MSL Industries Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2013

I. Recognition of Income and Expenditure

A. SALES

Sales comprise sale of goods and include excise duty, export incentive

B. The Company follows the accrual method of accounting except for the following items which are accounted for on cash basis:

1. Claims receivable including Insurance claims, subsidies other than duty draw back and value of benefits under Advance License scheme against exports as also Custom Duty.

2. Dividend income and discounting charges for acceptances.

3. Interest on NSC lodged with Commercial Tax Authorities and penalties for non-fulfilment of commercial contracts.

4. Additional demand for electricity surcharge.

C. The liability on account of Customs Duty on imported materials in transit or in bonded warehouse is accounted only in the year in which the goods are cleared from the Customs.

II. Fixed Assets.

Fixed assets are stated at cost less accumulated depreciation (other than free-hold land where no depreciation is charged).

III. Method of Depreciation.

i) Depreciation on depreciable assets are provided on straight line method by writing off 95% of the cost of the assets over the "specified period" of the assets in accordance with the provisions of Sec 205(2)(b) of the Companies Act, 1956 at the rates provided as under:

a) Depreciation on all assets acquired / installed up to 30th September, 1987 at the rates of depreciation prevalent at the time of acquisition / installation of the assets in pursuance of the Circular No.1 of 1986 (1.1/86-CL V) dated 21st September 1986, issued by the Company Law Board.

b) Depreciation on additions to Fixed Assets after 1 st October, 1987 is provided at the relevant rates of depreciation applicable to straight line method as specified in Schedule XIV of the Companies Act, 1956.

ii) Depreciation on additions to Fixed Assets is calculated pro-rata from the date of such addition. However, no pro-rata depreciation is charged in the year in which the Fixed Assets are sold / discarded.

IV. Investments. Investments are stated at cost.

V Retirement Benefit.

Gratuity liability under the Payment of Gratuity Act is accounted for on accrual basis and provided at the end of each financial year on the basis of actuarial valuation.

VI. Deferred Revenue Expenditure.

Deferred Revenue Expenditure are written off in number of specified years depending upon the life of the accruing benefit, allowability under Tax laws and other considerations.

VII. Taxes on Income

Current tax is the amount of tax payable on income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of un-absorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses. 1. Deferred tax assets for un-absorbed losses have not been recognized on the basis of prudence and in absence of strong projection of future taxable profits. Provision for taxation has not been considered necessary in view of the brought forward losses and losses for the year.

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Mar 31, 2012

I. Recognition of Income and Expenditure

A. SALES

Sales comprise sale of goods and include excise duty export incentive

B. The Company follows the accrual method of accounting except for the following items which are accounted for on cash basis:

1. Claims receivable including Insurance claims, subsidies other than duty draw back and value of benefits under Advance License scheme against exports as also Custom Duty.

2. Dividend income and discounting charges for acceptances.

3. Interest on NSC lodge with Commercial Tax Authorities and penalties for non-fulfilment of commercial contracts.

4. Additional demand for electricity surcharge.

C. The Liability on account of Customs Duty on imported materials in transit or in bonded warehouse is accounted only in the year in which the goods are cleared from the Customs.

II. Fixed Assets.

Fixed Assets are stated at cost less accumulated depreciation (other than free-hold land where no depreciation is charged.

III. Method of Depreciation.

i) Depreciation on depreciable assets are provided on straight line method by writing off 95% of the cost of the assets over the "sped fied period" of the assets in accordance with the provisions of Sec 205(2) (b) of the Companies Act, 1956 at the rates provided as under:

a) Depreciation on all assets acquired / installed up to 30th September, 1987 at the rates of depreciation prevalent at the time of acquisition / installation of the assets in pursuance of the Circular No.1 of 1986 (1.1/86-CL V) dated 21st September 1986, issued by the Company Law Board.

b) Depreciation on additions to Fixed Assets after 1st October, 1987 is provided at the relevant rates of depreciation applicable to straight line method as specified in Schedule XIV of the Companies Act, 1956.

ii) Depreciation on additions to Fixed Assets is calculated pro-rate from the date of such addition. However, no pro-rate depreciation is charged in the year in which the Fixed Assets are sold / discarded.

IV. Investments.

Investments are stated at cost.

V. Retirement Benefit.

Gratuity liability under the Payment of Gratuity Act is accounted for on accrual basis and provided at the end of each financial year on the basis of actuarial valuation.

VI. Deferred Revvenue Expenditure.

Deferred Revenue Expenditure are written off in number of specified years depending upon the life of the accruing benefit,allowability under Tax laws and other considerations.

VII. Taxes on Income

Current tax is the amount of tax payable on income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of un-absorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

Deferred tax assets for un-absorbed losses have not been recognized on the basis of prudence and in absence of strong projection of future taxable profits. Provision for taxation has not been considered necessary in view of the brought forward losses and losses for the year.

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Mar 31, 2011

A. SALES

Sales comprise sale of goods and include excise duty export incentive

B. The Company follows the accrual method of accounting except for the following items which are accounted for on cash basis:

1. Claims receivable including Insurance claims, subsidies other than duty draw back and value of benefits under Advance License scheme against exports as also Custom Duty,

2. Dividend income and discounting charges for acceptances.

3. Interest on NSC lodge with Commercial Tax Authorities and penalties for non-fulfillment of commercial contracts.

4. Additional demand for electricity surcharge.

C. The Liability on account of Customs Duty onimported materials in transit or in bonded warehouse is accounted only in the year in which the goods are cleared from the Customs.

I. Fixed Assets.

Fixed Assets are stated at cost less accumulated depreciation (other than free-hold land where no depreciation is charged.

II. Method of Depreciation.

i) Depreciation on depreciable assets are provided on straight line method by writing off 95% of the cost of the assets over the "specified period" of the assets in accordance with the provisions of Sec 205(2) (b) of the Companies Act, 1956 at the rates provided as under:

a) Depreciation on all assets acquired / installed up to 30th September, 1987 at the rates of depreciation prevalent at the time of acquisition / installation of the assets in pursuance of the Circular No.1 of 1986 (1.1/86-CL V) dated 21st September 1986, issued by the Company Law Board.

b) Depreciation on additions to Fixed Assets after 1st October, 1987 is provided at the relevant rates of depreciation applicable to straight line method as specified in Schedule XIV of the Companies Act, 1956.

ii) Depreciation on additions to Fixed Assets is calculated pro-rate from the date of such addition. However, no pro-rate depreciation is charged in the year in which the Fixed Assets are sold / discarded.

III. Investments.

Investments are stated at cost.

IV. Retirement Benefit.

Gratuity liability under the Payment of Gratuity Act is accounted for on accrual basis and provided at the end of each financial year on the basis of actuarial valuation.

V. Deferred Revenue Expenditure.

Deferred Revenue Expenditure are written off in number of specified years depending upon the life of the accruing benefit, allow ability under Tax laws and other considerations.

VI. Taxes on Income

Current tax is the amount of tax payable on income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of un-absorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

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Mar 31, 2010

I. Recognition of Income and Expenditure

A. SALES

Sales comprise sale of goods and include excise duty, export incentive

B. The Company follows the accrual method of accounting except for the following items which are accounted for on cash basis:

1. Claims receivable including Insurance claims, subsidies other

than duty draw back and value of benefits under Advance License scheme against exports as also Custom Duty.

2. Dividend income and discounting charges for acceptances.

3. Interest on NSC lodged with Commercial Tax Authorities and penalties for non-fulfillment of commercial contracts.

4. Additional demand for electricity surcharge.

C. The liability on account of Customs Duty on imported materials in

transit or in bonded warehouse is accounted only in the year in which the goods are cleared from the Customs.

II. Fixed Assets.

Fixed assets are stated at cost less accumulated depreciation (other than free-hold land where no depreciation is charged).

III. Method of Depreciation.

i) Depreciation on depreciable assets are provided on straight line method by writing off 95% of the cost of the assets over the "specified period" of the assets in accordance with the provisions of Sec 205(2)(b) of the Companies Act, 1956 at the rates provided as under:

a) Depreciation on all assets acquired / installed up to 30th September, 1987 at the rates of depreciation prevalent at the time of acquisition / installation of the assets in pursuance of the Circular No.1 of 1986 (1.1/86-CLV) dated 21st September 1986, issued by the Company Law Board.

b) Depreciation on additions to Fixed Assets after 1 st October, 1987 is provided at the relevant rates of depreciation applicable to straight line method as specified in Schedule XIV of the Companies Act, 1956.

ii) Depreciation on additions to Fixed Assets is calculated pro- rata from the date of such addition. However, no pro- rata depreciation is charged in the year in which the Fixed Assets are sold / discarded.

IV. Investments.

Investments are stated at cost.

V. Retirement Benefit.

Gratuity liability under the Payment of Gratuity Act is ac- counted for on accrual basis and provided at the end of each financial year on the basis of actuarial valuation.

VI. Deferred Revenue Expenditure.

Deferred Revenue Expenditure are written off in number of

specified years depending upon the life of the accruing benefit, allow ability under Tax laws and other considerations.

VII. Taxes on Income

Current tax is the amount of tax payable on income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of un-absorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable in- come available to realize such losses.

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Mar 31, 2009

I. Recognition of Income and Expenditure

A. SALES

Sales comprise sale of goods and include excise duty, export incentive

B. The Company follows the accrual method of accounting except for the following items which are accounted for on cash basis:

1. Claims receivable including Insurance claims, subsidies other

than duty draw back and value of benefits under Advance License scheme against exports as also Custom Duty.

2. Dividend income and discounting charges for acceptan- ces.

3. Interest on NSC lodged with Commercial Tax Authorities and penalties for non-fulfilment of commercial contracts.

4. Additional demand for electricity surcharge.

C. The liability on account of Customs Duty on imported materials in transit or in bonded warehouse is accounted only in the year in which the goods are cleared from the Customs.

II. Fixed Assets.

Fixed assets are stated at cost less accumulated depreciation (other than free-hold land where no depreciation is charged).

III. Method of Depreciation.

i) Depreciation on depreciable assets are provided on straight line method by writing off 95% of the cost of the assets over the "specified period" of the assets in accordance with the provisions of Sec 205(2)(b) of the Companies Act, 1956 at the rates provided as under:

a) Depreciation on all assets acquired / installed up to 30th September, 1987 at the rates of deprecia- tion prevalent at the time of acquisition / installation of the assets in pursuance of the Circular No.1 of 1986 (1.1 /86-CL V) dated 21 st September 1986, issued by the Company Law Board.

b) Depreciation on additions to Fixed Assets after 1 st October, 1987 is provided at the relevant rates of depreciation applicable to straight line method as specified rn Schedule XIV of the Companies Act, 1956.

ii) Depreciation on additions to Fixed Assets is calculated pro- rata from the date of such addition. However, no pro- rata depreciation is charged in the year in which the Fixed Assets are sold / discarded.

IV. Valuation of Inventories.

nventory of Raw-material, Stores and Spares, Finished goods are stated at cost on First-in-First- out basis at the unit at Hind Polymers. Steel and Hi-Tech division at Patna are lying closed hence there is no more movement of any goods and stores, as on 31st March, 2009.

V. Investments.

Investments are stated at cost.

VI. Retirement Benefit.

Gratuity liability under the Payment of Gratuity Act is ac- counted for on accrual basis and provided at the end of each financial year on the basis of actuarial valuation.

VII. Deferred Revenue Expenditure.

Deferred Revenue Expenditure are written off in number of specified years depending upon the life of the accruing benefit, allowability under Tax laws and other considerations.

VIII. Taxes on Income

Current tax is the amount of tax payable on income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of un-absorbed depreciation and carry forward of losses arerecognized if there is vir- tual certainty that there will be sufficient future taxable in- come available to realize such losses.