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Accounting Policies of Innocorp Ltd. Company

Mar 31, 2014

1. Basis of Preparation of Financial Statements:

Financial statements have been prepared and presented under historical cost convention in accordance with the accounting principles generally accepted in India having due regard to fundamental accounting assumptions of going concern, consistency and accrual and comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act, 1956 as applicable and with the relevant provisions of the Companies Act, 1956.

2. Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect 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 / materialized.

3. Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognized on dispatch of products. Revenue from export sales is recognized on shipment of products. Revenue from products is stated inclusive of duties, taxes but exclusive of returns, and applicable trade discounts and allowances.

Interest income is recognized on time accrual basis, determined by the amount outstanding and the rate applicable.

4. Fixed Assets:

Fixed assets are carried at cost of acquisition less accumulated depreciation. Cost includes non-refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the acquisition and installation of the respective assets.

5. Depreciation:

Depreciation on fixed assets under Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

6. Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value.Cost is arrived at byusing weighted average method and includes all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. Tax Expense:

Deferred tax resulting from "Timing Difference" between book and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

Provision is made for tax on Income and dividend distribution tax as per the applicable provisions of Income Tax Act, 1961.

8. Foreign Exchange Transactions:

There are no foreign currency transactions during the period

9. Dues to Micro, Small and Medium Enterprises

There are no amounts due to the suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006; this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose.

10. Employee Benefits

Retirement benefits to employees comprise of payments under Defined Contributions Plans like Provident Fund and payments under Defined Benefit Schemes like Gratuity and Leave Encashment Payment under Defined Contribution plans are charged to revenue on accrual. The Liability in respect of defined benefit schemes is arrived based on actuarial valuation made at the end of the year by using projected unit credit method

11. Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are Capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.


Mar 31, 2012

(a) Basis of Preparation of Financial Statements:

Financial statements have been prepared and presented under historical cost convention in accordance with the accounting principles generally accepted in India having due regard to fundamental accounting assumptions of going concern, consistency and accrual and comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act, 1956 as applicable and with the relevant provisions of the Companies Act, 1956.

(b) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect 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 / materialized.

(c) Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognized on dispatch of products. Revenue from export sales is recognized on shipment of products. Revenue from products is stated inclusive of duties, taxes but exclusive of returns, and applicable trade discounts and allowances.

Revenue from services is recognized as per the terms of contract with customers when the related services are performed, or the agreed milestones are achieved.

(d) Fixed Assets:

Fixed assets are carried at cost of acquisition less accumulated depreciation. Fixed assets which were revalued were carried at revalued values.

Cost includes non-refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the acquisition and installation of the respective assets.

Fixed assets which are found to be not usable or retired from active use or when no further benefits are expected from their use are removed from the books of account and the difference if any, between the cost of such assets and the accumulated depreciation thereon is charged to Statement of Profit & Loss.

(e) Depreciation:

Depreciation on fixed assets under Straight-Line Method (SLM) at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

(f) Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value.

Cost is arrived at by using weighted average method and includes all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(g) Tax Expense:

Deferred tax resulting from "Timing Difference" between book and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

Provision is made for tax on Income and dividend distribution tax as per the applicable provisions of Income Tax Act, 1961.

(h) Foreign Exchange Transactions:

Exchange differences arising out of foreign currency transaction are recorded at the exchange rates prevailing at the transaction date.

(i) Employee Benefits:

Retirement benefits to employees comprise of payments under Defined Contribution Plans like Provident Fund and payments under Defined Benefit Schemes like Gratuity and Leave encashment.

Payments under defined contribution plans are charged to revenue on accrual. The liability in respect of defined benefit schemes is arrived based on actuarial valuation made at the end of the year by using projected unit credit method

(j) Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(k) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

(I) Cenvat Credit :

Excise duty paid on inputs is debited to a separate account namely cenvat on Raw Material Account. This account is credited as and when cenvat actually utilised against payment of excise duty on Final dispatches. Balance in cenvat on Raw Materials is shown on assets side of Balance sheet under the Current assets.


Mar 31, 2010

1 Accounting Convention: these accounts have been prepared under historical cost convention and on the accounting principles of going concern. Accounting policies not Specifically referred to otherwise be consistent and in accordance with generally accepted accounting principles.

2 Revenue recognition: the Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis

3 Inventories: Inventories are valued as under:

a. Raw materials are valued at purchase price and other attributable costs.

b. Finished Goods are valued at lower of cost or net realizable value.

c. Work in Progress is valued at lower of cost or net realizable value

4 Foreign Currency transactions: exchange difference arising out of foreign currency transactions are recorded at the exchange rates prevailing at the transaction date.

5 Depreciation of Fixed Assets, which have been put, to use has been provided on Straight line method as per the classification and on the basis of Schedule XIV of the Companies Act, 1956.

6 Fixed Assets are stated at cost of acquisition.


Mar 31, 2009

1. Accounting Convention: These accounts have been prepared under historical cost convention and on the accounting principles of going concern. Accounting policies not specifically referred to otherwise be consistent and in accordance with generally accepted accounting principles.

2. Revenue Recognition: The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis

3. Inventories: Inventories are valued as under:

a. Raw Materials are valued at purchase price and other attributable costs.

b. Finished Goods are valued at lower of cost or net realizable value.

c. Work in Progress is valued at lower of cost or net realizable value

4. Foreign Currency Transactions: Exchange difference arising out of foreign currency transactions are recorded at the exchange rates prevailing at the transaction date.

5. Depreciation of Fixed Assets, which have been put, to use has been provided on Straight line method as per the classification and on the basis of Schedule XIV of the Companies Act, 1956.

6. Fixed Assets are stated at cost of acquisition.

 
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