Home  »  Company  »  Pasari Spinning  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Pasari Spinning Mills Ltd. Company

Mar 31, 2015

1. BASIS OF ACCOUNTING:

a) The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, including the Accounting Standards specified (Except AS-15) under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. The Financial Statements are prepared as per Schedule III of The Companies Act 2013 in consensus with section 129 of the Act.

b) The accounts are maintained on accrual basis, except for certain employee benefits like Gratuity, leave encashment and income on investment which are accounted on actual basis.

2. USE OF ESTIMATES:

The preparation of Financial Statements, in conformity with the Generally Accepted Accounting Practices (GAAP) in India, required the management to make estimates and assumptions that affect the reported amounts of assets, liabilities as on the date of the financial statements. Actual result may differ from the estimates.

3. REVENUE RECOGNITION:

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Sales are disclosed net of sales tax after deducting the applicable trade discount and rejections if any.

4. a) FIXED ASSETS:

Fixed assets are stated at cost of acquisition or construction including all the acquisition and installation related expenses. Individual assets costing less than Rs, 5000 are depreciated at the rate of 100%.

b) DEPRECIATION:

Depreciation is provided on straight line method, at the rates and manner prescribed under schedule II of the Companies Act, 2013.

5. INVENTORIES:

Raw Materials, Consumable stores and spares are valued at lower of cost or market value after providing for obsolescence and depletion in value wherever applicable.

6. RETIREMENT BENEFITS:

a) Contributions to PF/EPF are accounted on accrual basis.

b) Gratuity and leave encashment are accounted on cash basis.

7. FOREIGN CURRENCY TRANSACTION:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at year end exchange rates. The exchange difference arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise, except in case of the liabilities for the acquisition of fixed assets, where such exchange difference is adjusted in the carrying cost of fixed assets. This is not applicable to the Company.

8. INVESTMENT:

Long term investments are stated at cost, less provisions for other than temporary diminution in value. Current investments comprising investments in mutual fund and shares are stated at the lower of cost or market value, determined on portfolio basis.

9 . TAXES ON INCOME:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax asset in respect of unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

10 . IMPAIRMENT OF ASSETS:

As at each Balance Sheet date, the Company reviews the carrying amount of its Fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is higher of an asset's net selling price and value in use. Reversal of impairment of loss is recognized immediately as income in the Profit & Loss account.


Mar 31, 2014

1. BASIS OF ACCOUNTING:

a) The financial statements are prepared on the historical cost in accordance with the generally accepted accounting principles and presentation requirement as per schedule VI of the Companies Act, 1956 and the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 except for AS-15.

b) The accounts are maintained on accrual basis, except for certain employee benefits like Gratuity, leave encashment and income on investment which are accounted on actual basis.

2. USE OF ESTIMATES:

The preparation of Financial Statements, in conformity with the Generally Accepted Accounting Practices (GAAP) in India, required the management to make estimates and assumptions that affect the reported amounts of assets, liabilities as on the date of the financial statements. Actual result may differ from the estimates.

3. REVENUE RECOGNITION:

Generally revenue on sales is recognized on dispatch of goods from the factory. In respect of consignment sales, revenue is recognized at the time of receipt of confirmation of sale from the Consignee. The Company has not made any sales during the current year.

4. a) FIXED ASSETS:

Fixed assets are stated at cost of acquisition or construction including all the acquisition and installation related expenses. Individual assets costing less than '' 5000 are depreciated at the rate of 100%.

b) DEPRECIATION:

Depreciation is provided on straight line method, at the rates and manner prescribed under schedule XIV of the Companies Act, 1956.

5. INVENTORIES:

Raw Materials, Consumable stores and spares are valued at lower of cost or market value after providing for obsolescence and depletion in value wherever applicable.

6. RETIREMENT BENEFITS:

a) Contributions to PF/EPF are accounted on accrual basis.

b) Gratuity and leave encashment are accounted on cash basis.

7. FOREIGN CURRENCY TRANSACTION:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at year end exchange rates. The exchange difference arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise, except in case of the liabilities for the acquisition of fixed assets, where such exchange difference is adjusted in the carrying cost of fixed assets. This is not applicable to the Company.

8. INVESTMENT:

Long term investments are stated at cost , less provisions for other than temporary diminution in value. Current investments comprising investments in mutual fund and shares are stated at the lower of cost and market value, determined on portfolio basis.

9. TAXES ON INCOME:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax asset in respect of unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

10. IMPAIRMENT OF ASSETS:

As at each Balance Sheet date, the Company reviews the carrying amount of its Fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is higher of an asset''s net selling price and value in use. Reversal of impairment of loss is recognized immediately as income in the Profit & Loss account.


Mar 31, 2013

1. BASIS OF ACCOUNTING:

a) The financial statements are prepared on the historical cost in accordance with the generally accepted accounting principles and presentation requirement as per schedule VI of the Companies Act, 1956 and the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 except for AS-15.

b) The accounts are maintained on accrual basis, except for certain employee benefits like Gratuity, leave encashment and income on investment which are accounted on actual basis.

2. USE OF ESTIMATES:

The preparation of Financial Statements, in conformity with the Generally Accepted Accounting Practices (GAAP) in India, required the management to make estimates and assumptions that affect the reported amounts of assets, liabilities as on the date of the financial statements. Actual result may differ from the estimates.

3. REVENUE RECOGNITION:

Revenue on sales is recognized on dispatch of goods from the factory. In respect of consignment sales, revenue is recognized at the time of receipt of confirmation of sale from the Consignee.

4. a) FIXED ASSETS:

Fixed assets are stated at cost of acquisition or construction including all the acquisition and installation related expenses. Individual assets costing less than Rs. 5000 are depreciated at the rate of 100%.

b) DEPRECIATION:

Depreciation is provided on straight line method, at the rates and manner prescribed under schedule XIV of the Companies Act, 1956.

5. INVENTORIES:

Raw Materials, Consumable stores and spares are valued at lower of cost or market value after providing for obsolescence and depletion in value wherever applicable.

6. RETIREMENT BENEFITS:

a) Contributions to PF/EPF are accounted on accrual basis.

b) Gratuity and leave encashment are accounted on cash basis.

7. FOREIGN CURRENCY TRANSACTION:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at year end exchange rates. The exchange difference arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise, except in case of the liabilities for the acquisition of fixed assets, where such exchange difference is adjusted in the carrying cost of fixed assets.

8. INVESTMENT:

Long term investments are stated at cost, less provisions for other than temporary diminution in value. Current investments comprising investments in mutual fund and shares are stated at the lower of cost and market value, determined on portfolio basis.

9. TAXES ON INCOME:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961.

Deferred Tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax asset in respect unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

10. IMPAIRMENT OF ASSETS :

As at each Balance Sheet date, the company reviews the carrying amount of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is higher of an asset''s net selling price and value in use. Reversal of impairment of loss is recognized immediately as income in the profit and loss account.


Mar 31, 2012

1. BASIS OF ACCOUNTING:

a) The financial statements are prepared on the historical cost in accordance with the generally accepted accounting principles and presentation requirement as per schedule VI of the Companies Act, 1956 and the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 except for AS-15.

b) The accounts are maintained on accrual basis, except for certain employee benefits like Gratuity, leave encashment and income on investment which are accounted on actual basis.

2. USE OF ESTIMATES:

The preparation of Financial Statements, in conformity with the Generally Accepted Accounting Practices (GAAP) in India, required the management to make estimates and assumptions that affect the reported amounts of assets, liabilities as on the date of the financial statements. Actual result may differ from the estimates.

3. REVENUE RECOGNITION:

Revenue on sales is recognized on dispatch of goods from the factory. In respect of consignment sales, revenue is recognized at the time of receipt of confirmation of sale from the Consignee.

4. a) FIXED ASSETS:

Fixed assets are stated at cost of acquisition or construction including all the acquisition and installation related expenses. Individual assets costing less than Rs. 5000 are depreciated at the rate of 100%.

b) DEPRECIATION:

Depreciation is provided on straight line method, at the rates and manner prescribed under schedule XIV of the Companies Act, 1956.

5. INVENTORIES:

Raw Materials, Consumable stores and spares are valued at lower of cost or market value after providing for obsolescence and depletion in value wherever applicable.

6. RETIREMENT BENEFITS:

a) Contribution to PF/EPF are accounted on accrual basis.

b) Gratuity and leave encashment are accounted on cash basis.

7. FOREIGN CURRENCY TRANSACTION:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at year end exchange rates. The exchange difference arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise, except in case of the liabilities for the acquisition of fixed assets, where such exchange difference is adjusted in the carrying cost of fixed assets.

8. INVESTMENT:

Long term investments are stated at cost, less provisions for other than temporary diminution in value. Current investments comprising investments in mutual fund and shares are stated at the lower of cost and market value, determined on portfolio basis.

9. TAXES ON INCOME:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961.

Deferred Tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax asset in respect unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

10. IMPAIRMENT OF ASSETS:

As at each Balance Sheet date, the company reviews the carrying amount of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is higher of an asset's net selling price and value in use. Reversal of impairment of loss is recognized immediately as income in the profit and loss account.


Mar 31, 2010

1. BASIS OF ACCOUNTING:

a) The financial statements are prepared on the historical cost in accordance with the generally accepted accounting principles and presentation requirement as per schedule VI of the Companies Act, 1956 and the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 except for AS-15.

b) The accounts are maintained on accrual basis, except for certain employee benefits like Gratuity, leave encashment and income on investment which are accounted on actual basis.

2. USE OF ESTIMATES:

The preparation of Financial Statements, in conformity with the Generally Accepted Accounting Practices (GAAP) in India, required the management to make estimates and assumptions that affect the reported amounts of assets, liabilities as on the date of the financial statements. Actual result may differ from the estimates.

3. REVENUE RECOGNITION:

Revenue on sales is recognised on despatch of goods from the factory. In respect of consignment sales, revenue is recognised at the time of receipt of confirmation of sale from the Consignee.

4. A) FIXED ASSETS:

Fixed assets are stated at cost of acquisition or construction including all the acquisition and installation related expenses. Individual assets costing less than Rs. 5000 are depreciated at the rate of 100%.

B) DEPRECIATION:

Depreciation is provided on straight line method, at the rates and manner prescribed under schedule XIV of the Companies Act, 1956.

5. INVENTORIES:

Raw materials, Consumable stores and spares are valued at lower of cost or market value after providing for obsolescence and depletion in value wherever applicable. However, finished goods are valued at market value.

6. RETIREMENT BENEFITS:

a) Contribution to PF/EPF are accounted on accrual basis.

b) Gratuity and leave encashment are accounted on cash basis.

7. FOREIGN CURRENCYTRANSACTION:

Transactions in foreign currencies are recorded at the exchange rat&prevailing on the date of the transaction. Foreign currency monetary assets and liabilities are translated at year end exchange rates. The exchange difference arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise, except in case of the liabilities for the acquisition of fixed assets, where such exchange difference is adjusted in the carrying cost of fixed assets. :<

8. INVESTMENT:

I Long term investments are stated at cost, less provisions for other than temporary diminution in value. Current investments comprising investments in mutual fund and shares are stated at the tower of cost and market value, determined on portfolio basis.

9. TAXE5QN INCOME:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961. !

Deferred Tax expense or benefit 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. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax asset in respect unabsorbed depreciation and carry forward of losses are recognized only to the I extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

10. IMPAIRMENT OF ASSETS:

As at each Balance Sheet date, the company reviews the carrying amount of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is higher of an assets net selling price and value in use. Reversal of impairment of loss is recognized immediately as income in the profit and loss account.

 
Subscribe now to get personal finance updates in your inbox!