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Accounting Policies of AK Spintex Ltd. Company

Mar 31, 2015

1. Method of Accounting

The accounts has been proposed as per historical cost convention and an accrual basis Accounting policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles followed by the company.

2. Fixed Assets

a) Fixed assets are stated at their original cost (net of CENVAT) including incidental expenditure related to acquisition and installation on less accumulated depreciation.

b) Capital section under erection/ installation in the balance sheet as capital work-in-progress.

3. Depreciation

a. Depreciation is provided on straight line method based on useful lives of assets as prescribed under the transactional provisions of schedule II of companies Act, 2013on pro-rata basis. As the schedule II comes into affect from 1st April 2014. the carrying amount of the assets as on the date have been depreciated over the remaining useful life of the assets after retaining the residual value as prescribed by the relevant schedule reassessment of useful life of certain assets. where ever one. is based on the external mechanical advises taken by the company.

b. Company have a policy to fully depreciate assets up to Rs. 5000/- in the year of acquisition. Hence the assets closing less than Rs.5000/- have been fully depreciate in the year of acquisition.

4. Investment.

Investments are stated at cost.

5. Revenue Recognition / Basis of accounting

The company follows the accrual system of accounting except certain items like interest, rebase, discounts &claims on sales insurance claim at care audited as and when there is reasonably certainty.

6. inventories

Inventories are valued as under.

Finished Goods : At cost or market realizable value, whichever is lower

Work in Progress : At Cost inclusive of allocate overheads

Dyes & Chemical, Stores £ Spares etc : At lower of cost or net realizable value.

7. Job Processing Income

Job Processing Income is stated at net of discount

8. Retirement Benefits

Company's contribution accruing during the year in respect of Provident Fund and Employee State Insurance Scheme ha been charged to Profit & Loss Account.

Encashment of leave is accounted on Accrual Basis

"Liability in respect of employees' gratuity is valued on actuarial basis made by the Life Insurance Corporation of India under employees group gratuity scheme. Any shortfall or excess based on such valuation is accounted for.

9. Borrowing Costs

Borrowing cost that are attributable to the acquisition Or construction of the qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessarily take substance of period of time to get ready for intended use all other borrowing costs arc charged to revenue.

10. Segment Reporting

The company's main operation relates to the man processing of man made fabrics and unit i.e. process house which is located at Dhilwara (Raj) and most of the customers are local. Hence the company does not have any other segment it disclose separately.

11. Related Party

Related party transactions as required under A3- T9 issued by the ICA! are disclosed by way of notes to the accounts.

12. Earning Per Share (EPS)

EPS is calculated as per AS 20 issued by the Institute Of Chartered Accountants Of India,

13. Deferred tax

Provision for current tax is made after taking into consideration admissible benefit under the provision of the income ta Act, 1961. Differed ax resulting from timing differences between book profit and taxable profits is accounted for using the laws and rates that have been or substantively enacted as on the Balance-Sheet date Deferred tax asset is recognized and named forward to the extant there is a reasonable certainty that the assets will be realized in future.

14. Impairment of Assets

Factored giving rise to any indication of any impairment of the carrying amount of the company's assets are appraised at each of Ss determine and provide/revert an impairment loss following accounting standard AS-28 for impairment

15 Contingent Liabilities

Contingent Liabilities disposed by way of notes


Mar 31, 2014

1. Method of Accounting

The accounts have been prepared as per historical cost convention and on an accrual basis. Accounting policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles followed by the company.

2. Fixed Assets

a) Fixed assets are stated at their original cost (net of CENVAT) including incidental expenditure related to acquisition and Installation less accumulated depreciation.

b) Capital assets under erection / installation are reflected in the balance sheet as capita] work-in-progress.

3. Depreciation

Depreciation has been calculated on plant and machinery as continuous process plant (as per technical opinion obtained by the management) by applying written down value rates prescribed in Section 123(2) and Schedule II to the companies act, 2013. Depreciation on all other fixed assets including miscellaneous plant & machinery has been provided under straight line method at the rate prescribed as per Part "C" of schedule II of the companies act 2013.

Depreciation on fixed assets acquired during the year has been calculated on pro-rata basis with reference to the date on which the assets are put to use.

Depreciation on assets where actual cost does not exceed Five Thousand Rupees, being provided at the rate of Hundred percent in the year of acquisition.

4. Investment.

Investments are stated at cost.

5. Revenue Recognition / Basis of accounting

The company follows the accrual system of accounting except certain items like interest, rebates, discounts & claims on sales, insurance claims etc are admitted as and when there is reasonable certainty.

6. Inventories

Inventories are valued as under.

Finished Goods : At Cost or market realizable value, whichever is lower.

Work in Progress : At Cost inclusive of allocable overheads

Dyes & Chemical, Stores & Spares etc : At lower of cost or net realizable value.

7. Job Processing Income

Job Processing Income is stated at net of discount.

8. Retirement Benefits

Company's contribution accruing during the year in respect of Provident Fund and Employee State Insurance Scheme has been charged to Profit & Loss Account.

Encashment of leave is accounted on Accrual Basis

Liability in respect of employees gratuity is valued on actuarial basis made by the Life Insurance Corporation of India under employees' group gratuity scheme. Any shortfall or excess based on such valuation is accounted for.

9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

10. Segment Reporting

The company's main operation relates to the processing of man made fabrics and has only one unit i.e. process house which is located at Bhilwara (Raj) and most of the customers are local. Hence the company does not have any other segment to disclose separately.

11. Related Party

Related party transactions as required under AS- 18 issued by the ICAI are disclosed by way of notes to the accounts.

12. Earnings Per Share (EPS)

EPS is calculated as per AS-20 issued by the Institute Of Chartered Accountants Of India.

13. Deferred tax

Provision for current tax is made after taking into consideration admissible benefits under the provisions of the Income Tax Act, 1961. Deferred tax resulting from timing difference between book profits and taxable profits is accounted for using the tax laws and rates that have been or substantively enacted as on the Balance-Sheet date. Deferred tax asset is recognized and carried forward to the extent there is a reasonable certainty that the assets will be realized in future.

14. Impairment of Assets

Factors giving rise to any indication of any impairment of the carrying amount of the company's assets are appraised at each balance sheet date to determine and provide/revert an impairment loss following accounting standard AS-28 for impairment of assets.

15. Contingent Liabilities.

Contingent Liabilities disclosed by way of notes.


Mar 31, 2013

1. Method of Accounting

The accounts have been prepared as per historical cost convention and on an accrual basis. Accounting policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles followed by the company.

2. Fixed Assets

a) Fixed assets are stated at their original cost (net of CEN VAT) including incidental expenditure related to acquisition and Installation less accumulated depreciation.

b) Capital assets under erection /installation are reflected in the balance sheet as capital work-in-progress.

3. Depreciation

Depreciation has been calculated on plant and machinery as continuous process plant (as per technical opinion obtained by the management) by applying written down value rates prescribed in schedule XW to the companies act, 1956. Depreciation on all other fixed assets including miscellaneous plant & machinery has been provided under straight line method at the rate prescribed as per schedule XIV to the companies act. Depreciation on fixed assets acquired during the year has been calculated on pro-rate basis with reference to the date on which the assets are put to use.

Depreciation on assets where actual cost does not exceed Five Thousand Rupees, being provided at the rate of Hundred percent in the year of acquisition.

4. Investment.

Investments are stated at cost.

5. Revenue Recognition / Basis of accounting

The company follows the accrual system of accounting except certain items like interest, rebates, discounts & claims on sales, insurance claims etc are admitted as and when there is reasonable certainty.

6. Inventories

Inventories are valued as under.

Finished Goods : At Cost or market realizable value, whichever is lower.

Work in Progress : At Cost inclusive of also cable over treads

Dyes & Chemical, Stores & Spares etc : At lower of cost or net realisable value.

7. Job Processing Income

Job Processing Income is stated at net of discount

8. Retirement Benefits

Company's contribution accruing during the year in respect of Provident Fund and Employee State Insurance Scheme has been charged to Profit & losses Account.

Encashment of leave is accounted on Accrual Basis

Liability in respect of employees gratuity is valued on actuarial basis made by the Little Insurance Corporation of India under employees' group gratuity scheme. Any shortfall or excess based on such valuation is accounted far.

9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of lime to get ready for intended use. All other borrowing costs are charged to revenue.

10. Segment Reporting

The company's main operation relates to the processing of man made fabrics and has only one unit i.e. process house which is located at Bhilwara (Raj) and most of the customers are local. Hence the company does not have any other segment to disclose separately.

11. Related Party

Related party transactions as required under AS-16 issued by the ICAI are disclosed by way of notes to the accounts.

12. Earning Per Share (EPS)

EPS is calculated as per AS-20 issued by the Institute Of Chartered Accountants Of India

13. Deferred tax

Provision for current tax is made after taking into consideration admissible benefits under the provisions of the Income Tax Act, 1S61, Deferred tax resulting from liming difference between book profits and taxable profits is accounted for using the tax laws and rates that have been or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognised and carried forward to the extent there is a reasonable certainty that the assets will be realised in future.

14. Impairment of Assets

Factors giving rise to any indication of any impairment of the carrying amount of the company's assets are appraised at each balance sheet date to determine and provide/revert an impairment loss following accounting standard AS-2S for impairment of assets.

15. Contingent Liabilities.

Contingent Liabilities disclosed by way of notes.

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