Corporate information

"Pacific Industries Limited" is a public Limited Company domiciled in India and incorporated under the provisions of Companies Act, 1956. The Company is engaged in manufacturing of Granites & Marble Slabs.

STATEMENT OF SIGNIFICANT ACOUNTING POLICIES:

(1) General / Basis of Preparation :

The company follows mercantile basis of accounting and recognizes income and expenses on accrual basis except otherwise mentioned. The accounts are brpared on historical cost basis on the principles of going concern. Accounting policies not specifically referred are consistent and in consonance with generally accepted accounting principles.

(2) Use of Estimates :

The brsentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statement and the reportable amount of revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the year in which the results known/materialized.

(3) Revenue Recognition:

(i) Revenue in respect of sales of goods is recognized at the point of dispatch/ passage of title of goods to the customer. Sales are net of excise duty and sales tax.

(ii) Insurance and other claims being unascertained are accounted on receipt basis.

(4) Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction or at revalued amounts wherever such assets have been revalued less accumulated debrciation.

(5) Debrciation :

Debrciation on fixed assets has been calculated on the basis of useful life of assets brscribed as per schedule II of the Companies Act, 2013. Further the debrciation on addition made during the year has been provided on a pro-rata basis.

(6) Impairment of Assets :

The carrying amounts of tangible fixed assets are reviewed for impairment, if events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.

If there are indicators of impairment, an assessment is made to determine whether the asset's carrying value exceeds its recoverable amount. Whenever the carrying value of an asset exceeds its recoverable amount, impairment is charged to profit and loss account. Recoverable amounts are estimated for individual assets where feasible, otherwise to the relevant cash generating unit

(7) Investment:

(i) Investments are classified into current and long term investment.

(ii) Long term investments are carried at cost. Provision for diminution is made in the value of investment to recognize a decline if any, other than temporary.

(iii)Current investments are stated at lower of cost and net realizable value.

(8) Export Incentive:

Export incentives on trading export such as import entitlement, advance license are accounted for on the realization/ sale thereof.

(9) Employee Benefits:

(i) Gratuity payable to employees, who are eligible are accounted for on the basis of actuarial valuation received from Life Insurance Corporation of India and leave encashment payable to employees, who are eligible are accounted for on the basis as it becomes due for payment on the last date of accounting year.

(ii) Provident fund paid/ payable during the year is charged to Profit & Loss Account.

(10) Inventories

(i) Raw materials, stores & spares, consumables are valued at actual cost on FIFO basis.

(ii) Stock-in-process is valued at weighted average cost which includes cost of raw material, stores & spares and other consumable consumed and manufacturing expenses, production overheads and debrciation.

(iii) Finished goods are valued at cost or at estimated realizable value whichever is lower. Cost for this purpose includes raw materials, wages, manufacturing expenses, production overheads and debrciation.

(iv) Scrap is valued at estimated realizable value.

(v) Crazy/ wastage arising out of production is valued at net realizable value.

(11) Foreign Currency Transactions:

(i) Foreign Currency transactions are accounted for at the exchange rate brvailing on the date of such transaction, where such transactions are not covered by forward contracts. Gains/ Losses arising out of the fluctuation in the exchange rate are accounted at the year end or on realization.

(ii) Current assets & liabilities are translated at year-end rate. Exchange fluctuation, if any, are adjusted in profit and loss account (except related to fixed assets) during the year and the related current assets and liabilities accordingly restated in the balance sheet.

(iii) In respect of foreign currency taken for acquisition of fixed assets, any fluctuation arising due to such transactions are adjusted in the cost of the respective fixed assets.

(12) Taxation

a) Current tax is the provision made for Income Tax liability, if any on profits in accordance with the provisions of the Income Tax Act, 1961.

b) Deferred tax is recognized on timing differences, being the difference resulting from the recognition of items in the financial statements and in examining the current income tax.

c) Deferred tax assets are recognized on unabsorbed debrciation/ business losses to the extent that there is virtual certainty supported by convincing evidences that sufficient future taxable income will be available against which such deferred tax assets can be realized and on expenses incurred but to be allowed on payment basis as per provision of the Income Tax Act, 1961

d) Deferred tax assets and liabilities are measured using the tax rate and tax law that have been enacted on the Balance Sheet date.

(13) Contingent Liabilities:

Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.