Punjab Fibres Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2009

1. i) Basis of Accounting

The Company adopts accrual basis in the preparation of accounts.

ii) Revenue Recognition

The sales of finished products, wastes and scrap are accounted for on dispatch to customers. All incomes and expenses are accounted for on accrual basis except leave encashment, leave travel concession and medical reimbursement to employees which are accounted for on cash basis. Claims and interest income on income tax refunds are recognized on cash basis.

iii) Fixed Assets and Depreciation

a) Fixed Assets are stated at cost/revalued cost where revaluation has been done less accumulated depreciation. Cost of acquisition or construction is inclusive of all the expenses related thereto.

b) Depreciation on all fixed assets has been provided on the SLM at the rates specified in Schedule XIV of the Companies Act, 1956 on single shift basis in respect of company's both the plants as the same remained closed through out the year. The depreciation on increased value of buildings, plant & machinery and electrical fittings, due to revaluation, has been charged to Profit & Loss Account.

iv) Inventories

Raw materials, stores & spares and packing materials are valued at cost (net of CENVAT) or market price, whichever is less. Finished goods and wastes/scrap are valued at estimated net realizable value.

v) Retirement Benefits

Gratuity is charged to Profit & Loss Account on the basis of estimates made by the management.

vi) Excise Duty

Excise Duty on finished products is included.

vii) Cenvat Benefits

Cenvat benefit is accounted for by reducing the purchase cost of materials.

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Mar 31, 2008

1. i) Basis of Accounting

The Company adopts accrual basis in the preparation of accounts.

ii) Revenue Recognition

The sales of finished products, wastes and scrap are accounted for on dispatch to customers. All incomes and expenses are accounted for on accrual basis except leave encashment, leave travel concession and medical reimbursement to employees which are accounted for on cash basis. Claims and interest income on income tax refunds are recognized on cash basis.

iii) Fixed Assets and Depreciation

a) Fixed Assets are stated at cost/revalued cost where revaluation has been done less accumulated depreciation. Cost of acquisition or construction is inclusive of all the expenses related thereto.

b) Depreciation on all fixed assets except those not used has been provided on the SLM at the rates specified in Schedule XIV of the Companies Act, 1956 on single shift basis in respect of company's plant at Village Rail Majra (Punjab) as it remained closed through out the year and on triple shift basis in respect of company's plant at Surajpur (U.P.) as it has been put to use on full capacity utilization i.e. 24 hours/day. The depreciation on increased value of buildings, plant & machinery and electrical fittings, due to revaluation, has been charged to Profit & Loss Account.

iv) Inventories

Raw materials, stores & spares and packing materials are valued at cost (net of CENVAT) or market price, whichever is less. Finished goods and wastes/scrap are valued at estimated net realizable value.

v) Retirement Benefits

Gratuity is charged to Profit & Loss Account on the basis of estimates made by the management.

vi) Excise Duty

Excise Duty on finished products is included.

vii) Cenvat Benefits

Cenvat benefit is accounted for by reducing the purchase cost of materials.