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Accounting Policies of Heera Ispat Ltd. Company

Mar 31, 2014

A. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b. Tangible fixed assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the assets to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repaired maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit & loss when the asset is de recognized.

c. Depreciation on Tangible Fixed Asset

Depreciation on fixed asset is calculated on Written down Value method using the rates prescribed under the Schedule XIV to The Companies Act, 1956.

d. Earnings per share

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

e. Provisions and Contingent liabilities

A provision is recognized when the Company has a present obligation as a result of past event. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimate.

Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation that may, but probably will not, require an outflow of resources. Where 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.

f. Cash & Cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.


Jun 30, 2010

The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

2) FIXED ASSETS:

Tangible Fixed assets are stated at original cost of acquisition including taxes, duties, freight and the incidental expenses related to acquisition of the concerned asset. Fixed assets are stated at cost of acquisition / Construction or cost. Depreciation is provided during the year on fixed assets as decided by the management.

3) DEPRECIATION:

Depreciation on fixed assets has been provided by using written down method at the rates specified in schedule - XIV to the Companies Act, 1956.

4) CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed after careful evaluation of facts & legal aspects of the matter involved.

5) TAXES ON INCOMES :

Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. As the company has suffered loss during the year under review, no provision has been made in respect of current tax.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.As the Company has made losses during the year under review no provision for deferred loss has been made by the management.

7) EARNING PER SHARE:

The company reports basic and diluted earnings per share in accordance accounting standard (AS) 20"Earning per share" issued by the institute chartered accountants Of India. Basic Earning per share and Diluted ear per share is computed by dividing the net profit or loss for the year by weighted average number of Equity shares outstanding during years as adjust for the effect of all dilutive potential equity share except, where results are until-dilutive.


Jun 30, 2009

1) SIGNIFICANT ACCOUNTING POLICIES

The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

2) FIXED ASSETS:

Tangible Fixed assets are stated at original cost of acquisition including taxes, duties, freight and the incidental expenses related to acquisition of the concerned asset. Fixed assets are stated at cost of acquisition / Construction or cost. Depreciation is provided during the year on fixed assets as decided by the management.

3) DEPRECIATION;

Depreciation on Fixed assets has been provided by using written down method at the rates specified in schedule - XIV to the Companies Act, 1956.

4) CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed after careful evaluation of facts & legal aspects of the matter involved,

5) TAXES ON INCOMES :

Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. As the company has suffered loss during the year under review* no provision has been made in respect of current tax.

Deferred tax assets and liabilities are measured using the tax rates and lax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income, The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change As the Company has made losses during the year under review no provision for deferred loss has been made by the management

6) EARNING PER SHARE:

The company reports basic and diluted earnings per share in accordance accounting standard (AS) 20" Earning per share" issued by the institute chartered accountants of India. Basic Earnings per share and Diluted year per share is computed by dividing the net profit or loss for the year by weighted average number of Equity shares outstanding during years as adjust for the effect of ail dilutive potential equity share except, where results are until-dilutive.


Jun 30, 2008

1) BASIS OF ACCOUNTING

The Accounting of tire Company have been prepared; under the historical cost. convention using the accrual method of accounting with the applicable accounting standards and other generally accepted accounting principles in conformity with the statutory .requirements

2) FIXED ASSETS :

Tangible; Fixed assets are- stated at original cost of acquisition including taxes, duties freight and: the incidental expenses' related to acquisition of the concerned, asset.. Fixed assets are Stated' at cost of acquisition Construction or cost.

3) DEPRECIATION :

Depreciation on fixed assets has been provided written down method at the- rates specified in: Schedule- XIV to the. Companies Act, 1956.

4) INVESTMENTS :

Long Term:- Long Term Investments shown in the balance sheet, are valued at cost unless there is a permanent diminution, in the value, an. which case are valued at the diminished value, and the result difference is reseating in the profit and loss account.

Disposal Investment, On disposal of. Investment, the difference between the: carrying amount, and net disposal proceeds is being charged to Profit and Loss account-determined on the- basis of Average Method.

5) REVENUE RECOGNITION: ;

Revenue is recognized only when, measurability and certain. In ease of uncertainties, revenue recordation is: postponed to the year in which, it is properly measured and reliability assured.

The company recognize: sale at the point of dispatch of1 goods to customers, Sales are net price trade discounts and exclusive of excise and sales tax.

In respect of services the company accounts for revenue on the basis of, completed contract method.

6) INVENTORIES:

inventories are valued at the lower of cost, or net. realizable value after providing' for cost of obsolescence If any Costs arrived at as mention below

Raw and Packing. Material, at direct cost' of purchases, including duties taxes (other-than those subsequently refreshable by the enterprise from the, taxing Authorities)/ freight .inwards and other expenditure- direct attributable: to the acquisition, Trade discounts, rebates,. duty drawbacks - and other similar items are deducted in determining the costs of purchase.

Work-in-progress also includes a fair proportion of .manufacturing overheads applicable to the percentage of completion.

In case of finished goods, other than the costs mentioned above, also includes excise duty attributable to the. finished goods.

7) Contingent LIABILITIES:.

Contingent liabilities are. disclosed: after; careful, evaluation of facts and legal aspects of the matter' involved.

8) RETIREMENT .BENEFITS:

Gratuity-:

Liability in respect of' Gratuity-is-provided, in the books of accounts on the basis of actuarial valuation..

Leave Encashment:

Leave Encashment expenses axe being accounted for as and when the employee encase.

Provident Fund

Contribution to Provident Fund maintained under approved 'scheme, is made on monthly basis and .charged to, revenue.

9) BORROWING: COSTS :

Borrowing costs that are, directly Attributable to the acquisition, construction or production of. Qualifying, asset aired capitalized as part of a the cost of that assets,

The amount of borrowing costs eligible for capitalization on the assets is determined as the actual borrowing costs incurred on funds that are specifically borrowed less any income on the temporary investment of those borrowings, and by applying a weighted average capitalization rate- of the borrowing costs applicable to the enterprise that are outstanding during the period other than those that are made specifically for the purpose o: obtaining a qualifying asset. Such capitalization continues till substantially all the activities necessary to prepare the qualifying asset for its intended use or sales are complete. Other borrowing costs are recognized as and expenses in the period in-which they are incurred. None o the borrowing costs have been capitalize during the period.

l0) TAXES ON INCOME :

The company provides for taxes on income on Tax Effect Accounting Method which takes into account the effect of all timing difference between the financial statements and income Tax, assessments.

11) EARINGS PER SHAKE;

The company reports basic and diluted earnings per share in accordance with Accounting Standard (AS) 20"Earnings per share" issued by the Institute Chartered Accountants' of India. Basic Earning per share and Diluted earlier per share is computed by dividing the net profit or loss for the year by weighted average number of Equity shares outstanding during years as adjust for the effect of all dilutive, potential equity share, except, where results are unit-dilutive.

 
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