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National Plastic Technologies
BSE: 531287|ISIN: INE896D01017|SECTOR: Plastics
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National Plastic Technologies is not listed on NSE
Mar 12
Accounting Policy Year : Mar '13
1.  ACCOUNTING POLICIES:
 
 (i) Accounting policies are consistent with generally accepted
 Accounting principles, except wherever stated otherwise.
 
 (ii) Financial Statements are based on historical cost.
 
 (iii) Mercantile System of Accounting is followed and Income &
 Expenditure are accounted for on accrual concept on a going concern
 basis consistently.  Bonus, Rates and Taxes are on payment basis.
 
 2.  FIXED ASSETS:
 
 Expenditure incurred in connection with acquisition of fixed assets are
 capitalized along with the cost of such assets.
 
 3.  CAPITAL WORK IN PROGRESS:
 
 Capital work in progress is carried at cost comprising direct cost and
 incidental expenditure during construction period to be allocated to
 the fixed assets on the completion of construction.
 
 4.  DEPRECIATION:
 
 Depreciation is provided from the date the assets have been acquired /
 commissioned and put to use, on Straight line method at the rates and
 the manner specified in Schedule XIV of the Companies Act 1956.
 
 5.  REVENUE RECOGNITION:
 
 Sale of goods is recognized at the point of dispatch of goods to the
 customers from the Company''s factory.
 
 6.  SALES:
 
 Sale comprises sale of goods and includes applicable excise duty and
 local taxes.  Consequently duties paid to the authorities are recorded
 as expenditure.
 
 7.  INVENTORIES:
 
 Inventories are valued in accordance with the method of valuation
 prescribed by The Institute of Chartered Accountants are as follows:
 
 (a) Finished goods are valued at cost of Production consisting of Raw
 material cost inclusive of CENVAT, Manufacturing and administrative
 overheads or net realizable price whichever is lower.
 
 (b) Work-in-progress is valued at cost of production consisting of Raw
 material cost inclusive of CENVAT, Manufacturing and administrative
 overhead.
 
 (c) Raw materials, Stores or consumables are valued at landed cost or
 net realizable value which ever is lower.
 
 8.  PROVISION FOR CONTINGENT LIABILITIES & CONTINGENT ASSETS:
 
 All Liabilities have been provided for, except liabilities of
 contingent nature which have been disclosed at their estimated value in
 the Notes to Accounts, but no provision are made for same and
 contingent assets are neither recognized nor disclosed in the financial
 statement.
 
 9.  TAXATION:
 
 Provision is made for current tax and deferred tax. Deferred Tax is
 recognized subject to the consideration of prudence on timing
 differences, being the difference between taxable income and accounting
 income that originate in one period for using the tax rates and laws
 that have been enacted or substantially enacted on the Balance Sheet
 date and are capable of reversal in one or more subsequent periods. The
 Deferred Tax Asset is provided as per the Accounting Standard 22 of the
 Institute of Chartered Accountants of India.
 
 The Company has made current tax provision for Minimum Alternate Tax
 (MAT) u/s 115JB of the Income Tax Act, 1961. As
 
 per the provisions of Section 115JAA, MAT Credit receivable has been
 recognized on the basis of return of Income filed for the previous
 years and MAT provided for the current year. MAT Credit is recognized
 as an asset to the extent there is convincing evidence that the company
 will pay normal income tax during the specified period. MAT Credit is
 recognized as an asset in accordance with the recommendations contained
 in guidance Note issued by the Institute of Chartered Accountants of
 India. The said asset is created by way of a credit to profit and loss
 account and shown as MAT Credit Entitlement. The Company will review
 the same at each Balance Sheet date and write 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.
 
 10.  FOREIGN CURRENCYTRANSACTIONS: Transactions denominated in foreign
 currencies are normally recorded at the exchange rate prevailing at the
 time of the transaction or at contracted forward rates.
 
 11.  EMPLOYEE RETIREMENT BENEFITS.
 
 (i) Company''s contributions under Provident Fund Act and Employees
 State Insurance Act are charged to Profit & Loss A/C on accrual basis.
 
 (ii) Liability for Gratuity is recognized on payment basis. This is
 inconsistent with Accounting Standard 15 of ICAI.  Provision on
 actuarial basis has not been made as the amount involved is
 insignificant.
 
 12.  BORROWING COST:
 
 The Borrowing cost has been treated in accordance with Accounting
 Standard on Borrowing Costs (AS 16) issued by The Institute of
 Chartered Accountants of India.
 
 13.  INVESTMENTS:
 
 Long term investments are valued at cost.  Provision for diminution in
 the value of investments is made to recognize a decline other than
 temporary.
 
 14. IMPAIRMENT OF ASSETS:
 
 As per the management opinion there is no impairment loss to the fixed
 assets during the year.
Source : Dion Global Solutions Limited
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