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Accounting Policies of Hindustan Everest Tools Ltd. Company

Mar 31, 2015

(i) General Information

Hindustan Everest Tools Limited (hereinafter referred to as 'the Company' HETL)is a manufacturer of Hand Tools. The Company's manufacturing facilities are located at village Jatheri P.O. Rai, Sonipat.

(ii) Accounting Convention

The financial statements are prepared under the historical cost convention, on the accural basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards Notified u/s 133 and the relevant provisions of Companies Act, 2013.

(iii) Use of Estimates

The Preparation of financial statement require estimates and assumptions to be made that effect the reported amount Assets and Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period which the results are known/ materialised.

(iv) Fixed Assets

i) Freehold Land is at revalued amount.

ii) Buildings, Plant and Machinery & Other Fixed Assets are stated at cost.

(v) Depreciation

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule II of the Companies Act, 2013 (as amended)except in case of the following assets.

Description Usefull Life Justification for Considered deviation

Plant & Machinery 20 Years Based on past history of usage and supported by Technical Evalution report

Laboratory Apparatus 20 Years

Jigs & Fixtures 20 Years

Electric Installation 20 Years

Tubewell & Water Supply 20 Years

Air-Conditioner. 20 Years

Other Office Equipments 20 Years

Fire Extiguisher 20 Years

Weigh Bridge 20 Years

Computer & Software 6 Years

Motor Vehicles 10 Years

(vi) Investments

Long term investments are stated at cost. The company provides diminution, other than temporary, in the value of long term investments.

(vii) Impairement of Assets

Impairement of Assets are assessed at Balance Sheet date if any indication of impairment exist, the same is assessed and provided for.

(viii) Inventories

Inventories are valued at cost or net reliasable value whichever is lower except dies, which is re-valued based on es- timated useful life, Materials and other supplies held for the use in the production of inventories are not written down below cost of Finished products in which they will be incorporated are expected to be sold at or above cost. Cost is cal- culated on weighted average basis. cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present condition and location. Excise Duty on finished goods lying inside factory/ customs duty on goods lying at warehouse is also provided at the year end.

(ix) Foreign Currencies

Transaction in foreign currency are accounted at exchange rates prevailing on the date of transaction. Foreign currency monetary as on Balance Sheet date are reconverted at the rate prevalling at the year end and the resultant net gains or losses are adjusted in the Profit and Loss Statement.

(x) Retirement Benefits

Year end liabilities in respect of retirement benefits towards Gratuity & Leave encashment to the employees of the com- pany has been provided as per acturial valuation.

(xi) Sales

Sales is recognised on the transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of sales returns (including related to earlier years). Discount & rebates.

(xii) Recognition of Income and Expenditure

All Income and expenditure are accounted on accrual basis except due to uncertainly in realisation, interest on over- dues bills from customers is accounted for on receipt basis.

(xiii) Deferred Taxation

In accordance with Accounting standard-22' Accounting for Taxes on Income' notified u/s 133 of the Companies Act 2013. the deferred tax for timing differences between the accounting income and taxable income for the year is ac- counted for using the tax rates and laws that have been enacted or substantively enacted as on balance sheet date. Deferred Tax Assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future and the same is reviewed at each Balance Sheet date.

(xiv) Others

Profit/Loss on sale of raw material, components and stores, not being material, is being adjusted in respective con- sumption account and are not shown separately.

(xv) Contingent Liabilities

These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts on respect of those contingencies, which are likely to materialize into liabilities after the year end till the finalisation of accounts and have material effect on the the position stated in the Balance Sheet.


Mar 31, 2014

(i) General Information

Hindustan Everest Tools Limited (hereinafter referred to as ''the Company'' HETL)is a manufacturer of Hand Tools. The Company''s manufaturing facilities are located at village Jatheri P.O. Rai, Sonipat.

ii) Acconting Convention

The financial statements are prepared under the historical cost convention, on the accural basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by The Companies (Accounting Standered) Rules, 2006 issued by the Central Government and the relevant provisions of Companies Act, 1956. of India.

(iii) Use of Estimates

The Preparation of financial statement require estimates and assumptions to be made that effect the reported amount of Assets and Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period which the results are known/ materialised.

(iv) Fixed Assets

i) Freehold Land is at revalued amount.

ii) Buildings, Plant and Machinery & Other Fixed Assets are stated at cost.

(v) Depreciation

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 (as amended)

(vi) Investments

Long term investments are stated at cost. The company provides diminution, Other than temporary, in the value of long term investments.

(vii) Impairement of Assets

Impairement of Assets are assessed at Balance Sheet date if any indication of impairment exist, the same is assessed and provide for.

(viii) Inventories

Inventories are valued at cost or net reliasable value whichever is lower except dies, which is re-valued based on estimated useful life, Materials and other supplies held for the use in the production of inventories are not written down below cost of Finished products in which they will be incorporated are expected to be sold at or above cost. Cost is calculated on weighted average basis.cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present condition and location. Excise Duty on finished goods lying inside factory/customs duty on goods lying at warehouse is also provided at the year end.

(ix) Foreign Currencies

Transaction in foreign currency are accounted at exchange rates prevailing on the date of transation. Foreign currency monetary as on Balance Sheet date are reconverted at the rate prevalling at the year end and the resultant net gains or losses are adjusted in the Profit and Loss Statement.

(x) Retirement Benefits

Year end liabilities in repect of retirement benefits towards Gratuity & Leave encashment to the employees of the company has been provided as per acturial valuation.

(xi) Sales

Sales is recognised on the transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of sales returns (including related to earlier years). Discount & rebates.

(xii) Recognition of Income and Expenditure

All Income and expenditure are accounted on acrual basis except due to uncertainity in realisation, interest on overdues bills from customers is accounted for on receipt basis.

(xiii) Deferred Taxation

In accordance with Accounting standard-22'' Accounting for Taxes on Income'' notified companies (Accounting Standard Rules 2006), the deferred tax for timing differences between the accounting income and taxable income for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on balance sheet date. Defrred Tax Assets arising from temporary timing differences are recognised to the extent there is resonable certainty that the assets can be realised in future and the same is reviewed at each Balance Sheet date.

(xiv) Others

Proift/Loss on sale of raw material, components and stores, not being material, is being adjusted in respecive consumption account and are not shown seperately.

(xv) Contingent Liablities

These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts on respect of those contingencies, which are likely to materialize into liabilities after the year end till the finalisation of accounts and have material effect on the the position stated in the Balance Sheet.


Mar 31, 2013

(i) General Information

Hindustan Everest Tools Limited (hereinafter referred to as ''the Company'' HETL)is a manufacturer and trading of Hand Tools. The Company''s manufaturing facilities are located at village Jatheri P.O. Rai, Sonipat.

(ii) Acconting Convention

The financial statements are prepared under the historical cost convention, on the acceual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by The Companies (Accounting Standereds) Rules, 2006 issued by the Central Government and the relevant provisions of Companies Act, 1956.

(iii) Use of Estimates

The Preparation of financial statement require estimates and assumptions to be made that effect the reported amount of Assets and Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known/ materialised.

(iv) Fixed Assets

i) Freehold Land is at revalued amount.

ii) Buildings, Plant and Machinery & Other Fixed Assets are stated at cost.

(v) Depreciation

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(vi) Investments

Non Current investmentsare stated at cost. The company provides diminution, Other than temporary, in the value of Non Current investments.

(vii) Impairement of Assets

Impairement of Assets are assessed at Balance Sheet date if any indication of impairement exist, the same is assessed and provided for.

(viii) Inventories

Inventories are valued at cost or net reliasable value whichever is lower except dies, which is re-valued based on estimated useful life, Materials and other supplies held for the use in the production of inventories are not written down below cost ,if Finished products in which they will be incorporated are expected to be sold at or above cost. Cost is caculated on weighted average basis.cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present condition an location. Excise Duty on finished goods lying inside factory/customs duty on goods lying at warehouse is also provided at the ty on goods lying at warehouse is also provided at the year end.

(ix) Foreign Currencies

Transaction in foreign curriency are accounted at exchange rates prevalling on the date of transation. Foreign currency monetary assets and liabilities as on Balance Sheet date are reconverted at the rate prevalling at the year end and the resultant net gains or losses are adjusted in the Statement of Profit and Loss.

(x) Retirement Benefits

Year end liabilities in repect of retirement benefits towards Gratuity & Leave encashment to the employess of the company has been provided as per actuarial valuation.

(xi) Sales

Sales is recognised on the transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of sales returns (including related to earlier years). Discount & rebates.

(xii) Recognition of Income and Expenditure

All Income and expenditure are accounted on acrual basis except due to uncertainity in realisation, interest on overdues bills from customers is accounted for on receipt basis.

(xiii) Taxation

The deferred tax for timing differences between the accounting income and taxable income for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on balance sheet date. Defrred Ta x Assets arising from temporary timing differences are recognised to the extent there is resonable certainty that the assets can be realised in future and the same is reviewed at each Balance Sheet date.Current Tax is provided as per amount expected to be paid to the tax authorities in accordance with with Income Tax Act,1961.

(xiv) Others

Proift/Loss on sale raw material, components and stores, not being material, is being adjusted in respecive consumption account and are not shown seperately.

(xv) Contingent Liablities

These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts on respect of those contingencies, which are likely to materialize into liabilities after the year end till the finalisation of accounts and have material effect on the the position stated in the Balance Sheet.


Mar 31, 2010

A. ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by The Companies (Accounting Standards) Rules, 2006 issued by the Central Government and the relevant provisions of Companies Act, 1956 of India.

B. USE OF ESTIMATES.

The preparation of financial statements require estimates and assumptions to be made that effect the reported amount of Assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are Known/materialzed.

C. FIXED ASSETS:

i) Freehold Land is at revalued amount.

ii) Buildings, Plant & Machinery & Other Fixed Assets are stated at cost.

D. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 (as amended).

E. INVESTMENTS: Long term Investments are stated at cost. The company provides diminution, other than temporary, in the value of long term investments.

F. IMPAIRMENT OF ASSETS

Impairment of Assets are assessed at Balance Sheet date if any indication of impairment exist, the same is assessed and provided for.

G. VALUATION OF INVENTORIES: Inventories are valued at cost or net realisable value whichever is lower except dies, which is re-valued based on estimated remaining useful life, Materials and other Supplies held for the use in the production of inventories are not written down below cost of the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is calculated on weighted average basis. Cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present condition and location. Excise duty on finished goods lying inside factory/ customs duty on goods lying at warehouse is also provided at the year end.

H. FOREIGN CURRENCIES: Transaction in foreign currency are accounted at exchange rates prevailing on the date of transaction. Foreign currency monetary assets as on the Balance Sheet dates are re-converted at rates prevailing at the year end and the resultant net gains or losses are adjusted in the profit & loss Accounts.

I. RETIREMENT BENEFITS : Year end Liabilities in respect of retirement benefits towards Gratuity & Leave encashment to the employees of the company has been provided as per actuarial valuation.

J. SALES: Sales is recognised on the transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of sales returns (including relating to earlier years), discount and rebates.

K. RESEARCH & DEVELOPMENT: Expenditure incurred during research phase are charged to the revenue when no intangible assets arise from such research. Assets produced for research & Development activities are generally capitalised.

L. RECONGNITION OF INCOME AND EXPENDITURE: All income and expenditure are accounted on accrual basis except due to uncertainty in realization, interest on overdue bills from customers is accounted for on receipt basis.

M. DEFERRED TAXATION : In accordance with Accounting Standard-22 Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax income for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. Deferred Tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future and the same is reviewed at each Balance Sheet date.

N. OTHERS: Profit/Loss on sale of raw material, components and stores, not being material, is being adjusted in respective consumption account and are not shown separately.

O. CONTINGENT LIABILITIES: These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts in respect of those contingencies, which are likely to materialize into liabilities after the year end till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.