a. Basis of Accounting:
The financial statements are prepared on a historical cost convention
on the accrual basis and materially comply with the accounting standard
notified by Companies (Accounting Standard) Rules, 2008 and relevant
provisions of the Companies Act, 1956.
b. Fixed Assets :
Fixed Assets are stated at cost of acquisition including any
attributable cost for bringing the assets to its working condition less
The Company has provided depreciation on Straight Line Method on all
Fixed Assets on Pro- rata basis as per Rates specified in schedule XIV
of the Companies Act, 1956.
i) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per applicable provision of
Income Tax Act, 1961.
ii) Deferred Tax resulting from timing difference between book and tax
profit is accounted for under the liability method, at the current rate
of tax, to the extent that the timing difference are expected to
e. Revenue Recognition:
Sales are accounted for on dispatch of goods to the customers and are
inclusive of Excise Duty but net of sales returns and trade discounts.
f. Foreign Currency Transactions / Exchange Fluctuation
(a) Monetary Transactions related to foreign currency are accounted for
at the equivalent rupee converted at the rates prevailing at the time
of respective transactions and outstanding in respect thereof are
translated at period end rates. Exchange difference is charged to the
revenue account except arising on account of conversion related to the
purchase of fixed asset is adjusted therewith.
(b) Non-monetary foreign currency items are carried at cost.
g. Borrowing cost:
Borrowing costs, which are attributable to acquisition or construction
of qualifying assets, are capitalized as part of cost of such assets
till such assets are ready for its intended use. A qualifying asset is
one, which necessarily takes substantial period of time to get ready
for intended use. All other borrowing costs are charged to revenue.
Raw Materials are valued at cost, however appropriate provisions are
made for anticipated losses, if any. Cost in respect of Raw Materials
is computed on FIFO basis. Other inventories are valued at the Lower of
cost or net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business less the estimated
cost of completion and estimated cost necessary to make sale. Cost in
respect of process and finished goods are computed on weighted average
basis method. Finished goods and process stock includes cost of
conversion and other costs incurred in acquiring the inventory and
bringing them to their present location and condition.
Long Term Investments are stated at cost. Provision is only made to
recognize a decline other than temporary, in the value of investments.
However, where quotation as on 31st March, 2012 was not available, last
available quotation was considered.
a. The Employee and Company make monthly fixed Contribution to
Government of India Employee''s Provident Fund equal to a specified
percentage of the Covered employee''s salary,
Provision for the same is made in the year in which services are
rendered by the employee.
b. The Liability for Gratuity to employees, which Is a defined benefit
plan. The Company''s Scheme is administered by LIC The liability is
determined by based on Projected Unit Credit method. Actuarial gain /
loss in respect of the same are charged to the Statement of profit and
c. The Company followed cash method of accounting in respect of Leave
Encashment and in absence of actuarial valuation, the amount is not
k. Segment Information:
Based on the principles for determination of segments given in
Accounting Standard 17 Segment Reporting*'' issued by accounting
standard notified by Companies (Accounting Standard) Rules, 2008, the
company is mainly engaged in the business of Decorative Laminated
Sheets and all other activity surrounded with main business of the
company hence there is no reportable segment
The management periodically assesses, using external and internal
sources whether there is an indication that an asset may be impaired.
If an asset is impaired, the company recognizes an impairment loss as
the excess of the carrying amount of the asset over the recoverable
m. Earnings per Share
Basic earnings per share is -calculated by dividing net profit after
tax for the year attributable to Equity Shareholders of the company by
the weighted average number of Equity Shares issued during the year.
Diluted earnings per share is calculated by dividing net profit
attributable to equity Shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding
during the year.
n. Provision, Contingent Liabilities and Contingent Assets :
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and It is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
o. Excise Duty, VAT & CENVAT:
CENVAT / VAT credit on materials purchased for production / service
availed for production / input service are taken into account at the
time of purchase and CENVAT / VAT credit on purchase of capital Kerns
wherever applicable are taken into account as and when the assets are
The CENVAT credits so taken;are utilized for payment of excise duty on
goods manufactured. The unutilized CENVAT credit is carried forward in
the books. The VAT-credits so taken are utilized for payment of sales
tax on goods sold. The unutilized VAT credit is carried forward in the
p. Accounting policies not specifically referred to otherwise are
consistent with generally accepted accounting principles.