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Accounting Policies of Hindustan Wires Ltd. Company

Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The Company has adopted mercantile system of accounting and all income and expenditure are treated on accrual basis unless otherwise stated herein below. All Accounting standards issued by the Govt. of India are followed.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the revised Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.

1.2 FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

1.3 DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule II of the Companies Act,2013.

1.4 VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realisable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the Company to bring the inventory to its present condition and locations.

1.5 TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to ‘Accounting for Taxation on Income’ issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognised only if there is virtual certainty as to its realisation.

1.6 BORROWING COST

Borrowing costs that are attributable to acquisition and construction of assets are capitalised as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Statement of Profit & Loss.

1.7 RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts.

1.8 SALES & OTHER REVENUE

(a) Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b) Income in respect of renting of immovable property/ warehousing services and interest etc are recognised in terms of the respective agreements on accrued basis.

1.9 EMPLOYEE BENEFITS

(a) Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard- 15 (Revised).

(b) Employer’s contribution to Provident Fund and ESI is charged to revenue on accrual basis.

1.10 IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

1.11 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The company has adopted mercantile system of accounting and all income and expenditure are treated on accrual basis unless otherwise stated herein below. All Accounting standards issued by the Govt. of India are followed.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-noncurrent classification of assets and liabilities.

1.2 FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

1.3 DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule XIV of the Companies Act,1956.

1.4 VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realisable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the company to bring the inventory to its present condition and locations.

1.5 TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to ''Accounting for Taxation on Income'' issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognised only if there is virtual certainty as to its realisation.

1.6 BORROWING COST

Borrowing costs that are attributable to acquisition and construction of assets are capitalised as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Statement of Profit & Loss.

1.7 RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts in Part (B) of this Schedule.

1.8 SALES & OTHER REVENUE

(a) Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b) Income in respect of renting of immovable property/ warehousing services and interest etc are recognised in terms of the respective agreements on accrued basis.

1.9 EMPLOYEE BENEFITS

(a) Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard- 15 (Revised).

(b) Employer''s contribution to Provident Fund and ESI is charged to revenue on accrual basis.

1.10 IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

1.11 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

1. GENERAL

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The company has adopted mercantile system of accounting and all income and expenditure are treated on accrual basis unless otherwise stated herein below. All Accounting standards issued by the Govt. of India are followed.

2. FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

3. DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule XIV of the Companies Act,1956.

4. VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realisable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the company to bring the inventory to its present condition and locations.

5. TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to 'Accounting for Taxation on Income' issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognised only if there is virtual certainty as to its realisation.

6. BORROWING COST

Borrowing costs attributable to acquisition and construction of assets are capitalised as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Profit & Loss Account.

7. RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts in Part (B) of this Schedule.

8. SALES & OTHER REVENUE

(a)Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b)Income in respect of renting of immovable property/ warehousing services is recognised in terms of the respective agreements .

9. EMPLOYEE BENEFITS

(a) Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard- 15 (Revised).

(b)Employer's contribution to Provident Fund and ESI is charged to revenue on accrual basis.

10. IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

11. PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

1 GENERAL

These accounts are prepared on the historical cost basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles. The company has adopted mercantile system of accounting and all income and expenditure are treated on accrue! basis unless otherwise stated herein below. All Accounting standards issued by the Govt, of India are followed.

2 FIXED ASSETS

Fixed Assets are stated at cost inclusive of all incidental expenses and net of taxes recoverable less accumulated depreciation.

3. DEPRECIATION

Depreciation (on assets in use) has been provided for on straight line method (for proportionate period of use) in accordance with the rates of Schedule XIV of the Companies Act, 1956.

4. VALUATION OF INVENTORIES

Inventories of Raw Materials, Work-in-Progress and Stores and Spare Parts are at or below cost. Finished goods, if any are valued at cost or net estimated realisable value whichever is lower. Valuation of Inventory is in line with Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India. For valuation purpose, FIFO basis has been adopted. Cost has been calculated with reference to cost incurred by the company to bring the inventory to its present condition and locations.

5. TAXATION

The Company has adopted Accounting Standard-22 (AS-22) as to Accounting for Taxation on Income issued by the Institute of Chartered Accountants of India. Deferred Tax Assets are recognised only if there is virtual certainty as to its realisation. *

6. BORROWING COST

Borrowing costs attributable to acquisition and construction of assets are capitalised as a part of the cost of such assets up to the date of commissioning of qualifying asset. Other borrowing costs are charged to Profit & Loss Account.

7. RECOGNITION OF INCOME AND EXPENDITURE

Items of Income and Expenditure are accounted for on the accrual basis except otherwise stated in the notes to accounts in Part (B) of this Schedule.

8. SALES & OTHER REVENUE

(a)Gross sales are inclusive of Excise Duty and net of rebates and discounts etc.

(b)lncome in respect of renting of immovable property/ warehousing services is recognised in terms of the respective agreements.

9. EMPLOYEE BENEFITS

(a)Liability is computed on the basis of actuarial valuation of the gratuity and earned leave as on the Balance Sheet date, as per Accounting Standard-15 (Revised).

(b)Employers contribution to Provident Fund and ESI is charged to revenue on accrual basis.

10. IMPAIRMENT OF ASSETS

The Company in accordance with the Accounting Standard 28 (AS-28) in respect of impairment of Assets issued by the Institute of Chartered Accountants of India has adopted the practice of assessing at each Balance Sheet date whether there is any indication that an asset may be impaired and if any impairment exists, then the Company provides for the loss for impairment of Assets after estimating the recoverable amount of the assets.

11 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes on accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

 
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