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Accounting Policies of Diligent Industries Ltd. Company

Mar 31, 2014

I. Basis of preparation of Financial Statements:

These financial statements have been prepared on an accrual basis and under historical cost Convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) of the companies(Accounting Standards)Rules, 2006 as amended and other relevant provisions of the Companies Act, 1956.

II. Revenue Recognition:

Sale of Goods

Sales are recognized at the point of dispatch of goods when the substantial risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract and are net of returns.

Other Income

Interest and Other income are recognized on accrual basis and on time proportion basis.

III. Use of Estimates:

The preparation of accounting of financial statements in conformity with generally accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period. Difference between actual results and estimates are recognized in the period in which the results are known / materialized.

IV. Fixed Assets:

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price, including duties and other non-refundable taxes or levies any directly attributable cost of bringing the asset to its working condition and indirect costs specifically attributable to a fixed asset. Assets retired from active use are carried at lower of book value and estimated net realizable value.

V. Method of depreciation:

As per the accounting standard - 6, Depreciation on Fixed Assets, is provided on the "Straightline Method" (S.L.M) at the rates specified in the Schedule XIV to the companies Act, 1956 from time to time.

VI. Taxes on Income:

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current Taxis made on the basis of the assessable income at the tax rate applicable to the relevant assessment year.

Minimum Alternative Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax Assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

VII. Provisions and Contingent Liabilities:

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of obligation.

Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.


Mar 31, 2013

I. Revenue Recognition:

Company generally follows the mercantile system of accounting and recognizes income and expenses on accrual basis, including provisions or adjustments for committed obligations and amounts demined as payable or receivable during the year.

II. Expenditure:

Expenses are accounted on the accrual basis and provision is made for all known losses and liabilities.

III. Use of Estimates:

The preparation of accounting of financial statements in conformity with generally accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period. Difference between actual results and estimates are recognized in the period in which the results are known / materialized.

IV. Fixed Assets:

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price, including duties and other non-refundable taxes or levies any directly attributable cost of bringing the asset to its working condition and indirect costs specifically attributable to a fixed asset.

Assets retired from active use are carried at lower of book value and estimated net realizable value.

V. Method of depreciation :

As per the accounting standard - 6, Depreciation on Fixed Assets, is provided on the "Written Down Value Method" (W.D.V) at the rates specified in the Schedule XIV to the companies Act, 1956 from time to time.

VI. Investments:

Investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long-term Investments. However, fixed income long term securities are stated at cost, less amortization of premium/ discount and provision for diminution to recognize a decline, other than temporary.

VII. Foreign currency Transactions:

As per the Accounting standard - 11, there are no foreign currency transactions undertaken by the Company during the year under review.

VIII. Employee Benefits:

As per accounting Standard 15, "Employees Benefits" during this year this standard is not applied.

IX. Taxes on Income

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year.

Minimum Alternative Tax credit is recognized as an asset only when and to the extant there is convincing evidence that the company will pay normal tax during the specified period.

X. Related Party transactions: Nil


Mar 31, 2009

The financial statements are prepared under historical cost convention, in accordance with Indian generally accepted Accounting principals (GAAP) the accounting standard issued by the Institute of Chartered Accountants of India and the provisions of companies Act 1956, as adopted consistently by the company. All Income and Expenditure having a material bearing on the financial statements are recognised on the accural basis.

B INCOME : Other income is accounted on accrual basis.

C EXPENDITURE : Expenses are accounted on the accrual basis and provision are made for all known losses and liabilitie D FIXED ASSETS

Fixed assets are stated at cost of acquition less accumulated depreciation. Cost of acquisition of fixed assets comprises of purchase price (net or rebates and discounts) import duties, levies and any other directly attributable cost of bringing the assets to their working condition for their intended use. These cost includes financing costs relating to specific borrowings attributable to fixed assets.

Impairement: The carrying amount of cash generating units units/assets are reviewed at balance sheet date to determine whether there is any indication of impairement. If any such indication exits, the recoverable amount is estimated as the higher of net selling

E DEPRECIATION : Depreciation of Fixed Assets are charged on Written Down Value method at the rates prescribed i chapter XIV of the companies act, 1956.

F RETIREMENT BENEFIT TO EMPLOYEES : The employees are covered under Provident Fund and Miscellaneous Provis Act. The contributions are correspondingly govrened by the provisions of the act.

G VALUATION OF INVENTORY & WORK IN PROGRESS : The inventories are valued at cost.

H FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foregin currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Any income or expence on account of exchange difference either on sellement or on translation is recognised in the profit and loss account except in cases where they relate to acquisition of fixed asserts in which case are adjusted to the carrying

I PROVISION FOR CURRENT AND DEFERRED TAX

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Imcome Tax Act 1961, Deferred tax resulting from "timing difference" between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax liability is recognised and carried forward only to the extent that there is a virual certainty that sufficent future taxable income will be available.

 
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