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Accounting Policies of Arvind International Ltd. Company

Mar 31, 2012

I. Accounting convections: The financial statements are prepared under historical cost conventions. These Statements have been prepared in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956. II. Revenue recognition: Revenue in respect of sales of finished goods is recognized at the point of dispatch of finished t goods to customers. Sales are exclusive of excise duty and sales tax. III. Fixed Assets: Alt fixed assets are stated at cost. The cost of fixed assets comprise its purchase price cost of construction and any directly attributable cost in bringing the assets to working conditions for its intended use. IV. Depreciation: Depreciation is provided on straight-line method on pro-rata basis at the rate prescribed in the schedule XIV of the companies Act. 1956, V. Inventories are valued as follows: a) Raw materials, packing materials components and consumables are valued at lower of cost on FIFO Basis or net realizable value, b) Finished goods and work in progress are valued at standard cost or realizable value whichever is lower excluding Excise duty. c) Stock on consignment is valued at lower of cost or realizable value. VI. Investments: Investments in shares are permanent in nature and hence are valued at cost, unless there is diminution in value which is Permanent in nature. VII. Foreign exchange transactions: Exchange gain/loss on transaction concluded during the period is recognized as gain or loss on the basis of actual payment made/received. Exchange differences on liabilities arising on purchases from outside India and standing at the year end is charged or credited to the profit & Loss A/c VIII. Indirect taxes: Excise duty & Sales Tax on finished goods at factory is accounted for as and when the material is cleared. IX. Employees Benefits;. (a) Contributions payable under employees Provident Fund Act 1952 are accounted for on accrual Basis and charged to Profit & Loss account as expenses for the year. It is a defined contribution plan. (b) Provisions for Leave Encashment are made on actuarial valuation, using the projected unit credit method, as at the date olives balance sheet. It is anon funded Defined Benefit Obligation X. Miscellaneous Expenditure: Preliminary expenses, share/debenture issue expenses and Deferred Revenue Expenditure are amortized over a period decided appropriate by the management, not exceeding ten years. XI. Impairment of assets:. At each reporting date, the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. The impairment includes excess of book value over the present value of estimated future cash flows expected to arise from the continuing use of an assets and from the disposal at the end of its useful life. If such an indication exists in carrying amount of the asset, being the higher than the assets fair value. The excess of the assets carrying value over its recoverable value is expended in account.


Mar 31, 2010

I. Accounting convetions: The financial statements are prepared under historical cost conventions. These Statements have been prepared in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

II. Revenue recognition: Revenue in respect of sales of finished goods is recognized at the point of dispatch of finished t goods to customers. Sales are exclusive of excise duty and sales tax.

III. Fixed Assets: Alt fixed assets are stated at cost. The cost of fixed assets comprise its purchase price cost of construction and any directly attributable cost in bringing the assets to working conditions for its intended use.

IV. Depreciation: Depreciation is provided on straight-line method on pro-rata basis at the rate prescribed in the schedule XIV ofthe companies Act. 1956,

V- Inventories are valued as follows:

a) Raw materials, packing materials components and consumables are valued at lower of cost on FIFO Basis or net realizable value,

b) Finished goods and work in progress are valued at standard cost or realizable value whichever is lower excluding Exciseduty.

c) Stock on consignment is valued at lower of cost or realizable value.

VI. Invesfnients: Investments in shares are permanent in nature and hence are valued at cost, unless there is diminution in value which is Permanent in nature.

VII. Foreign exchange transactions: Exchange gain/loss on transaction concluded during the period is recognized as gain or loss on the basis of actual payment made/received. Exchange differences on liabilities arising on purchases from outside India and standing at the year end is charged orcredited to the profit & Loss A/c

VIII. Indirect taxes: Excise duty & Sales Tax on finished goods at factory is accounted for as and when the material is cleared.

IX. Employees Benefits;.

(a) Contributions payable under employees Provident Fund Act 1952 are accounted for on accrual Basis and charged to Profit & Loss account as expenses for the year. It is a defined con tribution plan.

(b) Provisions for Leave Encashment are made on actuarial valuation, using the projected unit credit method, as at the date olihe balance sheet. It is anon funded Defined Benefit Obligation

X. Miscellaneous Expenditure: Preliminary expenses, share/debenture issue expenses and Deferred Revenue Expenditure are amortized over a period decided appropriate by the management, not exceeding ten years.

XI. Impairment of assets:. At each reporting date, the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. The impairment includes excess of book value over the present value of estimated future cash flows expected to arise from the continuing use of an assets and from the disposal at the end of its useful life. If such an indication exists in carrying amount ofthe asset, being the higher than the assets fair value. The excess ofthe assets carrying value over its recoverable value is expended in account.

 
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