Accounting Policies of Indo Cotspin Ltd. Company

Mar 31, 2015

A. Basis of Preparation of Financial Statements

The financial statements are prepared on historical cost method , in accordance with the generlly accepted accounting principles in India and the provisions of the Companies Act , 1956 .

B. Fixed Assets

(i) Tangible Assets

Fixed assets are stated at cost less accumulated depreciation.

(ii) Intangible Assets

There is no intangible asset.

C. Depreciation and Amortisation

Depreciation on fixed assets is provided to the extent of depreciable amount on the basis useful life prescribe in shedule II of the company act 2013.

D. Investments

Long term investments are stated at cost.

E. Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolesence, if any. Cost of inventories comprises of cost of purchase , cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Stock in process is determined at cost upto estimated stage of production and packing material at average sale prices.

F. Revenue Recognition

Revenue is recognized only when it can be reliably measured . Interest income is recognised on the time proportion basis taking into account the amount outstanding and rate applicable.

G. Sales Tax / Value Added Tax

Sales tax/Value added tax is paid on material consumed charged to Profit & Loss account.

H. Provision for Current and Deffered Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act , 1961 . Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are entacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

I. Contingent Liabilities and Contingent Assets

There is no contingent liability & assets.

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Mar 31, 2014

Note:1

A. Basis of Preparation of Financial Statements

The financial statements are prepared on historical cost method , in accordance with the generlly accepted accounting principles in India and the provisions of the Companies Act , 1956 .

B. Fixed Assets

(I) Tangible Assets

Fixed assets are stated at cost less accumulated depreciation.

(ii) Intangible Assets

There is no intangible asset.

C. Depreciation and Amortisation

Depreciation on fixed assets is provided to the extent of depreciable amount on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act , 1956 over their useful life.

D. Investments

Long term investments are stated at cost.

E. Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolesence, if any. Cost of inventories comprises of cost of purchase , cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Stock in process is determined at cost upto estimated stage of production and packing material at average sale prices.

F. Revenue Recognition

Revenue is recognized only when it can be reliably measured . Interest income is recognised on the time proportion basis taking into account the amount outstanding and rate applicable.

G. Sales Tax / Value Added Tax

Sales tax/Value added tax is paid on material consumed charged to Profit & Loss account.

H. Provision for Current and Deffered Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act , 1961 . Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are entacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

I. Contingent Liabilities and Contingent Assets

There is no contingent liability & assets.

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Mar 31, 2013

A. Basis of Preparation of Financial Statements

The financial statements are prepared on historical cost method , in accordance with the generlly accepted accounting principles in India and the provisions of the Companies Act , 1956 .

B. Fixed Assets

(i) Tangible Assets

Fixed assets are stated at cost less accumulated depreciation.

(ii) Intangible Assets

There is no intangible asset.

C. Depreciation and Amortisation

Depreciation on fixed assets is provided to the extent of depreciable amount on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act , 1956 over their useful life.

D. Investments

Long term investments are stated at cost.

E. Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolesence, if any. Cost of inventories comprises of cost of purchase , cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Stock in process is determined at cost upto estimated stage of production and packing material at average sale prices.

F. Revenue Recognition

Revenue is recognized only when it can be reliably measured . Interest income is recognised on the time proportion basis taking into account the amount outstanding and rate applicable.

G. Sales Tax / Value Added Tax

Sales tax/Value added tax is charged to Profit & Loss account.

H. Provision for Current and Deffered Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act , 1961 . Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are entacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

I. Contingent Liabilities and Contingent Assets

There is no contingent liability & assets.

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Mar 31, 2012

A. Basis of Preparation of Financial Statements

The financial statements are prepared on historical cost method , in accordance with the generlly accepted accounting principles in India and the provisions of the Companies Act , 1956 .

B. Fixed Assets

(i) Tangible Assets

Fixed assets are stated at cost less accumulated depreciation.

(ii) Intangible Assets

There is no intangible asset.

C. Depreciation and Amortisation

Depreciation on fixed assets is provided to the extent of depreciable amount on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act , 1956 over their useful life.

D. Investments

Long term investments are stated at cost.

E. Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolesence, if any. Cost of inventories comprises of cost of purchase , cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Stock in process is determined at cost upto estimated stage of production and packing material at average sale prices.

F. Revenue Recognition

Revenue is recognized only when it can be reliably measured . Interest income is recognised on the time proportion basis taking into account the amount outstanding and rate applicable.

G. Sales Tax / Value Added Tax

Sales tax/Value added tax is charged to Profit & Loss account.

H. Provision for Current and Deffered Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act , 1961 . Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are entacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

I. Contingent Liabilities and Contingent Assets

There is no contingent liability & assets.

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Mar 31, 2011

A) SYSTEM OF ACCOUNTING

The company follows the accrual basis of accounting.

b) FIXED ASSETS

Fixed assets are stated at cost less depreciation

C) DEPRECIATION

Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in schedule XIV to the companies Act, 1956.

d) INVESTMENT

Investment are stated at cost

e) As the Company is also engaged in Sale/Purchase of Properties, the cost of plots as on 01.04.2010 was transferred trading accounting from fixed assets so as to disclose this trading activities seperately

VALUATION OF INVENTORIES

Raw material : at cost(fifo method) or market price, which ever is lower

Stock in Hand : at cost(fifo method) or market price. which ever is lower

Finished goods : at lower of cost (cost of production) or realisable value

Stock in Process : at cost up to estimated stage of production

Packing Material : at average sale prices