Home  »  Company  »  Accurate Transfo  »  Quotes  »  Accounting Policy
Union Budget 2017-18
Enter the first few characters of Company and click 'Go'

Accounting Policies of Accurate Transformers Ltd. Company

Mar 31, 2014

1.1 Basis of preparation of financial statements

The financial statements are prepared under historical cost convention, on a going concern basis and in accordance with the applicable accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards and relevant provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2. Use of Estimates

The preparation of financial statements requires the Management of the Company to make estimates and assumptions that affect the reported balance of assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods.

1.3. Fixed Assets and Depreciation

Fixed assets are stated at cost of acquisition inclusive of freight, duties & taxes and incidental expenses related to acquisition up to the date of installation. Cost of Fixed assets are further adjusted by the amount of Modvat/Cenvat credit availed and VAT credit wherever applicable. Interest and finance charges incurred are allocated to the respective fixed assets of installation.

Depreciation on fixed assets is provided, on Written Down Value method, at the rate prescribed in Schedule XIV to the Companies Act, 1956. The depreciation on assets acquired/sold/discarded during the year is provided from/up to the month in which the asset is commissioned/sold/discarded except in case of fixed assets costing up to Rs. 5,000/- where, depreciation is provided for the whole year.

1.4. Valuation of Inventories

Raw materials and packing materials are valued at lower of cost or net realizable value after providing for obsolescence if any. However, these items are considered to be realizable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.

Work-in-process and finished goods are valued at lower of cost or net realizable value. Finished goods and work-in-process include costs of raw material, labor, conversion costs and other costs incurred in bringing the inventories to their present location and condition.

Cost of finished goods excludes excise duty.

Cost of inventories is computed on weighted average basis.

1.5. Investments

Long term investments are stated at cost, less provision for diminution (other than temporary) in value.

1.6. Provisions, Contingent Liabilities and ContingentAssets

A provision is recognized when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources 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 best estimate required to settle the obligation at the Balance Sheet date.

Contingent assets are neither recognized nor disclosed in the financial statements.

1.7. Revenue Recognition

Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from sale of goods is recognized when significant risks and rewards of ownership of the goods have been passed to the buyer, which ordinarily coincides with dispatch of goods to customers. Revenues are recorded at invoice value, net of sales tax, returns and trade discounts.

Revenue from rendering of services are recognized on completion of services. Interest income is recognized on time proportion basis.

Dividend income is recognized when the right to receive established.

1.8 Tax

Provision for Income Tax has been made at the current tax rates based on assessable income or on the basis of Section 115 JB of the Income Tax Act, 1961 (MinimumAlternate Tax) whichever is higher.

Deferred Tax is recognized, subject to the consideration of prudence, 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.

1.9. Employee Benefits

Contribution to Gratuity and Super annulations funds, Leave, Salary, Bonus and Pension are accounted on cash basis in our opinion this is against the accounting standard (AS-15).

1.10 Borrowing Costs

Borrowing Costs attributable to acquisition and/or construction of qualifying assets are capitalized as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other financing/ borrowing costs are charged to the Statement of Profit and Loss.

1.11 Impairment of Assets

At each Balance Sheet date, the company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairment loss is charged to the Statement of Profit and Loss. If, at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is assessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

1.12 Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effect of all delusive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of Equity Shares and the weighted average number of equity shares which would be issued on the conversion of all the dilutive potential equity shares into equity shares.


Mar 31, 2013

1. Significant Accounting Policies

1.1 Basis of preparation of financial statements

The financial statements are prepared under historical cost convention, on a going concern basis and in accordance with the applicable accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards and relevant provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2. Use of Estimates

The preparation of financial statements requires the Management of the Company to make estimates and assumptions that affect the reported balance of assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision of accounting estimates is recognised prospectively in the current and future periods.

1.3. Fixed Assets and Depreciation

Fixed assets are stated at cost of acquisition inclusive of freight, duties & taxes and incidental expenses related to acquisition up to the date of installation. Cost of Fixed assets are further adjusted by the amount of Modvat/Cenvat credit availed and VAT credit wherever applicable. Interest and finance charges incurred are allocated to the respective fixed assets of installation. Fixed assets under construction, advance paid towards acquisition of fixed assets and cost of assets not put to use before year end are shown as long term loans & Advances.

Depreciation on fixed assets is provided, on Written Down Value method, at the rate prescribed in Schedule XIV to the Companies Act, 1956. The depreciation on assets acquired/sold/discarded during the year is provided from/up to the month in which the asset is commissioned/sold/discared except in case of fixed assets costing up to Rs. 5,000/-where, depreciation is provided forthe whole year.

1.4 Valuation of Inventories

Raw materials and packing materials are valued at lower of cost or net realisable value after providing for obsolescence if any. However, these items are considered to be realisable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.

Work-in-process and finished goods are valued at lower of cost or net realisable value. Finished goods and work-in-process include costs of raw material, labour, conversion costs and other costs incurred in bringing the inventories to their present location and condition.

Cost of finished goods excludes excise duty.

Cost of inventories is computed on weighted average basis.

1.5 Investments

Long term investments are stated at cost, less provision for diminution (other than temporary) in value.

1.6 Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources 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 best estimate required to settle the obligation at the Balance Sheet date.

A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision ordisclosure is made.

Contingent assets are neither recognised nor disclosed in the financial statements.

1.7 Revenue Recognition

Revenue is recognised to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer, which ordinarily coincides with despatch of goods to customers. Revenues are recorded at invoice value, net of sales tax, returns and trade discounts.

Revenue from rendering of services are recognised on completion of services, Interest income is recognised on time proportion basis.

Dividend income is recognised when the right to receive I established.

1.8 Tax

Provision for Income Tax has been made at the current tax rates based on assessable income or on the basis of Section 115 JB of the Income Tax Act, 1961 (Minimum Alternate Tax) whicheveris higher.

Deferred Tax is recognised, subject to the consideration of prudence, 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.

1.9 Employee Benefits

Contribution to Gratuity and Superannuations funds, Leave, Salary, Bonus and Pension are accounted on cash basis in our opinion this is against the accounting standard (AS-15).

1.10 Borrowing Costs

Borrowing Costs attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other financing/ borrowing costs are charged to the Statement of Profit and Loss.

1.11 Impairment of Assets

At each Balance Sheet date, the company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairment loss is charged to the Statement of Profit and Loss. If, at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is assessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

1.12 Earning per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effect of all delusive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of Equity Shares and the weighted average number of equity shares which would be issued on the conversion of all the dellutive potential equity shares into equity shares.


Mar 31, 2010

(i) Basis of Accounting

These Financial statements have been drawn up using the historical cost conven- tion adopting the accrual basis.

(ii) Use of Estimates

The preparation of financial statement in accordance with the generally accepted accounting principals requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of financial statements and the reported amount of expenses of the year. Actual results could differ from these estimates, any revision to such accounting estimates is recognized in the accounting period in which such revision takes place.

(iii) Fixed Assets & Depreciation

(a) Fixed Assets are stated at their original cost Jess depreciation. Cost includes inward freight, duties, taxes and expenses incidental to acquisition and Instal- lation.

(b) Depreciation on Fixed Assets is provided on W.D.V. method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

(c) Depreciation on additions to and disposals of Fixed Assets during the period has been provided on pro-rata basis according to the period such asset was used during the year.

(iv) Inventories

Inventories have been valued at lower of cost or market value except scrap, which is valued at realizable value.

(v) Sales

Sales comprises of sale of Goods and Services, net of trade discount and returns, if any. Revenue is recognized on dispatch of the product to the customers. Sales and Job Work receipts/credits are exclusive of excise duty and Sales Tax.

(vi) Taxation

(a) Provision for Income Tax has been made at the current tax rates based on as- sessable income or on the basis of Section 115 JB of Income Tax Act, 1961 (Minimum Alternate Tax) Which ever is higher.

(b) Deferred Tax is recognised, subject to the consideration of prudence, on tim- ing 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 years.

(vii) Excise Duty

The Company has been acknowledging liabilities for excise duty in respect of mate- rials lying in factory/bounded premises, as and when these are cleared/ debonded.

(viii) Retirement Benefits

The company has made no Provision in respect of liabilities towards leave encashment and Gratuity. It is accounted for as and when paid as it is not ascertainable for the time being.

 
Subscribe now to get personal finance updates in your inbox!