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Accounting Policies of Filtron Engineers Ltd. Company

Mar 31, 2014

Basis of Accounting :

Accounts of the company are prepared under the historical cost convention and accrual basis as a going concern. The Company has complied with accounting standards recommended by Institute of Chartered Accountants of India & as per prescribed under Sec. 211(3C) of the Companies Act 1956 except Accounting Standard 15 in respect of Retirement Benefits

A) Inventories :

Valuation of Inventories: Inventories are valued at cost or at net realisable value which ever is lower. Scrap generated in manufacturing process is accounted for on sale.

B) Revenue Recognition :

1. Sales: Sales are accounted as soon as material is dispatched and are shown net of MVAT

2. Income arising out of Erection and Installation and Commissioning of equipment is accounted for on completion. The erection and/ or commissioning of

i) The Composite and independently functional portion of the project or

ii) On completion of the project itself, as is applicable.

C) Fixed Assets :

Fixed assets are stated at cost of acquisition and other attributable costs to bring the Assets to their working condition

1) Depreciation is charged on all the assets on straight-line method at rates and manner prescribed in schedule XIV of the Companies Act, 1956 except on Vehicles, it is charged on WDV method. Prorata depreciation is provided in the year of installation as also in the year of sale or disposal of the assets.

2) The cost of Leasehold land is amortized over the period of the lease.

D) Foreign currency Transactions :

Foreign Currency transactions of income and expenditure are accounted for at the exchange rate prevailing as on the date of the transaction. Debtors & Creditors in respect of Foreign Currency transactions outstanding as on 31/03/2014 have been expressed at the foreign exchange rates prevailing as on the year end date. The difference between the rate prevailing on the transaction date and settlement /year ended is recognized as Income or Expenses as the case may be.

E) Retirement Benefits - Accounting Standard 15 :

Contributions are made to provident funds, Provisions for gratuity is made as per the amount ascertained by the management. No provision is made for amount towards earned leave.

F) Taxation - Accounting Standard 22 :

i) Provision for taxation includes current income tax.

ii) The Company follows - Accounting for taxes on income issued by the Institute of Chartered Accountants of India''. The Company has timing difference between accounting & tax profits on account of accumulated losses and unabsorbed depreciation. As per the perception of the management since there is no convincing evidence which demonstrates the virtual certainty of realisation of such ‘Deferred tax assets'', the Company has presently decided not to recognize any deferred tax asset or deferred tax liability either.

G) Segment Reporting under Accounting Standard 17 :

The company operates in one business segment namely dairy and beverage equipment and hence reporting under this accounting standard is not applicable to the company.

H) Lease Accounting As per Accounting Standard 19 :

This is not applicable to the company since no new lease transaction took place during the year under report.

I) Consolidated Financial Statement & Investment in Associate as per Accounting Standard 21 & 23:

Not applicable to the Company as the Company does not have any subsidiary.

J) Impairment of Assets as per Accounting Standard 28 :

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is less than the recoverable amount of those assets. Hence there is no impairment loss on the assets of the company.

K) Capital Commitment :

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 5,00,000/-Lacs approx (P.Y. Rs. 2,50,000/- Lacs)

N) In the opinion of the Board the balances in Current Assets, Loans & Advances are approximately of the value stated if realised in the ordinary course of business are taken as per books. The provision for depreciation and all known liabilities is adequate and not in excess of the amounts reasonably necessary. These are no Contingent Liabilities other then those stated in above note No.2(K)


Mar 31, 2013

A) Inventories:

Valuation of Inventories: Inventories are valued at cost or at net realisable value which ever is lower. Scrap generated in manufacturing process is accounted for on sale.

B) Reven ue Recogn iti on:

1. Sales: Sales are accounted as soon as material is dispatched and are shown net of MVAT

2. Income arising out of Erection and Installation and Commissioning of equipment is accounted for on completion. The erection and/ or commissioning of

i) The Composite and independently functional portion of the project

or ii) On completion of the project itself, as is applicable. »

C) Fixed Assets:

Fixed assets are stated at cost of acquisition and other attributable costs to bring the Assets to their working condition

1) Depreciation is charged on all the assets on straight-line method at rates and manner prescribed in schedule XIV of the Companies Act, 1956 except on Vehicles, it is charged on WDV method. Prorata depreciation is provided in the year of installation as also in the year of sale or disposal of the assets.

2) The cost of Leasehold land is amortized over the period of the lease.

D) Foreign currency Transactions:

Foreign Currency transactions of income and expenditure are accounted for at the exchange rate prevailing as on the date of the transaction. Debtors & Creditors in respect of Foreign Currency transactions outstanding as on 31/03/2013 have been expressed at the foreign exchange rates prevailing as on the year end date. The difference between the rate prevailing on the transaction date and settlement /year ended is recognized as Income or Expenses as the case may be.

E) Retirement Benefits-Accounting Standard 15:

Contributions are made to provident funds, Provisions for gratuity is made as per the amount ascertained by the management. No provision is made for amount towards earned leave.

F) Taxation - Accounting Standard 22:

i) Provision for taxation includes current income tax.

ii) The Company follows - Accounting for taxes on income issued by the Institute of Chartered Accountants of India''. The Company has timing difference between accounting & tax profits on account of accumulated losses and unabsorbed depreciation. As per the perception of the management since there is no convincing evidence which demonstrates the virtual certainty of realisation of such ''Deferred tax assets'', the Company has presently decided not to recognize any deferred tax asset or deferred tax liability either.

G) Segment Reporting under Accounting Standard 17:

The company operates in one business segment namely dairy and beverage equipment and hence reporting under this accounting standard is not applicable to the company.

H) Lease Accounting As per Accounting Standard 19:

This is not applicable to the company since no new lease transaction took place during the year under report.

I) Consolidated Financial Statement & Investment in Associate as per Accounting Standard 21 & 23:

Not applicable to the Company as the Company does not have any subsidiary. J) Impairment of Assets as per Accounting Standard 28:

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is less than the recoverable amount of those assets. Hence there is no impairment loss on the assets of the company.

K) Capital Commitment -

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 2,50,0007-Lacs approx (P.Y. Rs. Nil/- Lacs)

L) Related party disclosures as per A.S. 18

A) Subsidiaries: Nil

B) Associates and Joint Ventures:

1) Real Centrifuges Asia Pvt. Ltd.

2) Fristam Pumps India Pvt. Ltd.

3) Filtron India

4) Bertron Equipments Pvt. Ltd.

5) Schimdt Bretten India Pvt. Ltd.

6) Nerb India Pvt Ltd.

C) Key Management Personnel & Relatives

Mr. Sadanand Hegde Chairman & Managing Director

Mr. Joachim Friedech Director

Mr. Prabhakar Hegde Director

Mr. Padmakar Kashyapi Director

Mr. Yashwantrao Mail Director

Relatives

N) In the opinion of the Board the balances in Current Assets, Loans & Advances are approximately of the value stated if realised in the ordinary course of business are taken as per books. The provision for depreciation and all known liabilities is adequate and not in excess of the amounts reasonably necessary. These are no Contingent Liabilitiesother then those stated in above note No.2(K)


Mar 31, 2012

Basis of Accounting:-

Accounts of the company are prepared under the historical cost convention and accrual basis as a going concern. The Company has complied with accounting standards recommended by Institute of Chartered Accountants of India & as prescribed under Sec. 211(3C) of the Companies Act 1956 except Accounting Standard 15 in respect of Retirement Benefits

A) Inventories:

Valuation of Inventories: Inventories are valued at cost or at net realisable value which ever is lower. Scrap generated in manufacturing process is accounted for on sale.

B) Revenue Recognition:

1. Sales: Sales are accounted as soon as material is dispatched and are shown net of MVAT

2. Income arising out of Erection and Installation and Commissioning of equipment is accounted for on completion. The erection and/or commissioning of

i) The Composite and independently functional portion of the project or

ii) On completion of the project itself, as is applicable.

C) Fixed Assets:

Fixed assets are stated at cost of acquisition and other attributable costs to bring the Assets to their working condition

1) Depreciation is charged on all the assets on straight-line method at rates and manner prescribed in schedule XIV of the Companies Act. Prorata depreciation is provided in the year of installation as also in the year of sale or disposal of the assets.

2) The cost of Leasehold land is amortized over the period of the lease.

D) Foreign currency Transactions:

Foreign Currency transactions of income and expenditure are accounted for at the exchange rate prevailing as on the date of the transaction. Debtors & Creditors in respect of Foreign Currency transactions outstanding as on 31/03/2012 have been expressed at the foreign exchange rates prevailing as on the year end date. The difference between the rate prevailing on the transaction date and settlement/year ended is recognized as Income or Expenses as the case may be.

E) Retirement Benefits - Accounting Standard 15:

Contributions are made to provident funds, Provisions for gratuity is made as per the amount ascertained by the management. No provision is made for amount towards earned leave.

F) Taxation - Accounting Standard 22:

i) Provision for taxation includes current income tax.

ii) The Company follows - Accounting for taxes on income issued by the Institute of Chartered Accountants of India. The Company has timing difference between accounting & tax profits on account of accumulated losses and unabsorbed depreciation. As per the perception of the management since there is no convincing evidence which demonstrates the virtual certainty of realisation of such 'Deferred tax assets', the Company has presently decided not to recognize any deferred tax asset or deferred tax liability either.

G) Segment Reporting under Accounting Standard 17:

The company operates in one business segment namely dairy and beverage equipment and hence reporting under this accounting standard is not applicable to the company.

H) Lease Accounting As per Accounting Standard 19:

This is not applicable to the company since no new lease transaction took place during the year under report.

I) Consolidated Financial Statement & Investment in Associate as per Accounting Standard 21 & 23:

Not applicable to the Company as the Company does not have any subsidiary.

J) Impairment of Assets as per Accounting Standard 28:

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is less than the recoverable amount of those assets. Hence there is no impairment loss on the assets of the company.

K) Capital Commitment:

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. NIL (P.Y. Rs. NIL)

L) Related party disclosures as per A.S. 18

A) Subsidiaries: Nil

B) Associates and Joint Ventures:

1) Real Centrifuges Asia Pvt. Ltd.

2) Fristam Pumps India Pvt. Ltd.

3) Filtron India

4) Bertron Equipments Pvt. Ltd.

5) Schimdt Bretten India Pvt. Ltd.

6) Nerb India Pvt. Ltd.

C) Key Management Personnel & Relatives

Mr. Sadanand Hegde : Chairman & Managing Director

Mr. Gajanan Hegde : Director

Mr. Joachim Friedech : Director

Mr. Prabhakar Hegde : Director

Mr. Padmakar Kashyapi : Director

Mr. Yashwantrao Mali : Whole Time Director

Relatives

Mr. Anil Gajanan Hegde : Son of Mr. Gajanan Hegde

N) In the opinion of the Board the balances in Current Assets, Loans & Advances are approximately of the value stated if realised in the ordinary course of business are taken as per books. The provision for depreciation and all known liabilities is adequate and not in excess of the amounts reasonably necessary. These are no Contingent Liabilities other then those stated in above note No. 26


Mar 31, 2010

A) Basis of Accounting:-

Accounts of the company are prepared under the historical cost convention and accrual basis as a going concern. The Company has complied with Accounting standards recommended by Institute of Chartered Accountants of India & as per prescribed under sub Sec 3 C of Sec. 211 of the Companies Act 1956 except 0 Accounting Standard 15 in respect of Retirement Benefits.

B) Inventories:

Valuation of Inventories: Inventories are valued at cost or at net realisable value which ever is lower. Scrap generated in manufacturing process is accounted for on sale.

C) Revenue Recognition:

1. Sales: Sales are accounted as soon as material is dispatched and are shown net of MVAT

2. Income arising out of Erection and Installation and Commissioning of equipment is accounted for on completion. The erection and/ or commissioning of

i) The Composite and independently functional portion of the project

Or

ii) On completion of the project itself, as is applicable.

3. Benefit against exports made under Advance License Scheme of the EXIM Policy are recognized when utilised against import purchases.

D) Fixed Assets:

Fixed assets are stated at cost of acquisition and other attributable costs to bring the Assets to their working condition


Mar 31, 2009

A) Basis of Accounting :

Accounts of the company are prepared under the historical cost convention and accrual basis as a going concern. The Company has complied with Accounting standards recommended by Institute of Chartered Accountants of India & as per prescribed under sub Sec 3 C of Sec. 211 of the Companies Act 1956 except Accounting Standard 15 in respect of Retirement Benefits.

B) Inventories:

As per AS 2 Valuation of inventories: Inventories are valued at cost or net realisable value which ever is lower. Scrap generated in manufacturing process is accounted for on sale.

C) Revenue Recongnition:

AsperA.S. 9

1. Sales: Sales are accounted as soon as material is dispatched and are shown net of sales tax.

2. Income arising out of Erection and Installation and Commissioning of equipment is accounted for on completion. The erection and/ or commissioning of

i) The Composite and independently functional portion of the project

Or

ii) On completion of the project itself, as is applicable.

3. Benefit against exports made under Advance License Scheme of the EXIM Policy are recognized when utilised against import purchases.

D) Fixed Assets:

AS per A.S. 10, Fixed assets are stated at cost of acquisition and other attributable costs to bring the assets to their working condition.

1) Depreciation is charged on all the assets on straight-line method at rates and manner prescribed in schedule XIV of the Companies Act. Prorata depreciation is provided in the year of installation as also in the year of sale or disposal of the assets.

2) The cost of Leasehold land is amortized over the period of the lease

E) Foreign currency Transactions :

As per A.S. 11 Foreign Currency transactions of income and expenditure are accounted for at the exchange rate prevailing as on the date of the transaction. Debtors & Creditors in respect of Foreign Currency transactions outstanding as on 31/03/2009 have been expressed at the foreign exchange rates prevailing as on the year end date. The difference between the rate prevailing on the transaction date and settlement /year ended is recognized as Income or Expenses as the case may be.

F) Retirement Benefits - Accounting Standard 15.

Contributions are made to provident funds. Provisions for gratuity is not made as per the actuarial valuation. However the amount is ascertained by the management as on 31st March, 2009. The company has not done actuarial valuation of gratuity.

G) Taxation - Accounting Standard 22.

i) Provision for taxation includes current income tax and fringe benefit tax.

ii) The Company follows AS-22 Accounting for taxes on income issued by the Institute of Chartered Accountants of India. The Company has timing difference between accounting & tax profits on account of accumulated losses and unab- sorbed depreciation. As per the perception of the management since there is no convincing evidence which demon- strates the virtual certainty of realisation of such Deferred tax assets, the Company has presently decided not to recog- nize any deferred tax asset or deferred tax liability either.

H) Segment Reporting under Accounting standard 17.

The company operates in one business segment namely dairy and beverage equipment and hence reporting under this accounting standard is not applicable to the company.

I) Lease Accounting As per Accounting Standard 19.

This is not applicable to the company since no new lease transaction took place during the year under report.

J) Consolidated Financial Statement & Investment in Associate as per Accounting Standard 21 & 23 - Not applicable to the Company as the Company does not have any subsidiary.

 
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