Accounting Policies of Muller & Phipps (India) Ltd. Company

Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POLICIES
Statement of Compliance

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards ( Ind AS)
notified under the Companies ( Indian Accounting Standards ) Rules,2015 and in accordance with the accounting standards
notified under the section 133 of the Companies Act 2013, read with together with rule 7 of the Companies (Accounts) Rules
2014.

A. Optional Exemption:

Deemed cost for property, plant and equipment and intangible assets

The Company has elected to continue with the carrying value determined in accordance the normally accecpted accounting
principal for all of its property, plant and equipment and intangibile assets recognised as of 1st April, 2016 (transition date)
and use that carrying value as deemed cost of such assets as of transition date.

B. Mandatory Exceptions:

Use of Estimate

On assessment of the estimates made under the normally accecpted accounting principal financial statements, the
Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence
of an error in those estimates.

Impairment of Investment in Subsidary

The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently when there is
indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under historical cost basis, except for certain financial assets which are
measured at fair value or amortised cost at the end of each reporting period, as explained in the accounting policies below.

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Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under historical cost convention in accordance with the normally accepted accounting principles and provisions of the Companies Act, 1956.

1.2 FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at acquisition cost less accumulated depreciation.

ii) Depreciation on Tangible assets are provided by written down value method over the estimated useful life prescribed under part "C" Schedule II of Companies Act, 2013, keeping a residual value of 5 %.

iii) Technical Know-how is depreciated equally over a period of 20 years starting from the month in which Technical Know- how has been put to use.

iv) Trade Marks/Brand are depreciated equally over 10 years starting from the month in which the Trade Marks / Brand have been acquired.

v) Impairment in the carrying value of the fixed assets is recognised in accordance with Accounting Standard No. 28 - ' Impairment of Assets'.

1.3 INVENTORIES

i) Raw material are valued at cost on FIFO basis or net realisable value whichever is lower

ii) Process stock is valued at material cost or net realisable value whichever is lower.

iii) Finished goods are valued at cost or net realisable value whichever is lower. Cost in respect of own manufactured goods includes material cost, direct labour and attributable production overheads.

1.4 INVESTMENTS

Long-term investments are valued at cost except that any permanent diminution in the value thereof is recognised in the profit and loss account.

1.5 REVENUE RECOGNITION

All income and expenditure items are recognised on accrual basis. Payments to employees under voluntary retirement schemes are deferred and written off equally over a period of 5 years starting from the year in which payment is made.

1.6 EMPLOYEE/RETIREMENT BENEFITS

The Company has made arrangements with the Life Insurance Corporation of India through Gratuity Fund and Superannuation Fund for meeting its employee retirement liability. The liability for gratuity is calculated on basis of actuarial valuation as reduced by funded amount. Leave encashment benefit is provided for based on actuarial valuation basis.

1.7 FOREIGN CURRENCY TRANSLATION

Foreign currency revenue transactions are booked at the exchange rate prevailing at the date of the transaction. Exchange loss/gain on realisation/payment is booked to exchange fluctuation. Foreign currency assets and liabilities outstanding as at the year end, if any, are translated at the year end exchange rates.

1.8 TAxATION

Provision for taxes is made based on the current applicable tax rates. Adjustment for deferred tax is made based on the tax effect of timing differences resulting from the recognition of items in the financial statements and their allowance under the tax laws, subject to the consideration of prudence. The effect on deferred tax of a change in income tax rates is recognised in the period that includes the enactment date.

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Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under historical cost convention in accordance with the normally accepted accounting principles and provisions of the Companies Act, 1956.

1.2 FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at acquisition cost less accumulated depreciation.

ii) Depreciation is provided on written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

iii) Technical Know-how is depreciated equally over a period of 20 years starting from the month in which Technical Know- how has been put to use.

iv) Trade Marks/Brand are depreciated equally over 10 years starting from the month in which the Trade Marks / Brand have been acquired.

v) Impairment in the carrying value of the fixed assets is recognised in accordance with Accounting Standard No. 28 - ''Impairment of Assets''.

1.3 INVENTORIES

i) Raw material are valued at cost on FIFO basis or net realisable value whichever is lower

ii) Process stock is valued at material cost or net realisable value whichever is lower.

iii) Finished goods are valued at cost or net realisable value whichever is lower. Cost in respect of own manufactured goods includes material cost, direct labour and attributable production overheads.

1.4 INVESTMENTS

Long-term investments are valued at cost except that any permanent diminution in the value thereof is recognised in the profit and loss account.

1.5 REVENUE RECOGNITION

All income and expenditure items are recognised on accrual basis. Payments to employees under voluntary retirement schemes are deferred and written off equally over a period of 5 years starting from the year in which payment is made.

1.6 EMPLOYEE/RETIREMENT BENEFITS

The Company has made arrangements with the Life Insurance Corporation of India through Gratuity Fund and Superannuation Fund for meeting its employee retirement liability. The liability for gratuity is calculated on basis of actuarial valuation as reduced by funded amount. Leave encashment benefit is provided for based on actuarial valuation basis.

1.7 FOREIGN CURRENCY TRANSACTIONS

Foreign currency revenue transactions are booked at the exchange rate prevailing at the date of the transaction. Exchange loss/gain on realisation/payment is booked to exchange fluctuation. Foreign currency assets and liabilities outstanding as at the year end, if any, are translated at the year end exchange rates.

1.8 TAxATION

Provision for taxes is made based on the current applicable tax rates. Adjustment for deferred tax is made based on the tax effect of timing differences resulting from the recognition of items in the financial statements and their allowance under the tax laws, subject to the consideration of prudence. The effect on deferred tax of a change in income tax rates is recognised in the period that includes the enactment date.

2.1 Rights and Restrictions attached to Equity Shares

The Company has only one class of equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

2.2 Shares held by Holding Company

Out of the above equity shares, 3,22,680 (previous year 3,22,680) shares are held by Holding Company - M/s. Development Holding Asia Ltd.

2.3 Details of Shareholders holding more than 5% of the total Equity Shares

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Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under historical cost convention in accordance with the normally accepted accounting principles and provisions of the Companies Act, 1956.

1.2 FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at acquisition cost less accumulated depreciation.

ii) Depreciation is provided on written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

iii) Technical Know-how is depreciated equally over a period of 20 years starting from the month in which Technical Know- how has been put to use.

iv) Trade Marks/Brand are depreciated equally over 10 years starting from the month in which the Trade Marks / Brand have been acquired.

v) Impairment in the carrying value of the fixed assets is recognised in accordance with Accounting Standard No. 28 - ''Impairment of Assets''.

1.3 INVENTORIES

i) Raw material are valued at cost on FIFO basis or net realisable value whichever is lower

ii) Process stock is valued at material cost or net realisable value whichever is lower.

iii) Finished goods are valued at cost or net realizable value whichever is lower. Cost in respect of own manufactured goods includes material cost, direct labour and attributable production overheads.

1.4 INVESTMENTS

Long-term investments are valued at cost except that any permanent diminution in the value thereof is recognized in the profit and loss account.

1.5 REVENUE RECOGNITION

All income and expenditure items are recognized on accrual basis. Payments to employees under voluntary retirement schemes are deferred and written off equally over a period of 5 years starting from the year in which payment is made.

1.6 EMPLOYEE/RETIREMENT BENEFITS

The Company has made arrangements with the Life Insurance Corporation of India through Gratuity Fund and Superannuation Fund for meeting its employee retirement liability. The liability for gratuity is calculated on basis of actuarial valuation as reduced by funded amount. Leave encashment benefit is provided for based on actuarial valuation basis.

1.7 FOREIGN CURRENCY TRANSLATION

Foreign currency revenue transactions are booked at the exchange rate prevailing at the date of the transaction. Exchange loss/gain on realization/payment is booked to exchange fluctuation. Foreign currency assets and liabilities outstanding as at the year end, if any, are translated at the yearend exchange rates.

1.8 TAXATION

Provision for taxes is made based on the current applicable tax rates. Adjustment for deferred tax is made based on the tax effect of timing differences resulting from the recognition of items in the financial statements and their allowance under the tax laws, subject to the consideration of prudence. The effect on deferred tax of a change in income tax rates is recognized in the period that includes the enactment date.

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Mar 31, 2011

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under historical cost convention in accordance with the normally accepted accounting principles and provisions of the Companies Act, 1956.

b) FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at acquisition cost less accumulated depreciation.

ii) Depreciation is provided on written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

iii) Technical Know-how is depreciated equally over a period of 20 years starting from the month in which

Technical Know-how has been put to use.

iv) Trade Marks/Brand are depreciated equally over 10 years starting from the month in which the Trade Marks/ Brand have been acquired.

v) Impairment in the carrying value of the fixed assets is recognised in accordance with Accounting Standard No. 28 -' Impairment of Assets'.

C) INVENTORIES

i) Raw material are valued at cost on FIFO basis or net realisable value whichever is lower

ii) Process stock is valued at material cost or net realisable value whichever is lower.

iii) Finished goods are valued at cost or netrealisable value whichever is lower. Cost in respect of own manufactured goods includes material cost, direct labour and attributable production overheads.

d) INVESTMENTS

Long-term investments are valued at cost except that any permanent diminution in the value thereof is recognised in the profit and loss account.

e) REVENUE RECOGNITION

All income and expenditure items are recognised on accrual basis. Payments to employees under voluntary retirement schemes are deferred and written off equally over a period of 5 years starting from the year in which payment is made.

f) EMPLOYEE/RETIREMENT BENEFITS

The Company has made arrangements with the Life Insurance Corporation of India through Gratuity Fund and Superannuation Fund for meeting its employee retirement liability. The liability for gratuity is calculated on basis of acturial valuation as reduced by funded amount.

Leave encashment benefit is provided for based on actuarial valuation basis.

g) FOREIGN CURRENCY TRANSLATION

Foreign currency revenue transactions are booked at the exchange rate prevaling at the date of the transaction. Exchange (loss)/gain on realisation/payment is booked to exchange fluctuation. Foreign currency assets and liabilities outstanding as at the year end, if any.are translated at the year end exchange rates:

h) TAXATION

Provision for taxes is made based on the current applicable tax rates. Adjustment for deferred tax is made based on the tax effect of timing differences resulting from the recognition of items in the financial statements and their allowance under the tax laws, subject to the consideration of prudence. The effect on deferred tax of a change in income tax rates is recognised in the period that includes the enactment date..

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Mar 31, 2010

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared under historical cost convention in accordance with the normally accepted accounting principles and provisions of the Companies Act, 1956.

b) FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at acquisition cost less accumulated depreciation.

ii) Depreciation is provided on written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

iii) Technical Know-how is depreciated equally over a period of 20 years starting from the month in which Technical Know-how has been put to use.

iv) Trade Marks/Brand are depreciated equally over 10 years starting from the month in which the Trade Marks/ Brand have been acquired.

v) Impairment in the carrying value of the fixed assets is recognised in accordance with Accounting Standard No. 28 - Impairment of Assets.

c) INVENTORIES

i) Raw material are valued at cost on FIFO basis or net realisable value whichever is lower.

ii) Process stock is valued- at material cost or net realisable value whichever is lower.

iii) Finished goods are valued at cost or net realisable value whichever is lower. Cost in respect of own manufactured goods includes material cost, direct labour and attributable production overheads.

d) INVESTMENTS

Long-term investments are valued at cost except that any permanent diminution in the value thereof is recognised in the profit and loss account.

e) REVENUE RECOGNITION

All income and expenditure items are recognised on accrual basis. Payments to employees under voluntary retirement schemes are deferred and written off equally over a period of 5 years starting from the year in which payment is made.

f) EMPLOYEE/RETIREMENT BENEFITS

The Company has made arrangements with the Life Insurance Corporation of India through Gratuity Fund and Superannuation Fund for meeting its employee retirement liability. The liability for gratuity is calculated on basis of acturial valuation as reduced by funded amount. Leave encashment benefit is provided for based on actuarial valuation basis.

g) FOREIGN CURRENCY TRANSLATION

Foreign currency revenue transactions are booked at the exchange rate prevaling at the date of the transaction. Exchange toss/gain on realisation/payment is booked to exchange fluctuation.

Foreign currency assets and liabilities outstanding as at the year end, if any.are translated at the year end exchange rates.

h) TAXATION

Provision for taxes is made based on the current applicable tax rates. Adjustment for deferred tax is made based on the tax effect of timing differences resulting from the recognition of items in the financial statements and their allowance under the tax laws, subject to the consideration of prudence. The effect on deferred tax of a change in income tax rates is recognised in the period that includes the enactment date.