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Accounting Policies of Pratik Panels Ltd. Company

Mar 31, 2014

01). Accounting Assumptions

The financial statements are prepared under the historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 1956 and the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 (Indian GAAP), as adopted consistently by the Company.

02) . Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates and any revision to such accounting estimates is recognised prospectively in the period In which the results are ascertained.

03) .Basis of Accounting

a). Fixed Assets

Fixed Assets are valued at cost less Accumulated depreciation . All Cost including financial Cost till commencement of Commercial production , Pre-operative expenses etc .attributable the fixed Assets are capitalized.

b). Depreciation

Depreciation on fixed assets is not provided during the year. c). Inventories

c). Inventories

Inventories are valued at cost except for finished goods and scrap. Finished goods are valued at lower of cost or net realizable value and scrap are valued at estimated realizable value

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and there is no any uncertainties exists regarding the determination of the amount ,or its associated cost and it would not be unreasonable to expect ultimate collection

e). Prior Period Adjustments

Expenses/lncome pertaining to previous years are booked in the current year under the natural heads of Accounts and its shown separately in the books of accounts.

f). Retirement and other employee benefits:

Retirement benefits in the form of Provident Fund are a defined contribution Scheme, the contributions are charged to the Profit & Loss Account of the year, when the contributions to the respective funds are due. Gratuity fund are administered through a scheme with life insurance corporation of India

g). Foreign Currency Transactions

Transactions in foreign currency are accounted for at the exchange rates prevailing at the time of transaction. However, in case of transactions taking place through bank accounts maintained in foreign currency, the same are recorded at notional rates. Balances in such foreign currency accounts at the year end are converted at the prevailing exchange rates. Current assets and liabilities at the year end are restated at the prevailing exchange rates and the difference between the year end and the actual/notional rates is recognized as income or expense in the Accounts.

h) Borrowing Costs

Borrowing costs attributable to acquisition / construction of qualifying assets are capitalized with the respective assets till the date of commercial use of the assets and other borrowing costs are charged to the Profit and Loss Account.

i) Provisions and Contingent Liabilities Provision

The Company recognizes a provision when there is a present obligation as a result of past event that may probably require an outflow of resources in future. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

i). Provision for Taxation

Provision for Income Tax has not been made as the company has incurred loss during the year

k). Deferred Tax Asset/Liabilitv Refer Note No-5

I). Earninqs per Share

Basic EPS

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average numbers of equity shares outstanding during the year.

Diluted EPS

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

m) Impairment of Assets

The carrying of the assets is reviewed at each balance sheet that if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset net selling price and value in use. In assessing value in use, the Estimated future cash flows are discounted to their present value at the weighted average Cost of capital.

n). Previous year''s figures have been rearranged and regrouped wherever necessary so as to make them comparable with those of the current year.


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 the generally accepted accounting principal and the provision of the Company Act, 1956 as adopted consistently by the Company.

b. The Company generally follows mercantile system of accounting and recognizes significant items of income & expenditure on accrual basis.

c. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

d. The Company has provided for all know committed liabilities / income. However small items of expenditure / income which are not material have not been provided for as they are accounted at the time of actual payment.

B. Fixed Assets and Depreciation

a. Fixed Assets are stated at cost, less accumulated depreciation. All cost, including financial cost till commencement of commercial production, pre-operative expenses etc. attribute the fixed assets are capitalized.

b. Depreciation on fixed assets is provided on written down value method at the rate and in the manner prescribed in the Income Tax Act, 1961 as detailed in Schedule -E.

C. Foreign Exchange Transaction

a. Foreign Currencies transactions are normally recorded at the exchange rate prevailing at time of the transaction.

b. Foreign currency transactions remaining unsettled at the end of the year translated at contracted rates.

c. Exchanged differences between the rates applicable at the date of transaction and the rate actually materialized have been included in the respective revenue and expenses account.

D. Inventories

Inventories are valued at cost except for finished goods and scrap. Finished Goods are value at lower of cost or net realizable value and scrap are valued at estimated realizable value.

E. Sales

Sales are exclusive of Excise and Sales Tax collected, and net of discount and rebates.

F. Excise Duty

Excise Duty liability on Finished Goods is accounted for as and when good are cleared from the factory.

G. Employees Retirement Benefits

1. Company's Contribution to Provident fund is charged to Profit and Loss Account.

2. Gratuity Fund are administered through a scheme with Life Insurance Corporation of India.


Mar 31, 2010

A Basis of preparation of Financial Statements

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

b. The Company generally follows mercantile system of accounting and recognizes significant items of income & expenditure on accrual basis.

c. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

d. The Company has provided for all know committed liabilities / income. However small items of expenditure / income which are not material have not been provided for as they are accounted at the time of actual payment.

B. Fixed Assets and Depreciation

a. Fixed Assets are stated at cost, less accumulated depreciation. All cost, including financial cost till commencement of commercial production, pre-operative expenses etc. attribute the fixed assets are capitalized.

b. Depreciation on fixed assets is provided on written down value method at the rate and in the manner prescribed in the Income Tax Act, 1961 as detailed in Schedule -E.

C. Foreign Exchange Transaction

a. Foreign Currencies transactions are normally recorded at the exchange rate prevailing at time of the transaction.

b. Foreign currency transactions remaining unsettled at the end of the year translated at contracted rates.

c. Exchanged differences between the rates applicable at the date of transaction and the rate actually materialized have been included in the respective revenue and expenses account

D. Inventories

Inventories are valued at cost except for finished goods and scrap. Finished Goods are value at lower of cost or net realizable value and scrap are valued at estimated realizable value.

E. Sales

Sales are exclusive of Excise and Sales Tax collected, and net of discount and rebates.

F. Excise Duty

Excise Duty liability on Finished Goods is accounted for as and when good are cleared from the factory.

G. Employees Retirement Benefits

1. Companys Contribution to Provident fund is charged to Profit and Loss Account.

2. Gratuity Fund are administered through a scheme with Life Insurance Corporation of India.

 
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