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Union Budget 2017-18
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Accounting Policies of LWS Knitwear Ltd. Company

Mar 31, 2014

NOTE NO. 1 GENERAL

(i) These accounts are prepared on the historical cost basis and on the accounting principles of going concern.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and mandatory Accounting Standards.

REVENUE RECOGNITION

Expenses and incomes considered payable and receivable respectively are accounted for on accrual basis.

FIXED ASSETS.

The Fixed assets are stated at Historical Cost less depreciation.

DEPRECIATION

Depreciation on fixed assets has been provided as per SLM Method of Companies Act 1956.

METHOD OF ACCOUNTING

The company has adopted mercantile system of accounting.

VALUATION OF INVENTORIES

Store & Spares are valued and certified by the management. As per their views the stocks are valued at cost or net realisable value whichever is low.

PROVISION FOR CURRENT TAX AND DERERRED TAX

Provision for current tax has been made as per the prevailing income tax rates and Provision for Deferred Tax Assets has been calculated in terms of newly issued accounting standard interpretation (ASI) No-5 along with ASI-3 and AS-22 issued by the ICAI.

B. OTHER NOTES

1) The company has not made any provision for gratuity as none of the employees is eligible for gratuity as per the information provided. The rules of Provident Fund and ESI act is not applicable on the company; hence the company has not deducted and deposited any ESI and Provident Fund on behalf of its employees, hence AS-15 is not applicable on the company.

2) The company has not acquired any fixed assets on which it has availed any loan from the banks, hence the capitalization of the borrowing costs as stated under AS-16 is not applicable on the company.(AS-16).

3) Investments as shown in the balance sheet are at cost. Their present market values are not ascertainable. The company has not received any dividend, interest or rent from the companies in which it had made investments. The company has received share of profit/Loss from M/s. LWS Knitwear, a partnership concern in which the company is one of the partner. (AS-13).

4) The company has not made any foreign currency transactions during the year, hence AS-11 is not applicable on the company.

5) The company has made investments in LWS Knitwear, a partnership concern and Sh. Girish Kapoor, Mg. Director of the company is one of the partners.

6) The company has not received any grant or subsidy form Government of India during the year.

7) The company is a partner in LWS Knitwear. The information required by the Schedule VI of the Companies Act, 1956 in this regard is given as below :


Mar 31, 2013

GENERAL

(i) These accounts are prepared on the historical cost basis and on the accounting principles of going concern.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and mandatory Accounting Standards.

REVENUE RECOGNITION

Expenses and incomes considered payable and receivable respectively are accounted for on accrual basis.

FIXED ASSETS

The Fixed assets are stated at Historical Cost less depreciation.

DEPRECIATION

Depreciation on fixed assets has been provided as per SLM Method of Companies Act 1956.

METHOD OF ACCOUNTING

The company has adopted mercantile system of accounting.

VALUATION OF INVENTORIES

Store & Spares are valued and certified by the management. As per their views the stocks are valued at cost or net realisable value whichever is low.

PROVISION FOR CURRENT TAX AND DERERRED TAX

Provision for current tax has been made as per the prevailing income tax rates and Provision for Deferred Tax Assets has been calculated in terms of newly issued accounting standard interpretation (ASI) No-5 along with ASI-3 and AS-22 issued by the ICAI.


Mar 31, 2010

GENERAL

(i) These accounts are prepared on the historical cost basis and on the accounting principles of going concern.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and mandatory Accounting Standards.

REVENUE RECOGNITION

Expenses and incomes considered payable and receivable respectively are accounted for on accrual basis.

FIXED ASSETS.

The Fixed assets are stated at Historical Cost less depreciation.

DEPRECIATION

Depreciation on fixed assets has been provided as per SLM Method of Companies Act 1956.

METHOD OF ACCOUNTING

The company has adopted mercantile system of accounting.

VALUATION OF INVENTORIES

The company has not maintained any stock records, hence we relied upon the Valuations provided by the management. Inventories of Raw Material, Stock in Process, Finished Goods and store & spares are valued and certified by the management. As per their views the stocks are valued at cost or net realisable value whichever is low, stock of waste is valued at realisable value. While calculating the valuation of stocks, FIFO Method has been adopted by the company.

PROVISION FOR CURRENT TAX AND DERERRED TAX

Provision for current tax has been made as per the prevailing income tax rates.

Deferred Tax resulting from "Timing Differences" between book and taxable profits is accounted for using the tax rates and laws that have been enacted or subsequently enacted on the Balance sheet date. The deferred tax assets is recognised and carried forward only on the extent that there is a reasonable certainty that assets will be realised in future.

During the year, Deferred Tax Assets has not been accounted for on the losses brought forward as there is no hope that the company will earn profits in the coming years in terms of newly issued accounting standard interpretation (ASI) No-5 along with ASI-3 and AS-22 issued by the ICAI.


Mar 31, 2009

GENERAL

(i) These accounts are prepared on the historical cost basis and on the accounting principles of going concern.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and mandatory Accounting Standards.

REVENUE RECOGNITION

Expenses and incomes considered payable and receivable respectively are accounted for on accrual basis.

FIXED ASSETS.

The Fixed assets are stated at Historical Cost less depreciation.

DEPRECIATION

Depreciation on fixed assets has not been provided as there was no commercial activities in the company.

METHOD OF ACCOUNTING

The company has adopted mercantile system of accounting.

VALUATION OF INVENTORIES

The company has not maintained any stock, records, hence we relied upon the valuations provided by the management. Inventories of Raw Material, Stock in Process, Finished Goods and store & spares are valued and certified by the management. As per their views the stocks are valued at cost or net realisable value whichever is low, stock of waste is valued at realisable value. While calculating the valuation of stocks, FIFO Method has been adopted by the company.

PROVISION FOR CURRENT TAX AND DERERR^D TAX

No provision for current tax has been nrnferas^afler the adjustments of the brought forward losses, no tax liability arises.

Deferred Tax resulting from "Timing Differences" between book and taxable profits is accounted for using the tax rates and laws that have been enacted or subsequently enacted on the Balance sheet date. The deferred tax assets is recognised and carried forward only on the extent that there is a reasonable certainty that assets will be realised in future.

During the year, Deferred Tax Assets has not been accounted for on the losses brought forward as there is no hope that the company will earn profits in the coming years in terms of newly issued accounting standard interpretation (ASI) No-5 along with ASI-3 and AS-22 issued by the ICAI.

 
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