Lalit Polymers & Electronics Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2015

LALIT POLYMERS & ELECTRONICS LIMITED (the 'Company') is a public limited company domiciled in India and is listed on the Ahmedabad (ASE) and the Bombay Stock Exchange (BSE). The Company is incorporated on 18/08/1984. The Company is mainly engaged in the business of manufacturing of GRP Pipes.

1.1 Basis of Preparation of Financial Statements

The financial statements have been prepared to comply in all material aspects with applicable accounting principles in India ('Indian GAAP') to comply with the accounting standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provision of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

All assets and liabilities have been classified as current or non- current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

1.2 Use of Estimates

The Preparation of financial statements requires the management of the group to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the Financial Statements and the reported amount of revenues and expenses during the reporting period. Example of such estimates include provision for doubtful receivables, employee benefits, provision for income taxes, accounting for contract costs expected to be incurred, the useful lives of depreciable fixed assets and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognized in the period in which the result are known / materialized.

1.3 Fixed Assets Tangible Assets

(i) All Fixed Assets are being stated at cost.

(ii) In case of expansion of Project, direct expenses including borrowing cost attributable to the qualifying assets are being capitalized as part of the cost of assets. Indirect expenses relating to the expansion have been capitalized and added pro rata to the cost of respective assets. Any addition of machinery in Plant has been taken at cost including direct expenditure.

Intangible Assets

(i) Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on a straight line basis over the estimated useful lives.

(ii) Gains or losses arising from the retirement or disposal proceeds and the carrying amount of the asset and recognized as income or expense in the Statement of Profit and Loss.

1.4 Depreciation

In respect of fixed assets (other than freehold land and capital work-in-progress) acquired during the year, depreciation / amortisation is charged on straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1,2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life based on an evaluation.

TYPE OF ASSETS PERIOD

Leasehold Land Lease period

Building 30 Year s

Plant & Machinery 15 Years

Electric Installation 15 years

Computer 5 Years

* Depreciation and amortization methods, useful lives and residual values are reviewed periodically, including at each financial year end.

* Depreciation on fixed assets has been charged extent of Rs. 49.58 Lacs, which includes Rs. 43.51 Lacs pertaining to previous year (Previous Year Rs. Nil)

1.5 Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

1.6 Investments

Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Current Investments are carried at lower of cost and quoted/fair value, computed category wise. 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.

1.7 Claims

1.8 Inventory Valuation

(i) Inventories are valued at lower of cost and net realizable value.

(ii) The Cost of Raw materials, stores, components at factories are taken at weighted average rate, after providing for obsolescence. Spares of irregular use are written off over the life of original equipment.

(iii) The cost of Finished Goods is determined by taking material, labour and related factory overheads including depreciation on Fixed Assets. The cost of work in process is taken at material cost and stage-wise overhead cost including depreciation on Fixed Assets.

(iv) Excise duty payable on the stock of finished goods has been added to the value of stock as per guidelines issued by ICAI.

(v) During the financial year 2014-15 there is no movement in inventory.

1.9 Taxation

a) Deferred Tax Assets/Liability:

In View of losses in this year and carry forward losses of earlier years and uncertainty of future profits, the management has decided not to take advantage of deferred tax assets, the deferred tax as per As-22. Deferred Tax Assets/Liability is Nil.

b) Income Tax:

Tax provision is made, in accordance with the Income Tax Act, 1961 including the provisions regarding MAT and the contentions of the company and also the fact that certain expenditure becoming allowable on payment being made before filling of the return on income.

1.10 Lease Accounting

The assets acquired on lease where a significant portion of the risk and rewards of ownership is retained by the lessor are classified as operating leases. Leave and license fees are charged to the Statement of Profit & Loss Account on accrual basis.

1.11 Borrowing Cost

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 its intended use. All other borrowing costs are charged to the Statement of Profit and Loss account.

1.12 Provisions, Contingent Liabilities and Contingent Assets

Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent Liabilities: Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets: Contingent Assets are neither recognized nor disclosed in the financial statements.

1.13 Earnings Per Share

The earnings considered in ascertaining the Company's Earnings Per Share ('EPS') comprise the net profit or loss for the period attributable to equity shareholders. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting the effects of potential dilutive equity shares.

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Mar 31, 2010

The accounts are prepared in accordance with accounting principles generally accepted. The company follows accrual method of Accounting exeept LTA, unless otherwise specifically stated.

1 FIXED ASSETS

All Fixed Assets are stated at cost. During the year direct expenses attributed to the qualifying assets are capitalized as part of the cost of Assets.

2. DEPRECIATION

(i) Depreciation on Fixed Assets has not been provided in the financial year 2009-2010 (Previous year Depreciation is charged on straight lime method at the rates prescribed under Schedule XIV of the companies Act, 1956). The possession of the Plant & Machinery has been taken over by the present management in the current financial year and only trial production & testing of the machineries have been done. This as resulted in to lower loss ofRs.13, 95,228/- (Previous year Nil).

3. INVENTORY VALUATION

(i) Raw materials, stores, components at factories are valued at cost after providing for obsolescence.

(ii) Finished goods are valued at lower of cost and net realizable value. The cost of Finished Goods is determined by taking material, labour and related factory overheads. During the year no depreciation has been charged on Fixed Assets hence not included for the purpose of valuation of finished goods

iii) Excise duty payable on the stock of finished goods has not been added to stock valuation of finished goods.

4. EMPLOYEE BENEFITS

Employe Benefits are recognized/accounted for on the basis of revised AS-15 detailed as under:-

1. Short Term Employee benefits are recognized as expenses at the undiscounted amount in the Profit and Loss account of the year in which they are incurred.

2. Employee benefits under defined contribution plans comprise of contribution to Provident Fund. Contributions to Provident Fund are deposited with appropriate authorities and charged to Profit & Loss account.

5: TAXATION

a) Provision for Current Tax has not been made since there is a loss in the current financial year.

b) Deferred Tax Assets/ Liability : In view of loss in this year and carry forward losses of earlier years and uncertainty of future profits,the deferred .Tax Assets / Liability is Nil as per AS-22.