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Accounting Policies of Presha Metallurgical Ltd. Company

Mar 31, 2015

1 The Accounts are prepared on an accrual basis except otherwise stated and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

(A) SYSTEM OF ACCOUNTING: The Company has adopted the accrual basis of accounting in the Preparation of the books of accounts.

(B) REVENUE RECOGNITION: All incomes are accounted for on accrual basis.

(C) EXPENSES: It is Company's policy to account for expenses on accrual basis.

(D) TAXATION: Provision for current tax is not made in the absence of taxable profits during the year as per the applicable provisions of the Income Tax Act, 1961. Deferred Tax Liability/Assets have not arisen during the year.

(E) INVENTORIES: The Company does not have inventories.

(F) FIXED ASSETS: Fixed assets are carried at cost less depreciation. Capital work- In- progress is carried at direct cost subject to loading of indirect/incidental cost at the time of capitalization

(G) INVESTMENTS: Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary in the opinion of the management.

(H) RETIREMENT BENEFITS: Provisions of Gratuity are not applicable, as none of the employee has put qualifying service for the same.

(I) MISCELLANEOUS EXPENDITURE: Preliminary Expenses are amortized over 5 years.

(J) PROVISIONS AND CONTINGENT LIABILITIES: Provisions are recognized when the Company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.


Mar 31, 2014

(1) The Accounts are prepared on an accrual basis except otherwise stated and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

(A) SYSTEM OF ACCOUNTING: The Company has adopted the accrual basis of accounting in the Preparation of the books of accounts.

(B) REVENUE RECOGNITION: All incomes are accounted for on accrual basis.

(C) EXPENSES: It is Company''s policy to account for expenses on accrual basis.

(D) TAXATION: Provision for current tax is not made in the absence of taxable profits during the year as per the applicable provisions of the Income Tax Act, 1961. Deferred Tax Liability/Assets have not arisen during the year.

(E) INVENTORIES: The Company does not have inventories.

(F) FIXED ASSETS: Fixed assets are carried at cost less depreciation. Capital work-in- progress is carried at direct cost subject to loading of indirect/incidental cost at the time of capitalization.

(G) INVESTMENTS: Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary in the opinion of the management.

(H) RETIREMENT BENEFITS: Provisions of Gratuity are not applicable, as none of the employee has put qualifying service for the same.

(I) MISCELLANEOUS EXPENDITURE: Preliminary Expenses are amortized over 5 years.


Mar 31, 2012

(A) SYSTEM OF ACCOUNTING: The Company has adopted the accrual basis of accounting in the Preparation of the books of accounts.

(B) REVENUE RECOGNITION: All incomes are accounted for on accrual basis.

(C) EXPENSES: It is Company's policy to account for expenses on accrual basis.

(D) TAXATION: Provision for current tax is not made in the absence of taxable profits during the year as per the applicable provisions of the Income Tax Act, 1961. Deferred Tax Liability/Assets have not arisen during the year.

(E) INVENTORIES: The Company does not have inventories.

(F) FIXED ASSETS: Fixed assets are carried at cost less depreciation. Capital work-in- progress is carried at direct cost subject to loading of indirect/incidental cost at the time of capitalization.

(G) INVESTMENTS: Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary in the opinion of the management.

(H) RETIREMENT BENEFITS: Provisions of Gratuity are not applicable, as none of the employee has put qualifying service for the same.

(I) MISCELLANEOUS EXPENDITURE: Preliminary Expenses are amortized over 5 years.


Mar 31, 2010

1. Basis Of Accounting:

i. The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles in India, the applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

ii. All income & expenditure items having material bearing on the financial statements are recognized on accrual basis except material uncertainty.

2. Fixed assets:

To state Fixed Assets at cost of acquisition inclusive of inward freight duties and taxes and incidental expenses related to acquisition. The Company follows the SLM method of depreciation as provided under the Companies Act, 1956. As the Company is having only land as fixed assets, there is no need to provide the depreciation.

3. Preliminary Expenses And Share Issue Expenses:

Preliminary Expenses and Share Issue Expenses will be written-off in equal installment over period of ten years.

4. Valuation Of Inventory:

Stocks of Raw Material valued at fixed cost.

5. Contingent Liability:

Contingent liability is provided on the basis demand made upon the Company.

6. Investments:

Investments are valued at the acquisition cost and include brokerage and other expenses on purchase.

7. Deferred Tax:

No provision made.

8. Related Party Disclosures:

As per Accounting Standard 18 as issued by ICAI, there is no transaction of any related party.

 
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