Home  »  Company  »  JIK Industries  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of JIK Industries Ltd. Company

Mar 31, 2015

1. Basis Of Accounting:

The financial statements have been prepared under the historical cost convention on an accrual system based on principle of going concern and are in accordance with the generally accepted accounting principles and the accounting standards referred to in section 133 of the Companies Act, 2013.

2. Fixed Assets:

Fixed assets are stated at cost or revalued amount, as the case may be, less accumulated depreciation / amortization and impairment losses, if any. Cost comprises of purchase price inclusive of freight, duties, taxes, insurance, installation and net of cenvat credit and VAT set off.

3. Depreciation:

Depreciation on fixed assets for own use has been provided based on straight-line method and at the rates prescribed by Schedule XIV of the Companies Act, 1956 up to 30th June, 2014. Subsequently, in accordance with the Companies Act, 2013, the Company has computed depreciation with reference to the useful life of respective assets as specified in Schedule II of the Act. Depreciation on assets added/disposed off during the year is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable. Depreciation on building constructed on lease hold land is provided over the lease Period. Cost of improvements to land and building taken on lease are amortized over the remaining lease period. In case of impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

4. Impairment Of Assets:

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in the prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

5. Investments:

Long Term Investments are stated at cost except that there is permanent diminution in value of the said investment as required by AS-13.

6. Inventory:

a) Raw materials are valued at cost or net realizable value which ever is lower as per FIFO method followed.

b) Work-in-process is valued at estimated cost (including factory over-heads and depreciation)

c) Manufactured finished goods are valued at lower of estimated cost (including factory overheads and depreciation) or net realizable value as per FIFO method followed.

d) Traded goods are valued at lower of cost or net realizable value as per FIFO method followed.

e) Re-usable waste generated on conversion of defective or damaged or obsolete stocks are valued at estimated material cost.

f) Un-usable inventory for commercial purpose has been written-off as damaged stock.

7. Purchases And Sales:

a) Purchases are recorded net of cenvat credit and VAT set off.

b) Sales are recognized at the time of dispatches and include excise duty, VAT and are net of returns. In case of export sales, revenue is recognized as on the date of bill of lading, being the effective date of dispatch.

8. Taxation:

Income tax expense comprises current tax, deferred tax charge or release. The deferred tax charge or credit is recognized using substantially enacted rates. In the case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty or realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

9. Retirement Benefits:

Provisions for/contributions to retirement benefits schemes are made as follows;

a) Provident fund on actual liability basis.

b) Gratuity based on actuarial valuation done as at the reporting date.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement except where virtual certainty is there.

11. Use Of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported Period. Difference between the actual results and estimates are recognized in the Period in which the results and estimates are recognized in the Period in which the results are known or materialize.

12. Provisioning/Write-off of Doubtful Debts:

Unrealizable Debts and Sundry balances has been written-off to present true and fair view of the Management and as per the policy adopted by the Management of the company in the previous years.


Jun 30, 2014

1. Basis Of Accounting:

The financial statements have been prepared under the historical cost convention on an accrual system based on principle of going concern and are in accordance with the generally accepted accounting principles and the accounting standards referred to in section 211(3C) of the Companies Act, 1956.

2. Fixed Assets:

Fixed assets are stated at cost or revalued amount, as the case may be, less accumulated depreciation / amortization and impairment losses, if any. Cost comprises of purchase price inclusive of freight, duties, taxes, insurance, installation and net of cenvat credit and VAT set off.

3. Depreciation:

Depreciation on fixed assets for own use has been provided based on straight-line method and at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation on assets added/disposed off during the year is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable. Depreciation on building constructed on lease hold land is provided over the lease Period. Cost of improvements to land and building taken on lease are amortized over the remaining lease period. In case of impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

4. Impairment Of Assets:

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in the prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

5. Investments:

Long Term Investments are stated at cost except that there is permanent diminution in value of the said investment as required by AS-13.

6. Inventory:

a) Raw materials are valued at cost or net realizable value which ever is lower as per FIFO method followed.

b) Work-in-process is valued at estimated cost (including factory over-heads and depreciation)

c) Manufactured finished goods are valued at lower of estimated cost (including factory overheads and depreciation) or net realizable value as per FIFO method followed.

d) Traded goods are valued at lower of cost or net realizable value as per FIFO method followed.

e) Re-usable waste generated on conversion of

defective or damaged or obsolete stocks are valued at estimated material cost.

f) Un-usable inventory for commercial purpose has been written-off as damaged stock.

7. Purchases And Sales:

a) Purchases are recorded net of cenvat credit and VAT set off.

b) Sales are recognized at the time of dispatches and include excise duty, VAT and are net of returns. In case of export sales, revenue is recognized as on the date of bill of lading, being the effective date of dispatch.

8. Taxation:

Income tax expense comprises current tax, deferred tax charge or release. The deferred tax charge or credit is recognized using substantially enacted rates. In the case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty or realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

9. Retirement Benefits:

Provisions for/contributions to retirement benefits schemes are made as follows;

a) Provident fund on actual liability basis.

b) Gratuity based on actuarial valuation done as at the reporting date.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement except where virtual certainty is there.

11. Use Of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported Period. Difference between the actual results and estimates are recognized in the Period in which the results and estimates are recognized in the Period in which the results are known or materialize.

12. Provisioning/Write-off of Doubtful Debts:

Unrealizable Debts and Sundry balances has been written- off to present true and fair view of the Management and as per the policy adopted by the Management of the company in the previous years.


Jun 30, 2013

1. Basis Of Accounting:

The financial statements have been prepared under the historical cost convention on an accrual system based on principle of going concern and are in accordance with the generally accepted accounting principles and the accounting standards referred to in section 211(3C) of the Companies Act, 1956.

2. Fixed Assets:

Fixed assets are capitalized at cost inclusive of freight, duties, taxes, insurance, installation and net of cenvat credit and VAT set off.

3. Depreciation:

Depreciation on fixed assets for own use has been provided based on straight-line method and at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation on assets added/disposed off during the period is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable. Depreciation on building constructed on lease hold land is provided over the lease Period. Cost of improvements to land and building taken on lease are amortized over the remaining lease period.

4. Impairment Of Assets:

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in the prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

5. Investments:

Long Term Investments are stated at cost except that there is permanent diminution in value of the said investment as required by AS-13.

6. Inventory:

a) Raw materials are valued at cost or net realizable value which ever is lower as per FIFO method followed.

b) Work-in-process is valued at estimated cost (including factory over-heads and depreciation)

c) Manufactured finished goods are valued at lower of estimated cost (including factory overheads and depreciation) or net realizable value as per FIFO method followed.

d) Traded goods are valued at lower of cost or net realizable value as per FIFO method followed.

e) Re-usable waste generated on conversion of defective or damaged or obsolete stocks are valued at estimated material cost.

f) Un-usable inventory for commercial purpose has been written-off as damaged stock.

7. Purchases And Sales:

a) Purchases are recorded net of cenvat credit.

b) Sales are recognized at the time of dispatches and include excise duty, VAT and are net of returns. In case of export sales, revenue is recognized as on the date of bill of lading, being the effective date of dispatch.

8. Taxation:

Income tax expense comprises current tax, deferred tax charge or release and charge on account of fringe benefit tax. The deferred tax charge or credit is recognized using substantially enacted rates. In the case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty or realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

9. Retirement Benefits:

Provisions for/contributions to retirement benefits schemes are made as follows;

a) Provident fund on actual liability basis.

b) Gratuity based on actuarial valuation done as at the reporting date.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement except where virtual certainty is there.

11. Use Of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported Period. Difference between the actual results and estimates are recognized in the Period in which the results and estimates are recognized in the Period in which the results are known or materialize.

12. Provisioning/Write-off of Doubtful Debts:

Unrealizable Debts and Sundry balances has been written-off to present true and fair view of the Management and as per the policy adopted by the Management of the company in the previous years.


Jun 30, 2012

1. Basis of Accounting:

The financial statements have been prepared under the historical cost convention on an accrual system based on principle of going concern and are in accordance with the generally accepted accounting principles and the accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

2. Fixed Assets:

Fixed assets are capitalized at cost inclusive of freight, duties, taxes, insurance, installation and net of cenvat credit and VAT set off.

3. Depreciation:

Depreciation on fixed assets for own use has been provided based on straight-line method and at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation on assets added/disposed off during the period is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable. Depreciation on building constructed on lease hold land is provided over the lease Period. Cost of improvements to land and building taken on lease are amortized over the remaining lease period.

4. Impairment of Assets:

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in the prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

5. Investments:

Long Term Investments are stated at cost except that there is permanent diminution in value of the said investment as required by AS-13.

6. Inventory:

a) Raw materials are valued at cost or net realizable value which ever is lower as per FIFO method followed.

b) Work-in-process is valued at estimated cost (including factory over-heads and depreciation)

c) Manufactured finished goods are valued at lower of estimated cost (including factory overheads and depreciation) or net realizable value as per FIFO method followed.

d) Traded goods are valued at lower of cost or net realizable value as per FIFO method followed.

e) Re-usable waste generated on conversion of defective or damaged or obsolete stocks are valued at estimated material cost.

7. Purchases And Sales:

a) Purchases are recorded net of cenvat credit.

b) Sales are recognized at the time of dispatches and include excise duty, VAT and are net of returns. In case of export sales, revenue is recognized as on the date of bill of lading, being the effective date of dispatch.

8. Taxation:

Income tax expense comprises current tax, deferred tax charge or release and charge on account of fringe benefit tax. The deferred tax charge or credit is recognized using substantially enacted rates. In the case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty or realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

9. Retirement Benefits:

Provisions for/contributions to retirement benefits schemes are made as follows;

a) Provident fund on actual liability basis.

b) Gratuity based on actuarial valuation done as at the reporting date.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement except where virtual certainty is there.

11. Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported Period. Difference between the actual results and estimates are recognized in the Period in which the results and estimates are recognized in the Period in which the results are known or materialize.

12. Provisioning/Write-off of Doubtful Debts:

Unrealizable Debts and Sundry balances has been written-off to present true and fair view of the Management and as per the policy adopted by the Management of the company in the previous years.


Mar 31, 2010

1. BASIS OF ACCOUNTING:

The financial statements have been prepared under the historical cost convention on an accrual system based on principle of going concern and are in accordance with the generally accepted accounting principles and the accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

2. FIXED ASSETS:

Fixed assets are capitalized at cost inclusive of freight, duties, taxes, insurance, installation and net of cenvat credit and VAT set off.

3. DEPRECIATION:

Depreciation on fixed assets for own use has been provided based on straight line method and at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation on assets added/disposed off during the period is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable. Depreciation on building constructed on lease hold land is provided over the lease period. Cost of improvements to land and building taken on lease are amortized over the remaining lease period.

4. IMPAIRMENT OF ASSETS:

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in the prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

5. INVESTMENTS:

Long Term Investments are stated at cost except that there is permanent diminution in value of the said investment as required by AS-13.

6. INVENTORY:

a) Raw materials are valued at cost or net realizable value which ever is lower as per FIFO method followed.

b) Work-in-process is valued at estimated cost (including factory over- heads and depreciation)

c) Manufactured finished goods are valued at lower of estimated cost (including factory overheads and depreciation) or net realizable value as per FIFO method followed.

d) Traded goods are valued at lower of cost or net realizable value as per FIFO method followed.

e) Re-usable waste generated on conversion of defective or damaged or obsolete stocks are valued at estimated material cost.

7. PURCHASES AND SALES:

a) Purchases are recorded net of VAT set off and cenvat credit.

b) Sales are recognized at the time of despatches and include excise duty, VAT and are net of returns. In case of export sales, revenue is recognized as on the date of bill of lading, being the effective date of despatch.

8. TAXATION:

Income tax expense comprises current tax, deferred tax charge or release and charge on account of fringe benefit tax. The deferred tax charge or credit is recognized using substantially enacted rates. In the case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty or realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

9. AMORTIZATION OF MISCELLANEOUS EXPENDITURE:

Preliminary expenses, expenses of increasing the authorised capital of the Company and share issue expenses are amortized equally over a period of ten years.

10. RETIREMENT BENEFITS:

Provisions for/contributions to retirement benefits schemes are made as follows;

a) Provident fund on actual liability basis.

b) Gratuity based on actuarial valuation done as at the reporting date.

11. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement except where virtual certainty is there.

12. USE OF ESTIMATES:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which the results and estimates are recognized in the period in which the results are known or materialize.

13. PROVISIONING/WRITE-OFF OF DOUBTFUL DEBTS:

Unrealizable Debts and Sundry balances has been written-off to present true and fair view of the Management and as per the policy adopted by the Management of the company in the previous years.

 
Subscribe now to get personal finance updates in your inbox!