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Accounting Policies of Aviva Industries Ltd. Company

Mar 31, 2014

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated at the rates provided as per Companies Act, 1956 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.


Mar 31, 2013

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financiaJ statements are recognized on accrual basis,

(ii) REVENUE RECOGNITION,

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXE D A SS ETS AN D DEFR ECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated at the rates provided as per Companies Act, 1956 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.


Mar 31, 2012

A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on canal basis.

b) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties. The Principles of revenue recognition are given below;

- Revenue from the sale of goods is recognized when supply of goods takes place in accordance with the term of sales and on passing of title to the customers.

c) FIXED ASSETS AND DEPRECIATION

- Fixed Assets are stated at |he cost of acquisition less accumulated depreciation. Cost includes all identifiable expenditure incurred to bring the asset to its present condition and location.

- Depredation on fixed asset is provided at the rates and in the manner specified in schedule XIV to the Companies Act 1956 on strait line method on value of the asset.

d) INVENTORIES

- Company has no closing stock.

e) INCOME TAX

- Provision for taxation is made on the basis of the taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961.

- Deferred Tax resulting from timing differences are expected to crystallize in case of deferred tax liabilities with reasonable certainly and in case of deferred tax asset with virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realized. The tax effect is calculated on (he accumulated timing differences at the end of an accounting period based on prevailing enacted regulations.


Mar 31, 2010

A. BASIS OF ACCOUNTING:

The Financial Statements are prepared under historical cost convention and on an accrual basis in accordance with the requirements of Companies Act, 1956 and applicable accounting standards.

B. REVENUE RECOGNITION

Revenue is recognized and expenditure is accounted for on their accrual except claims in respect of goods purchased and sold and insurance which are accounted for on cash basis.

C. FIXED ASSETS:

Fixed assets are stated at cost less accumulated depreciation.

D. DEPRECIATION

Depreciation on Fixed assets has been provided on prorata basis using straight line method at the rate specified in Schedule XIV to the Companies Act, 1956.

E. INVENTORIES:

Inventory has been valued at cost or net realizable price, however there is no closing stock.

F. INVESTMENTS:

Investments are valued at cost no provision has been made for depreciation of the market value of investment.*-

G. TAXATION:

Taxes on income are computed whereby such taxes are accrued in the same period as the revenue and expenses to which they relate.

Current tax liability is measured using the applicable tax rates and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rate and the tax laws that have been enacted / substantially enacted at the balance sheet date.

Deferred tax assets are recognized only if there is a reasonably certainty of their realization.

H. EARNING PER SHARE:

In determining basic earning per share, the company considers the net profit after tax and includes post tax effects of any extra ordinary items. The number of share used in computing basic earning per share is the weighted average number of share outstanding during the period The number of shares used in computing diluted earning per share comprises the weighted average share considered for deriving basic earning per share and also the weighted avgrage number of equity-shares which could have been issued on the conversion of old dilutive potential equity shares The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value (i e the average market value of the outstanding shares). Dilutive potential equity shares are deemed converted as of the beginning of the period unless issued at later date.

I. PROVISION, CONTINGENT LIABILITY AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation measurement are recognized when there is present obligation as a result of past events and it is possible that there will be an out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

 
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