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Accounting Policies of Pil Italica Lifestyle Ltd. Company

Mar 31, 2015

A) Use of Estimates

The Preparation of Financial Statements require estimates and assumption to be made that affect the reported amount of assets and liabilities on the date to the financial statements and the reported amount of revenues and expense during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialised.

b) Tangible fixed assets

Tangible Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. All cost, including financing costs till commencement of production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations relating to specific borrowings attributable to the fixed assets are capitalised.

C) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

d) Depreciation and amortization :

Depreciable amount for assets is the cost of an assets , or other amount substituted for cost , less its estimated residual value. Depreciation on tangible fixed assets has been provided on the straight line method as per useful life prescribed in schedule II to the Companies Act,2013.

Intangible assets are amortized over its expected useful life on straight line method.

e) Investment

Current investments are carried at lower of cost and quoted /fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term is made only if such a decline is other than temporary.

f) Excise duty /Service Tax

a. The excise duty payable on stock of finished goods not cleared from the excise bonded warehouse is included in expenses and in the value of such stocks.

b. Credit of the 'CENVAT availed is adjusted towards the cost of raw material and fixed assets.

c. The Central Excise Duty related to finished goods cleared during the year is deducted from sales value.

d. Credit of service Tax is adjusted towards the cost of service.

g) Provision for current and deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act.1961, Deferred tax resulting from "timing difference: between taxable and accounting income is accounted for using the tax rates and laws that are enacted.

h) Inventories

a) The valuation is on the basis of F IFO method.

b) Raw Materials, Stores and Spare Parts, Colors and Pigments etc. and Stock in transit are valued at cost.

c) Finished Goods and Work-in-Process are valued at estimated cost or net realizable value whichever is lower.

d) Scrap is valued at net realizable value.

I) Employee Retirement Benefits

I. Gratuity is accounted for on actuarial valuation basis.

II. Company's contribution to Provident Fund etc. during the year are charged to the Profit and Loss Statement.

III. Benefits in terms of accumulated leaves and gratuity are accounted for on actuarial basis.

j) Foreign Exchange Transaction

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

b) (i) Foreign Currency transactions remaining unsettled at the end of the year are translated at the contracted rates,when covered by foreign exchange contracts and at year end rates in all other cases.

(ii) Gains and losses on foreign exchange transaction/ translation other than those relating to fixed assets are recognized to the respective accounts in the Profit and Loss Statement Gain or loss on transaction of the long term liabilities incurred to acquire fixed assets is related as an adjustments to the carrying cost of such fixed assets.

k) Sales

Sales are accounted for taking into consideration the basic price as well as Central Excise Duty but excluding Sales Tax/VAT.

l) Expenses

Material known liabilities except interest on borrowings are provided for on the basis of available information's/estimates and liabilities not provided are given in the Balance Sheet by way of note.




Mar 31, 2013

A) Basis of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

B) Use of Estimates

The Preparation of Financial Statements require estimates and assumption to be made that affect the reported amount of assets and liabilities on the date to the financial statement s and the reported amount of revenues and expense during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialised .

C) Fixed Assets and Depreciation

a) Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. All cost, including financing costs till commencement of production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations relating to specific borrowings attributable to the fixed assets are capitalised.

b) Depreciation : The Company is providing depreciation on fixed assets on the fixed straight line method in the manner laid down in schedule XIV to the Companies Act,1956 .

D) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

E) Investment

Current investments are carried at lower of cost and quoted /fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term is made only if such a decline is other than temporary.

F) Excise duty /Service Tax

a. The excise duty payable on stock of finished goods not cleared from the excise bonded warehouse is included in expenses and in the value of such stocks.

b. Credit of the ''CENVAT'' availed is adjusted towards the cost of raw material and fixed assets.

c. The Central Excise Duty related io finished goods cleared during the year is deducted from sales value.

d. Credit of service Tax is adjusted towards the cost of service. G) Provision for current and deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act.1961. Deferred tax resulting from "timing difference: between taxable and accounting income is accounted for using the tax rates and laws that are enacted or

H) Inventories

a) The valuation is on the basis of F I F O method.

b) Raw Materials, Stores and Spare Parts, Colors and Pigments etc. and Stock in transit are valued at cost.

c) Finished Goods and Work-in-Process are valued at estimated cost or net realizable value whichever is lower. ''

d) Scrap is valued at net realizable value. I) Employee Retirement Benefits

I. Gratuity is accounted for on actuarial valuation basis.

II. Company''s contribution to Provident Fund etc. during the year are charged to the Profit and Loss Statement.

III. Benefits in terms of accumulated leaves and gratuity are accounted for on actuarial basis.

J) Foreign Exchange Transaction

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

b) (i) Foreign Currency transactions remaining unsettled at the end of

the year are translated at the contracted rates, when covered by foreign exchange contracts and at year end rates in all other cases.

(ii) Gains and losses on foreign exchange transaction/translation other than those relating to fixed assets are recognized to the respective accounts in the Profit and Loss Statement . Gain or loss on transaction of the long term liabilities incurred to acquire fixed assets is related as an adjustments to the carrying cost of such fixed assets. K) Sales

Sales are accounted for taking into consideration the basic price as well as Central Excise Duty but excluding Sales Tax/VAT.

L) Expenses

Material known liabilities except interest on borrowings are provided for on the basis of available information''s/estimates and liabilities not provided are given in the Balance Sheet by way of note.


Mar 31, 2011

A) Basis of Preparation of Financial Statements

a) The financial statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

b) Accounting policies not specifically referred to other wise are consistent with generally accepted accounting principles followed by the Company.

B) Fixed Assets and Depreciation

a) Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. All cost, including financing costs till commencement of production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations relating-to specific borrowings attributable to the fixed assets are capitalised.

b) Depreciation : The Company is providing depreciation on fixed assets on the fixed straight line method in the manner laid down in schedule XIV to the Companies Act, 1956.

C) Inventories

a) The valuation is on the basis of F I F O method.

b) Raw Materials, Stores and Spare Parts, Colours and Pigments etc. and Stock in transit are valued at cost.

c) Finished Goods and Work-in-Process are valued at estimated cost or net realisable value whichever is lower.

d) Scrap is valued at net realisable value.

e) Traded goods are valued at cost.

D) Excise Duty

a) The excise duty payable on stock of finished goods not cleared from the excise bonded warehouse is included in expenses and in the value of such stocks.

b) Credit Of the "CENVAT availed is adjusted towards the cost of raw material and fixed assets.

c) The Central Excise Duty related to finished goods cleared during the year is deducted from sales value.

E) Employee Retirement Benefits

i) Gratuity is accounted for on acturial valuation basis.

it) Company"s contribution to Provident Fund etc. during the year are charged to the Profit and Loss Account.

ii) Benefits in terms of accumulated leaves and gratuity are accounted for on accrual basis.

F) Foreign Exchange Transaction

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

b) i) Foreign Currency transactions remaining unsettled at the end of the year are translated at the contracted rates, when covered by foreign exchange contracts and at year end rates in all other cases.

ii) Gains and losses on foreign exchange transaction/translation other than those relating to fixed assets are recognised to the respective accounts in the Profit and Loss Account. Gain or loss on transaction of the long term liabilities incurred to acquire fixed assets is related as an adjustments to the carrying cost of such fixed assets.

G) Sales

Sales are accounted for taking into consideration the-basic price as well as Central Excise Duty but excluding Sales Tax/vat.

H) Expenses

Material known liabilities except interest on borrowings are providecMor on the basis of available informations/estimates and liabilities not provided are given in the Balance Sheet by way of note.

 
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