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Accounting Policies of Amit International Ltd. Company

Mar 31, 2014

A) Basis of preparation of financial statement:

b) Use of Estimates:

The Preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which. the results are known or materialized.

c) Fixed Assets:

Tangible Asstes : Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost includes taxes, duties, freight, installation, startup and commissioning expenses and other preoperative expenses and other direct and allocated expenses up to the date of commercial production.

Intangible Assets : There are no Intangible assets in the company.

d) Depreciation:

Depreciation on Fixed Assets is provided on "Straight Line Method" in the manner prescribed in Schedule-XIV to the Companies Act, 1956 on pro rata basis.

f) Investments:

Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investment. Market value of quoted investments held Is reflected in the schedule below.

g) Revenue Recognition :

Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customers. Sales are net of trade discounts and sales tax. Other Income is booked on accrual basis.

h) Inventories:

There are no inventories held by the company.

i) Cash and cash equivalents (for purpose of cash flow)

Cash comprises cash on hand and demand deposits with banks. Cash equivalent are short term,highly liquid investment that are readily converible into known amounts of cash and which are subject to Insignificant risk of change In value

j) Cash flow statement:

Cash flow are reported using the Indirect method. The cash flow from operating, Investing and finacial activites are segregated based on the available information

k) Foreign Currency Transactions:

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place Monetary assets and liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resultant gain or loss, except the extent it relates to long term monetary items, is charged to the Profit and Loss Account for the year. Such gain or loss relating to long term monetary items for financing acquisition of depreciable capital assets, is adjusted to the acquisition cost of such asset and depreciated over its remaining useful life. However, there are no foreign currency transactions during the year.

l) Borrowing Cost:

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 the intended use. All other borrowing costs are charged to revenue.

Segment reporting:

There is no requirement of segment reporting.

m) Taxation:

(i) Provision for current Tax is made with reference to taxable income computed for the accounting period, for which the financial statements are prepared by the tax rates as applicable.

(ii) Deferred tax provided in the previous years is reversed in the current year as the company is not anticipating any reasonable income against which deffered tax asset may be reversed. Also the company has not earned any Profits in the current year or anticipating any profits in the comming years, hence no Deferred Tax Provisions are made.

n) Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date. If there is any indication of impairment based on internal or external factors, i.e. when the carrying amount of the asset exceeds the recoverable amount, an impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed or reduced if there has been a favorable change in the estimate or the recoverable amount. Recoverable amount is the higher of an asset''s net selling price and value in use. However, there are no such transactions during the year.

o) Provisions , contingent liabilities and contingent assets :

Estimation of the probability of any loss that might be incurred on outcome of contingencies on basis of information available upto the date on which the financial statements are prepared. A provision is recognised when an enterprise has a present obligation as a result of a past event and 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 determined based on management estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. In cases where the available information indicates that the loss on the contingency is reasonable possible but the amount of loss cannot be reasonably estimated, a disclosure to this effect is made in the financial statements. In case of remote possibility neither provision nor disclosure is made in the financial statement. The company does not account for or disdose contingent asset, if any.

p) Share Issue expenses :

Expenses pertaining and related to issue of shares are adjusted against balance lying in Securities Premium Account.

q) Earnings Per Share :

The company records basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 Earnings per share. Basic EPS is computed by dividing the net profit or loss for the year available for the year for equity share holders by the weighted average no of equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effect of all dilutive potential equity shares, except where the results are anti-dilutive.


Mar 31, 2013

A)Basis of preparation of financial statement: The financial statements have been prepared under historical cost convention on accrual basis in accordance with generally accepted accounting principles and applicable accounting standards as notified under Companies (Accounting Standard) Rules, 2006 and the provisions of Companies Act, 1956.

b)Use of Estimates: The Preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known or materialized.

c) Fixed Assets: Tangible Assets : Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost includes taxes, duties, freight, installation, startup and commissioning expenses and other preoperative expenses and other direct and allocated expenses up to the date of commercial production. Intangible Assets : Intangible assets are amortized over their respective individual estimated useful lives on a straight line basis.

d)Depreciation: Depreciation on Fixed Assets is provided on "Straight Line Method" in the manner prescribed in Schedule-XIV to the Companies Act, 1956 on pro rata basis.

e)intangible Assets & Amortization :intangible assets are stated at cost less accumulated amortization. Amortization of Intangible assets is provided on basis of management estimates.

f)lnvestments: Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investment.

g)Revenue Recognition :Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customers. Sales are net of trade discounts and sales tax.

h)inventories: inventories are valued at lower of cost or Net Realizable Value. Cost is determined on moving weighted average basis.

i)Cash and cash equivalents(for purpose of cash flow)cash comprises cash on hand and demand deposits with banks. Cash equivalent are short term, highly liquid investment that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in value

j)Cash flow statement: cash flow are reported using the indirect method. The cash flow from operating, investing and financial activities are segregated based on the available information k)Foreign Currency Transactions: All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place .Monetary assets and liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resultant gain or loss, except the extent it relates to long term monetary items, is charged to the Profit and Loss Account for the year. Such gain or loss relating to long term monetary items for financing acquisition of depreciable capital assets, is adjusted to the acquisition cost of such asset and depreciated over its remaining useful life;

l)Borrowing Cost: 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 the intended use. All other borrowing costs are charged to revenue.

Segment reporting: The accounting policies adopted for segment reporting are in line with accounting policies of the company. Inter -segment Revenue is accounted on basis of transaction which are primarily based on fair market value

m)Taxation:(i) Provision for current Tax is made with reference to taxable income computed for the accounting period, for which the financial statements are prepared by the tax rates as applicable.(ii) 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. Such deferred tax is quantified using the tax rates and laws enacted/substantively enacted as on the Balance Sheet date. Deferred tax Assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

n)impairment of Assets: The carrying amounts of assets are reviewed at each Balance Sheet date. If there is any indication of impairment based on internal or external factors, i.e. when the carrying amount of the asset exceeds the recoverable amount, an impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed or reduced if there has been a favorable change in the estimate or the recoverable amount. Recoverable amount is the higher of an asset''s net selling price and value in use.

Provisions, contingent liabilities and contingent assets :Estimation of the probability of any loss that might be incurred on outcome of contingencies on basis of information available up to the date on which the financial statements are prepared. A provision is recognized when an enterprise has a present obligation as a result of a past event and 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 determined based on management estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. In cases where the available information indicates that the loss on the contingency is reasonable possible but the amount of loss cannot be reasonably estimated, a disclosure to this effect is made in the financial statements. In case of remote possibility neither provision nor disclosure is made in the financial statement. The company does not account for or disclose contingent asset, if any. p)Share Issue expenses Expenses pertaining and related to issue of shares are adjusted against balance lying in Securities Premium Account.

q)Earnings Per Share :The company records basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 Earnings per share. Basic EPS is computed by dividing the net profit or loss for the year available for the year for equity share holders by the weighted average no of equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effect of all dilutive potential equity shares, except where the results are anti dilutive.


Mar 31, 2012

A) Basis of preparation of financial statement: The financial statements have been prepared under historical cost convention on accrual basis in accordance with generally accepted accounting principles and applicable accounting standards as notified under Companies (Accounting Standard) Rules, 2006 and the provisions of Companies Act, 1956.

b) Use of Estimates:The Preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date ofthe financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known or materialized.

c) Fixed Assets: Tangible Asstes: Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost includes taxes, duties, freight, installation, startup and commissioning expenses and other preoperative expenses and other direct and allocated expenses up to the date of commercial production. Intangible Assets: Intangible assets are amortized over their respective individual estimated useful lives on a straight line basis.

d) Depreciation: Depreciation on Fixed Assets is provided on "Straight Line Method" in the manner prescribed in Schedule-XIVto the Companies Act, 1956 on pro rata basis.

e) Intangible Assets & Amortisation: intangible assets are stated at cost less accumulated amortisation. Amortisation of Intangible assets is provided on basis of management estimates, f) Investments :Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of longterm investment.

g) Revenue Recognition : Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customers. Sales are net of trade discounts and sales tax.

h) Inventories: Inventories are valued at lower of cost or Net Realisiable Value. Cost is determined on moving weighted average basis.

i) Cash and cash equivalents(fbr purpose of cash flow) cash comprises cash on hand and demand deposits with banks. Cash equivalent are short term, highly liquid investment that are readily converible into known amountsof cash and which are subjectto insignificant risk of change in value

Cash flow statement:

cash flow are reported using the indirect method. The cash flow from operating, investing and finacial activites are segregated based on the available information

j)Foreign Currency Transactions: All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place .Monetary assets and liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date ofthe Balance Sheet. Resultant gain or loss, except the extent it relates to long term monetary items, is charged to the Profit and Loss Account for the year. Such gain or loss relating to long term monetary items for financing acquisition of depreciable capital assets, is adjusted to the acquisition cost of such asset and depreciated over its remaininguseful life;

k) Borrowing Cost: 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 the intended use. All other borrowing costs are charged to revenue. Segment reporting: The acconting policies adopted for segment reporting are in line with accounting policies ofthe company. Inter-segment Revenue is accounted on basis of transaction which are primarily based on fair market value

I) Taxational) Provision for current Tax is made with reference to taxable income computed for the accounting period, for which the financial statements are prepared by the tax rates as applicable.(ii) 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. Such deferred tax is quantified using the tax rates and laws enacted/substantively enacted as on the Balance Sheet date. Deferred tax Assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferredtaxassetcanberealized.

m) Impairment of Assets:The carrying amounts of assets are reviewed at each Balance Sheet date. If there is any indication of impairment based on internal or external factors, i.e. when the carrying amount ofthe asset exceeds the recoverable amount, an impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed or reduced if there has been a favorable change in the estimate or the recoverable amount. Recoverable amount is the higher of an asset's net selling price and value in use.

n) Provisions, contingent liabilities and contingent assets : Estimation of the probability of any loss that might be incurred on outcome of contingencies on basis of information available upto the date on which the financial statements are prepared. A provision is recognised when an enterprise has a present obligation as a result of a past event and 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 determined based on management estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. In cases where the available information indicates that the loss on the contingency is reasonable possible but the amount of loss cannot be reasonably estimated, a disclosure to this effect is made in the financial statements. In case of remote possibility neither provision nor disclosure is made in the financial statement. The company does not account for or disclose contingent asset, if any.

o) Share Issue expenses Expenses pertaining and related to issue of shares are adjusted against balance lying in Securities Premium Account.

p) Earnings Per Share: The company records basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 Earnings per share. Basic EPS is computed by dividing the net profit or loss forthe year available for the year for equity share (tplders by the weighted average no of equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effect of all dilutive potential equity shares, except where the results are anti-dilutive.

 
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