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Accounting Policies of O P Chains Ltd. Company

Mar 31, 2013

1. Basis of Preparation of financial statements

The financial statements are prepared under historical cost convention on an accrual basis. The Accounting policies applied by the company are consistent with those used in the previous year . The financial statement arc prepared to comply in all material respects with the mandatory Accounting Standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act „ 1956. The preparation of financial statement are in comformity with generally accepted accenting principles.,

2. Fixed Assets

All fixed assets are stated at cost less accumulated depreciation . Cost comprises the purchase price and any directly attributable cost of bringing the assets to its working condition for its intended use ,

3. Depreciation

Depreciation is provided on written down value method at the rates prescribed under schedule XIV of the Companies Act , 1956 on usage basis. Additions to fixed assets during the are being depreciated on pro-rata basis on put to use basis at the rates prescribed in the schedule XIV of the Companies Act, 1956.

4. Investments

FDR's are shown including accured interest, but the accrued interest has been provided for up to 31.03,2007 only on FDR with PNB of Rs. 25,000/-, which is now at 27,333/- interest has not been provided for bn the same after 31.03,2007.

Company has invetsted amount in two Partnership Firms, viz., M/s Ashok Housing and M/s O P Chains Housings

5. Inventories

The Inventory is valued at cost or net realizable value whichever is lower..

6. Revenue recognition

(0 Revenue from sale of goods is recognized upon delivery of the goods to buyers and are disclosed net of sales return, discounts and rate difference.

(ii) Income on Investment:

(a) Interest income is accounted on accrual basis,

(b) Dividend income is accounted when right to receive payment is established.

7. Retirement and other benefits

No contribution made to provident fund or any other fund as explained that provisions of provident fund act is not applicable to the company

Provision for gratuity and leave encashment has not been in the accounts as these expenses are accounted on the actual payment basis

8. Foreign Exchange Transaction Earnings: Rs. Nil Previous year Rs. Nil Outgo: Rs. Nil Previous year Rs. Nil

9. Contingent liabilities

Contingent Liabilities arising out if capital commitments and contractual obligations are made on the basis of actual acceptance. Contingent liabilities in respect of show cause notices issued by various Government authorities are considered only when son verted into demand.

The claim/adjustment/ loss with regard to AY 2009-2010 & AY 2010-11 shall be claimed on finalization of appeals pending before the Learned CIT(Appeals)-II, Agra.

10. Income Tax

Income tax payable is determined in accordance with the Indian Income Tax Act, 1961 Deferred tax expenses is recognized on timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods .

Deferred tax is a liability is measured using the tax rates and the tax laws that have been enacted or substantively enacted at the balance sheet date.

11 .Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication, of impairment based on internal /external factors. An impairment loss is recognized wherever the carrying amount of as assets exceeds its recoverable amount.

12 Earnings Per Share

Basic Earnings per share is calculated by dividing the net profit for the year attributable to Equity Shareholders by the numbers of equity shares outstanding during the year

13. Segment lnformation

Based on the analysis of the company's internal organization and management structure the management of the Companys has classified its business activities as 'Traders in bullion and ornaments of gold and silver" segment. The company has also done manufacturing on job work basis during this year under audit. The revenue from the same activity is less than 10% of the total revenue.

So, no separate financial information is provided for manufacturing activity as the same is less than 10% of the total activity of the Company

14. Provision

A provision is recognized when an enterprises has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligations ,in respect of which a reliable estimate can be made .Provision are not discounted to its present value and are determined based on best management estimates required to settle the obligation at the balance sheet date , These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.


Mar 31, 2011

1. Basis of Preparation of financial statements

The financial statements are prepared under historical cost convention on an accrual basis. The Accounting policies applied by the company are consistent with those used in the previous year. The financial statement are prepared to comply in all material respects with the mandatory Accounting Standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The preparation of financial statement are in conformity with generally accepted accounting principles.

2. Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any directly attributable cost of bringing the assets to its working condition for its intended use.

3. Depreciation

Depreciation is provided on written down value method at the rates prescribed under schedule XIV of the Companies Act, 1956 on usage basis. Additions to fixed assets during the public issues are being depreciated on pro-rata basis on put to use basis at the rates prescribed in the schedule XIV of the Companies Act, 1956.

4. Investments

FDR''s are shown including accused interest and investments other than FDR''s are shown at cost.

5. Inventories

The Inventory is valued at cost or net realizable value whichever is lower..

6. Revenue recognition

(i) Revenue from sale of goods is recognized upon delivery of the goods to buyers and are disclosed net of sales return, discounts and rate difference.

(ii) Income on Investment:

(a) Interest income is accounted on accrual basis.

(b) Dividend income is accounted when right to receive payment is established.

7. Retirement and other benefits

No contribution made to provident fund or any other fund as explained that provisions of provident fund act is not applicable to the company.

Provision for gratuity and leave encashment has not been in the accounts as these expenses are accounted on the actual payment basis.

8. Foreign Exchange Transaction

Initial Recognition: Foreign current transaction are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency transaction.

Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are4 reported using the exchange rate at the date of the transaction , and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rate that existed when the values were determined.

Exchange Difference: Exchange differences arising on the settlement of monetary items or on restatement of reporting Company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements , are recognized as income or expenses in the year in which they arise..

Forward Exchange Contracts: (Derivative Instruments) not intended for trading or speculation purposes: The Company uses derivative financial instruments including forward exchange contracts to hedge its risk associated with foreign currency fluctuations. The premium or discounting arising at the inception of forward exchange contracts is amortized as expenses or incomes over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit & loss in the year in which the exchange rates changes. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognized as income or as expenses for the year.

9. Contingent liabilities

Contingent Liabilities arising out if capital commitments and contractual obligations are made on the basis of actual acceptance. Contingent liabilities in respect of show cause notices issued by various Government authorities are considered only when converted into demand.

10. Income Tax

Income tax payable is determined in accordance with the Indian Income Tax Act,1961 Deferred tax expenses is recognized on timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods .

Deferred tax is a liability is measured using the tax rates and the tax laws that have been enacted or substantively enacted at the balance sheet date.

11. Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal /external factors. An impairment loss is recognized wherever the carrying amount of as assets exceeds its recoverable amount.

12. Earnings Per Share

Basic Earnings per share is calculated by dividing the net profit for the year attributable to Equity Shareholders by the numbers of equity shares outstanding during the year.

13. Segment Information

Based on the analysis of the company''s internal organization and management structure the management of the Company’s has classified its business activities as "Traders in bullion and ornaments of gold and silver” segment.

No separate financial information is provided since the company has one reportable segment.

14. Provision

A provision is recognized when an enterprises has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligations, in respect of which a reliable estimate can be made .Provision are not discounted to its present value and are determined based on best management estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

 
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