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Accounting Policies of Deepti Alloy Steel Ltd. Company

Mar 31, 2015

1. BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956/2013.

2. FIXED ASSETS:

Fixed assets are stated at cost of acquisition. Acquisition cost includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of modvat credits, where applicable. Revenue expenses incidental and related to projects are capitalized along with the related fixed assets, where appropriate.

3. REVENUE RECOGNITION:

Sales exclusive of Vat & WCT and exclusive of Service Tax are recognized on dispatch. Price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

4. FOREIGN CURRENCY TRANSACTIONS:

During the year, the company has not entered any foreign transaction.

5. WARRANTY:

Product warranty costs are guaranteed by Performances Bank Guarantee.

6. INVENTORIES:

Inventories are stated at cost. 'Cost' is arrived at using weighted average methods and includes appropriate overheads in case of work in progress.

7. RESEARCH AND DEVELOPMENT EXPENDITURE:

During the year, The Company has not made any expenditure towards Research and development expenditure.

8. TAXATION :

Provision for Income Tax, comprising current tax and deferred tax is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the tax

Profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax Liabilities arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future.

The accumulated deferred tax liability as on March 31, 2014 has been recognized with a corresponding charge to the General Reserve.

9. SEGMENTAL REPORTING :

The accounting policies applicable to the reportable segment are the same as those used in the preparation of the financial statements as set out above.

Segment revenue expenses include amounts which can be directly identifiable to the segment or allocable on a reasonable basis.

Segment assets include all operating assets used by the segment and consist primarily of debtors, inventories and fixed assets, segment liabilities include all operating liabilities and consist primarily of creditors and statutory liabilities.

10. Debtors

Debtors are stated at book value after making provisions for doubtful debts.

11. The figures for the previous year have been regrouped / rearranged wherever necessary.

12. The Figures are rounded off to nearest rupee.


Mar 31, 2014

1. BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

2. FIXED ASSETS:

Fixed assets are stated at cost of acquisition. Acquisition cost includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of modvat credits, where applicable. Revenue expenses incidental and related to projects are capitalized along with the related fixed assets, where appropriate.

3. DEPRECIATION:

Depreciation on fixed assets is provided using the S.L.M. method. Depreciation is charged on a pro-rata basis for assets purchased/sold during the year. Individual assets costing less than Rs. 5,000 are depreciated in full in the year of purchase.

4. REVENUE RECOGNITION:

Sales exclusive of Vat & WCT and exclusive of Service Tax are recognized on dispatch. Price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

5. FOREIGN CURRENCY TRANSACTIONS:

During the year, the company has not entered any foreign transaction.

6. WARRANTY:

Product warranty costs are guaranteed by Performances Bank Guarantee.

7. INVENTORIES:

Inventories are stated at cost. 'Cost' is arrived at using weighted average methods and includes appropriate overheads in case of work in progress.

8. RESEARCH AND DEVELOPMENT EXPENDITURE ;

During the year, The Company has not made any expenditure towards Research and development expenditure,

9. TAXATION ;

Provision for Income Tax, comprising current tax and deferred tax is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the tax

profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax Liabilities arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future

The accumulated deferred tax liability as on 31st March, 2014 has been recognized with a corresponding charge to the General Reserve.

10. SEGMENTAL REPORTING :

The accounting policies applicable to the reportable segment are the same as those used in the preparation of the financial statements as set out above.

Segment revenue expenses include amounts which can be directly identifiable to the segment or allocable on a reasonable basis.

Segment assets include all operating assets used by the segment and consist primarily of debtors, inventories and fixed assets, segment liabilities include all operating liabilities and consist primarily of creditors and statutory liabilities.

11. Debtors ;

Debtors are stated at book value after making provisions for doubtful debts.

12. The figures for the previous year have been regrouped / rearranged wherever necessary.

13. The Figures are rounded off to nearest rupee .