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Accounting Policies of Iykot Hitech Toolroom Ltd. Company

Mar 31, 2014

A) Basis of accounting and preparation of financial statements

The financial statements of the company have been prepared in accordance with the generally Accepted Accounting Principles in India (Indian GAPP) to comply with the Accounting standards notified under the Companies (Accounting standards) Rules, 2006(as amended )and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting principles adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b) Use of estimates

The preparation of the financial statements in conformity with Indian GAPP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could offer due to these estimates and the differences between the actual results and estimates are recognized in the periods in which the results are known/materialize.

c) Cash flow statement

Cash flow statement are reported using the direct method , whereby profit / loss before tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing activities of the company are segregated based on the available information.

d) Revenue recognition

Revenue income from sale of goods is recognized net of trade discounts, returns on transfer of significant risks and rewards of ownership to the buyer. Sale of goods is recognized gross of excise duty but net of sales tax and value added tax.

e) Other income

Interest and discount income are accounted on accrual basis.

f) Fixed Assets- Tangible Assets

Fixed assets are arrived at cost less accumulated depreciation and impairment of loss if any. Cost includes related taxes, duties, freight, insurance etc attributable to the acquisition and installation of fixed assets but excludes duties and taxes that are recoverable from tax authorities.

g) Depreciation

Depreciation on fixed assets has been provided on Written down value method at the rates provided in Schedule XIV of the Companies Act, 1956.

h) Employee benefits

Employee benefits include Provident fund and Employee State Insurance fund.

Defined Contribution Plans

The Company''s contribution to Provident fund and Employee state Insurance fund are considered as defined contribution plans.

The company contributes to a government administered Provident and Employee state Insurance fund on behalf of its employees, which are charges to the Statement of Profit and loss . The company has no obligations for future Provident and Employee State insurance fund benefits other than its monthly contributions.

i) Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income tax Act, 1961

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period are capable ofreversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or subsequently enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognized for timing differences of items other than unabsorbed depreciation and carried forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward losses, deferred tax assets are recognized only if there is actual certainty that there will be sufficient future taxable income available to realize the assets. Defered tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

j) Earnings per share

Basic earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic average earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing operations. Potential equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value(i.e.average market value of the outstanding shares) . Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares as appropriate.


Mar 31, 2013

A) Basis of accounting and preparation of financial statements

The financial statements of the company have been prepared in accordance with the generally Accepted Accounting Principles in India (Indian GAPP) to comply with the Accounting standards notified under the Companies (Accounting standards) Rules, 2006(as amended )and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting principles adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b) Use of estimates

The preparation of the financial statements in conformity with Indian GAPP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could offer due to these estimates and the differences between the actual results and estimates are recognized in the periods in which the results are known/materialize.

c) Cash flow statement

Cash flow statement are reported using the direct method , whereby profit / loss before tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing activities of the company are segregated based on the available information.

d) Revenue recognition

Revenue income from sale of goods is recognized net of trade discounts, returns on transfer of significant risks and rewards of ownership to the buyer. Sale of goods is recognized gross of excise duty but net of sales tax and value added tax.

e) Other income

Interest and discount income are accounted on accrual basis.

f) Fixed Assets- Tangible Assets

Fixed assets are arrived at cost less accumulated depreciation and impairment of loss if any. Cost includes related taxes, duties, freight, insurance etc attributable to the acquisition and installation of fixed assets but excludes duties and taxes that are recoverable from tax authorities.

g) Depreciation

Depreciation on fixed assets has been provided on Written down value method at the rates provided in Schedule XIV of the Companies Act, 1956.

h) Employee benefits

Employee benefits include Provident fund and Employee State Insurance fund.

Defined Contribution Plans

The Company''s contribution to Provident fund and Employee state Insurance fund are considered as defined contribution plans.

The company contributes to a government administered Provident and Employee state Insurance fund on behalf of its employees, which are charges to the Statement of Profit and loss . The company has no obligations for future Provident and Employee State insurance fund benefits other than its monthly contributions.

i) Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income tax Act, 1961

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period are capable ofreversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or subsequently enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognized for timing differences of items other than unabsorbed depreciation and carried forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward losses, deferred tax assets are recognized only if there is actual certainty that there will be sufficient future taxable income available to realize the assets. Defered tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

j) Earnings per share

Basic earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic average earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing operations. Potential equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value(i.e.average market value of the outstanding shares) . Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares as appropriate.


Mar 31, 2012

Basis of Preparation.

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Financial Statements have been prepared to comply in all material respects with the accounting standards notified under the Companies (Accouting Standards) Rules, 2006 (as amended and as applicable from time to time) and the relevant provisions of the Companies Act, 1956. The Financial Statements have been prepared on an accrual basis and under the historical cost convention on Going Concern Basis. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

Presentation and disclosure of Financial Statements.

During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule IV does not impact recognition and measurement principles followed for preparation of theses financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

Uses of Estimates

The presentation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosures of contingent liabilities, Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable, future results could differ, the differences between the actual results and the estimates are recognized in the period in which the results are known / materialise.

Fixed Assets

Fixed Assets are stated at Historical cost less accumulated depreciation and impairment loss if any. Historical cost comprises the purcahse price (net of CENVAT/Duty Credits whenever applicable) and all direct costs attributable to bringing the asset to its working condition for intended use.

Depreciation

Depereciation has been provided on the written down method on pro rata month basis as per Section 205 (2) (b) of the Companies Act, 1956. Inventories

Inventories are valued at lower of cost (on weighted average basis) and net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to their present location and condition. Work in process and finished goods include appropriate proportion of overheads and where applicable, excise duty. Revenue Recognition.

Sales of Goods

Sales are recognized, net of returns and trade discounts, Sales Tax and Value Added Tax, on dispatch of goods t customers.

Income from Services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

Other Income

Interest benefits consist of Provident Fund, Employees State Insurance Scheme.

Employee Benefits

Employee benefits consist of Provident Fund, Employees State Insurance Scheme.

Finance Costs

Costs in connection with the borrowing of funds to the extend not directly reated to the acquisition of fixed assets are amortised and charged to statement of Profit and Loss, over the tenure of the loan. Interest on borrowed money, allocated to and utilized for qualifying fixed assets, pertaining to the period upto the date of capitalization is added to the cost of the assets.

Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax is recognized on timing difference, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred Tax Assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realiaze such losses. Other Deferred Tax Assets are recognized if there is reasonable certainty that there will be sufficient future taxable income to realize such assets.

Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow for operating, investing and financing activities of the Company are segregated based on the available information.

Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits with banks.


Mar 31, 2010

The financial statements have been prepared on the historical cost convention in accordance with generally accepted accounting policies.

(i) Fixed Assets and Depreciation : Fixed assets are stated at historical cost as reduced by accumulated Depreciation.Depreciation on fixed assets have been provided under written down value method at the rates provided in Sch XIV of the Companies Act, 1956, on the prorata month basis.

(ii) Inventories

1. Raw materials - Valued at Cost ( Net of Modvat ) On FIFO Basis

2. Work In Progress - At Cost

3. Finished Goods- at cost price (iii) Revenue Recognition

All income and expenses are accounted on accrual basis.









 
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