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Accounting Policies of Evergreen Textiles Ltd. Company

Mar 31, 2014

1.1 Basis of Preparation of Financial Statements: The Financial Statements have been prepared under the historical cost convention on accrual basis. The mandatory applicable accounting standards in India and the provisions of Companies Act, 1956 have been followed in preparation of these financial statements.

All assets and liabilities have been classified as current or non-current as per the operating cycle criteria set out in the Revised Schedule VI to the Companies Act, 1956.

1.2 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. Cost comprises of freight, duties, taxes, interest and other incidental expenses related to acquisition & installation.

1.3 Depreciation and Amortisation:

i) Leasehold land is amortised over the period of lease ii) Buildings (including Roads & Drains) is provided under straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

1.4 Investments:

Investments are stated at cost less provision for diminution in value other than temporary, if any. 1.5 Retirement Benefits:

i) Since during the year there were no employees in the company therefore there is no liability in respect of Gratuity.

ii) Since during the year there were no employees in the company therefore there is no liability in respect of Leave Benefits. 1.6 Taxation:

i) Current Tax:

Provision for current income tax is made on the taxable income using the applicable tax rates and tax laws as per the provisions of Income Tax Act, 1961.

ii) Deferred Tax:

The Deferred tax charge or credit is recognised using prevailing enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to reassess realization / liabilities.

iii) Minimum Alternate Tax (MAT) credit:

MAT is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the period specified. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the ICAI, the said asset is created by way of accredit to the statement of Profit and Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each Balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.


Mar 31, 2011

A. System of Accounting

The Company generally adopts the accrual basis in the preparation of the Accounts i.e. the Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred except in case of significant uncertainties.

B Fixed Assets & Depreciation

Fixed assets are stated at cost less depreciation.

Depreciation has been provided in the Books, on the following basis.

a Leasehold land is amortised over the period of lease.

b Buildings (including Roads & Drains) is provided under straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

C Investments :

Investments are stated at cost.

D Gratuity

Since in the year end there were no employees in the company therefore there is no liability in respect of the same.

E Leave Pay

Since in the year end there were no employees in the company therefore there is no liability in respect of the same.

F Taxation :

Income Tax expenses comprises Current tax, Deferred tax charge or credit and Fringe benefit tax . Provision for current tax is made only on the assessable income at the tax rate applicable in the relevant assessment year. The Deferred tax charge or credit is recognised using prevailing enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to reassess realization / liabilities.


Mar 31, 2010

A. System of Accounting

The Company generally adopts the accrual basis in the preparation of the Accounts i.e. the Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred except in case of significant uncertainties.

B Fixed Assets & Depreciation

Fixed assets are stated at cost less depriciation.

Depreciation has been provided in the Books, on the following basis..

a Leasehold land is amortied over the period of lease.

b Buildings (including Roads & Drains) is provided under straight line method st the rates specified in Schedule XIV of the Companies Act, 1956.

C Investments:

Investments are stated at cost.

D Gratuity

Since in the year end there were no employees in the company therefore there is no liability in respect of the same.

E Leave Pay

Since in the year end there were no employees in the company therefore there is no liability in respect of the same.

F Taxation:

Income Tax expenses comprises Current tax, Deferred tax charge or credit and Fringe benefit tax . Provision for current tax is made only on the assessable income at the tax rate applicable in the relevant assessment year. The Deferred tax charge or credit is recognised using prevailing enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to reassess realization / liabilities.

 
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