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Accounting Policies of TPL Plastech Ltd. Company
Mar 31, 2025
SIGNIFICANT ACCOUNTING POLICIES
1.2 BASIS OF ACCOUNTING
These financial statements have been prepared in compliance with the Indian Accounting Standards (hereinafter referred to as the
''Ind AS'') notified under the Companies (Indian Accounting Standards) Rules, 2015, on the accrual basis. The financial statements of
the Company are prepared on historical cost basis except for the following assets and liabilities which have been measured at fair
value: -
⢠Certain financial assets and liabilities are measured at Fair value (refer accounting policy on financial instruments.)
⢠Defined Benefit and other Long term Employee Benefits,
⢠Derivative Financial instruments.
1.3 CURRENT & NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve
months) and other criteria set out in the Schedule III to the Act
1.4 USE OF ESTIMATES AND JUDGEMENTS
The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and
are based on historical experience and various other assumptions and factors (including expectations of future events) that the
Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are
recognized in the period in which the results are known/materialized.
The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but
provide additional evidence about conditions existing as at the reporting date
1.5 PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are measured at cost less accumulated
depreciation and impairment losses, if any. Costs include freight, import duties, non-refundable purchase taxes and other expenses
directly attributable to the acquisition of the asset.
Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period.
Depreciation/amortization:
Depreciation on fixed assets is provided on straight line method over the useful life''s of assets specified in Schedule II of the
Companies Act, 2013.
The management believes that the useful life as given above the best represent the period over which the management expects to
use these assets. The Company reviews the useful life and residual value at each reporting date.
Depreciation on assets added/sold or discarded during the year is being provided on pro-rata basis up to the date on which such
assets are added/sold or discarded.
Right of use ( ROU) assets are depreciated on straight line basis from the commencement date to the end of useful life of asset or
lease term whichever is earlier.
Leasehold improvements are amortised over the normal period of lease.
Assets held for sale
Non-Current assets or disposal groups comprising of assets and liabilities are classified as ''held for sale'' when all of the following
criteria''s met: -
(i) Decision has been made to sell
(ii) The assets are available for immediate sale in its present condition
(iii) The assets are being actively marketed and
(iv) Sale has been agreed or is expected to be conducted within 12 months of balance sheet date.
Subsequently, such non-current assets and disposal groups classified as ''held for sale'' are measured at the lower of it carrying value
and fair value less cost to sell.
1.6 IMPAIRMENT OF NON-FINANCIAL ASSETS
The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non¬
financial assets are impaired. If any such indication exists, the Company estimates the amount of impairment loss. For the purpose
of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication
exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made.
An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are
recognized in profit or loss. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant
amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an
event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or
loss.
1.7 REVENUE RECOGNITION
Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company and the revenue can be
measured reliably.
Sale of goods:
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have been
transferred to the buyer.
Revenue from sale of goods is net of taxes and recovery of charges collected from customers like transport, packing etc. Provision is
made for returns when appropriate. Revenue is measured at the fair value of consideration received or receivable and is net of price
discounts, Freight, allowance for volume rebates, and similar items.
Other Income
Interest income is recognized on a time proportionate basis taking into account the amounts invested and the rate of interest.
1.8 INVENTORIES
(i) Inventories are valued at lower of cost and net realizable value. Raw material cost is computed on quarterly weighted average
basis.
(ii) Finished goods and Work-in-Process include estimated cost of conversion and other costs incurred in bringing the inventories
to their present location and condition.
(iii) Inventory of stores and spares, being not material, are charged to consumption on procurement.
1.9 FINANCIAL INSTRUMENTS
Financial assets - Initial recognition
Financial assets are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial
assets other than trade receivables are initially recognized at fair value plus transaction costs for all financial assets not carried at fair
value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and
transaction costs are expensed in the Statement of Profit and Loss.
Subsequent measurement
Financial assets, other than equity instruments, are subsequently measured at amortized cost, fair value through other
comprehensive income or fair value through profit or loss on the basis of both:
(a) The entity''s business model for managing the financial assets and
(b) The Contractual cash flow characteristics of the financial asset.
(a) Measured at amortised cost:
A financial asset is measured at amortized cost, if it is held under the hold to collect business model i.e. held with an objective of
holding the assets to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest on
the principal outstanding. Amortized cost is calculated using the effective interest rate ("EIR") method 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 in interest
income in the Statement of Profit and Loss. The losses arising from impairment are recognized in the Statement of Profit and Loss.
On derecognition, gain or loss, if any, is recognised to Statement of Profit and Loss.
(b) Measured at fair value through other comprehensive income
A financial asset is measured at FVOCI, if it is held under the hold to collect and sell business model i.e. held with an objective to
collect contractual cash flows and selling such financial asset and the contractual cash flows are solely payments of principal and
interest on the principal outstanding. It is subsequently measured at fair value with fair value movements recognised in the OCI,
except for interest income which recognised using EIR method. The losses arising from impairment are recognised in the Statement
of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in the OCI is reclassified from the equity to
Statement of Profit and Loss.
(c) Measured at fair value through profit or loss
Investment in financial asset other than equity instrument, not measured at either amortised cost or FVOCI is measured at FVTPL.
Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any,
recognised in the Statement of Profit and Loss.
Financial Liabilities
Initial Recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial
liabilities are initially recognised at fair value net of transaction costs for all financial liabilities not carried at fair value through profit
or loss.
The Company''s financial liabilities includes trade and other payables, loans and borrowings including bank overdrafts and
derivative instruments.
Subsequent measurement
Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial liabilities carried at fair
value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.
Loans & Borrowings:
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using EIR method.
Gains and losses are recognized in profit & loss when the liabilities are derecognized as well as through EIR amortization process.
Financial Guarantee Contracts
Financial guarantee contracts issued by the Company are those contracts that requires a payment to be made or to reimburse the
holder for a loss it incurs because the specified debtors fails to make payment when due in accordance with the term of a debt
instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are
directly attributable to the issuance of the guarantee.
Subsequently the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements
of Ind AS 109 and the amount recognized less cumulative adjustments.
Derivative financial instruments
The Company uses derivative financial instruments, such as forward foreign exchange contracts, to hedge its foreign currency risks.
Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into
and are subsequently remeasured at fair value, with changes in fair value recognised in Statement of Profit and Loss.
1.10 FAIR VALUE MEASUREMENT:
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or settle a liability in an ordinary transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the
asset or settle a liability takes place either:
⢠In the principal market for the asset or liability, or
⢠In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and
best use.
The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1 â Quoted (unadjusted) prices in active markets for identical assets or liabilities.
⢠Level 2 â other techniques for which all input which have a significant effect on the recorded fair value are observable, either
directly or indirectly.
⢠Level 3 â Inputs which are not based on observable market data
1.11 EMPLOYEE BENEFITS
The Company has provides following post-employment plans:
(a) Defined benefit plans such a gratuity and
(b) Defined contribution plans such as Provident fund & ESIC
a) Defined-benefit plan:
The liability or asset recognised in the balance sheet in respect of defined benefit plan is the present value of defined benefit
obligations at the end of the reporting period less fair value of plan assets. The defined benefit obligations is calculated
annually by actuaries through actuarial valuation using the projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit
and loss:
(a) Service costs comprising current service costs, past-service costs, gains and losses on curtailment and non-routine
settlements; and
(b) Net interest expense or income
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and fair value of
plan assets. This cost is included in employee benefit expenses in the statement of the profit & loss.
Re-measurement comprising of actuarial gains and losses arising from
(a) Re-measurement of Actuarial(gains)/losses
(b) Return on plan assets, excluding amount recognized in effect of asset ceiling
(c) Re-measurement arising because of change in effect of asset ceiling are recognised in the period in which they occur directly
in Other comprehensive income. Re-measurement are not reclassified to profit or loss in subsequent periods.
Ind AS 19 requires the exercise of judgment in relation to various assumptions including future pay rises, inflation and discount
rates and employee and pensioner demographics. The Company determines the assumptions in conjunction with its actuaries, and
believes these assumptions to be in line with best practice, but the application of different assumptions could have a significant
effect on the amounts reflected in the income statement, other comprehensive income and balance sheet. There may be also
interdependency between some of the assumptions.
b) Defined-contribution plan:
Under defined contribution plans, provident fund, the Company pays pre-defined amounts to separate funds and does not
have any legal or informal obligation to pay additional sums. Defined Contribution plan comprise of contributions to the
employees'' provident fund with the government, superannuation fund and certain state plans like Employees'' State
Insurance and Employees'' Pension Scheme. The Company''s payments to the defined contribution plans are recognised as
expenses during the period in which the employees perform the services that the payment covers.
c) Other employee benefits:
(a) Compensated absences which are not expected to occur within twelve months after the end of the period in which the
employee renders the related services are recognised as a liability at the present value of the obligation as at the
Balance sheet date determined based on an actuarial valuation.
(b) Undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised during the period when the employee renders the related services.
d) Share Based Payments :
Equity-settled share based payments to employees and others providing similar services are measured at the fair value of the
equity instruments at the grant date. Details regarding the determination of the fair value of equity settled share based
payments transactions are set out in Note 33 (F).
Measurement and disclosure of the Employee Share based payment plan is done in accordance with Securities and Exchange
Board of India (Share Based Employee Benefits) regulation, 2021 and the guidance note on accounting for Employee Share
based Payments, issued by ICAI.
1.12 LEASE
The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys
the right to control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the company
has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of
the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments
made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured
at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at commencement date of
the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If
that rate cannot be readily determined, the company uses incremental borrowing rate.
For short-term and low value leases, the company recognizes the lease payments as an operating expense on a straight-line basis
over the lease term.
1.13 FOREIGN CURRENCY TRANSACTIONS
a) Initial Recognition
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange
differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss
of the year.
b) Measurement of Foreign Currency Items at the Balance Sheet Date
Foreign currency monetary items of the Company are restated at the closing exchange rates. Non-monetary items are
recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these
transactions are charged to the Statement of Profit and Loss.
1.14 TAX EXPENSES
The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to the
extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other
comprehensive income or equity
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities,
based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.
Mar 31, 2024
1.1 COMPANY OVERVIEW
The TPL PLASTECH LIMITED is public limited company incorporated and domiciled in India and has registered office at 102, 1st Floor, Centre Point, Somnath Daman Road, Somnath, Dabhel, Nani Daman, Daman (U.T.)-396 210. It is incorporated under the Companies Act, 1956 and its shares are listed on the Bombay Stock Exchange and National Stock Exchange in India. The Company is a subsidiary of Time Technoplast Limited.
SIGNIFICANT ACCOUNTING POLICIES1.2 BASIS OF ACCOUNTING
These financial statements have been prepared in compliance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') notified under the Companies (Indian Accounting Standards) Rules, 2015, on the accrual basis. The financial statements of the Company are prepared on historical cost basis except for the following assets and liabilities which have been measured at fair value: -
⢠Certain financial assets and liabilities are measured at Fair value (refer accounting policy on financial instruments.)
⢠Defined Benefit and other Long term Employee Benefits,
⢠Derivative Financial instruments.
1.3 CURRENT & NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.
1.4 USE OF ESTIMATES AND JUDGEMENTS
The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.
The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date
1.5 PROPERTY, PLANT AND EQUIPMENT Property, Plant and Equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Costs include freight, import duties, non-refundable purchase taxes and other expenses directly attributable to the acquisition of the asset.
Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period. Depreciation/amortization:
Depreciation on fixed assets is provided on straight line method over the useful life''s of assets specified in Schedule II of the Companies Act, 2013.
The range of estimated useful lives of Property, Plant & Equipment''s are as under:
|
Category |
Useful Life |
|
|
Buildings |
30 Years |
|
|
Plant, Machinery |
15-25 Years |
|
|
Moulds & Dies |
8 Years |
|
|
Furniture & Fixture |
10 Years |
|
|
Office Equipment |
5 Years |
|
|
Vehicles |
8 Years |
|
|
Electric Installation |
10 Years |
|
|
Laboratory Testing Equipment''s |
10 Years |
|
|
Computers |
3 Years |
|
The management believes that the useful life as given above the best represent the period over which the management expects to use these assets. The Company reviews the useful life and residual value at each reporting date.
Depreciation on assets added/sold or discarded during the year is being provided on pro-rata basis up to the date on which such assets are added/sold or discarded.
Assets held for sale
Non-Current assets or disposal groups comprising of assets and liabilities are classified as ''held for sale'' when all of the following criteria''s met: -
(i) Decision has been made to sell
(ii) The assets are available for immediate sale in its present condition
(iii) The assets are being actively marketed and
(iv) Sale has been agreed or is expected to be conducted within 12 months of balance sheet date.
Subsequently, such non-current assets and disposal groups classified as ''held for sale'' are measured at the lower of it carrying value and fair value less cost to sell.
1.6 IMPAIRMENT OF NON-FINANCIAL ASSETS
The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of nonfinancial assets are impaired. If any such indication exists, the Company estimates the amount of impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made.
An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognized in profit or loss. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss.
Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company and the revenue can be measured reliably.
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have been transferred to the buyer.
Revenue from sale of goods is net of taxes and recovery of charges collected from customers like transport, packing etc. Provision is made for returns when appropriate. Revenue is measured at the fair value of consideration received or receivable and is net of price discounts, Freight, allowance for volume rebates, and similar items.
Interest income is recognized on a time proportionate basis taking into account the amounts invested and the rate of interest.
(i) Inventories are valued at lower of cost and net realizable value. Raw material cost is computed on quarterly weighted average basis.
(ii) Finished goods and Work-in-Process include estimated cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
(iii) Inventory of stores and spares, being not material, are charged to consumption on procurement.
1.9 FINANCIAL INSTRUMENTSFinancial assets - Initial recognition
Financial assets are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the Statement of Profit and Loss.
Financial assets, other than equity instruments, are subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both:
(a) The entity''s business model for managing the financial assets and
(b) The Contractual cash flow characteristics of the financial asset.
(a) Measured at amortised cost:
A financial asset is measured at amortized cost, if it is held under the hold to collect business model i.e. held with an objective of holding the assets to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest on the principal outstanding. Amortized cost is calculated using the effective interest rate ("EIR") method 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 in interest income in the Statement of Profit and Loss. The losses arising from impairment are recognized in the Statement of Profit and Loss. On derecognition, gain or loss, if any, is recognised to Statement of Profit and Loss.
(b) Measured at fair value through other comprehensive income
A financial asset is measured at FVOCI, if it is held under the hold to collect and sell business model i.e. held with an objective to collect contractual cash flows and selling such financial asset and the contractual cash flows are solely payments of principal and interest on the principal outstanding. It is subsequently measured at fair value with fair value movements recognised in the OCI, except for interest income which recognised using EIR method. The losses arising from impairment are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in the OCI is reclassified from the equity to Statement of Profit and Loss.
(c) Measured at fair value through profit or loss
Investment in financial asset other than equity instrument, not measured at either amortised cost or FVOCI is measured at FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised in the Statement of Profit and Loss.
Financial LiabilitiesInitial Recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are initially recognised at fair value net of transaction costs for all financial liabilities not carried at fair value through profit or loss.
The Company''s financial liabilities includes trade and other payables, loans and borrowings including bank overdrafts and derivative instruments.
Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using EIR method. Gains and losses are recognized in profit & loss when the liabilities are derecognized as well as through EIR amortization process.
Financial guarantee contracts issued by the Company are those contracts that requires a payment to be made or to reimburse the holder for a loss it incurs because the specified debtors fails to make payment when due in accordance with the term of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.
Subsequently the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative adjustments.
Derivative financial instruments
The Company uses derivative financial instruments, such as forward foreign exchange contracts, to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value, with changes in fair value recognised in Statement of Profit and Loss.
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or or settle a liability in an ordinary transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or settle a liability takes place either:
⢠In the principal market for the asset or liability, or
⢠In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1 â Quoted (unadjusted) prices in active markets for identical assets or liabilities.
⢠Level 2 â other techniques for which all input which have a significant effect on the recorded fair value are observable, either directly or indirectly.
⢠Level 3 â Inputs which are not based on observable market data
The Company has provides following post-employment plans:
(a) Defined benefit plans such a gratuity and
(b) Defined contribution plans such as Provident fund & ESIC
The liability or asset recognised in the balance sheet in respect of defined benefit plan is the present value of defined benefit obligations at the end of the reporting period less fair value of plan assets. The defined benefit obligations is calculated annually by actuaries through actuarial valuation using the projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
(a) Service costs comprising current service costs, past-service costs, gains and losses on curtailment and non-routine settlements; and
(b) Net interest expense or income
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and fair value of plan assets. This cost is included in employee benefit expenses in the statement of the profit & loss.
Re-measurement comprising of actuarial gains and losses arising from
(a) Re-measurement of Actuarial(gains)/losses
(b) Return on plan assets, excluding amount recognized in effect of asset ceiling
(c) Re-measurement arising because of change in effect of asset ceiling are recognised in the period in which they occur directly in Other comprehensive income. Re-measurement are not reclassified to profit or loss in subsequent periods.
Ind AS 19 requires the exercise of judgment in relation to various assumptions including future pay rises, inflation and discount rates and employee and pensioner demographics. The Company determines the assumptions in conjunction with its actuaries, and believes these assumptions to be in line with best practice, but the application of different assumptions could have a significant effect on the amounts reflected in the income statement, other comprehensive income and balance sheet. There may be also interdependency between some of the assumptions.
Under defined contribution plans, provident fund, the Company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. Defined Contribution plan comprise of contributions to the employees'' provident fund with the government, superannuation fund and certain state plans like Employees'' State Insurance and Employees'' Pension Scheme. The Company''s payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.
(a) Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the obligation as at the Balance sheet date determined based on an actuarial valuation.
(b) Undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the period when the employee renders the related services.
The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the company uses incremental borrowing rate.
For short-term and low value leases, the company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.
1.13 FOREIGN CURRENCY TRANSACTIONSa) Initial Recognition
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss of the year.
b) Measurement of Foreign Currency Items at the Balance Sheet Date
Foreign currency monetary items of the Company are restated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are charged to the Statement of Profit and Loss.
The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.
1.15 PROVISIONS AND CONTINGENCIES
A provision is recognized if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.
1.16 CASH AND CASH EQUIVALENTS
Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of changes in value. Where original maturity is three months or less.
Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a noncash nature, any deferrals or accruals of past and future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of Cost of that asset, during the period till all the activities necessary to prepare the Qualifying assets for its
intended use or sale are complete during the period of time that is required to complete and prepare the assets for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are recognized as an expense in the period in which they are incurred.
Basic EPS is arrived at based on net profit after tax available to equity shareholders to the weighted average number of equities shares outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti-dilutive.
Mar 31, 2018
SIGNIFICANT ACCOUNTING POLICIES
1.2 BASIS OF ACCOUNTING
These financial statements have been prepared in compliance with the Indian Accounting Standards (hereinafter referred to as the Ind AS'') notified under the Companies (Indian Accounting Standards) Rules, 2015, on the accrual basis. The financial statements of the Company are prepared on historical cost basis except for the following assets and liabilities which have been measured at fair value: -
- Certain financial assets and liabilities are measured at Fair value (refer accounting policy on financial instruments.)
- Defined Benefit and other Long term Employee Benefits,
- Derivative Financial instruments.
1.3 current & non-current classification
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act
1.4.1 USE OF ESTIMATES AND JUDGEMENTS
The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.
The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date
1.5 PROPERTY, PLANT AND EQUIPMENT
Property, plant and Equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Costs include freight, import duties, non-refundable purchase taxes and other expenses directly attributable to the acquisition of the asset.
Leasehold land is stated at historical cost less amounts written off proportionate to expired lease period.
Depreciation/amortization:
Depreciation on fixed assets is provided on straight line method over the useful lifes of assets specified in Schedule II of the Companies Act, 2013.
The management believes that the useful life as given above the best represent the period over which the management expects to use these assets. The Company reviews the useful life and residual value at each reporting date.
Depreciation on assets added/sold or discarded during the year is being provided on pro-rata basis up to the date on which such assets are added/sold or discarded.
1.6 impairment of non-financial assets
The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial assets are impaired. If any such indication exists, the Company estimates the amount of impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made.
An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognised in profit or loss. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss
1.7 revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company and the revenue can be measured reliably.
Sale of goods:
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have been transferred to the buyer.
Revenue from sale of goods is net of taxes and recovery of charges collected from customers like transport, packing etc. Provision is made for returns when appropriate. Revenue is measured at the fair value of consideration received or receivable and is net of price discounts, Freight, allowance for volume rebates, and similar items.
Other Income
Interest income is recognized on a time proportionate basis taking into account the amounts invested and the rate of interest.
1.8 INVENTORIES
(i) Inventories are valued at lower of cost and net realizable value. Raw material cost is computed on quarterly weighted average basis.
(ii) Finished goods and Work-in-Process include estimated cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
(iii) Inventory of stores and spares, being not material, are charged to consumption on procurement.
1.9 FINANCIAL INSTRUMENTS
Financial assets - Initial recognition
Financial assets are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the Statement of Profit and Loss.
Subsequent measurement
Financial assets, other than equity instruments, are subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both:
(a) The entity''s business model for managing the financial assets and
(b) The Contractual cash flow characteristics of the financial asset.
(a) Measured at amortised cost:
A financial asset is measured at amortized cost, if it is held under the hold to collect business model i.e. held with an objective of holding the assets to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest on the principal outstanding. Amortized cost is calculated using the effective interest rate ("EIRâ) method 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 in interest income in the Statement of Profit and Loss. The losses arising from impairment are recognized in the Statement of Profit and Loss. On derecognition, gain or loss, if any, is recognised to Statement of Profit and Loss.
(b) Measured at fair value through other comprehensive income
A financial asset is measured at FVOCI, if it is held under the hold to collect and sell business model i.e. held with an objective to collect contractual cash flows and selling such financial asset and the contractual cash flows are solely payments of principal and interest on the principal outstanding. It is subsequently measured at fair value with fair value movements recognised in the OCI, except for interest income which recognised using EIR method. The losses arising from impairment are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in the OCI is reclassified from the equity to Statement of Profit and Loss.
(c) Measured at fair value through profit or loss
Investment in financial asset other than equity instrument, not measured at either amortised cost or FVOCI is measured at FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised in the Statement of Profit and Loss.
Financial Liabilities
Initial Recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are initially recognised at fair value net of transaction costs for all financial liabilities not carried at fair value through profit or loss.
The Company''s financial liabilities includes trade and other payables, loans and borrowings including bank overdrafts and derivative instruments.
Subsequent measurement
Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.
Loans & Borrowings:
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using EIR method. Gains and losses are recognized in profit & loss when the liabilities are derecognized as well as through EIR amortization process.
Financial Guarantee Contracts
Financial guarantee contracts issued by the Company are those contracts that requires a payment to be made or to reimburse the holder for a loss it incurs because the specified debtors fails to make payment when due in accordance with the term of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.
Subsequently the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative adjustments.
Derivative financial instruments
The Company uses derivative financial instruments, such as forward foreign exchange contracts, to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value, with changes in fair value recognised in Statement of Profit and Loss.
1.10 FAIR VALUE MEASUREMENT:
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or or settle a liability in an ordinary transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or settle a liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 â Quoted (unadjusted) prices in active markets for identical assets or liabilities.
- Level 2 â other techniques for which all input which have a significant effect on the recorded fair value are observable, either directly or indirectly.
- Level 3 â Inputs which are not based on observable market data
1.11 employee benefits
The Company has provides following post-employment plans:
(a) Defined benefit plans such a gratuity and
(b) Defined contribution plans such as Provident fund & ESIC
a) Defined-benefit plan:
The liability or asset recognised in the balance sheet in respect of defined benefit plan is the present value of defined benefit obligations at the end of the reporting period less fair value of plan assets. The defined benefit obligations is calculated annually by actuaries through actuarial valuation using the projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
(a) Service costs comprising current service costs, past-service costs, gains and losses on curtailment and non-routine settlements; and
(b) Net interest expense or income
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and fair value of plan assets. This cost is included in employee benefit expenses in the statement of the profit & loss.
Re-measurement comprising of actuarial gains and losses arising from
(a) Re-measurement of Actuarial(gains)/losses
(b) Return on plan assets, excluding amount recognized in effect of asset ceiling
(c) Re-measurement arising because of change in effect of asset ceiling are recognised in the period in which they occur directly in Other comprehensive income. Re-measurement are not reclassified to profit or loss in subsequent periods.
Ind AS 19 requires the exercise of judgment in relation to various assumptions including future pay rises, inflation and discount rates and employee and pensioner demographics. The Company determines the assumptions in conjunction with its actuaries, and believes these assumptions to be in line with best practice, but the application of different assumptions could have a significant effect on the amounts reflected in the income statement, other comprehensive income and balance sheet. There may be also interdependency between some of the assumptions.
b) defined-contribution plan:
Under defined contribution plans, provident fund, the Company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. Defined Contribution plan comprise of contributions to the employees'' provident fund with the government, superannuation fund and certain state plans like Employees'' State Insurance and Employees'' Pension Scheme. The Company''s payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.
c) Other employee benefits:
(a) Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the obligation as at the Balance sheet date determined based on an actuarial valuation.
(b) Undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the period when the employee renders the related services.
1.12 LEASES
A lease is classified at the inception date as a finance lease or an operating lease. Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.
Other leases are treated as operating leases, with payments are recognised as expense in the statement of profit & loss on a straight-line basis over the lease term.
1.13 FOREIGN CURRENCY TRANSACTIONS
a) Initial Recognition
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss of the year.
b) Measurement of Foreign Currency Items at the Balance Sheet Date
Foreign currency monetary items of the Company are restated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are charged to the Statement of Profit and Loss.
1.14.1 TAX EXPENSES
The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.
Minimum Alternative Tax (''MAT'') credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income-tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income-tax during the specified period.
1.15 PROVISIONS AND CONTINGENCIES
A provision is recognised if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.
1.16 CASH AND CASH EQUIVALENTS
Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of changes in value. Where original maturity is three months or less.
1.17 CASH FLOW STATEMENT
Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.
1.18 BORROWING COST
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of Cost of that assets, during the period till all the activities necessary to prepare the Qualifying assets for its intended use or sale are complete during the period of time that is required to complete and prepare the assets for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are recognized as an expense in the period in which they are incurred.
1.19 EARNINGS PER SHARE
Basic EPS is arrived at based on net profit after tax available to equity shareholders to the weighted average number of equity shares outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti-dilutive.
Mar 31, 2014
A. BASIS OF ACCOUNTING:
(i) The financial statements are prepared on the basis of historical
cost convention, and on the accounting principles of a going concern.
(ii) All expenses and income to the extent ascertainable with
reasonable certainty are accounted for on accrual basis.
b. USE OF ESTIMATES:
The presentation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively.
c. REVENUE RECOGNITION :
Revenue from sale of goods is recognized when significant risks &
rewards of ownership are transferred to the customers. Sales are
inclusive of freight and net of sales returns.
d. FIXED ASSETS:
(i) Fixed Assets are stated at cost inclusive of freight, duties, taxes
and all incidental expenses related thereto and net of Cenvat credit.
(ii) Pre-operative expenses incurred during construction period are
allocated to various assets in proportion to their capital cost.
(iii) Fixed assets are stated at cost less accumulated depreciation.
e. DEPRECIATION / AMORTISATION:
(i) Premium on leasehold land is being amortized over the period of
lease.
(ii) Depreciation on fixed assets is provided on straight line method
at the rates and in the manner as specified in Schedule XIV to the
Companies Act, 1956.
(iii) Continuous Process Plant'' as defined in the said Schedule, has
been considered on technical assessment and depreciation provided
accordingly.
f. INVENTORIES:
(i) Inventories are valued at lower of cost and net realizable value.
Raw material cost is computed on quarterly weighted average basis.
(ii) Finished goods and Work-in-Process include estimated cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
(iii) Inventory of stores and spares, being not material, are charged
to consumption on procurement.
g. ACCOUNTING FOR TAXES ON INCOME:
Provision for current tax is made on the basis of the estimated taxable
income for the current accounting year in accordance with the
provisions as per Income-Tax Act, 1961.
MAT credit asset is recognized and carried forward as there is a
reasonable certainty of it being set off against regular tax payable
within the stipulated statutory period.
The deferred tax for timing differences between book profits and tax
profits for the year is accounted for using the tax rules and laws that
have been enacted or substantially enacted as of the balance sheet
date. Deferred tax assets arising from timing differences are
recognised to the extent there is a reasonable certainty that these
would be realized in future and are reviewed for the appropriateness of
their respective carrying values at each balance sheet date.
h. BORROWING COST:
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
up to the date when such asset is ready for its intended use. Other
Borrowing costs are charged to Profit & Loss Account.
i. TRANSACTIONS IN FOREIGN CURRENCY:
(i) Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions.
(ii) All exchange differences on settlement / conversion are dealt with
in the Profit and Loss Account.
(iii) Current Assets and Current Liabilities in foreign currency are
translated at the rate of ex-change prevailing at the close of the
year.
j. EMPLOYEE BENEFITS:
Liability in respect of employee benefits is provided and charged to
Profit and Loss Account as follows:
(i) Provident / Pension Funds (Contribution Plan): At a specified
percentage of salary / wages for eligible Employees.
(ii) Leave Entitlement: As determined on the basis of accumulated leave
to the credit of the employees as at the year end as per the Company''s
rules being the short term benefits.
(iii) The Company provides for gratuity, a defined benefit retirement
plan, covering eligible employees. Liability under gratuity plan is
determined on actuarial valuation done by the Life Insurance
Corporation of India (LIC) at the close of the year, based upon which,
the Company contributes to the scheme with LIC. The Company also
provides for the additional liability over the amount contributed to
the LIC based on the actuarial valuation done by LIC using the
Projected Unit Credit Method.
k. IMPAIRMENT OF ASSETS:
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its recoverable
amount and the amount of such impairment loss is charged to profit and
loss account. If at the balance sheet date there is any indication that
a previously assessed impairment loss no longer exists, then such loss
is reversed and the asset is restated to that effect.
l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefit will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Contingent assets are not
recognised or disclosed in the financial statements.
Mar 31, 2013
A. BASIS OF ACCOUNTING:
(i) The fi nancial statements are prepared on the basis of historical
cost convention, and on the accounting principles of a going concern.
(ii) All expenses and income to the extent ascertainable with
reasonable certainty are accounted for on accrual basis.
b. USE OF ESTIMATES:
The presentation of fi nancial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of fi nancial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively.
c. REVENUE RECOGNITION :
Revenue from sale of goods is recognized when signifi cant risks &
rewards of ownership are transferred to the customers. Sales are
inclusive of freight and net of sales returns.
d. FIXED ASSETS:
(i) Fixed Assets are stated at cost inclusive of freight, duties, taxes
and all incidental expenses related thereto and net of Cenvat credit.
(ii) Pre-operative expenses incurred during construction period are
allocated to various assets in proportion to their capital cost.
(iii) Fixed assets are stated at cost less accumulated depreciation.
e. DEPRECIATION / AMORTISATION:
(i) Premium on leasehold land is being amortized over the period of
lease.
(ii) Depreciation on fi xed assets is provided on straight line method
at the rates and in the manner as specifi ed in Schedule XIV to the
Companies Act, 1956.
(iii) ''Continuous Process Plant'' as defi ned in the said Schedule, has
been considered on technical assessment and depreciation provided
accordingly.
f. INVENTORIES:
(i) Inventories are valued at lower of cost and net realizable value.
Raw material cost is computed on quarterly weighted average basis.
(ii) Finished goods and Work-in-Process include estimated cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
(iii) Inventory of stores and spares, being not material, are charged
to consumption on procurement.
g. ACCOUNTING FOR TAXES ON INCOME:
Provision for current tax is made on the basis of the estimated taxable
income for the current accounting year in accordance with the
provisions as per Income-Tax Act, 1961.
MAT credit asset is recognized and carried forward as there is a
reasonable certainty of it being set off against regular tax payable
within the stipulated statutory period.
The deferred tax for timing differences between book profi ts and tax
profi ts for the year is accounted for using the tax rules and laws
that have been enacted or substantially enacted as of the balance sheet
date. Deferred tax assets arising from timing differences are
recognised to the extent there is a reasonable certainty that these
would be realized in future and are reviewed for the appropriateness of
their respective carrying values at each balance sheet date.
h. BORROWING COST:
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
up to the date when such asset is ready for its intended use. Other
Borrowing costs are charged to Profi t & Loss Account.
i. TRANSACTIONS IN FOREIGN CURRENCY:
(i) Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions.
(ii) All exchange differences on settlement / conversion are dealt with
in the Profi t and Loss Account.
(iii) Current Assets and Current Liabilities in foreign currency are
translated at the rate of ex-change prevailing at the close of the
year.
j. EMPLOYEE BENEFITS:
Liability in respect of employee benefi ts is provided and charged to
Profi t and Loss Account as follows:
(i) Provident / Pension Funds (Contribution Plan): At a specifi ed
percentage of salary / wages for eligible Employees.
(ii) Leave Entitlement: As determined on the basis of accumulated leave
to the credit of the employees as at the year end as per the Company''s
rules being the short term benefi ts.
(iii) The Company provides for gratuity, a defi ned benefi t retirement
plan, covering eligible employees. Liability under gratuity plan is
determined on actuarial valuation done by the Life Insurance
Corporation of India (LIC) at the close of the year, based upon which,
the Company contributes to the scheme with LIC. The Company also
provides for the additional liability over the amount contributed to
the LIC based on the actuarial valuation done by LIC using the
Projected Unit Credit Method.
k. IMPAIRMENT OF ASSETS:
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its recoverable
amount and the amount of such impairment loss is charged to profi t and
loss account. If at the balance sheet date there is any indication that
a previously assessed impairment loss no longer exists, then such loss
is reversed and the asset is restated to that effect.
l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
A provision is made based on a reliable estimate when it is probable
that an outfl ow of resources embodying economic benefi t will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Contingent assets are not
recognised or disclosed in the fi nancial statements.
Mar 31, 2012
A. BASIS OF ACCOUNTING:
(i) The financial statements are prepared on the basis of historical
cost convention, and on the accounting principles of a going concern.
(ii) All expenses and income to the extent ascertainable with
reasonable certainty are accounted for on accrual basis.
b. USE OF ESTIMATES:
The presentation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively.
c. REVENUE RECOGNITION :
Revenue from sale of goods is recognized when significant risks &
rewards of ownership are transferred to the customers. Sales are
inclusive of freight and net of sales returns.
d. FIXED ASSETS:
(i) Fixed Assets are stated at cost inclusive of freight, duties, taxes
and all incidental expenses related thereto and net of Cenvat credit.
(ii) Pre-operative expenses incurred during construction period are
allocated to various assets in proportion to their capital cost.
(iii) Fixed assets are stated at cost less accumulated depreciation.
e. DEPRECIATION / AMORTISATION:
(i) Premium on leasehold land is being amortized over the period of
lease.
(ii) Depreciation on fixed assets is provided on straight line method
at the rates and in the manner as specified in Schedule XIV to the
Companies Act, 1956.
(iii) 'Continuous Process Plant' as defined in the said Schedule, has
been considered on technical assessment and depreciation provided
accordingly.
f. INVENTORIES:
(i) Inventories are valued at lower of cost and net realizable value.
Raw material cost is computed on quarterly weighted average basis.
(ii) Finished goods and Work-in-Process include estimated cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
(iii) Inventory of stores and spares, being not material, are charged
to consumption on procurement.
g. ACCOUNTING FOR TAXES ON INCOME:
Provision for current tax is made on the basis of the estimated taxable
income for the current accounting year in accordance with the
provisions as per Income-Tax Act, 1961.
MAT credit asset is recognized and carried forward as there is a
reasonable certainty of it being set off against regular tax payable
within the stipulated statutory period.
The deferred tax for timing differences between book profits and tax
profits for the year is accounted for using the tax rules and laws that
have been enacted or substantially enacted as of the balance sheet
date. Deferred tax assets arising from timing differences are
recognised to the extent there is a reasonable certainty that these
would be realized in future and are reviewed for the appropriateness of
their respective carrying values at each balance sheet date.
h. BORROWING COST:
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
up to the date when such asset is ready for its intended use. Other
Borrowing costs are charged to Profit & Loss Account.
i. TRANSACTIONS IN FOREIGN CURRENCY:
(i) Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions.
(ii) All exchange differences on settlement / conversion are dealt with
in the Profit and Loss Account.
(iii) Current Assets and Current Liabilities in foreign currency are
translated at the rate of exchange prevailing at the close of the year.
j. EMPLOYEE BENEFITS:
Liability in respect of employee benefits is provided and charged to
Profit and Loss Account as follows:
(i) Provident / Pension Funds (Contribution Plan): At a specified
percentage of salary / wages for eligible Employees.
(ii) Leave Entitlement: As determined on the basis of accumulated leave
to the credit of the employees as at the year end as per the Company's
rules being the short term benefits.
(iii) The Company provides for gratuity, a defined benefit retirement
plan, covering eligible employees. Liability under gratuity plan is
determined on actuarial valuation done by the Life Insurance
Corporation of India (LIC) at the close of the year, based upon which,
the Company contributes to the scheme with LIC. The Company also
provides for the additional liability over the amount contributed to
the LIC based on the actuarial valuation done by LIC using the
Projected Unit Credit Method.
k. IMPAIRMENT OF ASSETS:
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its recoverable
amount and the amount of such impairment loss is charged to profit and
loss account. If at the balance sheet date there is any indication that
a previously assessed impairment loss no longer exists, then such loss
is reversed and the asset is restated to that effect.
I. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefit will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Contingent assets are not
recognised or disclosed in the financial statements.
Mar 31, 2011
A. BASIS OF ACCOUNTING:
(i) The financial statements are prepared on the basis of historical
cost convention, and on the accounting principles of a going concern.
(ii) All expenses and income to the extent ascertainable with
reasonable certainty are accounted for on accrual basis.
b. USE OF ESTIMATES:
The presentation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively.
c. REVENUE RECOGNITION:
Revenue from sale of goods is recognized when significant risks &
rewards of ownership are transferred to the customers. Sales are
inclusive of freight and net of sales returns.
d. FIXED ASSETS:
(i) Fixed Assets are stated at cost inclusive of freight, duties, taxes
and all incidental expenses related thereto and net of Cenvat credit.
(ii) Pre-operative expenses incurred during construction period are
allocated to various assets in proportion to their capital cost.
(iii) Fixed assets are stated at cost less accumulated depreciation.
e. DEPRECIATION/AMORTISATION:
(i) Premium on leasehold land is being amortized over the period of
lease.
(ii) Depreciation on fixed assets is provided on straight line method
at the rates and in the manner as specified in Schedule XIV to the
Companies Act, 1956.
(iii) 'Continuous Process Plant' as defined in the said Schedule, has
been considered on technical assessment and depreciation provided
accordingly.
f. INVENTORIES:
(i) Inventories are valued at lower of cost and net realizable value.
Raw material cost is computed on quarterly weighted average basis.
(ii) Finished goods and Work-in-Process include estimated cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
(iii) Inventory of stores and spares, being not material, are charged
to consumption on procurement.
g. ACCOUNTING FOR TAXES ON INCOME:
Provision for current tax is made on the basis of the estimated taxable
income for the current accounting year in accordance with the
provisions as per Income-Tax Act, 1961.
MAT credit asset is recognized and carried forward only if there is a
reasonable certainty of it being set off against regulartax payable
within the stipulated statutory period.
The deferred tax for timing differences between book profits and tax
profits for the year is accounted for using the tax rules and laws that
have been enacted or substantially enacted as of the balance sheet
date. Deferred tax assets arising from timing differences are
recognised to the extent there is a reasonable certainty that these
would be realized in future and are reviewed for the appropriateness of
their respective carrying values at each balance sheet date.
h. BORROWING COST:
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
up to the date when such asset is ready for its intended use. Other
Borrowing costs are charged to Profit & Loss Account.
i. TRANSACTIONS IN FOREIGN CURRENCY:
(i) Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of
the transactions.
(ii) All exchange differences on settlement / conversion are dealt with
in the Profit and Loss Account.
(iii) Current Assets and Current Liabilities in foreign currency are
translated at the rate of exchange prevailing at the close of the year.
j. EMPLOYEE BENEFITS:
Liability in respect of employee benefits is provided and charged to
Profit and Loss Account as
follows:
(i) Provident/ Pension Funds (Contribution Plan): At a specified
percentage of salary/wages for eligible Employees.
(ii) Leave Entitlement: As determined on the basis of accumulated leave
to the credit of the employees as at the year end as per the Company's
rules being the short term benefits.
(iii) The Company provides for gratuity, a defined benefit retirement
plan, covering eligible employees. Liability under gratuity plan is
determined on actuarial valuation done by the Life Insurance
Corporation of India (LIC) at the close of the year, based upon which,
the Company contributes to the scheme with LIC. The Company also
provides for the additional liability over the amount contributed to
the LIC based on the actuarial valuation done by LIC using the
Projected Unit Credit Method.
k. IMPAIRMENT OF ASSETS:
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its recoverable
amount and the amount of such impairment loss is charged to profit and
loss account. If at the balance sheet date there is any indication that
a previously assessed impairment loss no longer exists, then such loss
is reversed and the asset is restated to that effect.
I. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefit will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Contingent assets are not
recognised or disclosed in the financial statements.
Mar 31, 2010
A. BASIS OF ACCOUNTING :
(i) The financial statements are prepared on the basis of historical
cost convention, and on the accounting principles of a going concern.
(ii) All expenses and income to the extent ascertainable with
reasonable certainty are accounted for on accrual basis.
b. USE OF ESTIMATES :
The presentation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively.
C. REVENUE RECOGNITION :
Revenue from sale of goods is recognized when significant risks &
rewards of ownership are transferred to the customers. Sales are
inclusive of freight and net of sales returns.
d. FIXED ASSETS:
(i) Fixed Assets are stated at cost inclusive of freight, duties, taxes
and all incidental expenses related thereto and net of Cenvat credit.
(ii) Pre-operative expenses incurred during construction period are
allocated to various assets in proportion to their capital cost.
(iii) Fixed assets are stated at cost less accumulated depreciation.
e. DEPRECIATION / AMORTISATION :
(i) Premium on leasehold land is being amortized over the period of
lease.
(ii) Depreciation on fixed assets is provided on written down value
method at the rates and in the manner as specified in Schedule XIV to
the Companies Act, 1956.
(iii) Continuous Process Plant as defined in the said Schedule, has
been considered on technical assessment and depreciation provided
accordingly.
f. INVENTORIES:
(i) Inventories are valued at lower of cost and net realizable value.
Raw material cost is computed on quarterly weighted average basis.
(ii) Finished goods and Work-in-Process include estimated cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
(iii) Inventory of stores and spares, being not material, are charged
to consumption on procurement.
g. ACCOUNTING FOR TAXES ON INCOME :
Provision for current tax is made on the basis of the estimated taxable
income for the current accounting year in accordance with the
provisions as per Income-Tax Act, 1961.
The deferred tax for timing differences between book profits and tax
profits for the year is accounted for using the tax rules and laws that
have been enacted or substantially enacted as of the balance sheet
date. Deferred tax assets arising from timing differences are
recognised to the extent there is a reasonable certainty that these
would be realized in future and are reviewed for the appropriateness of
their respective carrying values at each balance sheet date.
h. BORROWING COST:
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalised as a part of the cost of such asset
up to the date when such asset is ready for its intended use. Other
Borrowing costs are charged to Profit & Loss Account.
i. TRANSACTIONS IN FOREIGN CURRENCY :
(i) Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions.
(ii) All exchange differences on settlement / conversion are dealt with
in the Profit and Loss Account.
(iii) Current Assets and Current Liabilities in foreign currency are
translated at the rate of exchange prevailing at the close of the year.
j. EMPLOYEE BENEFITS :
Liability in respect of employee benefits is provided and charged to
Profit and Loss Account as follows:
(i) Provident / Pension Funds (Contribution Plan): At a specified
percentage of salary / wages for eligible Employees.
(ii) Leave Entitlement: As determined on the basis of accumulated leave
to the credit of the employees as at the year end as per the Companys
rules being the short term benefits.
(iii) Gratuity liability under the Payment of Gratuity Act, 1972 is a
defined benefit obligation and is provided on the basis of the
actuarial valuation made at the end of the financial year.
k. IMPAIRMENT OF ASSETS :
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its recoverable
amount and the amount of such impairment loss is charged to profit and
loss account. If at the balance sheet date there is any indication that
a previously assessed impairment loss no longer exists, then such loss
is reversed and the asset is restated to that effect.
I. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefit will be
required to settle an obligation. Contingent liabilities, if material,
are disclosed by way of notes to accounts. Contingent assets are not
recognised or disclosed in the financial statements.
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TPL Plastech Ltd. Company Details
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Company History
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TPL Plastech Ltd. Key Financial Ratios
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TPL Plastech Ltd. Results
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TPL Plastech Ltd. Financial Data
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TPL Plastech Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
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TPL Plastech Ltd. Corporate Announcements
- Book Closure
- Dividend
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