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Accounting Policies of Oxford Industries Ltd. Company

Mar 31, 2014

I Basic Of preparation of Financial Statement

a. The financial statements are prepared under the historical cost convention, on a going concern basis and in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under Section 211 (3C) of the Companies Act 1956 ("the 1956 Act") [which continues to be applicable in respect of section 133 of the Companies Act''2013("the 2013 Act") in terms of general circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs] and the relevant provision of the 1956 Act/2013 Act as applicable.

b. The company generally follows mercantile system of accounting and recognizes significant item of income and expenditure on accrual basis.

ii Use Of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

iii Revenue And Cost Recognition

Revenue & Costs are recognised on accrual basis. Revenue recognition is postponed in instances where in conditions for revenue recognition are not met. In case of uncertainty of receipt, recognition of revenue is postponed. Brokerage, turnover incentive & export sales commission accrues at the time of realisation from Debtors.

iv Prior Period Items, Non recurring & Extra ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are disclosed separately.

v Fixed Assets & Depreciation

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated amortisation/impairment/depreciation.

Depreciation on fixed assets has been provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation is provided on pro-rata basis in the year of addition and no depreciation is provided in the year of disposal. Assets costing Rs.5,000/- or less are depreciated at the rate of 100%. Land acquired under long term leases is not amortised.

In accordance with AS 28, where there is an indication of impairment of the Company''s asset the carrying amounts of the Company''s assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated, as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account or against revaluation surplus where applicable.

vi Investments

Long term investments are stated at cost. Provision for diminution in value of investments of permanent nature, if any, is provided for. Current Investments, if any, are valued at cost or market value whichever is lower.

vii Inventories

Raw material and consumable stores are valued at cost or net realisable value which ever is lower. Cost comprises of purchase price, freight, taxes & duties reduced to the extent of value of Cenvat benefit & sales tax set off if any. Finished goods (fabrics) and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost (which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

viii Retirement Benefits

a. Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision for the value of un-encashed leave due to employees is made on actuarial valuation basis.

ix Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss account in the year of expenditure.

x Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

xi Provision For Taxation

Provision for current Income Tax shall be made on the tax payable on the taxable income after considering tax allowances deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax assets and liabilities are recognised for the timing differences between profit as per financial statements and the taxable profits based on the tax rates that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty or virtual certainty that sufficient future taxable income will be available against which tax assets can be realised.

xii Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of transaction.

Monetary items denominated in foreign currency outstanding at the last date of the year are restated using the rates of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end, restatement of monetary items are recognised in the Profit & Loss Account.

xiii Earning Per Share

Basic EPS excludes dilution and is computed by dividing net income available to common stock holders by the weighted-average number of common shares outstanding for the year.

xiv Provisions, Contingent Liabilities and Contingent Assets.

As per AS-29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle that obligation and when a reliable estimate of the amount of the obligation can be made.

No provision is recognised for any possible obligation that arises from past events and the existence of which will be confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.


Mar 31, 2012

I Basic Of preparation of Financial Statement

a. The financial statements are prepared under historical cost convention and in compliance with generally accepted accounting practices & applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India from time to time and the provisions of the Companies Act, 1956. The concept of going concern and consistency are adhered to.

b. The company generally follows mercantile system of accounting and recognizes signifiacant item of income and expenditure on accrual basis.

ii Use Of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

iii Revenue And Cost Recognition

Revenue & Costs are recognised on accrual basis. Revenue recognition is postponed in instances wherein conditions for revenue recognition are not met. In case of uncertainty of receipt, recognition of revenue is postponed. Brokerage, turnover incentive & export sales commission accrues at the time of realisation from Debtors.

iv Prior Period Items, Non recurring & Extra ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are disclosed separately.

v Fixed Assets & Depreciation

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated amortisation/impairment/depreciation.

Depreciation on fixed assets has been provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation is provided on pro-rata basis in the year of addition and no depreciation is provided in the year of disposal. Assets costing Rs.5,000/- or less are depreciated at the rate of 100%. Land acquired under long term leases is not amortised.

In accordance with AS 28, where there is an indication of impairment of the Company's asset the carrying amounts of the Company's assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated, as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account or against revaluation surplus where applicable.

vi Investments

Long term investments are stated at cost. Provision for diminution in value of investments of permanent nature, if any, is provided for. Current Investments, if any, are valued at cost or market value whichever is lower.

vii Inventories

Raw material and consumable stores are valued at cost or net realisable value which ever is lower. Cost comprises of purchase price, freight, taxes & duties reduced to the extent of value of Cenvat benefit & sales tax set off if any. Finished goods (fabrics) and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost (which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

viii Retirement Benefits

a Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision forthe value of un-encashed leave due to employees is made on actuarial valuation basis.

ix Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss account in the year of expenditure.

x Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

xi Provision For Taxation

Provision for current Income Tax shall be made on the tax payable on the taxable income after considering tax allowances deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax assets and liabilities are recognised for the timing differences between profit as per financial statements and the taxable profits based on the tax rates that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty or virtual certainty that sufficient future taxable income will be available against which tax assets can be realised.

xii Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of transaction.

Monetary items denominated in foreign currency outstanding at the last date of the year are restated using the rates of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end, restatement of monetary items are recognised in the Profit & Loss Account.

xiii Earning Per Share

Basic EPS excludes dilution and is computed by dividing net income available to common stock holders by the weighted-average number of common shares outstanding for the year.

xiv Provisions, Contingent Liabilities and Contingent Assets.

As per AS-29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle that obligation and when a reliable estimate of the amount of the obligation can be made.

No provision is recognised for any possible obligation that arises from past events and the existence of which will be confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.


Mar 31, 2011

I Basic Assumptions:

The financial statements are prepared under historical cost convention and in compliance with generally accepted accounting practices & applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India from time to time and the provisions of the Companies Act, 1956. The concept of going concern and consistency are adhered to.

ii Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

iii Revenue And Cost Recognition

Revenue & Costs are recognised on accrual basis. Revenue recognition is postponed in instances wherein conditions for revenue recognition are not met. In case of uncertainty of receipt, recognition of revenue is postponed. Brokerage, turnover incentive & export sales commission accrues at the time of realisation from Debtors.

iv Prior Period Items, Non recurring & Extra ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are disclosed separately.

v Fixed Assets & Depreciation

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated amortisation/ impairment/ depreciation.

Depreciation on fixed assets has been provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation is provided on pro-rata basis in the year of addition and in the year of disposal. Assets costing Rs.5, 000/- or less are depreciated at the rate of 100%. Land acquired under long term leases is not amortised.

In accordance with AS 28, where there is an indication of impairment of the Company's asset the carrying amounts of the Company's assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated, as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account or against revaluation surplus where applicable.

vi Investments

Long term investments are stated at cost. Provision for diminution in value of investments of permanent nature, if any, is provided for. Current Investments, if any, are valued at cost or market value whichever is lower.

vii Inventories

Raw material and consumable stores are valued at cost or net realisable value which ever is lower. Cost comprises of purchase price, freight, taxes & duties reduced to the extent of value of Cenvat benefit & sales tax set off if any. Finished goods (fabrics) and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost (which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

viii Retirement Benefits

a Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision for the value of un-encashed leave due to employees is made on actuarial valuation basis.

ix Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss account in the year of expenditure.

x Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

xi Provision For Taxation

Provision for current Income Tax shall be made on the tax payable on the taxable income after considering tax allowances deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax assets and liabilities are recognised for the timing differences between profit as per financial statements and the taxable profits based on the tax rates that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty or virtual certainty that sufficient future taxable income will be available against which tax assets can be realised.

xii Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of transaction.

Monetary items denominated in foreign currency outstanding at the last date of the year are restated using the rates of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end, restatement of monetary items are recognised in the Profit & Loss Account.

xiii Earning Per Share

Basic EPS excludes dilution and is computed by dividing net income available to common stock holders by the weighted-average number of common shares outstanding for the year.

xiv Provisions, Contingent Liabilities and Contingent Assets.

As per AS-29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India, the Company recognises provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle that obligation and when a reliable estimate of the amount of the obligation can be made.

No provision is recognised for any possible obligation that arises from past events and the existence of which will be confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.


Mar 31, 2010

I Basic Assumptions:

The financial statements are prepared under historical cost convention and in compliance with generally accepted accounting practices & applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India from time to time and the provisions of the Companies Act, 1956. The concept of going concern and consistency are adhered to.

ii Use Of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the year in which the results are known / materialised.

iii Revenue And Cost Recognition

Revenue & Costs are recognised on accrual basis. Revenue recognition is postponed in instances wherein conditions for revenue recognition are not met. In case of uncertainty of receipt, recognition of revenue is postponed. Brokerage, turnover incentive & export sales commission accrues at the time of realisation from Debtors.

iv Prior Period Items, Non recurring & Extra ordinary items.

Material items relating to prior period, if any, and non-recurring and extra ordinary items, if any, are ! disclosed separately.

v Fixed Assets & Depreciation

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated amortisation/ impairment/depreciation.

Depreciation on fixed assets has been provided on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation is provided on pro-rata basis in the year of addition and in the year of disposal. Assets costing Rs.5, 000/- or less are depreciated at the rate of 100%. Land acquired under long term leases is not amortised.

In accordance with AS 28, where there is an indication of impairment of the Companys asset the carrying amounts of the Companys assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets is estimated, as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account or against revaluation surplus where applicable.

vi Investments

Long term investments are stated at cost. Provision for diminution in value of investments of permanent

nature, if any, is provided for. Current Investments, if any, are valued at cost or market value whichever is lower. vii Inventories

Raw material and consumable stores are valued at cost or net realisable value which ever is lower: Cost comprises of purchase price, freight, taxes & duties reduced to the extent of value of Cenvat benefit & sales tax set off if any. Finished goods (fabrics) and in-process goods are valued at cost (which includes material cost, cost of conversion and appropriate production overhead thereof) or net realisable value, whichever is lower. Traded goods in stock are valued at cost (which includes cost of purchase as direct cost) or net realisable value, whichever is lower.

viii Retirement Benefits

a Contribution to Provident fund is accounted on accrual basis with corresponding contribution to recognised fund.

b. Contribution to Superannuation and Gratuity Fund is accounted on accrual basis with corresponding contribution to LIC for participation in Superannuation and Gratuity Scheme.

c. Provision for the value of un-encashed leave due to employees is made on actuarial valuation basis.

ix Research And Development

Expenditure incurred for developing new designs are considered as R&D expenditure and charged to Profit & Loss account in the reporting period of expenditure.

x Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

xi Provision For Taxation

Provision for current Income Tax shall be made on the tax payable on the taxable income after considering tax allowances deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax assets and liabilities are recognised for the timing differences between profit as per financial statements and the taxable profits based on the tax rates that have been enacted or substantially enacted at the Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty or virtual certainty that sufficient future taxable income will be available against which tax assets can be realised.

xii Foreign Currency Transactions

Foreign currency transactions of revenue nature are accounted using a conversion rate prevailing on the date of transaction.

Monetary items denominated in foreign currency outstanding at the last date of the reporting period are restated using the rates of exchange prevalent on that date. All exchange differences arising on settlement of transactions at period-end, restatement of monetary items are recognised in the Profit & Loss Account.

xiii Earning Per Share

Basic EPS excludes dilution and is computed by dividing net income available to common stock holders by the weighted-average number of common shares outstanding for the reporting period.

xiv Provisions, Contingent Liabilities and Contingent Assets.

As per AS-29, Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India/the Company recognises provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle that obligation and when a reliable estimate of the amount of the obligation can be made.

No provision is recognised for any possible obligation that arises from past events and the existence of which will be-confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.

 
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