Home  »  Company  »  Blue Blends (I)  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Blue Blends (India) Ltd. Company

Mar 31, 2015

"1 " Basis of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in Indie (Indian GAAP) to comply with the Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956, ("the 1956 Act'1', (which continues to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of General Circulai 15/2013 dated September 13,2013 Act, as applicable.

Use of Estimates

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any change in such estimates is recognized prospectively.

General

(I) Accounting policies not specifically referred to otherwise are in consistence with earlier years and in consonance with generally accepted accounting principles.

(ii) Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

Sales

(i) Sales are accounted on mercantile basis, when the sale of goods is complete.

(ii) Job charges are accounted when the goods are dispatched to the customers.

(iii) Sales are stated exclusive of excise duty.

Valuation of Inventories

(i) Inventories of Raw materials and Work in progress are valued at cost.

(ii) Stocks in Trade and Stock of Finished Goods are valued at lower of cost and net realisable value.

Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchases price and any attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use.

Depreciation / Amortization

Depreciation on the fixed assets is charged on straight line method over the estimated useful lives of the assets. Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata basis with reference to the month of addition or deletion.

No amortization is made for leasehold land, which are under Perpetual lease.

Fixed Assets costing Rs.5000/- or less are fully depreciated in the year of purchase.

Investments

The Company investments are classified under two categories i.e. Current and Long Term and are valued in accordance with the Accounting Standards(AS) 13 on 'Accounting for Investments'. 'Long Term Investments' are carried at acquisition amortized cost. A provision is made for diminution, other that temporary, on an individual investment basis. 'Current investments' are carried at lower of the cost or fair value on an individual investment basis.

Foreign Currency Transactions

Foreign Currency Transactions are recorded in the books by applying the exchange rates as on the date of the transaction.

Foreign Currency Assets and Liabilities are converted at the exchange rate prevailing on the date of the Balance Sheet and the resultant exchange difference is adjusted to the profit & loss account except in the case of Foreign Currency Liabilities arising on account of acquisition of Fixed Assets, where such exchange difference is adjusted to the cost of the assets.

Retirement Benefits

Staff benefits arising out of retirement/death comprising contributions to Provident Fund, Gratuity Scheme and other post separation benefits are accounted for on the basis of the schemes or by an independent actuarial valuation at the year-end as the case may be.

Taxes on Income

Income Tax is computed in accordance with Accounting Standard 22, "Accounting for Taxation on Income" issued by the ICAI. Provision for current income tax is made in accordance with the provisions of Income tax Act, 1961.

The difference between taxable income and net profit or loss before tax for the year as per the financial statements, is identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e., differences that originate in one accounting period and reversed in another.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not provided for in the books but are disclosed by way of notes in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

Earning per share

Basic and diluted earnings per share are computed in accordance with Accounting Standard-20 Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive, impairment of Assets.

Tangible fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount, which is the higher of the asset's net selling price or its value in use.

Extra ordinary and exceptional items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such. On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure improves an understanding of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to the financial statements.






Mar 31, 2014

A Basis of Preparation of Financial Statements

The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles in India and comply with the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) referred to in Section 211 (3C) of the Companies Act, 1956.

B General

(i) Accounting policies not specifically referred to otherwise are in consistence with earlier years and in consonance with generally accepted accounting principles

(ii) Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

C Investments

Long Term Investments are stated at cost plus brokerage and stamp charges. Provision for diminution in the value of long-term investments is made only when such a decline is other than temporary in the opinion of the management.

D Revenue Recognition

All expenses and incomes to the extent considered payable or receivable respectively are accounted for on accrual basis. Dividends on investments in equity shares are accounted for on receipt basis.

E Provision of Bad and Doubtful Debts

Bad and doubtful debts are written off/provided for on the basis of the prudential guidelines for Non Banking Financial Companies issued by the Reserve Bank of India. Additional amount is written off or provided for if the management on a review of the debts considers it necessary.

F Retirement Benefits

a) Liability in respect of gratuity to employees is not provided for. However, Gratuity is paid on the retirement/resignation Of the employee as per the provisions of The Payment of Gratuity Act, 1972.

b) No provision for leave encashment is made. The same will be accounted in the year in which the option of encashmentis exercised by the employee.

c) The company contributes to the employee''s provident fund maintained under the Employee''s Provident Fund Scheme of the Central Government and the same is charged to the Profit and loss account.

G Taxes on Income

Income Tax is computed in accordance with Accounting Standard 22, "Accounting for Taxation on Income" issued by the ICAI. Provision for current income tax and fringe benefit tax is made in accordance with the provisions of Income tax Act, 1961. The difference between taxable income and net profit or loss before tax for the year as per the financial statements, is identified effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e., differences that originate in one accounting period and reversed in another.Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

H Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not provided for in by way of notes in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

(i)Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.


Mar 31, 2013

Basis of Preparation of Financial Statements

The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles in india and comply with the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) referred to in Section 211 (3C) of the Companies Act, 1956. General

(i) Accounting policies not specifically referred to otherwise are in consistence with earlier years and in consonance with generally

accepted accounting principles. (ii) Expenses and Income considered payable and receivable respectively are accounted for on accrual basis. Sales

(i) Sales are accounted on mercantile basis, when the sale of goods is complete. (ii) Job charges are accounted when the goods are dispatched to the customers. (iii) Sales are stated exclusive of excise duty. Valuation of Inventories

(i) Inventories of Raw materials and Work in progress are valued at cost.

(ii) Stocks in Trade and Stock of Finished Goods are valued at lower of cost and net realisable value. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchases price and any attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use. Depreciation / Amortization

Depreciation on the fixed assets is charged on Straight Line Method at the rates prescribed by Schedule XIV to the Companies Act, 1956, which are based on the estimated useful lives of the assets.

Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata basis with reference to the month of addition or deletion.

No amortization is made for leasehold land, which are under Perpetual lease.

Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary in the value of such investments.

Foreign Currency Transactions

Foreign Currency Transactions are recorded in the books by applying the exchange rates as on the date of the transaction. Foreign Currency Assets and Liabilities are converted at the exchange rate prevailing on the date of the Balance Sheet and the resultant exchange difference is adjusted to the profit & loss account except in the case of Foreign Currency Liabilities arising on account of acquisition of Fixed Assets, where such exchange difference is adjusted to the cost of the assets.

Retirement Benefits

Staff benefits arising out of retirement/death comprising contributions to Provident Fund, Gratuity Scheme and other post separation benefits are accounted for on the basis of the schemes or by an independent actuarial valuation at the year-end as the case may be.

Taxes on Income

Income Tax is computed in accordance with Accounting Standard 22, "Accounting for Taxation on Income" issued by the ICAI. Provision for current income tax and fringe benefit tax is made in accordance with the provisions of Income tax Act, 1961.

The difference between taxable income and net profit or loss before tax for the year as per the financial statements, is identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e., differences that originate in one accounting period and reversed in another.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not provided for in the books but are disclosed by way of notes in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

(i) Method of Accounting

(a) The financial statements are prepared on the historical cost convention and in accordance with the generally accepted accounting principles.

(b) The company follows accrual system of accounting in the preparation of accounts except where otherwise stated Fixed Assets Leased fixed assets are stated at actual cost less accumulated depreciation and lease terminal adjustment. The actual cost capitalized includes material cost, freight, installation cost, duties, taxes and other incidental expenses.

(ii) Depreciation

Depreciation on fixed assets is computed on straight-line method at the rates prescribed in the Schedule XIV of the Companies Act, 1956. Depreciation on the assets added/disposed off during the year are provided on pro rata basis with reference to the month of addition/disposal'

(iii) Investments

(a) Long Term Investments are stated at cost plus brokerage and stamp charges. Provision for diminution in the value of long term investments is made only when such a decline is other than temporary in the opinion of the management.

(b) Current Investments are valued at the lower of cost and market value.

(iv) Revenue Recognition

All expenses and incomes to the extent considered payable or receivable respectively are accounted for on accrual basis. Dividends on investments in equity' shares are accounted for on receipt basis.

(v) Hire Purchase/Leasing

Lease income is net of Lease Equalization charges in accordance with the guidelines issued by the Institute of Chartered Accountants of India.

(vi) Provision for Bad and Doubtful Debts

Bad and doubtful debts are written off/provided for on the basis of the prudential guidelines for Non Banking Financial Companies issued by the Reserve Bank of India. Additional amount is written off or provided for if the management on a review of the debts considers it necessary.

(vii) Retirement Benefits

(a) Liability in respect of gratuity to employees is not provided for. However, gratuity is paid on the retirement/ resignation of the employee as per the provisions of The Payment of Gratuity Act, 1972.

(b) No provision for leave encashment is made. The same will be accounted in the year in which the option of encashment is exercised by the employee.

(c) The company contributes to the employees' provident fund maintained under the Employees' Provident Fund Scheme of the Central Government and the same is charged to the profit and loss account.

(viii) Contingent Liabilities

No provision is made for liabilities which are contingent in nature but if material, the same are disclosed by way of notes to the accounts.

(ix) Taxes on Income Current Tax

Provision for Income Tax is determined in accordance with the provisions of Income tax Act, 1961.

Deferred Tax Provision

Deferred Tax is recognized, on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2011

(i) Method of Accounting

(a) The financial statements are prepared on the historical cost convention and in accordance with the generally accepted accounting principles.

(b) The company follows accrual system of accounting in the preparation of accounts except where otherwise stated.

(ii) Fixed Assets

Leased fixed assets are stated at actual cost less accumulated depreciation and lease terminal adjustment. The actual cost capitalized includes material cost, freight, installation cost, duties, taxes and other incidental expenses.

(iii) Depreciation

Depreciation on fixed assets is are viewed on straight-line method at the rates prescribed in the Schedule XIV of the Companies Act, 1956. Depreciation the assets added/disposed off during the year are provided on prorata basis with reference to the month of addition/disposal.

(iv) Investments

(a) Long Term Investments are stated at cost plus brokerage and stamp charges. Provision for diminution in the value of long - term investments is made only when such a decline is other than temporary in the opinion of the management.

(b) Current Investments are valued at the lower of cost and market value.

(v) Revenue Recognition

All expenses and incomes to the extent considered payable or receivable respectively are accounted for on accrual basis. Dividends on investments in equity shares are accounted for on receipt basis. (vi) Hire Purchase/Leasing

(a) Lease income is net of Lease Equalization charges in accordance with the guidelines issued by the Institute of Chartered Accountants of India.

(b) No income has been accounted for in respect of Hire Purchase/Lease contracts as the periods of Hire Purchase/ Lease Contracts have expired and there is no secondary period and hire charges/lease rentals therefore provided in the Agreement.

(vii) Provision for Bad and Doubtful Debts

Bad and doubtful debts are written off/provided for on the basis of the prudential guidelines for Non Banking Financial Companies issued by the Reserve Bank of India. Additional amount is written off or provided for if the management on a review of the debts considers it necessary.

(viii) Retirement Benefits

(a) Liability in respect of gratuity to employees is not provided for. However, gratuity is paid on the retirement/ resignation of the employee as per the provisions of The Payment of Gratuity Act, 1972.

(b) No provision for leave encashment is made. The same will be accounted in the year in which the option of encashment is exercised by the employee.

(c) The company contributes to the employees' provident fund maintained under the Employees' Provident Fund Scheme of the Central Government and the same is charged to the profit and loss account.

(ix) Contingent Liabilities

No provision is made for liabilities which are contingent in nature but if material, the same are disclosed by way of notes to the accounts.

(x) Taxes on Income

Current Tax

Provision for Income Tax is determined in accordance with the provisions of Income tax Act, 1961.

Deferred Tax Provision

Deferred Tax is recognized, on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2010

A) Basis of Preparation of Financial Statements

The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles in India and comply with the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) referred to in Section 211 (3C) of the Companies Act, 1956.

b) General

(i) Accounting policies not specificalfy referred to ofherwise are in consistence with earlier years and in consonance with generally accepted accounting principles.

(ii) Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

c) Sales

(i) Sales are accounted on mercantile basis, when the sale of goods is completed.

(ii) Job charges are accounted when the goods are dispatched to the customers.

(iii) Sales are stated exclusive of excise duty.

d) Valuation of Inventories

(i) Inventories of Raw materials and Work in progress are valued at cost.

{ii) Stocks in Trade and Stock of Finished Goods are valued at lower of cost and net realizable value

e) Fixed Assets

Fixed assets are stated at cost less accumulated deprecation and impairment losses, if any. Cost comprises the purchases price and any attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use.

f) Depreciation / Amortization

(i) Depreciation on the fixed assets is charged on Straight Line Method at the rates prescribed by Schedule XIV to the Companies Act, 1956, which are based on the estimated useful lives of the assets.

(ii) Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata basis with reference to the month of addition or deletion.

(iii) No amortization is made for leasehold land, which are under Perpetual lease.

g) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All ofher investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline, ofher than temporary, in the value of such investments. h) Foreign Currency Transactions

Foreign Currency transactions are recorded in the books by applying the exchange rates as on the date of the transaction. Foreign Currency Assets & Liabilities are converted at the exchange rate prevailing on the daje of the Balance Sheet and the resultant exchange difference is adjusted to the profit & Loss account except in the case of Foreign Currency Liabilities arising on account of acquisition of Fixed Assets, where such exchange difference is adjusted to the cost of the assets.

i) Retirement Benefits

Staff benefits arising out of retirement/death comprising contributions to Provident Fund, Gratuity Scheme and ofher post separation benefits are accounted for on the basis of the schemes or by an independent actuarial valuation at the year-end as the case may be.

j) Taxes on income

(i) Income Tax is computed in accordance with Accounting Standard 22, thAccounting for Taxation on Incometh issued by the ICAI.

(ii) Provision for current income tax and fringe benefit tax is made in accordance with the provisions of Income tax Act, 1961.

(iii) The difference between taxable income and net profit or loss before tax for the year as per the financial statements, is identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e., differences that originate in one accounting period and reversed in another.

(iv) Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

k) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not provided for in the books but are disclosed by way of notes in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
Subscribe now to get personal finance updates in your inbox!