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Accounting Policies of Lokesh Machines Ltd. Company

Mar 31, 2015

1 Basis of Accounting

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounts are prepared on historical cost convention and in accordance with generally accepted accounting principles and Accounting Standards issued by the Institute of Chartered Accoun- tants of India.

2 Fixed Assets and Depreciation

(a) Fixed assets are stated at cost net of accumulated depreciation. Expenditure during construction period including interest on borrowings for new major projects are capitalized till the commencement of commercial production.

(b) Depreciation is provided at the rates specified under Schedule II of the Companies Act, 2013 as follows:

In respect of Plant & Machinery and Buildings : Straight Line Method Other fixed Assets : Written down value method

3 Inventories

(a) Raw Materials, and Consumable Stores are valued at cost on first in first out basis (FIFO).

(b) Finished goods and Work-in-progress are valued at lower of cost and net realizable value on full absorption cost basis.

4 Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing on the date of the transactions. Monetary assets and liabilities in foreign currency are translated at year end rate or at the rates of exchange fixed under contractual arrangements. Exchange differences arising on settlement of tranction and translation of monetary items are recognized as income or expense.

5 Contingent Liabilities

No liability is provided in respect of contingent liabilities, but only mentioned by way of note to accounts.

6 Retirement Benefits

Company's contribution to Provident fund determined under the relevant statute are charged to revenue. The gratuity contribution has been made on the basis of actuarial valuation under AS 15 given by Life Insurance Company. The liability for leave encashment is provided for on the basis of accrued leaves at the end of the year.

7 Accounting For Income Tax

Current tax represents the amount that otherwise would have been payable under the Income tax Act 1961, had the financial year been reckoned as the basis for computation of tax payable under the prevailing tax laws.

8 Deferred Income tax

Deferred Tax being tax on timing difference between taxable income and accounting income that originate in one year and capable of reversal in one or more subsequent years has been recognized. Deferred tax asset is recognized only if there is reasonable that it will be realized and will be reviewed for the appropri- ateness of its respective carrying value at each balance sheet date

9 Leases

Assets acquired under finance leases on or after April 1,2001 are recognized at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability.

10 Sales

Sales represent the amount realised or realisable for goods sold including excise duty.


Mar 31, 2014

1 Basis of Accounting

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounts are prepared on historical cost convention and in accordance with generally accepted accounting principles and Acounting Standards issued by the Institute of Chartered Accountants of India.

2 Fixed Assets and Depreciation

(a) Fixed assets are stated at cost net of accumulated depreciation. Expenditure during construction period including interest on borrowings for new major projects are capitalized till the commencement of commercial production.

(b) Depreciation is provided at the rates specified under section 205 read with Schedule XIV of the Companies Act, 1956 as follows:

In respect of Plant & Machinery and Buildings : Straight Line Method Other fixed Assets : Written down value method

3 Inventories

(a) Raw Materials,and Consumable Stores are valued at cost on first in first out basis (FIFO).

(b) Finished goods and Work-in-progress are valued at lower of cost or net realizable value on full absorption cost basis.

4 Foreign Currency Transactions

Foreign currency transactions are recorded at the rates prevailing on the date of the transactions. Monetary assets and liabilities in foreign currency are translated at year end rate or at the rates of exchange fixed under contractual arrangements. Exchange differences arising on settlement of tranction and translation of monetary items are recognized as income or expense.

5 Contingent Liabilities

No liability is provided in respect of contingent liabilities, but only mentioned by way of note to accounts.

6 Retirement Benefits

Company''s contribution to Provident fund determined under the relevant statute are charged to revenue. The gratuity contribution has been made on the basis of actuarial valuation under AS 15 given by Life Insurance Company. The liability for leave encashment is provided for on the basis of accrued leaves at the end of the year.

7 Accounting For Income Tax

Current tax represents the amount that otherwise would have been payable under the Income tax Act 1961, had the financial year been reckoned as the basis for computation of tax payable under the prevailing tax laws.

8 Deferred Income tax

Deferred Tax being tax on timing difference between taxable income and accounting income that originate in one year and capable of reversal in one or more subsequent years has been recognized.

Deferred tax asset is recognized only if there is reasonable that it will be realized and will be reviewed for the appropriateness of its respective carrying value at each balance sheet date.

9 Leases

Assets acquired under finance leases on or after April 1, 2001 are recognized at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability.

10 Sales

Sales represent the amount realised or realisable for goods sold including excise duty.


Mar 31, 2012

1 Basis of Accounting

The financial statements of the Company are prepared under the historical cost convention on an accrual basis and in accordance with the generally accepted accounting principles and Accounting Standards issued by the Institute of Chartered Accountants of India.

2 Fixed Assets and Depreciation

(a) Fixed assets are stated at cost less accumulated depreciation. Cost includes all related expenses incurred up to the date of putting them to use.

(b) Depreciation is provided at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 as follows:

In respect of Plant & Machinery and Buildings : Straight Line Method In respect of Furniture & Fixtures, Patterns, Vehicles,

Office equipment, Computers and Misc. : Written Down Value Equipment. Method

3 Inventories

(a) Raw Materials, Components and Consumable Stores are valued at cost on first in first out basis (FIFO).

(b) Finished goods and Work-in-progress are valued at lower of cost and net realizable value on full absorption cost basis.

4 Sales

Sales includes excise duty are accounted for on dispatch of goods to the customers that generally coincides with the transfer of risk and rewards.

5 Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction

Monetary items denominated in foreign currencies at the year end not covered by forward exchange contracts are translated at year end rates and the difference is charged to the Profit and Loss Account.

6 Retirement Benefits

All the Employees of the Company are entitled to retirement benefits of Provident Fund and Gratuity.

(a) Provision for Gratuity liability to employees is made on the basis of actuarial valuation.

(b) Provision is made for value of unutilized leaves due to employees at the end of the year.

7 Deferred tax

Deferred Tax is accounted for by computing the tax effect of timing differences that arise during the year and reverse in subsequent periods.

8 Leases

Assets acquired under finance leases on or after April 1,2001 are recognized at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability.


Mar 31, 2010

1) Basis of Accounting

The financial statements of the Company are prepared under the historical cost convention on an accrual basis and in accordance with the generally accepted accounting principles and Accounting Standards issued by the Institute of Chartered Accountants of India.

2) Fixed Assets and Depreciation

(a) Fixed assets are stated at cost less accumulated depreciation. Cost includes all related expenses incurred up to the date of putting them to use.

(b) Depreciation is provided at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 as follows:

- In respect of Plant & Machinery and Buildings : Straight Line Method

- In respect of Furniture & Fixtures, Patterns, Vehicles,

Office equipment, Computers and Misc. Equipment. : Written Down Value Method

3) Inventories

(a) Raw Materials, Components and Consumable Stores are valued at cost on first in first out basis (FIFO).

(b) Finished goods and Work-in-progress are valued at lower of cost and net realizable value on full absorption cost basis.

4) Sales

Sales includes excise duty are accounted for on dispatch of goods to the customers that generally coincides with the transfer of risk and rewards.

5) Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction.

Monetary items denominated in foreign currencies at the year end not covered by forward exchange contracts are translated at year end rates and the difference is charged to the Profit and Loss Account.

6) Retirement Benefits

All the Employees of the Company are entitled to retirement benefits of Provident Fund and Gratuity.

(a) Provision for Gratuity liability to employees is made on the basis of actuarial valuation.

(b) Provision is made for value of unutilized leaves due to employees at the end of the year.

(c) Deferred Tax

Deferred Tax is accounted for by computing the tax effect of timing differences that arise during the year and reverse in subsequent periods.

7) Leases

Assets acquired under finance leases on or after April 1, 2001 are recognized at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability.

 
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