Notes forming part of the Financial Statements as at and for the year ended March 31, 2015 Note1 CORPORATE INFORMATION Vinayak Polycon International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company were demerged from Polycon International Limited, a list company also domiciled in India under the Demerger Scheme approved by the Honourable High Court of Rajasthan, Jaipur Bench vide Order Dated 21-07.2011. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Preforms, Caps and Lids etc. Its manufacturing facilities are located at Chennai Note 2 SIGNIFICANT ACCOUNTING POLICIES a) Basis of brparation of financial Statements These financial statements have been brpared in accordance with thegenerally accepted accounting principles in india. The Company has brpared these financial statements to comply in all material respects with the provisions of Companies Act, 2013 ("The Act") and Accounting Standards notified under Section 133 of the Companies Act, 2013 read together with Paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements have been brpared on an accrual. All assets and liabilities have been classified as current or non-current as per Company's normal operating cycle and other criteria set out in Schedule-III of the Companies Act, 2013. The accounting policies adopted in brparation of financial statements are consistent with those of the brvious year. b) Use of Estimates The brparation of consolidated financial statements in conformity with the generally accepted accounting principles ('GAAP') in India requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, assets and liabilities and disclosures relating to contingent liabilities as of the date of the consolidated financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in future periods. c) Tangible fixed assets Fixed Assets have been stated at cost net of Cenvat credit less accumulated debrciation. Cost of acquisition or construction is inclusive of direct cost, incidental expenses and borrowing cost related to such acquisition or construction. d) Debrciation on tangible fixed assets Debrciation has been provided using the written down value method at the rate determined based on the estimated useful lives of the tangible assets where applicable, specified in the Schedule II to The Act and in keeping with other provisions of the said schedule. Additions/deletions to fixed assets during the year are being debrciated on prorate from the date on which such assets are being capitalized/deleted. e) Impairment of tangible assets Impairment loss is provided to the extent that the carrying amount(s) of assets exceed their recoverable amount(s). Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the brsent value of estimated future cash-flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal. f) Investments Investments, if any, are stated at cost. g) Inventories Inventories are valued at lower of cost or net realizable value as per stock taken, verified, valued and certified by the management. h) Revenue Recognition sales are recognised when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties (on goods manufactured and outsourced). It does not include inter-divisional transfers. i) Expenditure Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities. j) Retirement and other employee benefits The Company contributes towards Provident fund and Family pension fund which are defined contribution schemes. Liability in respect thereof is determined on the basis of contribution required to be made under the statutes/rules. Gratuity Liability, a defined benefit scheme, and provision for compensated absences is accrued and provided for on the basis of actuarial valuations made at the year end. k) Borrowing costs Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue. l) Taxes on Income Tax expense comprises of both current and deferred tax at the applicable enacted/substantively enacted rates. Current tax rebrsents the amount of income-tax payable/recoverable in respect of the taxable income/loss for the reporting period. Deferred tax rebrsents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. m) Provisions and contingencies A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the Company has a possible or brsent obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed. n) Foreign Currency Transactions Transactions in foreign currency, if any, are accounted at the exchange rate brvailing on the date of transactions. Foreign Currency Liabilities are stated at rates brvailing at the year end, if any. Any other exchange differences are recognized as revenue item. o) Cenvat Credit/Value Added Tax Cenvat/Value Added tax benefit is accounted for by reducing the purchase cost of material/fixed assets. Note 1 The Company is neither required to conduct the Cost Audit nor required Accounting Records for the current financial year. to maintain Cost Note 2. Inventories, Loans & Advances, Trade Receivables/Payables and other Current/Non-currentassets are reviewed annually and in the opinion of the Management do not have a value on realisation in the ordinary course of business, less than the amount at which they are stated in the balance sheet. Note 3 Previous year's figure have been regrouped/reclassified wherever necessary to correspond with the current year's classification/ disclosure. For A. Natani & Co. Chartered Accountants Firm Regn. No. 007347C For and on behalf of the Board of Directors Sd/- CA Ashok Kumar Natani Partner Membership No. 074692 Bhanwar Lal Baid Bharat Baid Vikram Baid Rashmi Agarwal DIN:00212003 DIN:00212506 DIN:00217347 Company Chairman Managing Director Director Secretary Place : Jaipur Date : 30.05.2015 |