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Accounting Policies of Anand Projects Ltd. Company

Mar 31, 2014

I) Basis of Preparation of Financial Statements:

The accounts are prepared on historical cost convention method and in accordance with the normally accepted accounting principles and the accounting standards where applicable. The Company has been following mercantile method of accounting.

ii) Use Of Estimates:

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Difference between actual results and estimates are recognised in the period in which they materialise.

iii) Revenue Recognition:

Income from sale Is recognised upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold. The Company generally adopts percentage completion method of revenue recognition, The method adopted for determining work performed is based on completion of physical proportion of the contract work. The expenses on incomplete projects are recognised and disclosed under the head ''Contract in Progress''. Sale of goods is exclusive of Sales Tax/VAT.

iv) Fixed Assets & Depreciation:

Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is provided on WDV method as per rates prescribed in Schedule XIV of the Companies Act, 1956.

v) Investment:

Unquoted and Long Term Investments are stated at cost. Provision is mads for diminution, other than temporary, in the value of investments, wherever applicable.

vi) Deferred Tax:

Income tax expense comprises current and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting Income and taxable income for the year). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there Is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.

vii) Inventories:

Inventories are valued at cost or net realisable value whichever is lower (determined on weighted/moving average basis)

viii) Impairement of Assets:

Impairment loss is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuous use of an asset and from its disposal as the end of its useful life.

ix) Borrowing Cost:

Interest and other costs in connection with borrowing of funds to the extent related/ attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing cost are charged to profit & toss account.

x) Foreign Exchange Transactions:

Foreign Exchange Transactions are recorded at the exchange rate prevailing on the dates of the transactions.

xi) Retirement Benefits:

Retirement benefits provided as and when applicable under various Acts

xii) Contingent Liabilities:

Contingent Liabilities are not provided for In the accounts and are separately disclosed by way of notes.


Mar 31, 2013

I) Basis of Preparation of Financial Statements :

The accounts are prepared on historical cost convention method and in accordance with the normally accepted accounting principles and the accounting standards where applicable. The Company has been following mercantile method of accounting.

ii) Use Of Estimates:

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Difference between actual results and estimates are recognised in the period in which they materialise.

iii) Revenue Recognition:

Income from sale is recognised upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold. The Company generally adopts percentage completion method of revenue recognition. The method adopted for determining

work performed is based on completion of physical proportion of the contract work. The expenses on incomplete projects are recognised and disclosed under the head ''Contract in Progress''. Sale of goods is exclusive of Sales Tax/VAT.

iv) Fixed Assets & Depreciation:

Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is provided on WDV method as per rates prescribed in Schedule XIV of the Companies Act, 1956.

v) Investment:

Unquoted and Long Term Investments are stated at cost. Provision is made for diminution, other than temporary, in the value of investments, wherever applicable.

vi) Deferred Tax:

Income tax expense comprises current and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.

vii) Inventories:

Inventories are valued at cost or net realisable value whichever is lower (determined on weighted/moving average basis)

viii) Impairement Of Assets:

Impairment loss is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuous use of an asset and from its disposal as the end of its useful life.

ix) Borrowing Cost:

Interest and other costs in connection with borrowing of funds to the extent related/ attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing cost are charged to profit & loss account.

x) Foreign Exchange Transactions:

Foreign Exchange Transactions are recorded at the exchange rate prevailing on the dates of the transactions.

xi) Retirement Benefits:

Retirement benefits provided as and when applicable under various Acts

xii) Contingent Liabilities:

Contingent Liabilities are not provided for in the accounts and are separately disclosed by way of notes.


Mar 31, 2012

1 Basis of Preparation of Financial Statements

The accounts are prepared on historical cost convention method and in accordance with the normally accepted accounting principles and the accounting standards where applicable. The Company has been following mercantile method of accounting.

2 Use of Estimates:

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Difference between actual results and estimates are recognized in the period in which they materialize.

3 Revenue Recognition:

Income from sale is recognized upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold. The Company generally adopts percentage completion method of revenue recognition. The method adopted for determining work performed is based on completion of physical proportion of the contract work. The expenses on incomplete projects are recognized and disclosed under the head 'Contract in Progress'. Sale of goods is exclusive of sales tax/VAT.

4 Fixed Assets & Depreciation:

Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is provided on WDV method as per rates prescribed in Schedule XIV of the Companies Act, 1956.

5 Investment:

Unquoted and Long Term Investments are stated at cost. Provision is made for diminution, other than temporary, in the value of investments, wherever applicable.

6 Deferred Tax:

Income tax expense comprises current and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

7 Inventories:

Inventories are valued at cost or net realizable value whichever is lower (determined on weighted/moving average basis)

8 Impairments Of Assets:

Impairment loss is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuous use of an asset and from its disposal as the end of its useful life.

9 Borrowing Cost:

Interest and other costs in connection with borrowing of funds to the extent related/ attributed to the acquisition / construction of qualifying fixed assets are capitalized upto the date when such assets are ready for its intended use and other borrowing cost are charged to profit & loss account.

10 Foreign Exchange Transactions:

Foreign Exchange Transactions are recorded at the exchange rate prevailing on the dates of the transactions.

11 Retirement Benefits:

Retirement benefits provided as and when applicable under various Acts

12 Contingent Liabilities:

Contingent Liabilities are not provided for in the accounts and are separately disclosed by way of notes.


Mar 31, 2010

1 SYSTEM OF ACCOUNTING : Company follows accrual system of accounting.

2 FIXED ASSETS: Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is provided on WDV method as per rates prescribed in Schedule XIV of the Companies Act, 1956.

3 INVESTMENT: Unquoted and Long Term Investments are stated at cost. Provision is made for diminution, other than temporary, in the value of investments, Wherever applicable.

4 DEFERRED TAX: Income tax expense comprises current and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets are recognised only to the extent there is reaonable certainity that the assets can be realised in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainity of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virually certain (as the case may be) to be realised.

5 INVENTORIES; Inventories are valued at cost or net realisable value whichever is lower (determined on weighted/moving average basis)

6 FOREIGN EXCHANGE TRANSACTIONS: Foreign Exchange Transactions are recorded at the exchange rate prevailing on the dates of the transactions.

7 EMPLOYEE RETIREMENT BENEFIT: Company does not have any employee and as such no policy is determined so far.

8 CONTINGENT LIABILITIES: Contingent Liabilities are not provided for in the accounts and are separately disclosed in the Notes to Accounts.

9 Policies not stated here in are not inconsistent with the requirement of Standard Accounting Policies as prescribed by ICAI of India.

 
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