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Accounting Policies of Hexa Tradex Ltd. Company

Mar 31, 2016

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

i) The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

ii) Financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles, as adopted consistently by the company and the provisions of the Companies Act, 2013.

iii) Estimates and assumptions used in the preparation of the financial statements are based upon management''s evaluation of the relevant facts and circumstances as at the date of the financial statement. These may differ from the actual results at a subsequent date.

B) REVENUE RECOGNITION

i) Trading Sales are net of Excise Duty and Sales Tax.

ii) Revenue in respect of sale of goods is recognized either on delivery or on transfer of significant risk and rewards of ownership of the goods.

iii) Dividend income is recognized when the Company''s right to receive dividend is established by the reporting date.

C) FIXED ASSETS AND DEPRECIATION

i) Tangible Fixed Assets are carried at cost of acquisition inclusive of all incidental expenses related thereto.

ii) Depreciation on Fixed Assets is provided on Straight Line Method as per life prescribed and in accordance with Schedule II of the Companies Act, 2013 as amended up to date.

D) INVESTMENTS

Long-term investments are stated at cost which inter-alia includes brokerage, commission, stamp duty etc. When there is a decline in their value except temporary decline, the carrying amount is reduced on an individual investment basis and decline is charged to the Statement of Profit and Loss. Appropriate adjustment is made in carrying cost of investment in case of subsequent rise in value of investments.

E) FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. Monetary foreign currency assets and liabilities are translated at the year end exchange rates. All exchange differences are dealt with in the Statement of Profit and Loss .

F) EMPLOYEE BENEFITS

i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Contributions to Provident Fund, a defined contribution plan are made in accordance with the statute, and are recognized as an expense in the year in which the employees have rendered services.

iii) The cost of providing leave encashment and gratuity, defined benefit plans are determined using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses are recognized as and when incurred.

G) TAXATION

i) Current tax provision is computed for Income calculated after considering allowances and exemptions under the provisions of the applicable Income Tax Laws.

ii) Deferred tax is accounted at the current rate of tax to the extent of temporary timing differences that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of carried forward losses is recognized only when there is virtual certainty supported by convincing evidence that there will be sufficient taxable profit in future to realize such losses.


Mar 31, 2015

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

i) Financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles, as adopted consistently by the company and the provisions of the Companies Act, 2013. All income and expenditure items having a material bearing on the financial statements are recognized on accrual basis.

ii) Estimates and assumptions used in the preparation of the financial statements are based upon management's evaluation of the relevant facts and circumstances as at the date of the financial statement. These may differ from the actual results at a subsequent date.

B) Revenue recognition

i) Trading Sales are net of Sales Tax.

ii) Revenue in respect of sale of goods is recognised either on delivery or on transfer of significant risk and rewards of ownership of the goods.

C) Fixed Assets & Depreciation

i) Tangible Fixed Assets are carried at cost of acquisition inclusive of all incidental expenses related thereto.

ii) Depreciation on Fixed Assets is provided on Straight Line Method as per life prescribed and in accordance with Schedule II of the Companies Act, 2013 as amended up to date.

D) INVESTMENTS

Long-term investments are stated at cost which inter-alia includes brokerage, commission, stamp duty etc. When there is a decline in their value except temporary decline, the carrying amount is reduced on an individual investment basis and decline is charged to the Statement of Profit and Loss. Appropriate adjustment is made in carrying cost of investment in case of subsequent rise in value of investments.

E) FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. Monetary foreign currency assets and liabilities are translated at the year end exchange rates. All exchange differences are dealt with in the Statement of Profit and Loss .

F) EMPLOYEE BENEFITS

i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Contributions to Provident Fund, a defined contribution plan are made in accordance with the statute, and are recognized as an expense in the year in which the employees have rendered services.

iii) The cost of providing leave encashment and gratuity, defined benefit plans are determined using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses are recognized as and when incurred.

G) TAXATION

i) Current tax provision is computed for Income calculated after considering allowances and exemptions under the provisions of the applicable Income Tax Laws.

ii) Deferred tax is accounted at the current rate of tax to the extent of temporary timing differences that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of carried forward losses is recognized only when there is virtual certainty supported by convincing evidence that there will be sufficient taxable profit in future to realize such losses.


Mar 31, 2014

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

i) The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis except in case of significant uncertainties.

ii) Financial statements are prepared under the historical cost convention.

iii) Estimates and assumptions used in the preparation of the financial statements are based upon management''s evaluation of the relevant facts and circumstances as at the date of the financial statement. This may differ from the actual results at a subsequent date.

B) Revenue recognition

i) Trading Sales are net of Excise Duty and Sales Tax.

ii) Revenue in respect of sale of goods is recognised either on delivery or on transfer of significant risk and rewards of ownership of the goods.

C) Fixed Assets & Depreciation

i) Tangible Fixed Assets are carried at cost of acquisition inclusive of all incidental expenses related thereto.

ii) Depreciation on fixed assets is provided on Straight Line Method at the rates prescribed in schedule XIV to the Companies Act, 1956 as amended up to date.

D) INVESTMENTS

Long-term investments are stated at cost which inter-alia includes brokerage, commission, stamp duty etc. When there is a decline in their value except temporary decline, the carrying amount is reduced on an individual investment basis and decline is charged to the Statement of Profit and Loss. Appropriate adjustment is made in carrying cost of investment in case of subsequent rise in value of investments.

E) FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the exchange rate prevailing at the date of transaction. Monetary foreign currency assets and liabilities are translated at the year end exchange rates. All exchange differences are dealt with in the Statement of Profit and Loss.

F) EMPLOYEE BENEFITS

i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Contributions to Provident Fund, a defined contribution plan are made in accordance with the statute, and are recognized as an expense in the year in which the employees have rendered service.

iii) The cost of providing leave encashment and gratuity, defined benefit plans are determined using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses are recognized as and when incurred.

G) TAXATION

i) Current tax provision is computed for Income calculated after considering allowances and exemptions under the provisions of the applicable Income Tax Laws.

ii) Deferred tax is accounted at the current rate of tax to the extent of temporary timing differences that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of carried forward losses is recognized if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realize such losses.


Mar 31, 2012

1) Basis of preparation of Financial Statements:

i) The Company follows mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial statements are prepared under the historical cost convention.

iii) Estimates and assumption used in the preparation of the financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statement. This may differ from the actual results at a subsequent date.

2) Revenue recognition:

i) Trading Sales are net of Excise Duty and Sales Tax.

ii) Revenue in respect of sale of goods is recognized either on delivery or on transfer of significant risk and rewards of ownership of the goods.

3) Fixed Assets ft Depreciation:

i) Tangible Fixed Assets are carried at cost of acquisition inclusive of all incidental expenses related thereto.

ii) Depreciation on fixed assets is provided on straight line method at the rates prescribed in schedule XIV to the companies act, 1956 as amended up to date.

4) Investments:

Long-term investments are stated at cost which interlaid includes brokerage, commission, stamp duty etc. When there is a decline in their value except temporary decline, the carrying amount is reduced on an individual investment basis and decline is charged to the Profit and Loss Account. Appropriate adjustment is made in carrying cost of investment in case of subsequent rise in value of investments.

5) Foreign Exchange Transactions

Foreign currency transactions are recorded at the exchange rate prevailing at the date of transaction. Monetary foreign currency assets and liabilities are translated at the year end exchange rates. All exchange differences are dealt with in the Profit and Loss Account.

6) Retirement Benefits:

i) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related services are rendered.

ii) Contributions to Provident Fund, a defined contribution plan are made in accordance with the statute, and are recognized as an expense in the year in which the employees have rendered service.

iii) The cost of providing leave encashment and gratuity, defined benefit plans are determined using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses are recognized as and when incurred.

7) Taxation:

i) Current tax provision is computed for Income calculated after considering allowances and exemptions under the provisions of the applicable Income Tax Laws.

ii) Deferred tax is accounted at the current rate of tax to the extent of temporary timing differences that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of carried forward losses is recognized if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realize such losses.

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