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Accounting Policies of AVI Products India Ltd. Company

Mar 31, 2014

A Basis of preparation of Financial Statements:

a. The Financial Statements have been prepared under the historical cost convention in which the Accounting Standards specified to be mandatory by the Institute of Chartered Accountants of India and the provisions of Companies Act 1956.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company.

c. Contingent liabilities, if any are taken as certified by the management and are disclosed separately in the notes to accounts.

B Inventories:

a Finished goods are valued at cost (net of local taxes).

Revenue & Expenses : All income and expenditure items unless otherwise stated are recognised on accrual b basis.

Material known liabilities are provided for on the basis of available information / estimates. Material items of prior period expenses, non recurring and extra ordinary expenses are disclosed separately.

C Sales :

a Sales excludes Sales Tax.


Mar 31, 2012

A. Basis of preparation of Financial Statements:

a. The Financial Statements have been prepared under the historical cost convention in which the Accounting Standards specified to be mandatory by the Institute of Chartered Accountants of India and the provisions of Companies Act 1956.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company.

c. Contingent liabilities, if any are taken as certified by the management and are disclosed separately in the notes to accounts.

B. Inventories:

a. Finished goods are valued at cost (net of local taxes).

b. Revenue & Expenses : All income and expenditure items unless otherwise stated are recognised on accrual basis.

c. Material known liabilities are provided for on the basis of available information / estimates. Material items of prior period expenses, non recurring and extra ordinary expenses are disclosed separately.

C. Sales : a. Sales excludes Sales Tax.

D. No managerial remuneration or sitting fees have been paid to or provided for any directors of the company.

E. Previous years figures are regrouped and rearranged wherever necessary as per Schedule VI.

F. Out of the loans and advances given, advance amount of Rs. NIL (P.Y. Rs. 1,129,547/-) is doubtful of recovery and no provision is made for those advance.

G. In the opinion of the Board, the Current Assets, Loans and Advances (Except mentioned in point no 4 above) are approximately of the value stated, if realised in ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amounts reasonably necessary.No personal expenses have been debited to the Profit and Loss Account.

H. Sundry Debtors, Creditors, Loans, Advances are subject to confirmationand reconciliation, if any.

I. The Company does not have a full time Company Secretary as required under Section 383A of the Companies Act,1956. The Company is taking necessary steps to comply with the same.

J. Debts due by company in which Director is interested:


Mar 31, 2010

A Basis of preparation of Financial Slalements:

a The Financial Slalement have been prepared under the historical cost convention in which the Accounting Standard specified to be mandatory by the Institute of Chartered Accountants of India and the provisions of Companies Act 1956

b Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company

c Contingens liabilities, if any are taken as certified by the management and are disclosed separately in the notes to accounts.

B Fixed Assets and Depreciation :

a Fixed Assets are stated at cost of acquisition/construction less accumulateddepreciation.

b Depreciation has been provided in the accounts on straight line at the rates provided in Schedule XIV of the Companies Act.1956

c Depreciation on addition to fixed assets is calculated prorata from the date of such addition/put to use.

d The Leasehold Land has been obtained from Maharashtra Industrial Development Corporation for a term of 95 years The cost of the Leasehold land has been amortised over the Balance period of the Lease and is included in Depreciation.

C Inventories

a Raw Materials and packing materials are valued at cost.

b Manufactured speciality chemicals are valued at net realisable value, other finished goods and semi finished goods have been valued at lower of cost or net realisable value. Cost is computed on reverse method i.e. net realisable value less estimated percentage of Profit.

There has been contravention of Accounting Standard 2 (Revised) "Valuation of lnventories".Quantification of the same is not possible since the cost of purchase, costs of conversion and other costs cannot be derived as most of the items in stock consists of opening stock.

The goods lying in the bonded warehouse are valued excluding excise. If the value of excise is included, the value of inventories will increase by Rs.5,21,075/-. This also is in contravention of Accounting Standard 2 (Revised) in respect of "Valuation of Inventories".However, the same will have no impact on profit.

c In respect of trading activities, stock is valued at cost or market value whichever is lower.

The goods lying in the custom bonded warehouse are valued excluding custom duty. If the value of duty is included. the alue of inventory will increase by Rs.85,647/- This also is in contravention of Accounting Standard 2 (Revised) in respect of "Valuation of Inventories". However, the same will have no impact on profit.

D Revenue & Expenses: All income and expenditure items unless otherwise stated are recognised on accrual basis. Material known liabilities are provided for on the basis of available information / estimates Material items of prior period expenses, non recurring and extra ordinary expenses are disclosed separately.

E Sales.

Sales include excise duty and Sales Tax but excludes discounted commission

F Excise Dury :

Excise duty is accounted for as and when paid on clearance of goods from the bonded premises.No Provision is mad for excise duty in respect of Finished goods lying in bonded premises

G Custom Duly:

Custom duty is accounted for as and when paid on clearance of goods from the bonded premises. No Provision is made for Custom duty in respect of goods lying in bonded premises.

H Foreign Currency Transaction :

Open transaction of import/export in foreign currency are accounted for at exchange ratio prevaling at the year end. Gains/losses arising out of subsequent fluctuation in the rales are accounted for on realisation.

I Retirement benefits/Encashment of leave :

The company has already made sufficient provision in respect of gratuity. Management is of opinion that provision it sufficient hence no further provision is required

 
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