Home  »  Company  »  Haryana Leather  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Haryana Leather Chemicals Ltd. Company

Mar 31, 2015

I) Accounting Convention

The financial statements are prepared under the historical cost convention in accordance with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act 1956 and the relevant presentational requirements of the Companies Act, 1956.

ii) Fixed Assets

Fixed assets are stated at cost (net of CENVAT) less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

iii) Depreciation / Amortization

Depreciation on fixed assets provided as per the life of the asset, provided in schedule-ll of the Company Act, 2013 (as notified on 26th of March, 2014 and is made applicable from 1st of April 2014 by the ministry of corporate affairs). In case of assets whose useful life have ended as on 31st March, 2015, the carrying values as at 1st April, 2014 (after adjusting the 5% of Original cost as Scrap value) have been adjusted to the opening reserves as on 1st March, 2014 pursuant to the provisions of the schedule-ll of the Companies Act, 2013.

iv) Inventories

(a) Raw materials have been valued at cost on FIFO method.

(b) Stores & Spares and Packing material have been valued at cost on FIFO method.

(c) Work in Process has been valued at Raw material cost plus proportionate conversion cost.

(d) Finished Goods lying at factory have been valued at Raw material cost plus conversion.

(e) Cost including Excise duty payable.

v) Transactions in Foreign Currency

Foreign Currency transactions are recorded at the exchange rate prevailing at the date of transaction. The exchange fluctuation arising is shown as "Foreign Exchange Fluctuation Gain / (Loss)".

Notes

employee Benefits

vi) The Company has various schemes of retirement benefits such as provident fund, gratuity and leave encashment, which is dealt with as under:-

(a) The Company has taken Group Gratuity Policy from LIC and the fund value as on 31.03.2015 was Rs. 8569.59 Thousand.

(b) The provision for Leave Encashment has been taken on the basis of actuarial valuation. As per the actuarial valuation report the provision for leave encashment has been determined as Rs. 542.53 Thousand as on 31st March, 2015.

(c) Contribution to Provident Fund are made in accordance with the provisions of Employee Provident Fund and Misc. Provisions Act, 1952 and charged to revenue every year and this is in conformity as per the requirement of AS 15.

vii) Cenvat

The balance in the Service Tax and CENVAT account is shown under the note " Short Term Loans and Advances".

viii) Revenue Recognition

(a) Revenue is recognised upon the sale of goods i.e. It is recognised at the time of transfer of significant risks and rewards of ownership to the buyer.

(b) Interest from bank is recognised on accrual basis.

ix) Recognition of Expenses

Expenses are recognised on accrual basis and provisions are made for all known losses and liabilities.

x) Accounting for Taxes on Income

Provision for taxation for the year is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between the taxable income and the accounting income that originates in one period and are capable of reversal in one or more subsequent periods. In respect of carry forward of losses and unabsorbed depreciation, deferred tax assets are recognised based on virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

xi) Provision involving substantial degree of estimate in measurement are recognised when there is a present obligation as result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the notes to the financial statements.


Mar 31, 2014

I) Accounting Convention

The financial statements are prepared under the historical cost convention in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act 1956 and relevant presentational requirements of the Companies Act, 1956.

ii) Fixed Assets

Fixed assets are stated at cost (net of CENVAT) less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

iii) Depreciation / Amortization

Depreciation on fixed assets is provided on straight line method as per schedule XIV of the Companies Act 1956 (as revised by the amending notification vide Circular No. 14/93 dated 20.12.93 issued by Department of Company Affairs, Ministry of Law, Justice & Company Affairs). Depreciation is charged on a pro-rata basis for assets purchased / sold during the year.

iv) Inventories

* Raw materials have been valued at cost on FIFO Method.

* Stores & Spares and Packing Material have been valued at cost on FIFO Method.

* Work in process has been valued at raw material cost plus proportionate of conversion cost.

* Finished goods lying at factory have been valued at raw material cost plus conversion.

* Cost including excise duty payable.

v) Transactions in Foreign Currency

Foreign currency transactions are recorded at the exchange rate prevailing as at the date of transactions. The exchange fluctuation arising are shown as "Foreign Exchange Fluctuation" Gains/(Loss).

vi) Employee Benefits

The Company has various schemes of retirement benefits such as provident fund, gratuity and leave encashment, which is dealt with as under:

* The Company has taken Group Gratuity Policy from LIC and the fund Value as on 31.03.2014 was Rs. 66,51,386/-.

* The provision for Leave Encashment is on actuarial valuation basis. As per the actuarial valuation report the provision for leave encashment has been determined as Rs. 6,62,435/- as on 31.03.2014 and provision of Rs. 4,67,811 has been made during the year to match the actuarial valuation liability of Rs. 6,62,435/-.

* Contribution to Provident Fund are made in accordance with the provisions of Employees'' Provident Fund and misc. provisions act, 1952 and charged to revenue every year, and this is conformity as per the requirements of AS 15.

vii) Cenvat

The balance in the Service Tax and Cenvat account is shown under note "Short Term Loans and Advances."

viii) Revenue Recognition

* Revenue is recognised upon the sale of goods i.e. it is recognised at the time of transfer of significant risks and rewards of ownership to the buyer.

* Interest from bank is recognized on accrual basis.

ix) Recognition of Expenses

Expenses are accounted for on accrual basis and provisions are made for all known losses and liabilities.

x) Accounting for Taxes on Income

Provision for taxation for the year is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. In respect of carry forward of losses and unabsorbed depreciation, deferred tax assets are recognized based on virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

xi) Provision involving substantial degree of estimate in measurement are recognized when there is a present obligation as 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

The accompanying financial statements are prepared on the accrual basis of accounting, under the historical cost convention, in accordance with the Generally Accepted Accounting Principles ("GAAP") in India, accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

(ii) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of such estimates include future obligations under employee benefit plans, inventory and estimated useful life of fixed assets. Any changes in estimates are adjusted prospectively in the future periods. Actual results could differ from these estimates.

(iii) Revenue recognition

Revenue is recognised upon the sale of goods i.e. it is recognised at the time of transfer of significant risks and rewards of ownership to the buyer.

(iv) Expenditure

Expenses are accounted for on accrual basis and provisions are made for all known losses and liabilities.

(v) Retirements benefits

i) Contribution to Provident and Family Pension Funds are funded as a percentage of salary/wages. ii) Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India. iii) Leave encashment liability is provided on estimated basis.

(vi) Earnings per share

Basic earnings per share are computed using the weighted average number of the equity shares outstanding during the period. Diluted earning per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end. except where the results would be anti- dilutive. There are no potentially dilutive equity shares outstanding as on 31st March, 2010.

(vii) Fixed assets

Fixed assets are stated at the cost of acquisition including incidental costs related to acquisition and installation. Cenvat Credit available is deducted from the cost of Fixed Assets.

(viii) Depreciation

Depreciation on fixed assets is provided on straight line method as per schedule XIV of the Companies Act 1956 (as revised by the amending notification vide Circular no. 14/93 dated 20.12.93 issued by Department of Company Affairs, Ministry of Law, Justice & Company Affairs). Depreciation is charged on a pro-rata basis for assets purchased / sold during the year.

(ix) Inventories

Raw material, packing material, stock in process, stores and spares are valued at actual cost excluding CENVAT where available. Finished goods are valued at cost inclusive of excise duty or net realisable value whichever is lower. The claims for CENVAT are provided on actual receipt basis.

(x) Taxation

According to the Accounting Standard 22 on Accounting of Taxes on Income, differences that result between the taxable profit and the profit as per the financial statements are identified and thereafter deferred tax asset / liability is recorded as timing difference; namely the difference that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on accumulated timing differences at the end of an accounting period based on tax rates that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax asset is reviewed at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realised.

(xi) Contingencies

Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a liability has been incurred, and the amount can be reasonably estimated.

(xii) Interest

Interest to be received on securities shall be accounted for as and when received.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X