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Accounting Policies of EPIC Energy Ltd. Company

Mar 31, 2014

(i) Basis of preparation of Financial Statements

These financial statements have been prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) and on the going-concern basis.

(ii) Use of Estimates

The preparation of financial statements requires estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Any revision to accounting estimates is recognized prospectively in current and future periods.

(iii) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their present working condition.

Advances given towards acquisition of fixed assets and the cost of fixed asset not yet ready for their intended use at the balance sheet date are disclosed under capital work-in-progress.

(iv) Depreciation

Depreciation on fixed assets is provided on Written down value at the rates prescribed under Income Tax Act, 1961. In respect of Energy Saving Equipments depreciation is written off over BOOT period.

(v) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if any is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(vi) Foreign Currency Transactions/Translation:

(a) Transactions denominated in foreign currencies are recorded at the rate of exchange prevailing on the date of transactions.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

(c) Non monetary foreign currency items are carried at cost.

(d) In respect of branches, which are non-integral operations, all assets and liabilities, both monetary and non- monetary, are translated at closing rate, while all income and expenses are translated at closing rate for the year..

(e) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets, in which they are adjusted to the carrying cost of such assets.

(vii) Investments:

Current investments are carried at the lower of the cost/fair value computed category wise. Long-term investments are stated at cost. Cost includes costs incidental to acquisition such as legal costs, investment banking fees etc. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(viii) Inventory:

Inventories are valued after providing for obsolescence, as under:

1. Finished Goods: At lower of weighted average cost or net realizable value

2. Work in Progress: at lower of cost (including related overheads) or net realizable value.

3. Spare Parts: At lower of weighted average cost or net realizable value.

(ix) Revenue Recognition

Income is generally accounted on accrual basis as they are earned.

(x) Provision for Current and Deferred Tax:

Provision for Current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing differences" between taxable income and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

(xi) Provisions, 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

(i) Basis of preparation of Financial Statements

These financial statements have been prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) and on the going-concern basis.

(ii) Use of Estimates

The preparation of financial statements requires estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Any revision to accounting estimates is recognized prospectively in current and future periods.

(iii) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their present working condition.

Advances given towards acquisition of fixed assets and the cost of fixed asset not yet ready for their intended use at the balance sheet date are disclosed under capital work-in-progress.

(iv) Depreciation

Depreciation on fixed assets, except energy saving equipments, is provided on Written down value at the rates prescribed under Income Tax Act, 1961. In respect of Energy Saving Equipments depreciation is written off equally over BOOT period.

(v) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if any is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(vi) Foreign Currency Transactions/Translation:

(a) Transactions denominated in foreign currencies are recorded at the rate of exchange prevailing on the date of transactions.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

(c) Non monetary foreign currency items are carried at cost.

(d) In respect of branches, which are non-integral operations, all assets and liabilities, both monetary and non-monetary, are translated at closing rate, while all income and expenses are translated at closing rate for the year..

(e) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets, in which they are adjusted to the carrying cost of such assets.

(vii) Investments:

Current investments are carried at the lower of the cost/fair value computed category wise. Long-term investments are stated at cost. Cost includes costs incidental to acquisition such as legal costs, investment banking fees etc. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(viii) Inventory:

Inventories are valued after providing for obsolescence, as under:

1. Finished Goods: At lower of weighted average cost or net realizable value

2. Work in Progress: at lower of cost (including related overheads) or net realizable value.

3. Spare Parts: At lower of weighted average cost or net realizable value Income is generally accounted on accrual basis as they are earned.

(ix) Revenue Recognition:

I ncome is generally accounted on accrual basis as theu are earned.

(x) Provision for Current and Deferred Tax:

Provision for Current tax is made after taking into consideration benefits admissible underthe provisions of the Income tax Act, 1961. Deferred tax resulting from "timing differences" between taxable income and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

(xi) Provisions, 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

(i) Basis of preparation of Financial Statements

These financial statements have been prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) and on the going-concern basis.

(ii) Use of Estimates

The preparation of financial statements requires estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Any revision to accounting estimates is recognized prospectively in current and future periods.

(iii) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their present working condition.

Advances given towards acquisition of fixed assets and the cost of fixed asset not yet ready for their intended use at the balance sheet date are disclosed under capital work-in-progress.

(iv) Depreciation

Depreciation on fixed assets, except energy saving equipments, is provided on Written down value at the rates prescribed under Income Tax Act, 1961. In respect of Energy Saving Equipments depreciation is written of f equally over BOOT period.

(v) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if any is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(vi) Foreign Currency Transactions/Translation:

(a) Transactions denominated in foreign currencies are recorded at the rate of exchange prevailing on the date of transactions.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

(c) Non monetary foreign currency items are carried at cost.

(d) In respect of branches, which are non-integral operations, all assets and liabilities, both monetary and non-monetary, are translated at closing rate, while all income and expenses are translated at closing rate for the year..

(e) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets, in which they are adjusted to the carryinq cost of such assets.

(vii) Investments:

Current investments are carried at the lower of the cost/fair value computed category wise. Long-term investments are stated at cost. Cost includes costs incidental to acquisition such as legal costs, investment banking fees etc. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(viii)lnventory:

Inventories are valued after providing for obsolescence, as under:

1. Finished Goods: At lower of weighted average cost or net realizable value

2. Work in Progress: at lower of cost (including related overheads) or net realizable value.

3. Spare Parts: At lower of weighted average cost or net realizable value Income is generally accounted on accrual basis as they are earned.

(x) Provision for Current and Deferred Tax:

Provision for Current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing differences" between taxable income and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

(xi) Provisions, 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
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