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Accounting Policies of Indtradeco Ltd. Company

Mar 31, 2014

(A) Basis of Preparation of financial statement

The financial statements have been prepared under the historical cost convention on an accrual basis and comply in all material respects with the mandatory accounting standards and the relevant provisions of the Companies Act, 1956.

(B) Foreign Currency Transactions

During the year, the company has not entered into any foreign exchange transactions.

(C) Revenue Recognition

Sales are recognized when the significant risks and rewards of ownership of the goods are passed to the customer and with respect to services are rendered. Sales and purchases, both are exclusive of VAT.

(D) Accounting Policy for Current Tax

Provision for income tax is made on the basis of the estimated taxable income for the current accounting period in accordance with the Income tax Act, 1961.

(E) Provision & Contingent Liability

Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated. Contingent Liabilities are disclosed in respect of possible obligations that arised from past events but their existence is confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company.

(F) Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires making estimates and assumptions that affect the reported balances of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from estimates.

(G) Impairment of Assets

An assets is treated as impaired when the carrying cost to assets exceeds its recoverable value. An impairment loss is charges to profit and loss account in the year in which assets is identified as impaired.

(H) Segment Reporting

The company is mainly engaged only in one segment i.e. trading of high pressure industrial cleaners and the Revenue derived from primary segment is Rs 10,14,498/-.


Mar 31, 2010

A. Accounting Convention:

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the Provisions of Companies Act, 1956.

The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

B. Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires to make estimates and assumptions that affect the reported balances of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from estimates.

C. Fixed Assets

Fixed Assets are stated at cost less depreciation.

D. Depreciation:

The Company is providing depreciation on fixed assets on written down value method at the rated and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except in respect of plant and machinery on which depreciation is not provided, since the same is not used during the year.

E. Inventory:

Inventory is valued at cost or market value whichever is lower.

F. Sales and Purchases:

Sales and purchases, both are exclusive of Value Added Tax (VAT).

G. Foreign Exchange Transactions:

During the year, the Company has not entered into foreign exchange transactions.



 
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