Moneycontrol Be a Pro
Get App
SENSEX NIFTY
Moneycontrol.com India | Accounting Policy > Chemicals > Accounting Policy followed by Apt Packagings - BSE: 506979, NSE: N.A
YOU ARE HERE > MONEYCONTROL > MARKETS > CHEMICALS > ACCOUNTING POLICY - Apt Packagings

Apt Packagings

BSE: 506979|ISIN: INE046E01017|SECTOR: Chemicals
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
Apt Packagings is not traded in the last 30 days
Apt Packagings is not listed on NSE
Mar 13
Accounting Policy Year : Mar '14
a) General:
 
 The Financial statements are prepared on historical cost basis in
 accordance with applicable accounting standards and on the accounting
 principle of going concern. Income and expenses to the extent
 considered receivable or payable are accounted for on mercantile basis.
 
 b) Fixed Assets, Depreciation, Amortization and impairement:
 
 i) Fixed Assets are stated at cost of acquisition net of Cenvat,
 inclusive of inward freight, duties and taxes and incidental expenses
 related to acquisition. As per the practice and on the basis of
 technical evaluation report expenses incurred on trial runs, know-how,
 development, modernization, de-bottlenecking of plant and equipment and
 adjustment arising from exchange rate variation relating to borrowings
 attributable to the fixed assets, are capitalized.
 
 ii) Depreciation is provided for in the accounts on straight line
 method at the rates computed in accordance with Schedule XIV of the
 Companies Act, 1956 except for certain asset as on 1st April, 1994 for
 which specified period has been recomputed as per the revised rates in
 Schedule XIV and operational charge calculated by allocatingnthe u
 -amortized value over the remaining part of the recomputed specified
 period.
 
 iii) Depreciation on addition is being provided on pro-rata basis from
 the following month of such additions.
 
 iv) Depreciation on assets sold, discarded or demolish during the year
 is being provided at their rates up to the month in which such assets
 are sold, discarded or demolished.
 
 v) Normal depreciation is provided on addition on account of exchange
 variation of foreign currency loans in the following years.
 
 vi) Rates of depreciation for plant and machinery of the co-extruded
 tube division is considered as continuous process plant @5.28%.
 
 vii) The depreciation has been charged on block of assets instead of
 individual assets in respect of assets owned by the company up to
 01-04-1991 in absence of sufficient details.
 
 viii) Premium on leasehold land has been amortized (written off)
 proportionately over the period of lease. .
 
 ix) The fixed assets specifically Land, Building and Plant & Machinery
 of the company have been valued from the approved valuer at a
 reasonable interval in order to comply with the requirement of AS-28.
 Impairment aspect of Fixed Assets for other assets, they are stated at
 residual value.
 
 x) Software purchased (intangible assets) for computers are debited to
 profit & loss account under the sub head miscellaneous expenditure in
 the year of purchase.
 
 c) Foreign Currency Transactions
 
 a) The transactions denominated in foreign currency are recorded at the
 exchange rate prevailing at the time of transactions. Monitory items
 denominated in foreign currency at year-end are translated at rates
 prevailing on the last day of the Financial Year.
 
 b) Foreign Currency Loans for acquisition of fixed assets are converted
 at the rate prevailing on the date of Balance Sheet. The fluctuation is
 adjusted in the cost of fixed assets.
 
 d) Investments:
 
 Investments are stated at cost and appropriate diminution except
 temporarily nature in the value of quoted investment is being provided
 for.
 
 e) Inventories:
 
 i. Inventories are valued at lower of cost and net realizable value
 except packing material, stores & spares, semi finished goods and work
 in progress which are valued at cost.
 
 ii. Cost is computed on the basis of FIFO. In case of finished Goods
 and goods in process, cost includes material cost (at year end), labor
 and overhead expenses inclusive of depreciation.
 
 iii. Inventory verified, valued and certified by management.
 
 f) Sales and Income Recognition
 
 i. Sales are stated and recognized on dispatches at Gross value i.e.
 inclusive of all taxes and freight charged to customers.
 
 ii. Gross sales includes inter unit sale of finished and semi-finished
 goods. Inter unit transfers of raw materials, consumables, stores and
 spares are transferred at cost and not included in sales.
 
 iii. Traded Goods (Inclusive of Transportation thereon) accounted on
 dispatch to customer basis on gross value and grouped under sales
 
 iv. Dividend and interest on investment are accounted for as and when
 right to receive basis accrued in favour of company.
 
 g) Cen vat (Mod vat):
 
 Cen vat (Mod vat) Credit availed on fixed assets is adjusted to the
 cost of the asset. Other Cen vat (Mod vat) Credit availed is set off
 with the purchase cost. Cen vat of Service Tax availed is set-off with
 the respective services. Unutilized balance is shown under the head
 Other Current Assets.
 
 h) Retirement Benefits:
 
 i. Contribution to the Provident Fund is made monthly as per the
 provisions of the Provident Fund Act.
 
 ii. The provision of Gratuity for employees and Directors are
 recognized and accounted for on the basis of Actuarial Valuation made
 by authorized assessor.
 
 iii. Leave encashment is determined on the basis of leave lules of the
 company and accounted on accrued basis.
 
 i) Government Grants:
 
 Grants in nature of project capital subsidy are credited to capital
 reserve.
 
 j) Misc. Expenditures:
 
 Misc. preliminary and preoperative expenses are witten off over a
 period of five years.
 
 k) Prior period items etc.
 
 Prior period expenses/income, non-recurring and extra-ordinary items
 having material impact disclosed in financial statement separately.
 
 l) Contingent Liability:
 
 Contingent Liabilities are disclosed by way of the Notes to the
 Accounts. Disputed demands in respect of Central Excise, Customs,
 Income Tax, Sales Tax and other claims are disclosed as contingent
 liabilities. Payment in respect of such demands, if any, is shown as an
 advance, till the final outcome of the matter and payment debited to
 respective head of expenses in the year of payment made, as the case
 may be.
 
 m) Taxes on Income:
 
 Deferred tax is recognized on timing difference between the accounting
 income and taxable income for the year that originates in one period
 and is capable of reversal in one or more subsequent period. Such
 deferred tax is quantified using the tax rate and lavs enacted or
 substantively enacted as on the Balance sheet date.
 
 Deferred tax assets are recognized and carried forward to the extent
 that there is a reasonable certainty that sufficient futne taxable
 income will be available against which such deferred tax assets can be
 realized.
 
 n) Borrowing Costs:
 
 In case of period of construction / installation of the qualifying
 fixed assets is which takes more than a year, borrowing costs that are
 directly attributable to the acquisition / construction of the are
 capitalized as part of respective asset, up to the date of acquisition
 / completion of construction. Other borrowing costs are recognized as
 expenses in the period in which they are incurred.
 
 G Secured by hypothecation of the vehicles acquired by utilising the
 said loan in the name of managing director of the company
 
 and is repayable in equated monthly installments, due upto October
 2015, the loan carries the interest @ 7% p.a.
 
 H Secured by hypothecation of the vehicles acquired by utilising the
 said loans in the name of managing director of the company
 
 and was repayable in equated monthly installments, due upto October
 2013, the loan carried the interest @ 9 to 11% p.a.
 
 I Secured by hypothecation of the vehicles acquired by utilising the
 said loans and is repayable in equated monthly installments,
 
 due upto August 2013, the loan carried the interest @ 16 % p.a.
 
 J Secured against the machine purchased from the machine supplier and
 is repayable immediately without any interest. The
 
 loan is in CHF currency.
 
 K Secured against machine & toolings purchased from machine supplier
 and is repayable in monthly installments up to the year
 
 May 2016 without any interest. The loan is in CHF currency.
 
 L This is as per incentive scheme of Government of Maharashtra for the
 co ex tube unit of the company situated at Pharola. The repayment of
 each year of the deferred sales tax amount is to be made in five equal
 installments in 11th to 15th year, without
 
 any interest till the respective due dates. Thereafter it carries
 interest @ 15% p.a.
 
 M Carry interest @ 9% to 15% p.a.
 
 N Carry interest @ 12% p.a..
 
 O Interest free.
 
 P Carry interest @ 9% p.a.
 
 A. Primary Segment: Business segment
 
 The operations of the company mainly fall within a single business
 segment i.e. Go extruded tube segment. The financial data for segment
 reporting as follows. The figures of traded goods being around 1 % of
 total turnover, the same have not been disclosed separately.
 
 submissions for obtaining Export Obligations Discharge Certificates
 have been made by the Company to the office of Director General of
 Foreign Trade, Mumbai.
 
 d. In respect of demand raised by Sales Tax authority, Aurangabad for
 Rs.2.25 Lacs for Sales Tax amount and Rs. 2.22 Lacs for interest
 thereon for the FY 2008-2007.
 
 e. In respect of notices issued by Sales Tax Authority, Hardwar with
 respect to various compliances for Rs. 0.28 Lacs (Rs.1.61 Lacs)
 
 f. in respect of Fiscal liabilities that may arise on account of
 non-observance of provisions of various fiscal statues, Companies Act
 and other related laws and interest / other charges chargeable on
 demands raised and not paid if any, amount is not ascertainable.
 
 g. Estimated amount of contract remaining to be executed net of
 advances on capital account and not provided for Rs. 4.34 Lacs (Rs.
 73.31 Lacs).
Source : Dion Global Solutions Limited
Quick Links for aptpackagings
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.