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Mohit Paper Mills

BSE: 530169|ISIN: INE388C01017|SECTOR: Paper
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Mohit Paper Mills is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
 (1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 (i) The financial statements have been prepared in accordance with the
 applicable Accounting Standards issued by the Institute of Chartered
 Accountants of India and the relevant disclosure requirements of the
 Companies Act, 2013 under historical cost convention and on the basis
 of going concern.
 
 (ii) Accounting policies not specifically referred to otherwise are
 consistent and are in consonance with generally accepted accounting
 principles followed by the company.
 
 (2) FIXED ASSETS
 
 (I) Fixed Assets are stated at cost, net of credit availed in respect
 of any taxes, duties less accumulated depreciation. Cost comprises of
 the purchase price and any attributable cost of bringing the asset to
 its working condition for its intended use. Financing costs relating to
 acquisition of fixed assets which takes substantial period of time to
 get ready for intended use are also included to the extent they relate
 to the period up to such assets are ready for their intended use.
 Expenditure directly relating to construction/erection activity is
 capitalized. Indirect expenditure incurred during construction period
 is capitalized as part of the construction or is incidental thereto.
 
 (ii) Land, Building and Plant & Machinery were revalued by an approved
 valuer on 31.03.1996.The resultant surplus was credited to Capital
 Reserve from which depreciation on revalued portion is being written
 off every year. This has no impact on profit for the year.
 
 (3) DEPRECIATION
 
 Depreciation on fixed assets has been provided on written down method,
 except in respect of Steam Turbine, Boiler House, ETP Plant Conveyers &
 Handling Equipments, Laboratory Equipments, Forklift Truck and Ruling
 Machine in whose case the life of the assets have been reassessed based
 on technical evaluation taking into account the different set of
 environment in which these assets are operating due to which
 depreciation is provided on the above assets on Straight Line Method
 over their useful life.
 
 (4) REVENUE RECOGNITION
 
 The Company follows mercantile system of accounting where all the
 Income and Expenditure items having material bearing on the financial
 statements are recognized on accrual basis.
 
 (5) INVESTMENTS
 
 The investments being long-term investments are valued at cost, after
 providing for any diminution in value, if such diminution is of a
 permanent nature.
 
 (6) FOREIGN CURRENCY TRANSACTIONS
 
 i) Foreign currency transactions are recorded on initial recognition at
 the rate prevailing on the date of the transactions.
 
 ii) Foreign currency monetary items are reported using the closing
 rate. Exchange difference arising on the settlement of monetary items
 or on reporting the same at the closing rate as at the balance sheet
 date are recognized as income or expenses in the period in which they
 arise except in case of liabilities incurred for the purpose of
 acquiring the fixed assets from outside India in which case such
 exchange differences are adjusted in the carrying amount of fixed
 assets.
 
 (7) INVENTORIES
 
 The Company has valued its inventories on cost or net realizable value
 whichever is lower basis and is in compliance with the Accounting
 Standard (AS-2) issued by the Institute of Chartered Accountants of
 India. Further, the valuation of inventory is inclusive of Excise Duty
 component wherever applicable as required u/s 145A of the Income Tax
 Act, 1961.
 
 Cost for the purposes of inventory valuation is calculated as follows :
 
 i) Raw Materials and other materials at weighted average cost.
 
 ii) Store Spares and loose tools at Cost on FIFO basis.
 
 iii) Work in process - Material Cost plus appropriate share of labour
 and overheads.
 
 iv) Finished Goods - Cost is determined by taking material, labour and
 related factory overheads including depreciation and fixed production
 overheads which are apportioned on the basis of normal capacity
 
 (8) EXCISE DUTY
 
 Excise Duty has been accounted on the basis of payments made in respect
 of goods cleared, as also provision for goods lying in store room
 wherever applicable.
 
 (9) SALES & STOCKS
 
 Sales are recorded on the basis of dispatches till the last day of the
 year. Sales are accounted for inclusive of excise duty, trade tax &
 sales tax. Closing Stocks of finished goods and semi-finished goods are
 accounted for inclusive of Excise Duty.
 
 (10) TAX ON INCOME
 
 Current tax is determined in accordance with the provision of the
 Income Tax Act, 1961, as the amount of tax payable to the taxation
 authorities in respect of taxable income for the year.
 
 Deferred Tax is recognized subject to consideration of prudence, on
 timing difference, being the difference between taxable income and
 accounting income that originate in one period and is capable of
 reversal in one or more subsequent periods.
 
 (11) BORROWING COST
 
 Interest and other costs in connection with the borrowing of funds to
 the extent related / attributed to the acquisition / consumption of
 qualifying fixed assets are capitalized up to the date when such assets
 are ready for intended use and other borrowing costs are charged to
 Statement of Profit & Loss.
 
 (12) 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 provided for and are disclosed
 separately by way of Notes to the Accounts. Contingent Assets are
 neither recognized nor disclosed in the Financial Statements.
 
 (13) CASH FLOW
 
 The Cash Flow Statement has been prepared under the Indirect Method
 as prescribed in the Accounting Standard -3 Cash Flow Statement.
 
 
 
Source : Dion Global Solutions Limited
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