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Accounting Policies of Neha International Ltd. Company

Mar 31, 2015

A) Basis of Preparation of Financial Statements:

The financial statements are prepared on going concern assumption and under the historic cost convention, except for certain fixed assets which are revalued in accordance with Generally Accepted Accounting Principles in India and the provisions of the CompaniesAct,2013.

b) Fixed Assets:

Fixed assets are stated at cost less depreciation All costs (excluding CENVAT,VAT and Subsidy), including financing costs till commencement of commercial production and adjustments arising from exchange rate variations relating to borrowings attributable to the fixed assets are capitalized.

c) Depreciation:

As the Financial Statements has been prepared for the period from 01 /07/2013 to 31 /03/2015, depreciation on Fixed Assets have been charged on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies act, 1956 for the period from 01 /07/2013 to 31 /03/2014 and as per Schedule II of the Companies Act, 2013 for the period from 01 /04/2014 to 31 /03/2015.

d) Inventories:

Inventories have been taken as valued and certified by the Management The basis of valuation is as under:

Raw materials, Stores & Spares - at cost or net realizable value whichever is lower.

Finished goods - at cost or net realizable value on FIFO basis whichever is lower.

e) Retirement benefits:

(i) Company''s contribution to provident fund if any is charged to Profit & Loss Account.

(ii) Provision has been made in accounts for the future payment of gratuity to the employees of the Company. But the Company has not complied the actuarial valuation requirements of Gratuity as per the Accounting Standard.

f) Revenue recognition:

The company follows mercantile system of accounting and recognizes significant items of income and expenditure as and when they are incurred and accrued.

g) Investments:

Current Investments are valued at cost or market price whichever is lower and in the absence of market quotation, cost price is adopted. LongTerm Investments are valued at cost.

h) R&D Expenditure:

Capital expenditure is included in the fixed assets and depreciation as per Company''s policy.

Revenue expenditure is charged to profit & loss account of the year in which they are incurred is included in the respective heads of expenditure.

i) Borrowing Costs:

Borrowings costs that are directly attributable to the acquisition of qualifying assets are capitalized as part of cost of such asset. 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.

j) Cash Flow Statement:

The Cash Flow Statement has been compiled from and is based on the Balance Sheet as at 31 st March, 2015 and the related Profit and Loss Account for the year ended on that date. The Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard - 3 on Cash Flow statement issued by ICAI.

k) Accounting for Taxes on Income:

Current Tax: Provision for Current Income Tax is made on the basis of the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax: Deferred income tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The tax effect is calculated on the accumulated timing differences at the year end based on tax rates and laws. Enacted or substantially enacted as of the Balance Sheet date.

l) Employee Stock Option Scheme:

The company accounts for equity settled stock options as per the accounting treatment prescribed by Securities and Exchange Board of India (share based employee benefits) Regulations,2014 and the Guidance Note on Employee Share- based Payments issued by the Institute of Chartered Accountants of India.

m) Impairment of Assets:

The management assesses using external and internal sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceeds the present value of cash flow expected to arise from the continuing use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is lower than the carrying amount.

n) Government Grants & Other Claims:

Revenue grants including subsidy/rebates, refunds, claims etc.,are credited to profit & loss account under other income or deducted from the related expenses. Grants related to fixed assets are credited to capital reserves account or adjusted in the cost of such assets as the case may be, as and when the ultimate realisability of such grants etc., are established/realized.

o) Provisions and Contingent Liabilities and Contingent Assets:

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimate can be made of the amount of obligations and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but if material, are disclosed in the notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.

p) Cash and Cash Equivalents:

Cash and cash equivalents comprise of cash at bank and cash in hand. The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase, to be cash equivalents.

q) Leases:

Lease rentals in respect of assets acquired under operating lease are charged to Statement of Profit and Loss.

r) Intangible Assets:

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if any. Intangible assets are amortised on a as per rates mentioned in the Act.

s) Segment reporting:

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the company. Further,

(i) Inter segment revenue has been accounted for based on the transaction price agreed to between segments which is primarily market based.

(ii) Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the company as a whole and are not allocable to segments on a reasonable basis, have been included under"Un-allocated corporate expenses net of un-allocated income".

t) Earnings per share:

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basis earning per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive.

u) Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Net exchange gain or loss resulting in respect of foreign exchange translations settled during period is recognized in the profit & loss account except for the net exchange gain or loss on account of imported fixed assets, which is adjusted in the carrying amount of the related fixed assets. Foreign currency denominated current assets and current liabilities at the period end are translated at the period end exchange rates and the resulting net gain or loss is recognized in the profit & loss account, except for exchange difference related to fixed assets purchased from foreign countries is adjusted in the carrying amount of related fixed assets.


Jun 30, 2013

1. The accounts are prepared on the historical cost convention and on the accounting principle of a going concern.The accounts are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies act,1956 of India.

2. All Income and expenses to the extent considered receivable and payable unless specifically stated to be otherwise are accounted for on accrual basis.

3. Fixed assets are stated at cost less accumulated depreciation. The expenses related to, and incurred during implementation period have been capitalized under the appropriate heads.The original cost of fixed assets is inclusive of Freight,duties,taxes,incidental expenses relating to the acquisition,cost of installation/erection etc.

4. Depreciation on Fixed assets have been charged on straight-line method at the rates and in the manner specified in Schedule XIVto the Companies act,1956.

5. Miscellaneous expenditure: Expenses incurred for the acquisition of subsidiaries has been capitalized and will be written off in equal installments over a period of five years.

6. Inventories:Raw materials and consumable stores are valued at cost on FIFO basis.Finished goods are valued on the lower of cost or net realizable value.

7. IntangibleAssets:The expense incurredon the developmentof overseas markets has been recognized as Intangible Assets and will be amortized over a period of five years.The company is following the practice of writing off the Deferred Revenue charges over a period of five years and the same accounting treatment is consistently followed for the current year also. Any new deferred revenue expenditure incurred will be written off in the year of such expenditureas perAccounting Standard 28.

8. Gratuity: Provision for Gratuity liability has been made for eligible employees basing on actuarial valuation carried out by M/s. K.A. Pandit Consultants & Actuaries as per the Accounting Standard AS 15 issued by the Institute of CharteredAccountants of India.

9. LeaveEncashment:Leave encashment willbeaccounted forasand when payments are made.

10. Provident Fund: Contributions to appropriateAuthorities is charged to Profit and LossAccount.

11. Lease Rentals: Lease rentals in respect of operating lease accrue as per the Lease agreement and are charged to Profit and Loss account.

12. Deferred Tax: Deferred tax charge reflects the tax effects of timing difference between accounting income and taxable income for the period.The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future;however,where there is unabsorbed depreciation or carry forward losses,deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

13. Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the profit and loss account except for the net exchange gain or loss on account of imported Fixed assets, which is adjusted in the carrying amount of the related fixed assets. Foreign Currency Denominated current assets and current liabilities at period end are translated at the period end exchange Rates and the resulting net gain or loss is recognized in the profit and loss account, except for exchange Differences related to acquisition of fixed assets purchased from foreign countries is adjusted in the Carrying amount of the related fixed assets.


Jun 30, 2011

1. The accounts are prepared on the historical cost convention and on the accounting principle of a going concern. The accounts are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies act,1956 of India.

2. All Income and expenses to the extent considered receivable and payable unless specifically stated to be otherwise are accounted for on accrual basis.

3. Fixed assets are stated at cost less accumulated depreciation. The expenses related to, and incurred during implementation period have been capitalized under the appropriate heads. The original cost of fixed assets is inclusive of Freight, duties, taxes, incidental expenses relating to the acquisition, cost of installation/erection etc.

4. Depreciation on Fixed assets have been charged on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies act,1956.

5. Miscellaneous Expenditure: Expenses incurred for the acquisition of subsidiaries has been capitalized and will be written off in equal installments over a period of five years.

6. Inventories :Raw materials and consumable stores are valued at cost on FIFO basis. Finished goods are valued on the lower of cost or net realizable value.

7. Intangible Assets: The expense incurred on the development of overseas markets has been recognized as Intangible Assets and will be amortized over a period of five years. The company s following the practice of writing off the Deferred Revenue charges over a period of five years and the same accounting treatment is consistently followed for the current year also. Any new deferred revenue expenditure incurred will be written off in the year of such expenditure as per Accounting Standard 28.

8. Gratuity: Provision for Gratuity has been provided for employees who have completed requisite period of service.

9. Leave Encashment: Leave encashment will be accounted for as and when payments are made.

10. Provident Fund: Contributions to appropriate Authorities is charged to Profit and Loss Account.

11. Lease Rentals: Lease rentals in respect of operating lease accrue as per the Lease agreement and are charged to Profit and Loss account.

12. Deferred Tax: Deferred tax charge reflects the tax effects of timing difference between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

13. Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the profit and loss account except for the net exchange gain or loss on account of imported Fixed assets, which is adjusted in the carrying amount of the related fixed assets. Foreign Currency Denominated current assets and current liabilities at period end are translated at the period end exchange Rates and the resulting net gain or loss is recognized in the profit and loss account, except for exchange Differences related to acquisition of fixed assets purchased from foreign countries is adjusted in the Carrying amount of the related fixed assets.

14 Contingent Liability: There are no contingent liabilities for the period.


Jun 30, 2010

1. The accounts are prepared on the historical cost convention and on the accounting principle of a going concern.The accounts are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies act,1956 of India.

2. All Income and expenses to the extent considered receivable and payable unless specifically stated to be otherwise are accounted for on accrual basis.

3. Fixed assets are stated at cost less accumulated depreciation. The expenses related to, and incurred during implementation period have been capitalized under the appropriate heads.The original cost of fixed assets is inclusive of Freight,duties,taxes,incidental expenses relating to the acquisition,cost of installation/erection etc.

4. Depreciation on Fixed assets have been charged on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies act, 1956. The cost of the plant materials including re plantation expenses are capitalized and are being written off over a period of five years.

5. Miscellaneous expenditure: Expenses incurred for the acquisition of subsidiaries has been capitalized and will be written off in equal installments over a period of five years.

6. Inventories:Raw materials and consumable stores are valued at cost on FIFO basis. Finished goods are valued on the lower of cost or net realizable value.

7. Intangible Assets:The expense incurred on the development of overseas markets has been recognized as Intangible Assets and will be amortized over a period of five years.The company is following the practice of writing off Deferred Revenue Expenses over a period of five years and the same accounting treatment is consistently followed for the current year also. Any new deferred revenue expenditure incurred will be written off in the year of such expenditure as perAccounting Standard 28

8. Gratuity:Provision for Gratuity has been provided for employees who have completed requisite period of service.

9. Leave Encashment:Leave encashment is being accounted forasand when payments are made.

10. Provident Fund:Contributions to appropriate Authorities is charged to Profit and Loss Account.

11. Lease Rentals: Lease rentals in respect of operating lease accruing as per the Lease agreement and are charged to Profit and Loss account.

12. DeferredTax:Deferred tax charge reflects the tax effects of timing difference between accounting income and taxable income for the period.The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future;however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

13. Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the profit and loss account except for the net exchange gain or loss on account of imported Fixed assets, which is adjusted in the carrying amount of the related fixed assets. Foreign Currency Denominated current assets and current liabilities at period end are translated at the period end exchange Rates and the resulting net gain or loss is recognized in the profit and loss account, except for exchange Differences related to acquisition of fixed assets purchased from foreign countries is adjusted in the Carrying amount of the related fixed assets. 14. Contingent Liability:There are no contingent liabilities for the period.

 
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