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Accounting Policies of Fusion Fittings (I) Ltd. Company

Mar 31, 2015

A. Basis of Accounting

The Accounts are prepared on historical cost conventions on a going concern basis. All expenditure and income are accounted on accrual basis. These statements have been prepared in accordance with applicable mandatory Accounting Standards. Accounting Policies not specifically referred to otherwise are consistent and in conso- nance with Generally Accepted Accounting Policies.

b. Fixed Assets

Fixed assets are stated at historical cost, which includes expenditure incurred in acquisition or construction and other related preoperative expenses up to the commissioning/installation of the assets. Finance cost such as interest up to the date of commissioning of the assets on borrowed funds attributable to the acquisition of assets is also capitalized to relevant assets.

c. Depreciation

Depreciation is provided as per written down value method. Depreciation on addition/ deletion of assets has been calculated on pro-rata basis from the date of addition or up to the date of sale/discarding of assets. Depre- ciation is provided on useful life of the assets as prescribed in schedule II to the Companies Act,2013.

Lease hold land is capitalized on cash price basis and no writes off is being made on it, as lease is perpetual and long term.

Intangible asset (web site development) is amortised on a straight line basis over three years.

d. Inventories

Inventories are valued at the lower of cost and net realisable value. Cost includes all applicable costs incurred in bringing goods to their present location and condition, determined on a first in first out basis.

e. Recognition of Revenue

i) Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership in the goods to the customer.

ii) Service income is recognized as per the terms of contracts with customers when the related services are performed or the agreed milestones are achievd.

iii) All other miscellaneous receipts are recognized when the amounts are actually received or the realisability is certain.

f. Provisions and Contingent liabilities

Provisions involving substantial degree of estimation in measurement are recognised 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 Li- abilities are not recognised but are disclosed, while Contingent Assets are neither recognised nor disclosed, in the financial statements.

g. Employee Benefits

i) All employee benefits payable within twelve months of rendering the service are classified as short-term em- ployee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the profit & loss account in the period in which the employee renders the related service.

ii) Provision of Gratuity and Provident fund act are not applicable to the Company as the total numbers of em- ployees on roll of the Company are below threshold limit specified in the relevant statutes.

h. Income Tax

i) Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

ii) Deferred taxes are recognized, on timing differences between taxable income and accounting income/expen- diture that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i. Impairments

i) The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any indications exist, the assets recoverable amount is estimated. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recover- able amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on the average pre-tax borrowing rate, adjusted for risk specified to the assets.

ii) A previously recognised impairment loss is increased or decreased depending on changes in circumstances.

iii) After impairment, depreciation is provided on the assets revised carrying amount over its remaining useful life.

j. Investments

i) Long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

ii) Current investments are valued at cost or market price, whichever is lower.

k. Earnings Per Share

In accordance with the Accounting Standard-20 (AS-20) "Earning Per Share" issued by The Institute of Chartered Accountants of India, Basic & Diluted Earnings Per Share is computed using the weighted average number of shares outstanding during the period.


Mar 31, 2014

A. Basis of Accounting

The Accounts are prepared on historical cost conventions on a going concern basis. All expenditure and income are accounted on accrual basis. These statements have been prepared in accordance with applicable mandatory Accounting Standards. Accounting Policies not specifically referred to otherwise are consistent and in consonance with Generally Accepted Accounting Policies.

b. Fixed Assets

Fixed assets are stated at historical cost, which includes expenditure incurred in acquisition or construction and other related preoperative expenses up to the commissioning/installation of the assets. Finance cost such as interest up to the date of commissioning of the assets on borrowed funds attributable to the acquisition of assets is also capitalized to relevant assets.

c. Depreciation

Depreciation is provided as per written down value method as per rates given in Schedule XIV of the Companies Act, 1956. Depreciation on addition/ deletion of assets has been calculated on pro-rata basis from the date of addition or up to the date of sale/discarding of assets. Lease hold land is capitalized on cash price basis and no writes off is being made on it, as lease is perpetual and long term. Intangible asset (web site development) is amortised on a straight line basis over three years.

d. Inventories

Inventories are valued at the lower of cost and net realisable value. Cost includes all applicable costs incurred in bringing goods to their present location and condition, determined on a first in first out basis.

e. Recognition of Revenue

i) Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership in the goods to the customer.

ii) Service income is recognized as per the terms of contracts with customers when the related services are performed or the agreed milestones are achieved.

iii) All other miscellaneous receipts are recognized when the amounts are actually received or the readability is certain.

f. Provisions and Contingent liabilities

Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed, while Contingent Assets are neither recognised nor disclosed, in the financial statements.

g. Employee Benefits

i) All employee benefits payable within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the profit & loss account in the period in which the employee renders the related service.

ii) Provision of Gratuity and Provident fund act are not applicable to the Company as the total numbers of employees on roll h. Income Tax

i) Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

ii) Deferred taxes are recognized, on timing differences between taxable income and accounting income/ expenditure that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. i. Impairments

i) The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any indications exist, the assets recoverable amount is estimated. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on the average pre-tax borrowing rate, adjusted for risk specified to the assets. ii) A previously recognised impairment loss is increased or decreased depending on changes in circumstances. iii) After impairment, depreciation is provided on the assets revised carrying amount over its remaining useful life.

j. Investments

i) Long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

ii) Current investments are valued at cost or market price, whichever is lower. k. Earnings Per Share In accordance with the Accounting Standard-20 (AS-20) "Earning Per Share" issued by The Institute of Chartered Accountants of India, Basic & Diluted Earnings Per Share is computed using the weighted average number of shares outstanding during the period.

1. During the current year and in the previous year, there have been no movement in the number of equity shares outstanding.

2. Pursuant to the scheme of capital reduction as approved by the Hon''ble Delhi High Court vide order dated De- cember 15, 2009, the face and paid up value of each share of the company has been reduced by 90%, i.e., from Rs. 10 per share to Re. 1 per share. Further, the balance lying in the share forfeiture account also stands cancelled as per the terms of the scheme of capital reduction.


Mar 31, 2013

A. Basis of Accounting

The Accounts are prepared on historical cost conventions on a going concern basis. All expenditure and income are accounted on accrual basis. These statements have been prepared in accordance with applicable mandatory Accounting Standards. Accounting Policies not specifcally referred to otherwise are consistent and in consonance with Generally Accepted Accounting Policies.

b. Fixed Assets

Fixed assets are stated at historical cost, which includes expenditure incurred in acquisition or construction and other related preoperative expenses up to the commissioning/installation of the assets. Finance cost such as interest up to the date of commissioning of the assets on borrowed funds attributable to the acquisition of assets is also capitalized to relevant assets.

c. depreciation

Depreciation is provided as per written down value method as per rates given in Schedule XIV of the Companies Act, 1956. Depreciation on addition/ deletion of assets has been calculated on pro-rata basis from the date of addition or up to the date of sale/discarding of assets. Lease hold land is capitalized on cash price basis and no writes off is being made on it, as lease is perpetual and long term. Intangible asset (web site development) is amortised on a straight line basis over three years.

d. inventories

Inventories are valued at the lower of cost and net realisable value. Cost includes all applicable costs incurred in bringing goods to their present location and condition, determined on a frst in frst out basis.

e. Recognition of Revenue

i) Revenue from sale of goods is recognised on transfer of all signifcant risks and rewards of ownership in the goods to the customer.

ii) Service income is recognized as per the terms of contracts with customers when the related services are performed or the agreed milestones are achieved.

iii) All other miscellaneous receipts are recognized when the amounts are actually received or the realisability is certain.

f. Provisions and Contingent liabilities

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outfow of resources. Contingent Liabilities are not recognised but are disclosed, while Contingent Assets are neither recognised nor disclosed, in the fnancial statements.

g. Employee Benefts

i) All employee benefts payable within twelve months of rendering the service are classifed as short-term employee benefts. Benefts such as salaries, wages and bonus etc., are recognized in the proft & loss account in the period in which the employee renders the related service.

ii) Provision of Gratuity and Provident fund act are not applicable to the Company as the total numbers of employees on roll of the Company are below threshold limit specifed in the relevant statutes.

h. Income Tax

i) Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

ii) Deferred taxes are recognized, on timing differences between taxable income and accounting income/ expenditure that originate in one period and are capable of reversal in one or more subsequent period.

Deferred Tax assets are recognised only to the extent that there is reasonable certainty that suffcient future taxable income will be available against which such deferred tax assets can be realised.

i. impairments

i) The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any indications exist, the assets recoverable amount is estimated. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash fows are discounted to their present value based on the average pre-tax borrowing rate, adjusted for risk specifed to the assets.

ii) A previously recognised impairment loss is increased or decreased depending on changes in circumstances.

iii) After impairment, depreciation is provided on the assets revised carrying amount over its remaining useful life.

j. investments

i) Long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

ii) Current investments are valued at cost or market price, whichever is lower.

k. earnings Per share

In accordance with the Accounting Standard-20 (AS-20) "Earning Per Share" issued by The Institute of Chartered Accountants of India, Basic & Diluted Earnings Per Share is computed using the weighted average number of shares outstanding during the period.


Mar 31, 2011

1. Basis of Accounting

The Accounts are prepared on historical cost conventions on a going concern basis. All expenditure and income are accounted on accrual basis. These statements have been prepared in accordance with applicable mandatory Accounting Standards. Accounting Policies not specifically referred to otherwise are consistent and in consonance with Generally Accepted Accounting Policies.

2. Fixed Assets

Fixed assets are stated at historical cost, which includes expenditure incurred in acquisition or construction and other related preoperative expenses up to the commissioning/installation of the assets. Finance cost such as interest up to the date of commissioning of the assets on borrowed funds attributable to the acquisition of assets is also capitalized to relevant assets.

3. Depreciation

Depreciation is provided as per written down value method as per rates given in Schedule XIV of the companies Act, 1956. Depreciation on addition/ deletion of assets has been calculated on pro-rata basis from the date of addition or up to the date of sale/discarding of assets. Lease hold land is capitalized on cash price basis and no writes of is being made on it, as lease is perpetual and long term.

4. Inventories

Inventories are valued at the lower of cost and net realisable value. cost includes all applicable costs incurred in bringing goods to their present location and condition, determined on a first in first out basis.

5. Recognition of Revenue

a) Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership in the goods to the customer.

b) Service income is recognized as per the terms of contracts with customers when the related services are performed or the agreed milestones are achieved.

c) All other miscellaneous receipts are recognized when the amounts are actually received or the realisability is certain.

6. Provisions and contingent liabilities

Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed, while contingent Assets are neither recognised nor disclosed, in the financial statements.

7. Employee Benefits

a) All employee benefits payable within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the profit & loss account in the period in which the employee renders the related service.

b) Provision of Gratuity and Provident fund act are not applicable to the company as the total numbers of employees on roll of the company are below threshold limit specified in the relevant statutes.

8. Income Tax

a) current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

b) Deferred taxes are recognized, on timing differences between taxable income and accounting income/ expenditure that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

9. Impairments

a) The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any indications exist, the assets recoverable amount is estimated. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on the average pre- tax borrowing rate, adjusted for risk specified to the assets.

b) A previously recognised impairment loss is increased or decreased depending on changes in circumstances.

c) After impairment, depreciation is provided on the assets revised carrying amount over its remaining useful life.

10. Investments

a) Long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

b) Short term investments are valued at cost or market price, whichever is lower.

11. Earning Per Share (All amounts are in Rupees)

In accordance with the Accounting Standard-20 (AS-20) "Earning Per Share" issued by The Institute of chartered Accountants of India, Basic & Diluted Earning Per Share is computed using the weighted average number of shares outstanding during the period.


Mar 31, 2010

1. Basis of Accounting

The Accounts are prepared on historical cost conventions on a going concern basis. All expenditure and income are accounted on accrual basis. These statements have been prepared in accordance with applicable mandatory Accounting Standards. Accounting Policies not specifically referred to otherwise are consistent and in consonance with Generally Accepted Accounting Policies.

2. Fixed Assets

Fixed assets are stated at historical cost, which includes expenditure incurred in acquisition or construction and other related preoperative expenses up to the commissioning/installation of the assets. Finance cost such as interest up to the date of commissioning of the assets on borrowed funds attributable to the acquisition of assets is also capitalized to relevant assets.

3. Depreciation

Depreciation is provided as per written down value method as per rates given in Schedule XIV of the Companies Act, 1956. Depreciation on addition/ deletion of assets has been calculated on pro-rata basis from the date of addition or up to the date of sale/discarding of assets. Lease hold land is capitalized on cash price basis and no writes off is being made on it, as lease is perpetual and long term.

4. Inventories

Raw material, Stores and Spares are valued at cost on First In First Out basis. Finished goods. Work in progress is valued at cost which includes material and variable manufacturing overheads. Scrap is valued at estimated net realizable value.

5. Recognition of Revenue

a) Revenue in respect of sale is recognized at the point of dispatch/removal of goods. Sales exclude trade tax but are inclusive/ net of excise duty and trade discount. Sales shown are net of sales return. Other revenues are recognized on accrual basis.

b) Service income is recognized as per the terms of contracts with customers when the related services are performed or the agreed milestones are achieved.

c) All other miscellaneous receipts are recognized when the amounts are actually received or the realisability is certain.

6. Provisions and Contingent liabilities

Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed, while Contingent Assets are neither recognised nor disclosed, in the financial statements.

7. Employee Benefits

a) All employee benefits payable within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the profit & loss account in the period in which the employee renders the related service.

b) Provisions of Gratuity and Provident Fund Act are not applicable to the Company as the total numbers of employees on roll of the Company are below threshold limit specified in the relevant statutes.

8. Income Tax

a) Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

b) Deferred taxes are recognized, on timing differences between taxable income and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

9. Impairments

a) The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any indications exist, the assets recoverable amount is estimated. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on the average pre-tax borrowing rate, adjusted for risk specified to the assets.

b) A previously recognised impairment loss is increased or decreased depending on changes in circumstances.

c) After impairment, depreciation is provided on the assets revised carrying amount over its remaining useful life.

10. Investments

a) Long term investments are valued at their cost including brokerage, fees and duty. However, if there is decline in value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in value of each investment.

b) Short term investments are valued at cost or market price, whichever is lower.

11. Earning Per Share

In accordance with the Accounting Standard-20 (AS-20) "Earning Per Share" issued by The Institute of Chartered Accountants of India, Basic & Diluted Earning Per Share is computed using the weighted average number of shares outstanding during the period.

 
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