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SENSEX NIFTY India | Accounting Policy > Aluminium > Accounting Policy followed by PG Foils - BSE: 526747, NSE: N.A

PG Foils

BSE: 526747|ISIN: INE078D01012|SECTOR: Aluminium
Aug 16, 16:00
4.2 (6.33%)
VOLUME 4,728
PG Foils is not listed on NSE
Mar 15
Accounting Policy Year : Mar '16

1. Basis of Preparation of Financial statements : The Financial Statements have been prepared in accordance with generally accepted accounting principles in India (''Indian GAAP) under the historical cost convention on an accrual basis, except interest on debtors and other claims receivable, which are accounted for on receipt/payment basis, in compliance with all material aspects of the Accounting Standards CAS'') notified under section 133 of The Companies Act, 2013 (the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year, unless otherwise mentioned in the notes. i

2. Use of Estimates: The presentation of financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of financial statements are prudent and reasonable. Further results could differ due to these estimates and the differences between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. fixed Assets, Intangible Assets and Depreciation:

Fixed assets

Fixed assets are stated at cost of acquisition or construction ( Net of Cenvat credit/Vat) except in case of certain assets which have been revalue at its revalue amount less accumulated depreciation/amortization and impairment losses (if any). All cost relating to the acquisition and installation of assets are capitalized and include attributable finance cost till such assets are ready for its intended to use. j

Cii) Capital Work In Progress

Projects under which assets are not ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

(iii) Intangible assets (if any) are stated at cost less accumulated amount of amortization. ;

(iv) Depreciation and amortization

Depreciation is provided on the written down value method as per useful life prescribed in Schedule II of the Companies Act, 2013

4. Investments:

(a) Current investments Investment which are readily realizable and intended to be held for not more than one year from the date of such investment. Current investments are carried at lover of cost or fair market value. ''

(b) Long term Investments Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories & Other Current Assets:

Inventories as taken and certified by the management are valued as under:

(a) Raw materials, Stores, Spares Parts And fuel : At cortex duding cenvat credit and VAT.

(b) Work in process : A estimated cost depending up on the stage of completion

(valued as certified by the management)

(c) finished & Traded Goods : At cost or net realizable value which ever slower.(Cost price estimated by

deducting approx current G.R rate from the selling price).

(d) Scrap & rejected goods : At net realizable value determined by management

(e) Expott Goods in Transit : At sale invoice value in duding freight thereof. |

(f) Stock in transit/ware house (Purchase) : At purchase price in duding Dearing expenses,

Custom duty paid and incidental expenses thereto.

(g) Returned Material outside factory : At Estimated Net Realizable Value (certified by management).

Note: The cost of raw materials, stores, spare parts & fuel are arrived at on first in first out method and in the case of basic raw material, freight inward

expenses hovel so be unconsidered. j

6. Employee Benefits:

(a) Defined contribution plans : The Company''s contribution to provident fund and employee state insurance are considered as defined

contribution plans and are charged as an expense as they fall due based on the amount of contribution required to I be made. |

(b) Defined benefit plans : (a) Gratuity payable to employees is provided on the basis of premium paid under group gratuity scene with Life

Insurance Corporation of India. i

(b) Provision for Leave encashment has been made on accrual basis on leave un-availed as on 31.03.2016.

(c) Service awards have been adjusted/accounted on the basis of completed months of service provided by I employees.

(c) Short-term employee Benefits: - Short term employee benefits are recognized as an expense at the undiscounted amount in (ho statement of profit and loss for the year in which the related service is rendered.

7. Borrowing Costs : Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

8. Revenue Recognition:

(a) Sales are inclusive of Cenvat but are net of Sales returns, Shortages and other discounts & rebates but excluding value of recoveries made for insurance, freight and packing forwarding expenses, which have been shown in the invoice value and are adjusted in the respective heads.

(b) Discount and rebates on sales is accounted for sand when settled.

(C) Export sales are accounted for, on the basis of exchange rate of LEO Date (Let Export Order) of transactions and recognized as and when Risk & Rewards are transferred.

(dl Revenue from investment is accounted on sale/disposal of such investments.

(e) Export Incentive: (i) Revenue from DEPB Licenses is recognized when the licenses are sold / utilized and are shown as other incomes, (ii) Revenue of duly drawback has been accounted on accrual basis.

(f) Units generated on Emerson wind power plant has been accounted on the basis of effective tariff rate in respective month. Units generated on Salon wind power plant has been accounted at contract price on accrual basis.

(g) Interest receivable from Trade Receivables and dividend from investments are accounted on receipt basis.

(h) The Company has purchased DEPB Licenses from market at discounts and the same has been shown as Discounts received on purchase of DEPB in other income.

9. Transaction in Foreign Currencies (Other than for fixed assets):

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Gain/Loss arising out of fluctuation in between transaction date and realization date are recognized in profit & toss account.

(b) All foreign currency Monetary items at the year-end which not covered by foreign exchange contracts are translated at year-end rates.

(c) Foreign Exchange Gain/Loss of buyer''s credit taken from foreign bank has been recognized at the date of transaction and recognized in profit & loss account.

10. Impairment of Assets : All assets other than inventory, investment or deferred tax assets are reviewed for impairment where event or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying amount exceeds their recoverable amount will be written down to recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

11. Accounting of Taxes on Income: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from Timing Differences between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively 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 that the asset will be realized in future.

12. Contingent Liabilities : The company is not providing for contingent liabilities in the account since the ultimate outcome thereof cannot be determined on the date of take fiancé sheet. However, notes on every contingent liabilities exist on the date of balance sheet are given in notes to accounts. Contingent assets are neither recognized nor disclosed in the balance sheet.

13. Earnings Per Share: Basic and diluted earnings per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

14. Lease: Lease rentals under an operating lease, are recognized as an expenses in the statement of Profit & Loss Account on a straight line basis over the lease term. Lease Income from Operating lease is recognized in Profit & Loss Account on a Straight line basis over the Lease Term.

15. Accounting of Financial Instruments: The Premium or Discount arose due to difference between spot and forward rate on Forward Exchange Contracts, which are taken to hedge foreign currency risk of an existing asset/liability, is recognized over the period of contract Premium/ discount on the above FEC for the expired as income/ expenditure in the statement of profit & loss and for unexpired period as on balance sheet date are shown as Financial Asset & Liability & Amount receivable and payable under the Forward Exchange Contract is booked as liabilities and assets accordance with Accounting Standard-31 aims the same has also been subsequently recognized as per Accounting Standard-11.

Source : Dion Global Solutions Limited
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