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Accounting Policies of Coastal Corporation Ltd. Company

Mar 31, 2014

A) The accounts have been prepared under historical cost convention in accordance with Generally accepted Accounting Principles in India and the Provisions of the Companies Act, 1956.

The Company follows Mercantile System of Accounting and recognises income and expenditure on accrual basis except in case of the following :

a) Insurance Claims

b) Captial Subsidies

c) Sea freight subsidy

b) Use of Estimates

The preparation of financial statements is in conformity with generally accepted accounting principles which requires management to make estimates and asssumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of the reporting periods. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimated

c) Fixed Assets

Tangible Assets

Tangible Fixed Assets are stated at cost, net of accumlated depreciation and accumalted impairment losses, if any.The cost comprises purchase price, borrowing costs if captilisation criteria are met and directly attributable cost of bringing of the asset to its working condition for the intended use.

Subseqent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance .All other expenses on existing fixed assets including day to day repairs and maintenance expenditure and cost of replacing parts are charged to the statement of Profit and Loss for the period during which such expenses are incurred.

Cost of fixed assets includes installation charges and any subsidies received are reduced from the cost.

d) Expenditure during construction period:

Expenditure during construction period is grouped under " Capital work in progress." Upon commencement of use of the asset , the expenditure is allocated to respective assets in the ratio of their direct cost.

e) Depreciation

i) Depreciation on Fixed Assets is provided in accordance with Schedule XIV of the Com- panies Act., 1956 on Straight Line Method.

ii) Fish crates are depreciated on re-valuation basis.

f) Inventories

Inventories are valued as under :

a) Finished Goods : At net realisable value.

b) Stock-in-process : At cost.

c) Rawmaterial : At cost.

d) Stores/Tools/Fish Crates : At cost.

g) Income Recognition:

Income is recongnised on completion of shipment formalities in case of export sales and in other cases upon delivery of goods

h) Foreign Currency Translation

Export sales in foreign currency are accounted at the exchange rate prevailing at the time of negotiation of the Bill. Gain/Loss arising out of fluctuations by exchange rates where not determined are accounted for on subsquent realisation / payment.

i) Borrowing Costs:

Borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing costs incurred on acquiring and construction of assets are capitalised as part of the cost of such assets.

j) Retirement Benefits :

Gratuity is administred through group gratuity policy with Life Insurance Corporation of India. Premium accrued and payable under the above policy is charged to revenue. Leave encashment is treated on cash basis as per the Company''s policy.

k) Taxation :

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Incometax Act, 1961. M.A.T Credit entitlement is recognised as per the rates of income Tax prevailing.

In accordance with the Accounting Standard - 22 - Accounting for taxes on income, issued by the Institute of Chartered Accountants of India, the Company has recognized the de- ferred tax liability in the Accounts.

Deferred tax Assets arising on account of brought forward losses and unabsorbed depre- ciation are recognised only to the extent that there is a reasonable certainty that such deferred tax assets can be realised.

Equity shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares are eligible to receive share in the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

Preference shares

The company had only one class of Preference shares of 6.5% Redeemable Preference shares having par value of Rs.10/- per share. Preference Share holders are not entitled to vote. Preference shares carry a preferential right for repayment in priority to the equity shares to the company but shall not carry any further or other right to participate either in the profits or assets of the company. Pursuant to the board resoluation dated the company has redemed the entire Prefarance share capital during the previous year out of the profits


Mar 31, 2010

1. The accounts have been prepared under historical cost convention in accordance with Generally accepted Accounting Principles in India and the Provisions of the Companies Act, 1956

The Company follows Mercantile System of Accounting and recognises income and expenditure on accrual basis except in case of the following:

a) Insurance Claims

b) Capital/Revenue Subsidies

2. Fixed Assets

i) All Fixed Assets are stated at their original cost of acquisition / installation less depredation. Subsidies received, if any, are reduced from the cost.

ii) Work-in-progress is stated at cost.

3. Depreciation

i) Depreciation on Fixed Assets is provided in accordance with Schedule XIV of the Companies Act., 1956 on Straight Line Method,

ii) Fish crates are depreciated on re-valuation basis.

5. Income Recognition:

b) Income is recongnised an completion of shipment formalities in case of export sales.

6. Foreign Currency Translation

Export sales in foreign currency are accounted at the exchange rate prevailing at the time of negotiation of the Bid. Gain/Loss arising out of fluctuations by exchange rates where not determined are accounted for on subsquent realisation / payment

7. Retirement Benefits

Gratuity is administered through group gratuity policy with Life Insurance Corporation of India. Premium accrued aid payable under the above policy is charged to revenue.

Leave encashment is treated on cash basis

8. Taxation:

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax ir accordance with the Income tax Act, 1961.

In accordance with the Accounting Standard - 22 - Accounting for taxes on income, issued by the Institute of Chartered Accountants of India, the Company has recognized the deferred tax liability in the Accounts.

Deferred tax Assets arising on account of brought forward losses and unabsorbed depreciation are recognised only to the extent that there is a reasonable certainty that such deferred tax assets can be realised.

 
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