KOPRAN Accounting Policy

a) Basis of preparation of financial statement.

The financial statements have been prepared in accordance with the generally accepted 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 relevant provisions of the Companies Act,2013 and other accounting pronouncements of the Institute of Chartered Accountants of India. The financial statements have been prepared under historical cost convention and on accrual basis. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

(b) Uses of estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''''s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates.

(c) Fixed assets and depreciation

i) Fixed assets :

Fixed assets are stated at cost less accumulated depreciation/amortization. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

ii) Depreciation :

Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the plant and machinery, in whose case the estimated useful life has been assessed to be 20 years based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, etc.

(d) Investments

1. Investment intended to be held for not more than a year are classified as current investment. These are valued at lower of cost or fair value.

2. Long term Investments are stated at Cost. Provision for diminution in value is made only if, in the opinion of management such a decline is other than temporary.

(e) Inventories

Items of inventories are measured at lower of cost or net realizable value. Cost of raw materials, stores & spares and packing materials is determined using first in first out (FIFO) method. Cost of work-in-process and finished goods is determined on absorption costing method.

(f) Research and development expenses

1. Revenue expenditure on research and development is charged to profit and loss account under respective heads of account in the year in which it is incurred.

2. Capital expenditure is included in fixed assets under the respective heads.

(g) Foreign exchange transactions

1. Transactions in foreign currency are recorded at the exchange rate prevailing as on the date of transaction.

2. Foreign currency assets / liabilities as on the balance sheet date are translated at the exchange rate prevailing on the date of balance sheet.

3. The exchange difference arising out of settlement and restatement of foreign currency monetary items including those arising on repayment and translation of liabilities relating to fixed assets are taken to Statement of profit and loss account.

4. Forward exchange contracts outstanding as at the year end on account of firm commitment transactions are marked to market and the losses, if any, are recognized in the statement of profit and loss and gains are ignored in accordance with the announcement of the Institute of Chartered Accountants of India on ‘Accounting for Derivatives ‘issued in March 2008.

h) Revenue recognition

1. Sales of products and services

Sales comprise of sale of goods and services, net of trade discounts and include excise duty.

2. Export benefits

The unutilized export benefits under MEIS/FPS/FMS/ advance license against export as on the balance sheet date are recognized as income on accrual basis.

3. Dividend

Dividend is recognized when the company''''s right to receive the payment is established .

4. Other Income

(i) Employee benefits :

1. Defined contribution plan : Company''''s contribution paid/payable during the year to ESIC and labour welfare fund are charged to statement of profit and loss account. Company’s provident fund contribution, in respect of certain employees, is made to a government administered fund and charged as an expense to the Statement of profit and loss. The above benefits are classified as ''''Defined contribution schemes ''''as the company has no further defined obligations beyond the monthly contributions.

2. Defined benefit plan : Company''''s liabilities towards gratuity and leave encashment are determined using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past services are recognized on a straight line basis over the average period until the amended benefits become vested. Actuarial gain and losses are recognized immediately in the statement of profit and loss account as income or expense. Obligation is measured at the present value of estimated future cash flow using a discounted rate that is determined by the reference to market yields at the balance sheet date on government bonds where the currency and terms of government bonds are consistent with the currency and estimated terms of the defined benefit obligation.

(j) Excise and customs duty

1. Excise and customs duty payable in respect of finished goods lying at factory / bonded premises are provided for and included in the valuation of inventory.

2. CENVAT credit of excise duty availed during the year is accounted for by reducing purchase cost of the materials and is adjusted against excise duty payable on clearance of goods produced.

(k) Borrowing costs

Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalized as part of the cost of the assets, up to the date the asset is put to use. Other costs are charged to the statement of profit and loss account in the year in which they are incurred.

(l) Prior period items

Prior period expenses / income is accounted under the respective head of expenses / income account, material items, if any, are disclosed separately by way of a note.

(m) Earning per share

In accordance with the Accounting Standard -20 (AS-20) "Earning Per Share" issued by the Institute of Chartered Accountants of India, earning per share is computed by dividing the profit after tax with the weighted average number of shares outstanding, at the year end. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

(n) Income tax

Tax expense comprises of current tax, deferred tax charge or credit. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. The deferred tax charged or credit is recognized using prevailing enacted or substantatively annexed tax rate where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the period.

(o) Intangible assets

Intangible assets are recognized only when it is probable that the future economic benefits that are attributable to the asset will flow to the Company and the cost of such assets can be measured reliably. Intangible assets are stated at cost less accumulated amortization and impairment loss, if any. All costs relating to the acquisition are capitalized. Intangible assets are amortized over the useful life of the asset.

(p) Impairment of assets

"In accordance with Accounting Standard (AS-28) on impairment of assets, at each Balance Sheet date, the management reviews the carrying amount of assets in each cash generating units to determine whether there is any indication that those assets were impaired, if any such indication exists the recoverable amount of the asset is estimated in order to determine: i. The provision for impairment loss, if the carrying amount of an asset exceeds its recoverable amount or ii. The reversal, if any, required of impairment loss recognized in previous years."

(q) Contingencies and provisions

A provision is recognized when the Company has a present obligation as a result of past event. It is probable that an outflow of resources embodying economic benefit will be required to settle the obligation in respect of which a reliable estimate can be made. provisions are not discounted to its present value and are determined based on the best estimate of the expenditure required to settle the obligation at the balance sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

(r) Cash and cash equivalents /Cash flow statement

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash Flow Statement is prepared as per ''''Indirect Method'''' specified under AS 3 Cash Flow Statements.

(s) Operating Lease

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments under such leases are charged to the statement of profit and loss on a straight line basis over the primary period of the lease.

(t) Other accounting policies

These are consistent with the generally accepted accounting principles in India

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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