Moneycontrol Be a Pro
Get App
SENSEX NIFTY
Moneycontrol.com India | Accounting Policy > Plastics > Accounting Policy followed by National Plastic Technologies - BSE: 531287, NSE: N.A
YOU ARE HERE > MONEYCONTROL > MARKETS > PLASTICS > ACCOUNTING POLICY - National Plastic Technologies

National Plastic Technologies

BSE: 531287|ISIN: INE896D01017|SECTOR: Plastics
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Dec 13, 15:40
34.20
0
VOLUME 3,000
National Plastic Technologies is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
1.  ACCOUNTING POLICIES:
 
 (i) Accounting policies are consistent with generally accepted
 Accounting principles, except where overstated 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:
 
 Based on Internal Technical Evaluation, the Company has re-assessed the
 remaining useful life of fixed assets w.e.f 1st April 2014 in
 accordance with Part A of Schedule II to the Companies Act, 2013. As a
 result of the above, depreciation is higher by Rs. 15.94 lacs for the
 yearended31.03.2015.
 
 However, based on the engineer''s certification, the useful life of
 Plant & Machinery and Electrical fittings of Irungattukottai and Guindy
 Plants have been enhanced as follows:
 
 (i) Plants Machinery- from 15 years to 25 years
 
 (ii) Electrical fittings - from 10 years to 15 years
 
 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, 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, Manufacturing and administrative overhead.
 
 (c) Raw materials, Stores or consumables are valued at landed cost or
 net realizable value whichever 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.
 
 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
Quick Links for nationalplastictechnologies
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.