assets
Classification:

The Company classifies financial assets as subsequently measured at amortized cost, fair value
through other comprehensive income or fair value through profit or loss, on the basis of its business
model for managing the financial assets and the contractual cash flow characteristics of the financial
asset.

Initial recognition and measurement:

All financial assets (not measured subsequently at fair value through profit or loss) are recognized
initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement:

For the purpose of subsequent measurement, financial assets are classified in two broad categories:

• Financial assets at fair value ( FVTPL /FVTOCI)

• Financial assets at amortized cost

When assets are measured at fair value, gains and losses are either recognized in the statement of
profit and loss (i.e. fair value through profit or loss (FVTPL)), or recognized in other comprehensive
income (i.e. fair value through other comprehensive income (FVTOCI)).

Financial Assets measured at amortized cost (net of write down for impairment, if any):

Financial assets are measured at amortized cost when asset is held within a business model, whose
objective is to hold assets for collecting contractual cash flows and contractual terms of the asset give
rise on specified dates to cash flows that are solely payments of principal and interest. Such financial
assets are subsequently measured at amortized cost using the effective interest rate (EIR) method
less impairment, if any. The losses arising from impairment are recognized in the Statement of profit
and loss.

Financial Assets measured at Fair Value through Other Comprehensive Income (“FVTOCI”):

Financial assets under this category are measured initially as well as at each reporting date at fair
value, when asset is held within a business model, whose objective is to hold assets for both collecting
contractual cash flows and selling financial assets. Fair value movements are recognized in the other
comprehensive income.

Financial Assets measured at Fair Value through Profit or Loss (“FVTPL”):

Financial assets under this category are measured initially as well as at each reporting date at fair
value with all changes recognized in profit or loss.

Investment in Subsidiary:

Investment in equity instruments of Subsidiaries are measured at cost. In the financial statements,
investment in subsidiaries is carried at cost. The carrying amount is reduced to recognize any
impairment in the value of investment.

Derecognition of Financial Assets:

A financial asset is primarily derecognized when the rights to receive cash flows from the asset have
expired or the Company has transferred its rights to receive cash flows from the asset.

Impairment of Financial Assets:

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the financial assets that are debt instruments
and trade receivables.

Financial Liabilities:

Classification:

The Company classifies all financial liabilities as subsequently measured at amortized cost or FVTPL.
Initial recognition and measurement:

All financial liabilities are recognized initially at fair value and, in the case of loans, borrowings and
payables, net of directly attributable transaction costs.

Financial liabilities include trade and other payables, loans and borrowings including bank overdrafts
and derivative financial instruments.

Subsequent measurement:

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Interest¬
bearing loans and borrowings are subsequently measured at amortized cost using the Effective
Interest Rate (EIR) method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through EIR amortization process. Amortized cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortization is included as finance costs in the Statement of Profit and Loss.

Derecognition of Financial Liabilities:

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

6.3. Inventories

Raw materials and packing materials are valued at lower of cost and the net realizable value, cost
of which includes duties and taxes (net of Goods and Service Tax wherever applicable). Cost of
imported raw materials and packing materials lying in warehouse includes the amount of customs
duty. Finished products and work- in-progress are valued at lower of cost and net realizable value.
Cost is arrived on moving weighted average basis.

The cost of Inventories have been computed to include all cost of purchases, cost of conversion,
appropriate share of fixed production overheads based on normal operating capacity and other related
cost incurred in bringing the inventories to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses necessary to make the sale.

6.4. Cash and Cash Equivalents

Cash and Cash Equivalents comprise of cash on hand and cash at bank including fixed deposit/highly
liquid investments with original maturity period of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short¬
term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral
part of the Company''s cash management.

6.5. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash
flows. The cash flow from operating, investing and financing activities of the Company is segregated.

6.6. Foreign Currency Transactions

Transactions in foreign currencies are translated into the Company''s functional currency at the
exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional
currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are
measured at fair value in a foreign currency are translated into the functional currency at the exchange
rate when the fair value was determined. Non-monetary assets and liabilities that are measured based
on historical cost in a foreign currency are not translated. Foreign currency exchange differences are
generally recognized in the statement of profit and loss.

Exchange differences arising on the settlement of monetary items or on translating monetary items
at rates different from those at which they were translated on initial recognition during the period or in
previous Financial Statements are recognized in the Standalone Statement of Profit and Loss in the
period in which they arise.

6.7. Revenue Recognition

Under Ind AS 115, the Company recognized revenue when (or as) a performance obligation was
satisfied, i.e. when ''control'' of the goods underlying the particular performance obligation were
transferred to the customer.

Sale of Goods

The Company applied Ind AS 115 using the modified retrospective approach. Revenue is measured
based on the transaction price adjusted for discounts and rebates, which is specified in a contract with
customer. Revenues are net of estimated returns and taxes collected from customers.

Revenue from sale of goods is recognized at point in time when control is transferred to the customer
and it is probable that consideration will be collected. Control of goods is transferred upon the shipment
of the goods to the customer or when goods are made available to the customer.

The transaction price is documented on the sales invoice and payment is generally due as per agreed
credit terms with customers.

The consideration can be fixed or variable. Variable consideration is only recognized when it is highly
probable that a significant reversal will not occur.

Sales return is variable consideration that is recognized and recorded based on historical experience,
market conditions and provided for in the year of sale as reduction from revenue. The methodology
and assumptions used to estimate returns are monitored and adjusted regularly in line with trade
practices, historical trends, past experience and projected market conditions.

Interest income

Interest income is recognizes with reference to the Effective Interest Rate method.

Income from Export Benefits and Other Incentives

Export benefit available under prevalent schemes are accrued as revenue in the year in which the
goods are exported and/ or services are rendered only when there is reasonable assurance that the
condition attached to them will be complied with and the amounts will be received.

6.8. Employee Benefit

Short term employee benefits are recognized as an expense at the undiscounted amount in the
statement of profit and loss for the year in which the related service is rendered;

Post-Employment Benefits

Defined contribution plans: Company''s contribution to State governed Provident Fund Scheme is
recognized during the year in which the related service is rendered;

The company has not ascertained liability towards payment of gratuity and hence no provision has
been made in accounts. It is accounted for on the basis of payment.

wAll employee benefits payable wholly within twelve months rendering service are classified as
short term employee benefits. Benefits such as salaries, wages, short-term compensated absences,
performance incentives etc., and the expected cost of bonus, ex- gratia are recognized during the

period in which the employee renders related service. Retirement benefits are accounted as and when
the same become due for payment.

6.9. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized
as part of the cost of the asset. All other borrowing costs are expensed in the period in which they
occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an
adjustment to the borrowing costs.

6.10. Lease

Leases in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. Payments made under operating leases are charged to the
Statement of profit and loss on a straight line basis over the period of the lease in a manner which
is representative of the time pattern in which benefit derived from the use of the leased asset is
diminished.

6.11. Earing Per Share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity
holders of the Company by the weighted average number of equity shares outstanding during the
period.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity
holders of the Company by the weighted average number of equity shares considered for deriving
basic earnings per equity share and also the weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity
shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair
value. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are determined independently for each period
presented.

6.12. Income Taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognized
in net profit in the statement of profit and loss except to the extent that it relates to items recognized
directly in equity, in which case it is recognized in other comprehensive income. Current income tax
for current and prior periods is recognized at the amount expected to be paid to or recovered from the
tax authorities, using the tax rates and tax laws that have been enacted by the balance sheet date.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date and are expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled.

The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as
income or expense in the period that includes the enactment or the substantive enactment date. A
deferred income tax asset is recognized to the extent that it is probable that future taxable profit will
be available against which the deductible temporary differences and tax losses can be utilized. The
Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right
to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.

Minimum Alternate Tax (''MAT'') credit is recognized as deferred tax asset only when and to the extent
there is convincing evidence that the Company will pay normal income tax during the period for which
the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognized
as an asset is reviewed at each Balance Sheet date and written down to the extent the aforesaid
convincing evidence no longer exists.

6.13. Dividends to Shareholders

Annual dividend distribution to the shareholders is recognized as a liability for the previous year for
which the dividends are approved by the shareholders. Any interim dividend paid is recognized on
approval by Board of Directors. Dividend payable and corresponding tax on dividend distribution is
recognized directly in equity.

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Mar 31, 2016

Kunststoffe Industries Limited is a listed public limited Company, incorporated under The Companies Act, 1956. The Company is engaged in the business of "Job Works for Processing of HDPE/PP Pipes, etc."

NOTE ''20'' : SIGNIFICANT ACCOUNTING POLICIES

I. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the accounting principles generally accepted in India and are in accordance with the applicable Accounting Standards, Guidance Notes and the relevant provisions of the Companies Act, 2013.

Accounting polices not specifically referred to otherwise are consistent with generally accepted accounting principles.

II. Use of estimates.

The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period.

Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

III. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will accrue to the Company and the revenue can be reliably measured and also when it is reasonably certain that the ultimate collection will be made and that there is buyers'' commitment to make the complete payment.

A. Revenue from sale

In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards processing activities done for other, if any.

B. Interest and dividend:

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income is recognized when right to receive dividend is established.

C. Others:

Other revenues / incomes and costs / expenditure are accounted on accrual, as they are earned or incurred.

NOTE ''21'' : OTHER NOTES ON ACCOUNTS VI. Tangible assets and depreciation / amortization

A. Tangible fixed assets are stated at cost of acquisition less accumulated depreciation / amortization and accumulated impairment losses, if any.

B. Fixed Assets are shown at Original cost of acquisition less accumulated depreciation.

Fixed Assets were revalued as on 31.03.2015. The surplus arising from the revaluation has been transferred to "Revaluation Reserve" and shown under the head "Reserves & Surplus". As the Fixed Assets were revalued on the last day of the Balance sheet, no depreciation was provided on Revalued Figures for the year ending 31/03/2015. Difference on revaluation of Rs. 1049/- has been recorded in the current year.

C. Depreciation is provided on the straight line method on the basis of useful life of the assets in the manner specified on schedule II to the Companies Act 2013. Depreciation on the addition to assets or on sale/ disposal of assets is calculated pro rate from the month of such addition or up to the month of such sale/ disposal as the case may be.

V. Operating Cycle

Receivables and Payables in relation to operations are considered as "Current Assets" and "Current Liabilities" as the case may be considering the nature of business of the Company.

All other Assets and Liabilities have been classified as provided in Revised Schedule VI, issued by the Institute of Chartered Accountants of India.

VI. Employee benefits

A. Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered;

B. Post Employment Benefits

Defined contribution plans: Company''s contribution to State governed Provident Fund Scheme is recognized during the year in which the related service is rendered;

C. The company has not ascertained liability towards payment of gratuity and hence no provision has been made in accounts. It is accounted for on the basis of payment.

D. Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis. Retirement benefits are accounted as and when the same become due for payment.

VII. Segment reporting

The Company is engaged in "Polymers Processing" a single segment which as per Accounting Standard - 17 ''Segment Reporting'' is considered to be the only reportable business segment. The Company is also operating within the same geographical segment. Hence, disclosures under AS-17 are not applicable.

VIII. Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date. If there is any indication of impairment based on internal/external factors, i.e. when the carrying amount of the assets exceeds the recoverable amount, an impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed or reduced if there has been a favorable change in the estimate of the recoverable amount.

IX. Treatment of Contingent Liabilities & Contingent Assets

The amount of contingent losses are charged to the Profit & Loss Account on a reasonable estimated basis that probable future event confirm that an asset has been impaired or a liability has been incurred as at the Balance Sheet Date and contingent gains are not recognized in the accounts.

Pursuant to reference made by the company, The Hon. Bench of BIFR, New Delhi by their order dated 18.01.2007 declared the Company as Sick Industry. Rehabilitation Scheme has been approved by BIFR during the Assessment Year 2013-14.

No provision for income tax liability has been made in the terms of BIFR order dt 08/03/2013 under which vide clause 10.3 (3) the company is exempted from the applicability of minimum alternate tax ( MAT) u/s 115 JB of income tax act 1961.

Debtors and creditors are subject to confirmation from the party.

In the opinion of Board of Directors the current assets, loans and advances except those shown as doubtful have a value on realization in the ordinary course of business at least equal to the amount at which items are stated in the Balance Sheet.

Figures of the previous year have been regrouped /re arranged/ re classified

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Mar 31, 2015

I. Basis of preparation of financial statements

The financial statements have been prepared and presented complying the section 134(5) of Companies Act, 2013 in accordance with the accounting principles generally accepted in India and in accordance with the applicable Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. Guidance Notes and other relevant provisions of the Companies Act, 2013.

Accounting polices not specifically referred to otherwise are consistent with generally accepted accounting principles.

II. Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions, that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

III. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will accrue to the Company and the revenue can be reliably measured and also when it is reasonably certain that the ultimate collection will be made and that there is buyers' commitment to make the complete payment.

A. Revenue from sale

In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards processing activities done for other, if any.

B. Interest and dividend:

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income is recognized when right to receive dividend is established.

C. Others:

Other revenues / incomes and costs / expenditure are accounted on accrual, as they are earned or incurred.

IV. Tangible assets and depreciation / amortisation

A. Tangible fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation and accumulated impairment losses, if any.

B. Fixed Assets are shown at Original cost of acquisition less accumulated depreciation.

Fixed Assets were revalued as on 31.03.2015. The surplus arising from the revaluation has been transferred to "Revaluation Reserve" and shown under the head "Reserves & Surplus". As the Fixed Assets were revalued on the last day of the Balance sheet, no depreciation has been provided on Revalued Figures.

C. Depreciation is provided on the straight line method on the basis of useful life of the asset in the manner specified in Schedule II to the Companies Act, 2013. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition, or upto the month of such sale/disposal, as the case may be.

i No Depreciation has been provided on Office Building as same has not been in use for the business of the company during the Current year.

ii In respect of assets acquired on 01.01.1994 and thereafter at revised rates specified in the said Schedule vide Notification No 756 E dated 16.12.93 and as clarified in Circular No. 14 dated 20.12.1993 issued by the Department of the Company Affairs.

iii In respect of assets on hand as on 31.12.93 at the rates in force prior to the abovementioned notification.

V. Operating Cycle

Receivables and Payables in relation to operations are considered as "Current Assets" and "Current Liabilities" as the case may be considering the nature of business of the Company.

All other Assets and Liabilities have been classified as provided in Revised Schedule VI, issued by the Institute of Chartered Accountants of India.

VI. Employee benefits

A. Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered;

B. Post Employment Benefits

Defined contribution plans: Company's contribution to State governed Provident Fund Scheme is recognized during the year in which the related service is rendered;

C. The company has not ascertained liability towards payment of gratuity and hence no provision has been made in accounts. It is accounted for on the basis of payment.

D. Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis. Retirement benefits are accounted as and when the same become due for payment.

VII. Segment reporting

The Company is engaged in the business of Jobworks for Processing of HDPE/PP Pipes, etc, which as per Accounting Standard - 17 'Segment Reporting' is considered to be the only reportable business segment. The Company is also operating within the same geographical segment. Hence, disclosures under AS-17 are not applicable.

VIII. Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date. If there is any indication of impairment based on internal/external factors, i.e. when the carrying amount of the assets exceeds the recoverable amount, an impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed or reduced if there has been a favourable change in the estimate of the recoverable amount.

IX. Treatment of Contingent Liabilities & Contingent Assets

The amount of contingent losses are charged to the Profit & Loss Account on a reasonable estimated basis that probable future event confirm that an asset has been impaired or a liability has been incurred as at the Balance Sheet Date and contingent gains are not recognized in the accounts.

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Mar 31, 2014

I. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention using the accrual basis of accounting in accordance with the accounting principles generally accepted in India and are in accordance with the applicable Accounting Standards, Guidance Notes and the relevant provisions of the Companies Act, 1956.

Accounting polices not specifically referred to otherwise are consistent with generally accepted accounting principles.

II. Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the management to make estimates and assumptions, that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

III. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will accrue to the Company and the revenue can be reliably measured and also when it is reasonably certain that the ultimate collection will be made and that there is buyers'' commitment to make the complete payment.

A. Revenue from sale

In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax and includes amount received towards processing activities done for other, if any.

B. Interest and dividend:

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income is recognized when right to receive dividend is established.

C. Others:

Other revenues/incomes and costs/expenditure are accounted on accrual, as they are earned or incurred.

IV. Tangible assets and depreciation/amortisation

A. Tangible fixed assets are stated at cost of acquisition less accumulated depreciation/amortisation and accumulated impairment losses, if any.

B. Fixed Assets are shown at Original cost of acquisition less accumulated depreciation.

Fixed Assets were revalued as on 31.03.2012. The surplus arising from the revaluation has been transferred to "Revaluation Reserve" and shown under the head "Reserves & Surplus". As the Fixed Assets were revalued on the last day of the Balance sheet, no depreciation has been provided on Revalued Figures.

C. Depreciation is provided on straight line basis applying the rates specified in Schedule XIV of the Companies Act 1956 under straight line method. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the date of such addition, or upto the date of such sale/disposal, as the case may be. Individual assets costing less than rupees five thousand are depreciated fully in the year of acquisition.

i. No Depreciation has been provided on Office Building as same has not been in use for the business of the company during the Current year.

ii. In respect of assets acquired on 01.01.1994 and thereafter at revised rates specified in the said Schedule vide Notification No 756 E dated 16.12.93 and as clarified in Circular No. 14 dated 20.12.1993 issued by the Department of the Company Affairs.

iii. In respect of assets on hand as on 31.12.93 at the rates in force prior to the abovementioned notification.

V. Operating Cycle

Receivables and Payables in relation to operations are considered as "Current Assets" and "Current Liabilities" as the case may be considering the nature of business of the Company.

All other Assets and Liabilities have been classified as provided in Revised Schedule VI, issued by the Institute of Chartered Accountants of India.

VI. Employee benefits

A. Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered;

B. Post Employment Benefits

Defined contribution plans: Company''s contribution to State governed Provident Fund Scheme is recognized during the year in which the related service is rendered;

C. The company has not ascertained liability towards payment of gratuity and hence no provision has been made in accounts. It is accounted for on the basis of payment.

D. Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis. Retirement benefits are accounted as and when the same become due for payment.

VII. Segment reporting

The Company is engaged in the business of Jobworks for Processing of HDPE/PP Pipes, etc, which as per Accounting Standard - 17 ''Segment Reporting'' is considered to be the only reportable business segment. The Company is also operating within the same geographical segment. Hence, disclosures under AS-17 are not applicable.

VIII. Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date. If there is any indication of impairment based on internal/external factors, i.e. when the carrying amount of the assets exceeds the recoverable amount, an impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed or reduced if there has been a favourable change in the estimate of the recoverable amount.

IX. Treatment of Contingent Liabilities & Contingent Assets

The amount of contingent losses are charged to the Profit & Loss Account on a reasonable estimated basis that probable future event confirm that an asset has been impaired or a liability has been incurred as at the Balance Sheet Date and contingent gains are not recognized in the accounts.

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Mar 31, 2013

1. GENERAL :

(a) The Accounts are prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 as adopted consistently by the company.

(b) Accounting policies not specifcally referred to otherwise are consistent with generally accepted accounting principles followed.

2. FIXED ASSETS :

Fixed Assets are shown at Original cost of acquisition less accumulated depreciation.

3. DEPRECIATION :

Depreciation is provided on straight line basis applying the rates specifed in Schedule XIV of the Companies Act 1956 under straight line method:

(i) In respect of assets acquired on 01.01.1994 and thereafter at revised rates specifed in the said Schedule vide Notifcation No 756 E dated 16.12.93 and as clarifed in Circular No. 14 dated 20.12.1993 issued by the Department of the Company Affairs.

(ii) In respect of assets on hand as on 31.12.93 at the rates in force prior to the abovementioned notifcation.

4. REVENUE RECOGNITION :

(a) In case of Sales of Goods – When the property and all signifcant risk and rewards of ownership are transferred to the buyer or no signifcant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax.

(b) Interest - On a time proportion basis taking into account the outstanding principal and the relative rate of interest.

5. TREATMENT OF EMPLOYEES BENEFITS :

Benefts payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis.

Retirement benefts are accounted as and when the same become due for payment.

6. TREATMENT OF CONTINGENT LIABILITIES AND CONTINGENT GAINS :

The amount of Contingent losses are charged to the proft & loss Account on a reasonable estimates basis, if it is probable that future event confrm that an asset has been impaired or a liability has been incurred as at the Balance Sheet date and contingent gains are not recognized in the accounts.

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Mar 31, 2010

1. GENERAL:

(a) The Accounts are prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 as adopted consistently by the company.

(b) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles followed.

2. FIXED ASSETS :

Fixed Assets were revalued as on 31-03- 2009, Hence Opening Balance taken at revalued figures.

3. DEPRECIATION:

Depreciation is provided on straight line basis applying the rates specified in Schedule XIV of the Companies Act 1956 under straight line method :

(i) In respect of assets acquired 1.1.94 and thereafter at revised rates specified in the said schedule vide notification no 756 E dated 16.12.93 and as clarified in circular no. 14 dated 20.12.93 issued by the Department of the Company Affairs.

(ii) In respect of assets on hand as on 31.12.93 at the rates in force prior to the abovementioned notification.

4. INVENTORIES :

(i) Raw materials and consumable Stores are valued at cost.

(ii) Finished and Semi Finished goods are valued at lower of cost or market value.

5. REVENUE RECOGNITION :

(a) In case of Sales of Goods - When the property and all significant risk and rewards of ownership are transferred to the buyer or no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. It excludes amounts recovered towards Sales Tax.

(b) Interest - On a time proportion basis taking into account the outstanding principal and the relative rate of interest.

6. TREATMENT OF EMPLOYEES BENEFITS :

Benefits payable to employees during their tenure of employment viz. Bonus, Leave Encashment etc are accounted on cash basis.

Retirement benefits are accounted as and when the same become due for payment.

7. MISCELLANEOUS EXPENDITURE :

Expenses shown under the head miscellaneous expenditure are amortised equally over ten years.

8. TREATMENT OF CONTINGENT LIABILITIES AND CONTINGENT GAINS :

The amount of Contingent losses are charged to the profit & loss Account on a reasonable estimates basis, if it is probable that future event confirm that an asset has been impaired or a liability has been incurred as at the Balance Sheet date and contingent gains are not recognized in the accounts.