Stovec Industries Ltd.


Apr 28, 11:41
2465.00 -44.90 ( -1.82 %)
VOLUME : 175
BID PRICE(QTY.) 2466.00 (5)
2490.00 (1)
Stovec Industries Ltd. is not traded in NSE

Accounting Policies

Market Cap.(`) 514.70 Cr. P/BV 5.72 Book Value (`) 430.62
Bookclosure 11/05/2017 FV/ML 10/1 P/E(X) 20.63
EPS (`) 119.47 Div Yield (%) 1.26
You can view the entire text of Accounting Policy of the company for the latest year.
Year End :2015-12 
  1. General Information


Stovec Industries was incorporated in 1973, in Ahmedabad, Gujarat. The Company is listed on
Bombay Stock Exchange. The Company has three major Business Profile divisions : Textile
Machinery, Graphics and Galvanic Screens. It manufactures and markets Perforated Rotary and
Engraved Cylindrical Screens, Galvano Consumables and Screen Printing Machines.


  1. Statement of significant accounting policies


  1. Basis of preparation of financial statements


These financial statements have been prepared in accordance with the generally accepted
accounting principles in India under the historical cost convention on accrual basis. Pursuant
to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts)
Rules 2014, till the standards of accounting or any addendum thereto are prescribed by
Central Government in consultation and recommendation of the National Financial Reporting
Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall
continue to apply. Consequently, these financial statements have been prepared to comply in
all material aspects with the accounting standards notified under Section 211(3C) [Companies
(Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the
Companies Act, 2013.


All assets and liabilities have been classified as current or non-current as per the Company's
operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
Based on the nature of products and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as 12 months for the purpose of current — non current classification of
assets and liabilities.


  1. Inventories


Inventories are valued at lower of cost and net realisable value.


  1. Cost of raw materials, packing materials, stores, spares and tools are computed on a
    moving weighted average cost basis.


  2. Cost of work-in-progress/ finished goods are determined on moving weighted average
    cost basis comprising material, labour and related factory overheads.


    1. Revenue Recognition


Sale of Goods


Revenue is recognised when the property and all significant risks and rewards of ownership
are transferred to the buyer and no significant uncertainty exists regarding the amount of
consideration that is derived from the sale of goods. Sales are recorded net of trade discount,
rebates and sales tax / value added tax is inclusive of excise duty.


Sale of Services


Service income is recognised on completion of rendering of services and is recorded net of
service tax. Cost incurred during the pendency of the contract is carried forward as job in
progress at lower of cost and net realisable amounts.


Commission income is recognised and accounted on accrual basis.


Interest income is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.


  1. Fixed Assets and Depreciation / Amortisation
    Tangible Assets


  1. Fixed assets are stated at historical cost less depreciation / amortisation. Cost includes
    all expenses relating to acquisition and installation of the concerned assets.


  2. Depreciation has been provided on a straight-line method (pro-rata from the date of

additions) over the useful life as prescribed in Schedule II to the Companies Act 2013 or

as per techinical evaluation.


Revised estimated useful life of the assets are as mentioned below:

Description of the asset

Useful Life (Years)


5 to 60

Plant and Equipment

7.5 to 15


3 to 6

Furniture and Fixtures


Office Equipments, Air Conditioners and Cooler etc.





Intangible Assets


Intangible Assets are stated at acquistion cost, net of accumulated amortization and accumulated
impairment losses, if any. Intangible Assets are amortized on a straight - line basis (pro-rata from
the date of additions) over there estimated useful lives. The useful lives are as under:


Description of the asset

Useful Life (Years)

Computer Software




Technical/ Commercial Know-how



  1. Foreign Currency Transactions


  2. Initial Recognition


On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency
amount the exchange rate between the reporting currency and the foreign currency at the date of the


Subsequent Recognition


As at the reporting date, non-monetary items which are carried in terms of historical cost denominated
in a foreign currency are reported using the exchange rate at the date of the transaction. All monetary
assets and liabilities in foreign currency are restated at the end of accounting period.

Exchange differences on restatement of all monetary items are recognised in the Statement of Profit
and Loss.


Forward Exchange Contracts


The premium or discount arising at the inception of forward exchange contracts entered into to hedge
an existing asset / liability, is amortised as expense or income over the life of the contract. Exchange
differences on such a contract are recognised in the Statement of Profit and Loss in the reporting period
in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such a
forward exchange contract are recognised as income or as expense for the period.


  1. Investments


Investments that are readily realisable and are intended to be held for not more than one year from the
date, on which such investment are made, are classified as Current Investment. All other Investments
are classified as Long Term Investments. Current Investments are carried at cost or fair value,
whichever is lower. Long Term Investments are carried at cost. However, provision for dimunition is
made to recognise a decline, other than temporary, in the value of the investments, such reduction
being determined and made for investment individually.


  1. Employee Benefits


  1. Short Term Employee Benefits:


The employees of the Company are entitled to leave encashment as per the leave policy of the
Company. The liability in respect of leave encashment of short term nature is provided, based on
an actuarial valuation carried out by an independent actuary as at the year-end.


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