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Accounting Policies of Abhishek Corporation Ltd. Company

Mar 31, 2014

1. Method of Accounting :

The financial statements are prepared under the historical cost convention and as per mercantile system of accounting.

2. Fixed Assets :

Fixed assets are stated at cost of acquisition, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation. Capital Work In Progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. There are no intangible assets.

3. Depreciation :

The Company has used Continuous Process Method on Plant & Machinery, Electrical Installation & Lab Equipment and the other fixed assets are depreciated on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

4. Investments :

Investments are stated at cost.

5. Inventories :

Raw Material, Work in Process, Finished Goods is valued at Cost or Net Realisable value whichever is lower. Waste stock is valued at market value/net realisable value. Cost comprises of all cost of purchase, cost of conversion and the cost incurred in brining the inventory to present location and condition. Cost formulae used is "First in First Out" .

6. Retirement Benefits :

The Company has provided retirement benefits in the form of contribution to provident fund as a fixed percentage of salary and wages to employees. Employees of the Company are covered under Payment of Gratuity Act, 1972. Provision for Gratuity and Leave Encashment is made by the Company. Actuarial Valuation reports are not availed.

7. Miscellaneous expenditure :

Preliminary expenses and miscellaneous expenditure are being amortised over a period of 5 years.

8. Taxes on Income AS - 22:

In view of Losses, no taxation Provision is made during the year. In Consideration of prudence, no provision is made in respect of net deferred tax asset, arising due to timing differences after set off of deferred tax liability, against deferred tax asset.

9. Borrowing Cost AS - 16 :

Interest and other cost in connection with the borrowing of the funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are accumulated and capitalised upto the date when such assets are ready for their intended use and other borrowing cost are charged to Profit & Loss Account.

10. Foreign Currency Transaction :

Revenue in foreign currency is translated at the exchange rate at the time of negotiation of documents. Expenditure in foreign currency is translated at the rate prevailing at the time of remittance. Monetary items denominated in foreign currency remaining unsettled at the end of the year, are reported using the closing rates as applicable.

Exchange differences arising on the settlement of monetary items or on reporting Company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

Exchange differences in respect of fixed assets acquired, including foreign currency liabilities relating thereto, are recognised as income or expenses in the period in which they arise.

11. Revenue Recognition AS - 9 :

Sales of textile and wastes are recognised upon despatch of goods to customers. There are no revenues from construction division during the year

12. Related Party Transactions AS - 18 :

1 Promoters : Mr. Ramchandra M. Mohite

2 Key Management Personnel : Mr. Anasaheb R. Mohite, Managing Director

3 Others - Enterprises in which : M/s Maruti Construction Promoters Directors hold : M/s R.M. Mohite & Co Substantial Interest

4 Relatives to Key Managerial : Mrs. Anjali A. Mohite Personnel Associate Vice President

5 Relatives : Miss. Apurva A. Mohite.

Transactions carried out with related parties : (Previous year figures are in brackets)

13. Earnings per Share (EPS) :

The basic earnings per share (EPS) is computed by dividing the net profit/(loss) after tax for the year by the number of equity shares outstanding during the year.

14. Segment information for the year ended 31 March 2014 AS - 17 :

The construction division of the Company is inoperative, therefore the whole of the operations of the Company relates only to the Textile unit and hence Segment wise reporting is not necessitated.


Mar 31, 2012

1. Method of Accounting

The financial statements are prepared under the historical cost convention and as per mercantile system of accounting

2. Fixed Assets

Fixed assets are stated at cost of acquisition, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation. Capital Work In Progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. There are no intangible assets

3. Depreciation

The company has used Continuous Process Method on Plant & Machinery, Electrical Installation & Lab Equipment and the other fixed assets are depreciated on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956

4. Investments

Investments are stated at cost

5. Inventories

Raw Material, Work in Process, Finished Goods is valued at Cost or Net Realisable value whichever is lower. Waste stock is valued at market value/net realisable value. Cost comprises of all cost of purchase, cost of conversion and the cost incurred in brining the inventory to present location and condition. Cost formulae used is "First in First Out"

6. Retirement Benefits

The Company has provided retirement benefits in the form of contribution to provident fund as a fixed percentage of salary and wages to employees. Employees of the Company are covered under Payment of Gratuity Act, 1972. Provision for Gratuity and Leave Encashment is made by the company. Actuarial Valuation reports are not availed.

7. Miscellaneous expenditure

Preliminary expenses and miscellaneous expenditure are being amortised over a period of 5 years. Public Issue Expenses have been written off over a period of 5 years starting from the year in which the new project has commenced trial production

8. Taxes on Income AS-22

In view of Losses, no taxation Provision is made during the year. In Consideration of prudence, no provision is made in respect of net deferred tax asset, arising due to timing differences after set off of deferred tax liability, against deferred tax asset.

9. Borrowing Cost AS -16

Interest and other cost in connection with the borrowing of the funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are accumulated and capitalised upto the date when such assets are ready for their intended use and other borrowing cost are charged to Profit & Loss Account.

10. Foreign Currency Transaction

Revenue in foreign currency is translated at the exchange rate at the time of negotiation of documents. Expenditure in foreign currency is translated at the rate prevailing at the time of remittance. Monetary items denominated in foreign currency remaining unsettled at the end of the year, are reported using the closing rates as applicable.

Exchange differences arising on the settlement of monetary items or on reporting Company's monetary items at rates different from those at which tney were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

Exchange differences in respect of fixed assets acquired, including foreign currency liabilities relating thereto, are recognised as income or expenses in the period in which they arise


Mar 31, 2010

1. Method of Accounting: The financial statements are prepared under the historical cost convention and as per mercantile system of accounting

2. Fixed Assets : Fixed assets are stated at cost of acquisition, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation. Capital Work In Progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. There are no intangible assets.

3. Depreciation : The company has used Continuous Process Method on Plant & Machinery, Electrical Installation & Lab Equipment and the other fixed assets are depreciated on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956

4. Investments : Investments are stated at cost

5. Inventories: Raw Material, Work in Process, Finished Goods is valued at Cost or Net Realisable value whichever is lower. Waste stock is valued at market value/net realisable value. Cost comprises of all cost of purchase, cost of conversion and the cost incurred in brining the inventory to present location and condition. Cost formulae used is "First in First Out"

6. Retirement Benefits : The Company has provided retirement benefits in the form of contribution to provident fund as a fixed percentage of salary and wages to employees. Employees of the Company are covered under Payment of Gratuity Act, 1972 and the Company has made provision for Gratuity based on the liabilities determined by actuarial valuation as of the Balance Sheet date. Similarly the Company has made provision for Leave Encashment on the basis of actuarial valuation as of the Balance Sheet date.

7. Miscellaneous expenditure : Preliminary expenses and miscellaneous expenditure are being amortised over a period of 5 years starting from the current year Public Issue Expenses have been written off over a period of 5 years starting from the year in which the new project has commenced trial production.

8. Income Tax: Tax expense comprises of both current tax and deferred tax. Current tax is measured at the amount expected to be paid/ recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognized for future tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates.

9. Borrowing Cost: Interest and other cost in connection with the borrowing of the funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are accumulated and capitalised upto the date when such assets are ready for their intended use and other borrowing cost are charged to Profit & Loss Account. Rebate-accrued on interest under Technology Up-gradation Scheme upto date of commissioning has been deducted from the capitalised portion of the borrowing cost and the balance portion of the rebate has been deducted from the cost of finance.

10. Foreign Currency Transaction : Revenue in foreign currency is translated at the exchange rate at the time of negotiation of documents. Expenditure in foreign currency is translated at the rate prevailing at the time of remittance. Monetary items denominated in foreign currency remaining unsettled at the end of the year, are reported using the closing rates as applicable.

Exchange differences arising on the settlement of monetary items or on reporting Companys monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

Exchange differences in respect of fixed assets acquired, including foreign currency liabilities relating thereto, are recognised as income or expenses in the period in which they arise

11. Revenue Recognition

i. Textile : Sales of textile and wastes are recognised upon despatch of goods to customers.

ii. Construction : There are no revenues from construction division during the year

 
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