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Accounting Policies of Dazzel Confindive Ltd. Company

Mar 31, 2013

I) Basis of Accounting: The accounts of the company are prepared under the historical cost convention and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India, except where otherwise stated and the relevant provisions of the Companies Act, 1956. For recognition of Profit or Loss, mercantile system of accounting is followed except in the following cases where accounting is done on payment/receipt basis:-

a) Leave with wages & salary

b) Rebate/claim on sales & purchases

c) Legal and Professional Charges.

ii) Fixed Assets: Fixed assets acquired during the period are stated at cost of acquisition inclusive of all incidental expenses and any attributable cost for bringing the assets to its working condition and exclusive of CENVAT Credit on Capital Account.

ii) Depreciation: The depreciation of fixed assets has been provided on Straight Line Method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions/deletions during the period has been provided on Pro-rata basis. No amount has been written off in respect of leasehold land as grant of lease is for a long period.

iv) Investments: Current Investments are stated at Lower of Cost and Fair Value and the Resultant decline, if any, is charged to revenue.

v) Inventories: Inventories are valued on the following basis:

Finished Goods - At lower of cost or net realizable value

Trading Goods - At cost

vi) Gratuity: The management has decided to adopt cash basis of accounting for gratuity liability, hence no provision has been made for accrued liability in the accounts of the company.

vii) Foreign Currency Transactions: Transactions in foreign exchange are accounted for at exchange rates prevailing on the date on which the transaction takes place. Gains and Losses arising out of fluctuations in exchange rates, relating to the fixed assets, are adjusted to the carrying amount of fixed assets and in other cases transferred to revenue accounts.

viii) Taxation: - Provision for current tax is made on the basis of applicable Income Tax Provisions for the current accounting period.

Deferred Tax is recognized, subject to the consideration of prudence in respect of Deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

ix) Borrowing Cost:- Borrowing cost which are directly attributable to the acquisition/construction of fixed assets till the time such assets are ready for use are capitalized as part of the assets. Other borrowing costs are treated as revenue expenditure and charged to profit and loss account for the year.

x) Segment Reporting:- The company has identified its primary reportable segments under AS-17 and necessary disclosure is separately made in notes in accounts. The accounting policies adopted for segment report are in line with the accounting policies of the company with the following additional policies for segment reporting. Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as

"Unallocable ". Segment assets and segment liabilities represents assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as "Unallocable”

xi) Related Party Disclosures:- Related Party Disclosures as per AS-18 issued by ICAI is made and disclosed separately in notes of accounts.

xii) Earning Per Share:- Earning Per Share has been calculated on weighted average of total number of shares as per AS-20 issued by ICAI.

xiii) Impairment of Assets:- The Company has a policy of assessing the impairment of Intangible assets every year in accordance with AS-28as prescribed by ICAI. This is done through comparing its carrying amount as per books of accounts with its recoverable value. Hence no provision is required as per AS-28.

xiv ) Revenue Recognition : Revenue from sale of products is recognised on transfer of all significant risk & rewards of ownership of products to the customers, which is generally on dispatch of goods. Sales are stated exclusive of Value added tax. Dividend income is recognised when right to receive the dividend is established. Interest income is recognised on the time proportion basis.


Mar 31, 2011

I) Basis of Accounting: The accounts of the company are prepared under the historical cost convention and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India, except where otherwise stated and the relevant provisions of the Companies Act, 1956. For recognition of Profit or Loss, mercantile system of accounting is followed except in the following cases where accounting is done on payment/receipt basis:-

a) Leave with wages & salary

b) Rebate/claim on sales & purchases

c) Legal and Professional Charges.

ii) Fixed Assets: Fixed assets acquired during the period are stated at cost of acquisition inclusive of all incidental expenses and any attributable cost for bringing the assets to its working condition and exclusive of CENVAT Credit on Capital Account.

iii) Depreciation: The depreciation of fixed assets has been provided on Straight Line Method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions/deletions during the period has been provided on Pro-rata basis. No amount has been written off in respect of leasehold land as grant of lease is for a long period.

iv) Investments: Current Investments are stated at Lower of Cost and Fair Value and the Resultant decline, if any, is charged to revenue. During the year Investment in Joint Venture (Hotel) of Rs. 55000000.00 & Investment in Office of Rs. 4300000.00

v) Inventories: Inventories are valued on the following basis:

Finished Goods - At lower of cost or net realizable value

Trading Goods - At cost

vi) Gratuity: The management has decided to adopt cash basis of accounting for gratuity liability, hence no provision has been made for accrued liability in the accounts of the company.

vii) Foreign Currency Transactions: Transactions in foreign exchange are accounted for at exchange rates prevailing on the date on which the transaction takes place. Gains and Losses arising out of fluctuations in exchange rates, relating to the fixed assets, are adjusted to the carrying amount of fixed assets and in other cases transferred to revenue accounts.

viii) Taxation: - Provision for current tax is made on the basis of applicable Income Tax Provisions for the current accounting period.

Deferred Tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

ix) Borrowing Cost:- Borrowing cost which are directly attributable to the acquisition/construction of fixed assets till the time such assets are ready for use are capitalized as part of the assets. Other borrowing costs are treated as revenue expenditure and charged to profit and loss account for the year.

x) Segment Reporting:- The company has identified its primary reportable segments under AS-17 and necessary disclosure is separately made in notes in accounts. The accounting policies adopted for segment report are in line with the accounting policies of the company with the following additional policies for segment reporting.

Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable ". Segment assets and segment liabilities represents assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as "Unallocable"

xi) Related Party Disclosures:- Related Party Disclosures as per AS-18 issued by ICAI is made and disclosed separately in notes of accounts.

xii) Earning Per Share:- Earning Per Share has been calculated on weighted average of total number of shares as per AS-20 issued by ICAI.

xiii) Impairment of Assets:- The Company has a policy of assessing the impairment of Intangible assets every year in accordance with AS-28as prescribed by ICAI. This is done through comparing its carrying amount as per books of accounts with its recoverable value. Hence no provision is required as per AS-28.

xiv ) Revenue Recognition : Revenue from sale of products is recognised on transfer of all significant risk & rewards of ownership of products to the customers, which is generally on dispatch of goods. Sales are stated exclusive of Value added tax.

Dividend income is recognised when right to receive the dividend is established.

Interest income is recognised on the time proportion basis.


Mar 31, 2010

I) Basis of Accounting:

The accounts of the company are prepared under the historical cost convention and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India, except where otherwise stated and the relevant provisions of the Companies Act, 1956. For recognition of Profit or Loss, mercantile system of accounting is followed except in the following cases where accounting is done on payment/receipt basis

a) Leave with wages & salary

b) Rebate/claim on sales & purchases

c) Legal and Professional Charges.

ii) Fixed Assets:

Fixed Assets: Fixed assets acquired during the period are stated at cost of acquisition inclusive of all incidental expenses and any attributable cost for bringing the assets to its working condition and exclusive of CENVAT Credit on Capital Account.

iii) Depreciation:

The depreciation of fixed assets has been provided on Straight Line Method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions/deletions during the period has been provided on Pro-rata basis. No amount has been written off in respect of leasehold land as grant of lease is for a long period.)

iv) Investments:

Current Investments are stated at Lower of Cost and Fair Value and theresultant decline, if any, is charged to revenue.

v) Inventories:

Inventories are valued on the following basis:

Finished Goods - At lower of cost or net realizable value

Trading Goods - At cost

vi) Gratuity:

The management has decided to adopt cash basis of accounting for gratuity liability, hence no provision has been made for accrued liability in the accounts of the company.

vii) Foreign Currency Transactions:

Transactions in foreign exchange are accounted for at exchange rates prevailing on the date on which the transaction takes place. Gains and Losses arising out of fluctuations in exchange rates, relating to the fixed assets, are adjusted to the carrying amount of fixed assets and in other cases transferred to revenue accounts.

viii) Taxation :

Provision for current tax is made on the basis of applicable Income Tax Provisions for the current accounting period.

Deferred Tax is Recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

x) Segment Reporting :

The company has identified its primary reportable segments under AS-17 and necessary disclosure is separately made in notes in accounts. The accounting policies adopted for segment report are in line with the accounting policies of the company with the following additional policies for segment reporting. Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable ". Segment assets and segment liabilities represents assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as "Unallocable"

xi) Related Party Disclosures:

Related Party Disclosures as per AS-18 issued by ICAI is made and disclosed separately in notes of accounts.

xii) Earning Per Share:

Earning Per Share has been calculated on weighted average of total number of shares as per AS-20 issued by ICAI.

xiii) Impairment of Assets :

The Company has a policy of assessing the impairment of Intangible assets every year in accordance with AS-28as prescribed by ICAI. This is done through comparing its carrying amount as per books of accounts with its recoverable value. Hence no provision is required as per AS- 28.

xiv) Revenue Recognition:

Revenue from sale of products is recognised on transfer of all significant risk & rewards of ownership of products to the customers, which is generally on dispatch of goods. Sales are stated exclusive of Value added tax.

Dividend income is recognised when right to receive the dividend is established.

Interest income is recognised on the time proportion basis.


Mar 31, 2003

A. The accounts have been prepared under historical cost convention basis.

B. Fixed Assets:

(i)Fixed Assets are stated at original cost less depreciation. Cost include incoming freight duties and expenses incidental to acquisition and installation.

(ii) Depreciation of fixed assets is provided on straight line method in accordance with and at the rates specified in schedule XIV to the company Act, 1956 on Pro-rata and completed month basis. No depreciation has been charged on assets sold during the year.

(iii) Assets acquired on hire purchases are subject to depreciation at the applicable rates. No depreciation is provided on assets sold/transferred during the year.

(iv) In respect of leased out of assets, depreciation has been charged at the same rate as in case of other assets in view of the fact that tease agreement does not specifically mention the period of

C. INVENTORIES: (As per inventories taken, valued & certified by management)

(i)Materials &Goods are valued at cost or market price whichever is least.

(ii) W.I.P. is valued at cost. However running works on contract are valued op cost plus profit as per percentage completion method.

(iii) In view of varied size nature of large no. of items it is not practicable to furnish quantitative informations of materials consumed.

(iv) Stock of unlisted shares has been valued at cost as market price is not available.

D. Revenue Reorganization:

i. Sale of real estate / constructions is recognized on acceptance from customers. However execution of documents is done in due course on customer request.

ii. Sale/Purchase of securities is recognized on the basis of contract note/delivery note from dealer/broker.

E. Written off Expenses:

iii. Preliminary Exp. Including fees paid for authorized capital increase Shall be written off over a period of 10 years.

F. In respect of running works, profit has been computed on percentage completion method. The income of this basis has been taken into profit & loss account However, total consideration and expenses on works being undertaken by company are reflected in profit & loss account only in the year of completion.

 
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