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Moneycontrol.com India | Accounting Policy > Packaging > Accounting Policy followed by Jagdamba Polymers - BSE: 512453, NSE: N.A
Jagdamba Polymers
BSE: 512453|ISIN: INE564J01018|SECTOR: Packaging
Apr 10, 17:00
Jagdamba Polymers is not listed on NSE
Mar 12
Accounting Policy Year : Mar '13
a) Basis of Accounting & Revenue Recognition:
 (i) The financial statements are prepared under historical cost
 convention in accordance with generally accepted accounting principles
 and the Accounting Standard issued by the Institute of Chartered
 Accountants of India and the provisions of the Companies Act, 1956.
 (ii) The Company follows the mercantile system of accounting and
 recognizes income & expenditure on an accrual basis except those with
 significant uncertainties.
 b) Fixed assets:
 Fixed assets are stated at their original cost less depreciation. The
 cost includes expenditure incurred in the acquisition, construction
 and/or installation net of Cenvat and Service tax. Cost includes all
 expenses and interest attributable to the project till the date of
 commencement of commercial production. The Company identified
 Components of plant & machinery which are not serviceable and valued as
 per the certificate of valuer. The difference of the book value &
 valuation of valuer were written off.
 c) Depreciation:
 Depreciation on fixed assets purchases upto 31-03-1991 has been
 provided on written-down-value method and depreciation on assets
 purchased after 31-03-1991 has been provided on straight-line method at
 the rates prescribed by schedule XIV of the Companies (Amendment) Act,
 1988.  Depreciation in respect of addition and deduction from assets
 has been charged on pro-rata basis with reference to the addition or
 d) Impairment:
 The Company, at each balance sheet date, assesses whether there is any
 indication of impairment of any asset and / or cash generating unit. If
 such indication exists, assets are impaired by comparing carrying
 amount of each assets and / or cash generating unit to the recoverable
 amount being higher of the net selling price or value in use. Value in
 use is determined from the present value of the estimated future cash
 flows from the continuing use of the assets.
 The carrying amounts of assets are reviewed at each Balance Sheet date.
 If there is any indication of impairment based on internal / external
 factors, i.e. when the carrying amount of the asset exceeds the
 recoverable amount, an impairment loss is charged to the statement of
 Profit and Loss when an asset is identified as impaired. An impairment
 loss recognized in prior accounting period if any is reversed or
 reduced if there has been a favorable change in the estimate of the
 recoverable amount.
 e) Inventories:
 Inventories are valued at the lower of the cost & estimated net
 realisable value. Cost of inventories is computed on a FIFO basis.
 Finished goods & work in progress include costs of conversion & other
 costs incurred in bringing the inventories to their present location &
 condition. Proceeds in respect of sale of raw materials/ stores are
 credited to the respective heads. Obsolete, defective & unserviceable
 stocks are duly provided for.
 f) Sales:
 (i) Sales of goods are recognised on dispatches to customers, inclusive
 of excise duty and sales tax (wherever applicable) and are net of trade
 (ii) Waste resulting during process is partly sold and partly used in
 g) Cenvat:
 The Cenvat is being reduced from the value of purchases of Raw
 Materials, Packing Materials, Capital Goods and on other purchases.
 h) Retirement benefits:
 Short-term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 (i) Provident Fund: Contribution to Provident Fund is made monthly at
 the rate prescribed in the act, to appropriate authority on accrual
 basis and charged to revenue. 
 (ii) Gratuity: Gratuity liability is accounted for on the basis of
 actuarial valuation by way of contribution to Employees Group Gratuity
 Scheme with Kotak Mahindra Old Mutual Life Insurance Ltd.
 (iii) Leave Encashment: The Company has accounted for the leave
 encashment liabilities on accrual basis.
 i) Borrowing Cost:
 Interest and other costs in connection with the borrowing of the funds
 to the extent related/attributed to the acquisition/construction of
 qualifying fixed assets are capitalised as a part of the cost of such
 asset upto the date when such assets are ready for its intended use and
 other borrowing costs are charged to statement of Profit & Loss.
 j) Foreign Currency Transactions:
 Transactions denominated in foreign currencies are recorded at the
 exchange rates prevailing on the date of the transaction.
 At the year end, monetary items denominated in foreign currencies,
 other that those covered by forward contracts are converted into rupee
 equivalents at the year end exchange rates.
 All exchange differences arising on settlement and conversion on
 foreign currency transaction are included in the Statement of Profit
 and Loss, except in cases where they relate to the acquisition of fixed
 assets, in which case they are adjusted in the cost of the
 corresponding asset.
 In respect of transactions covered by forward exchange contracts, the
 difference between the forward rate and the exchange rate at the date
 of transaction is recognised as income or expense over the life of the
 contract, except where it relates to fixed assets, in which case it is
 adjusted in the cost of the corresponding assets.
 k) Provision for Current and Deferred Tax:
 Provision for Current Tax is made on the basis of estimated taxable
 income for the current accounting period and in accordance with the
 provisions as per the Income Tax Act, 1961.
 Deferred Tax resulting from timing difference between book and
 taxable profit for the year is accounted for using the tax rates and
 laws that have been enacted or substantially enacted as on the balance
 sheet date. The deferred tax asset is recognized and carried forward
 only to the extent that there is a reasonable certainty/virtual
 certainty that the assets will be adjusted in future.
 l) Amount Due to Micro, Small and Medium Enterprises:
 (i) Based on the information available with the Company in respect of
 MSME (as defined in the Micro, Small and Medium Enterprises Development
 Act, 2006) thereare no delays in payment of dues to such enterprise
 during the year.
 (ii) The identification of Micro, Small and Medium Enterprises
 Suppliers as defined under The Micro, Small and Medium Enterprises
 Development Act, 2006 is based on the information available with the
 management. As certified by the management, the amounts overdue as on
 March 31, 2013 to Micro, Small and Medium Enterprises on account of
 principal amount together with interest, aggregate to Rs. Nil (P. Y.
 m) Provisions, Contingent Liabilities and Contingent Assets:
 Provisions involving a substantial degree of estimation in measurement
 are 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
 financial statements by way of Notes. Contingent Assets are neither
 recognized nor disclosed in the financial statements.
Source : Dion Global Solutions Limited
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