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

Accounting Policies of Haryana Texprints (Overseas) Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Financial Statements:

These financial statements have been prepared to comply in all material respects with the Accounting Standards referred to in Section 133 of the Companies Act , 2013 read with rule 7 of Company (Accounts) Rules, 2014 to the extent applicable and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared under the historical cost convention on an accrual basis. Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates: -

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimates and assumption to be made that affect the reported amount of assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reported period. Differences between the actual results and estimates are recognized in the period in which the results materialize.

3. Revenue Recognition :

a) Sales are recognized as and when goods are dispatched from bonded premises.

b) Job charges are recognized as income when processed fabric cleared from bonded premises.

c) Export Benefits under Duty Draw Back Scheme are recognized on accrual basis.

4. Fixed Assets:

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises direct expenses & any interest attributable to bring in its intended use.

5. Accounting for Government Grants:

Government grants are recognized when there is a reasonable assurance as to its receipt and that the conditions attached there to shall be complied with. Government grants related to capital investments are reduced from the gross value of fixed assets and such grants relating to expenses are reduced from the respective expense head.

6. Depreciation:

Depreciation on Fixed Assets is provided on written down value method on the basis of useful life of the Fixed Assets. The Company has adopted useful life of the Fixed Assets as prescribed in Schedule II of the Companies Act, 2013 except in respect of Plant & Machinery wherein Management has estimated that the useful life worked out as per Companies Act, 1956 represents the estimated useful life of the Plant & Machinery.

7. Inventories:

Raw Material : At cost or realisable value whichever is lower

Store : At cost or realisable value whichever is lower.

Stock in process : At direct cost

Finished Goods : At cost or market value whichever is lower

Waste : At estimated realisable value

The cost is determined on historical basis on relevant lot/ category of inventory. The cost of inventories comprise all cost of purchase, conversion cost and other costs incurred in bringing the inventories to their present condition.

8. Claims:

Claims are accounted for on merit basis.

9. Foreign Exchange:

(a) Transactions denominated in Foreign Currency are normally recorded at the exchange rates prevailing at the time of transaction.

(b) Foreign Exchange Fluctuation on Export / Import is accounted for in the year in which such fluctuation arose.

10. Retirement Benefits:

Contribution to provident and other funds are accounted for on accrual basis. Gratuity and Leave Encashment is accounted for in the Accounts on the basis of Actuarial valuation.

11. Borrowing Costs:

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

12. Taxation:

Income Tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realization.

13. Impairment of Assets:

If internal/external indication suggests that an asset of the company may be impaired, the recoverable amount of asset/ cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of Net selling price and value in use of such assets/cash generating unit, which is determined by the present value of the estimated future Cash flows.

14. Provisions, Contingent Liabilities & Contingent Assets:

(a) The Company recognizes as Provision, the liabilities being Present obligation arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

(b) When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

(c) Contingent Assets are neither recognized nor disclosed.

15. Cash and Cash Equivalents

For the purpose of cash Flow Statement, cash and cash equivalents includes cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less.

16. Earnings Per Share (EPS)

Basic earnings per share are computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where results would be anti - dilutive.




Mar 31, 2014

1. Basis of Preparation of Financial Statements:

These financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies(Accounting Standards)Rules, 2006,(as amended) and the relevant provisions of the Companies Act,1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared under the historical cost convention on an accrual basis. Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates:

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimates and assumption to be made that affect the reported amount of assets and liabilities as of the date of financial statements and the reported amount of revenues and expenses during the reported period. Differences between the actual results and estimates are recognized in the period in which the results materialize.

3. Revenue Recognition:

a) Sales are recognized as and when goods are dispatched from bonded premises.

b) Job charges are recognized as income when processed fabric cleared from bonded premises.

c) Export Benefits under DEPB/Duty Draw Back Scheme are recognized on accrual basis.

4. Fixed Assets:

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises direct expenses & any interest attributable to bring in its intended use.

5. Accounting for Government Grants:

Government grants are recognized when there is a reasonable assurance as to its receipt and that the conditions attached there to shall be complied with. Government grants related to capital investments are reduced from the gross value of fixed assets and such grants relating to expenses are reduced from the respective expense head.

6. Depreciation:

Depreciation on fixed assets is provided on written down value method at the rates and in the manner provided in Schedule XIV (as amended) to the Companies Act, 1956. Plant & machinery of the company have been considered as continuous process plant & depreciation is provided accordingly.

7. Inventories:

Raw Material : At cost or realisable value whichever is lower

Store : At cost or realisable value whichever is lower.

Stock in process : At direct cost

Finished Goods : At cost or market value whichever is lower

Waste : At estimated realisable value

The cost is determined on historical basis on relevant lot/category of inventory. The cost of inventories comprise all cost of purchase, conversion cost and other costs incurred in bringing the inventories to their present condition.

8. Claims:

Claims are accounted for on merit basis.

9. Foreign Exchange:

(a) Transactions denominated in Foreign Currency are normally recorded at the exchange rates Prevailing at the time of transaction.

b) Foreign Exchange Fluctuation on Export/Import is accounted for in the year in which such fluctuation arose.

10. Retirement Benefits:

Contribution to provident and other funds are accounted for on accrual basis. Gratuity and Leave Encashment is accounted for in the Accounts on the basis of Actuarial valuation.

11. Borrowing Costs:

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

12. Taxation:

Income Tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realization.

13. Impairment of Assets:

If internal/external indication suggests that an asset of the company may be impaired, the recoverable amount of asset/cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset/cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of Net selling price and value in use of such assets/cash generating unit, which is determined by the present value of the estimated future Cash flows.

14. Provisions, Contingent Liabilities & Contingent Assets:

(a) The Company recognizes as Provision, the liabilities being Present obligation arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

(b) When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

(c) Contingent Assets are neither recognized nor disclosed.

15. Cash and Cash Equivalents

For the purpose of cash Flow Statement, cash and cash equivalents includes cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less.

16. Earnings Per Share (EPS)

Basic earnings per share are computed using the weighted average number of equity shares outstanding during the year.

Diluted earnings per share are computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where results would be anti - dilutive.


Mar 31, 2013

1. Basis of Preparation of Financial Statements:

These financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies(Accounting Standards)Rules, 2006,(as amended) and the relevant provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) .The financial statements have been prepared under the historical cost convention on an accrual basis. Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2 Use of Estimates:

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimates and assumption to be made that affect the reported amount of assets and liabilities as of the date of financial statements and the reported amount of revenues and expenses during the reported period. Differences between the actual results and estimates are recognized in the period in which the results materialize.

3 Revenue Recognition:

a) Sales are recognized as and when goods are dispatched from bonded premises.

b) Job charges are recognized as income when processed fabric cleared from bonded premises.

c) Export Benefits under DEPB / Duty Draw Back Scheme are recognized on accrual basis.

4. Fixed Assets:

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises direct expenses & any interest attributable to bring in its intended use.

5. Accounting for Government Grants:

Government grants are recognized when there is a reasonable assurance as to its receipt and that the conditions attached there to shall be complied with. Government grants related to capital investments are reduced from the gross value of fixed assets and such grants relating to expenses are reduced from the respective expense head.

6. Depreciation:

Depreciation on fixed assets is provided on written down value method at the rates and in the manner provided in Schedule XIV (as amended) to the Companies Act, 1956. Plant & machinery of the company have been considered as continuous process plant & depreciation is provided accordingly.

7. Inventories:

Raw Material : At cost or realisable value whichever is lower

Store : At cost or realisable value whichever is lower.

Stock in process : At direct cost

Finished Goods : At cost or market value whichever is lower

Waste : At estimated realisable value

The cost is determined on historical basis on relevant lot/category of inventory. The cost of inventories comprise all cost of purchase, conversion cost and other costs incurred in bringing the inventories to their present condition.

8. Claims:

Claims are accounted for on merit basis.

9. Foreign Exchange:

(a) Transactions denominated in Foreign Currency are normally recorded at the exchange rates Prevailing at the time oftransaction.

b) Foreign Exchange Fluctuation on Export/Import is accounted for in the year in which such fluctuation arose.

10. Retirement Benefits:

Contribution to provident and other funds are accounted for on accrual basis. Gratuity and Leave Encashment is accounted for in the Accounts on the basis of Actuarial valuation.

11. Borrowing Costs:

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

12. Taxation:

income Tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realization.

13. Impairment of Assets:

If internal/external indication suggests that an asset of the company may be impaired, the recoverable amount of asset'' cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of Net selling price and value in use of such assets/cash generating unit, which is determined by the present value of the estimated future Cash flows.

14. Provisions, Contingent Liabilities & Contingent Assets:

(a) The Company recognizes as Provision, the liabilities being Present obligation arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

(b) When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

(c) Contingent Assets are neither recognized nor disclosed.

15. Cash and Cash Equivalents:

For the purpose of cash Flow Statement, cash and cash equivalents includes cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less.

16. Earnings Per Share (EPS):

Basic earnings per share are computed using the weighted average number of equity shares outstanding during the year.

Diluted earnings per share are computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where results would be anti - dilutive.


Mar 31, 2012

1. Basis of Preparation of Financial Statements:

These financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies(Accounting Standards)Rules, 2006,(as amended) and the relevant provisions of the Companies Act,1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) .The financial statements have been prepared under the historical cost convention on an accrual basis. Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

The Company has prepared its financial statements in accordance with Schedule-VI as inserted by Notification-S.O. 447(E) dated 28.02.2011 (As amended by notification No.F.No.2/6/2008-CL-V-dated 30.03.2011).The schedule does not impact recognition and measurement principle followed for the preparation of financial statements. However, it has necessitated significant changes in the presentation of and disclosures in financial statements. The Company has re-classified its previous year figures to conform to the classification as per the aforesaid Schedule.

2 Use of Estimates:

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimates and assumption to be made that affect the reported amount of assets and liabilities as of the date of financial statements and the reported amount of revenues and expenses during the reported period. Differences between the actual results and estimates are recognized in the period in which the results materialize.

3 Revenue Recognition :

a) Sales are recognized as and when goods are dispatched from bonded premises.

b) Job charges are recognized as income when processed fabric cleared from bonded premises.

c) Export Benefits under DEPB / Duty Draw Back Scheme are recognized on accrual basis.

4. Fixed Assets:

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises direct expenses & any interest attributable to bring in its intended use.

5 Accounting for Government Grants:

Government grants are recognized when there is a reasonable assurance as to its receipt and that the conditions attached there to shall be complied with. Government grants related to capital investments are reduced from the gross value of fixed assets and such grants relating to expenses are reduced from the respective expense head.

6 Depreciation:

Depreciation on fixed assets is provided on written down value method at the rates and in the manner provided in Schedule XIV (as amended) to the Companies Act, 1956.Plant & Machinery of the Company have been considered as continuous process plant & depreciation is provided accordingly.

7. Inventories:

Raw Material : At cost or realizable value whichever is lower

Store : At cost or realizable value whichever is lower.

Stock in process : At direct cost

Finished Goods : At cost or market value whichever is lower Waste : At estimated realizable value

The cost is determined on historical basis on relevant lot/ category of inventory. The cost of inventories comprise all cost of purchase, conversion cost and other costs incurred in bringing the inventories to their present condition.

8 Claims:

Claims are accounted for on merit basis.

9 Foreign Exchange:

(a) Transactions denominated in Foreign Currency are normally recorded at the exchange rates Prevailing at the time of transaction.

b) Foreign Exchange Fluctuation on Export / Import is accounted for in the year in which such fluctuation arose.

10 Retirement Benefits:

Contribution to provident and other funds are accounted for on accrual basis. Gratuity and Leave Encashment is accounted for in the Accounts on the basis of Actuarial valuation.

11. Borrowing Costs:

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

12. Taxation:

Income Tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its date, the realization. At each Balance Sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realization.

13. Impairment of Assets:

If internal/external indication suggests that an asset of the Company may be impaired, the recoverable amount of asset/ cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of Net selling price and value in use o such assets/cash generating unit, which is determined by the present value of the estimated future Cash flows.

14. Provisions, Contingent Liabilities & Contingent Assets:

(a) The Company recognize as Provision, the liabilities being Present obligation arising out of past events, the

settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

(b) Contingent Liabilities is disclosed, unless the possibility of an outflow of resource is remote.

(c) Contingent Assets are neither recognized nor disclosed.

15. Cash and Cash Equivalents

For the purpose of cash Flow Statement, cash and cash equivalents includes cash in hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less.

16. Earnings Per Share (EPS)

The earnings considered in ascertaining the companys EPS comprise the Net Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares of computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.

As per records of the Company, including Its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.


Mar 31, 2011

1 Basis of Preparation:

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2 Use of Estimates:

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimates and assumption to be made that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which the results materialize.

3 Revenue Recognition

a) Sales are recognized as and when goods are dispatched from bonded premises.

b) Job charges are recognized as income when processed fabric cleared from bonded premises.

c) Export Benefits under DEPB / Duty Draw Back Scheme are recognized on accrual basis.

4 Fixed Assets

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises direct expenses & any interest attributable to bring in its intended use.

5 Accounting for Government Grants

Government grants are recognized when there is a reasonable assurance as to its receipt and that the conditions attached there to shall be complied with. Government grants related to capital investments are reduced from the gross value of fixed assets and such grants relating to expenses are reduced from the respective expense head.

6 Depreciation

Depreciation on fixed assets is provided on written down value method at the rates and in the manner provided in Schedule XIV (as amended) to the Companies Act, 1956. Plant & machinery of the company have been considered as continuous process plant & depreciation is provided accordingly.

7 Inventories

Raw Material At cost or realisable value whichever is lower

Store At cost or realisable value whichever is lower.

Stock in process At direct cost

Finished Goods At cost or market value whichever is lower

Waste At estimated realisable value

The cost is determined on historical basis on relevant lot/ category of inventory. The cost of inventories comprise all cost of purchase, conversion cost and other costs incurred in bringing the inventories to their present condition.

8 Claims

Claims are accounted for on merit basis.

9 Foreign Exchange

(a) Transactions denominated in Foreign Currency are normally recorded at the exchange rates Prevailing at the time of transaction.

(b) Foreign Exchange Fluctuation on Export/Import is accounted for in the year in which such fluctuation arose.

10 Retirement Benefits

Contribution to provident and other funds are accounted for on accrual basis. Gratuity and Leave Encashment is provided for in the Accounts on the basis of Actuarial valuation.

11 Borrowing Costs

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

12 Taxation

Income Tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realization.

13 Impairment of Assets

If internal/external indication suggests that an asset of the company may be impaired, the recoverable amount of asset/cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset/cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of Net selling price and value in use of such assets/cash generating unit, which is determined by the present value of the estimated future Cash flows.

14 Provisions, Contingent Liabilities & Contingent Assets

(a) The Company recognize as Provision, the liabilities being Present obligation arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

(b) Contingent Liabilities is disclosed, unless the possibility of an outflow of resource is remote.

(c) Contingent Assets are neither recognized nor disclosed.


Mar 31, 2010

1. BASIS OF ACCOUNTING

The accounts of the Company are prepared under the historical cost convention and in accordance with generally accepted Accounting Principles in India, applicable Accounting Standards (AS) issued by The Institute of Chartered Accountants of India and provisions of Companies Act, 1956, except where otherwise stated. For recognition of income and expenses accrual basis of accounting is followed.

2. REVENUE RECOGNITION

a) Sales are recognized as and when goods are dispatched from bonded premises.

b) Job charges are recognized as income when processed fabric cleared from bonded premises.

3. FIXED ASSETS

Fixed assets are stated at historical cost less accumulated depreciation. Historical cost comprises direct expenses & any interest attributable to bring in its intended use.

4. ACCOUNTING FOR GOVERNMENT GRANTS

Government grants are recognized when there is a reasonable assurance as to its receipt and that the condition attached there to shall be complied with. Government grants related to capital investments are reduced from the gross value of fixed assets and such grants relating to expenses are reduced from the respective expense head.

5. DEPRECIATION

Depreciation on fixed assets is provided on written down value method at the rates and in the manner provided in Schedule XIV (as amended) to the Companies Act, 1956. Plant & machinery of the company have been considered as continuous process plant & depreciation is provided accordingly.

6. INVENTORIES

Raw Material At cost or realisable value whichever is lower

Store At cost or realisable value whichever is lower.

Stock in process At direct cost

Finished Goods At cost or market value whichever is lower

Waste At estimated realisable value



7. CLAIMS

Claims are accounted for on merit basis.

8. FOREIGN EXCHANGE

(a) Transactions denominated in Foreign Currency are normally recorded at the exchange rates Prevailing at the time of transaction.

(b) Foreign Exchange Fluctuation on Export/Import is accounted for in the year in which such fluctuation arised.

9. RETIREMENT BENEFITS

Contribution to provident and other funds are accounted for on accrual basis. Gratuity and leave Encashment is provided for in the Accounts on the basis of Actuarial valuation.

10. BORROWING COSTS

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets a qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

11. Taxation

Income Tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred , tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realization.

12. IMPAIRMENT OF ASSETS

If internal/external indication suggests that an asset of the company may be impaired, the recoverable amount of asset/cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset/cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of Net selling price and value in use of such assets/cash generating unit, which is determined by the present value of the estimated future Cash flows.

13. PROVISION, CONTINGENT LIABILITES AND CONTINGENT ASSETS

(a) The Company recognize as Provision, the liabilities being Present obligation arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

(b) Contingent Liabilities is disclosed, unless the possibility of an outflow of resource is remote.

(c) Contingent Assets are neither recognized nor disclosed.

 
Subscribe now to get personal finance updates in your inbox!