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Accounting Policies of Provogue (India) Ltd. Company

Mar 31, 2014

A. Revenue Recognition:

i) Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

ii) Revenue in respect of export sales is recognised on shipment of products.

iii) Interest is recognised on a time proportion basis taking in to account the amount outstanding and the rate applicable.

iv) Dividend income is recognised when the right to receive payment is established.

b. Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

c. Fixed Assets:

i. Fixed Assets are stated at cost less accumulated depreciation and impairments loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for intended use. Indirect preoperative expenses and borrowing costs attributable to construction or acquisition of Fixed Assets for the period up to the completion of construction or acquisition of Fixed Assets are capitalised.

ii. Intangible fixed assets are recognised only if they are separately identifiable and the Company controls the future economic benefits arising out of them. Intangible assets are stated at cost less accumulated amortisation and impairment.

d. Impairment of Fixed Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

e. Operating Lease

Operating Lease payments are recognised as an expense in the statement of Profit & Loss on a straight-line basis or other systematic basis more representative of the time pattern of the user''s benefit.

f. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Profit and Loss Account.

g. Depreciation:

a) Tangible Assets

i) Depreciation on all Fixed Assets, except Furniture and Fixtures at Studios, is provided on ''Written Down Value Method'' at the rates and in the manner prescribed in the Schedule

XIV of the Companies Act, 1956.

ii) Depreciation on Furniture and Fixtures at Studios is amortized equally over a period of six years from the date of capitalisation.

iii) Fixed assets acquired on lease basis are amortised over the period of the lease term.

b) Intangible Assets

i) Trade Mark is amortised on Straight Line Method over a period of ten years.

ii) Computer Software is amortised on Straight Line Method over a period of five years.

iii) Goodwill is amortised on Straight Line Method over a period of five years

h. Investments:

Investments that is intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair market value whichever is lower.

i. Miscellaneous Expenditure:

i) Preliminary expenses are amortised in the year in which they are incurred.

ii) Expenses on preferential issue of shares/warrants are written off against the securities premium received.

j. Inventories:

Inventories are valued as follows:

(a) Finished Goods are valued at lower of cost or net realisable value. *

(b) Work-in-Process are valued at lower of cost or net realisable value. *

(c) Raw Materials are valued at lower of cost or net realisable value. **

(d) Accessories and Packing Materials are valued at lower of cost or net realisable value.

* Cost is arrived at on full absorption basis as per Accounting Standard - 2 "Valuation of Inventories. ** Cost is arrived at on weighted average cost method.

k. Employee Benefits:

i) Company''s contribution to Provident Fund and other Funds for the year is accounted on accrual basis and charged to the Profit & Loss Account for the year.

ii) Liability for leave encashment benefits has been provided on accrual basis.

iii) Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

l. Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

m. Foreign Currency Transactions:

i) The transactions in foreign currencies on revenue accounts are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange, prevailing on the date of transaction and the date of realisation is charged to the Profit & Loss Account.

iii) Non-monetary items are reported at the exchange rate at the date of transaction.

iv) Differences on translation of Current Assets and Current Liabilities remaining unsettled at the year-end are recognised in the Profit and Loss Account.

v) The premium in respect of forward exchange contract is amortised over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognised in the Profit & Loss Account.

n. Accounting for Taxation of Income :

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future. Deferred tax assets are reviewed as at each Balance Sheet date.

o. Earnings Per Share

The Company reports basic and diluted Earnings Per Share (EPS) in accordance with the Accounting Standard 20 on Earning Per Share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

p. Cash and Cash Equivalents(for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances(with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.


Mar 31, 2012

A. Revenue Recognition:

i) Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

ii) Revenue in respect of export sales is recognised on shipment of products.

iii) Interest is recognised on a time proportion basis taking in to account the amount outstanding and the rate applicable.

iv) dividend income is recognised when the right to receive payment is established.

b. Fixed Assets:

Fixed Assets are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

c. Impairment of Fixed Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

d. Depreciation:

a) Tangible Assets

i) depreciation on all Fixed Assets, except Furniture and Fixtures at Studios, is provided on 'Written down Value Method' at the rates and in the manner prescribed in the Schedule xIV of the Companies Act, 1956.

ii) depreciation on Furniture and Fixtures at Studios is amortized equally over a period of six years from the date of capitalisation.

iii) Fixed assets acquired on lease basis are amortised over the period of the lease term.

b) Intangible Assets

i) Trade Mark is amortised on Straight Line Method over a period of ten years.

ii) Computer Software is amortised on Straight Line Method over a period of five years.

e. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Profit and Loss Account.

f. Inventories:

Inventories are valued as follows:

i) Finished Goods are valued at lower of cost or net realisable value. *

ii) Work-in-Process are valued at lower of cost or net realisable value. *

iii) Raw Materials are valued at lower of cost or net realisable value. **

iv) Accessories and Packing Materials are valued at lower of cost or net realisable value.

v) Publicity Materials are valued at cost.

* Cost is arrived at on full absorption basis as per Accounting Standard-2 "Valuation of Inventories. ** Cost is arrived at on weighted average cost method.

g. Investments:

Investments that is intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair market value whichever is lower.

h. Miscellaneous Expenditure:

i) Preliminary expenses are amortised in the year in which they are incurred.

ii) expenses on preferential issue of shares/warrants are written off against the securities premium received.

i. Employee Benefits:

i) Company's contribution to Provident Fund and other Funds for the year is accounted on accrual basis and charged to the Profit & Loss Account for the year.

ii) Liability for leave encashment benefits has been provided on accrual basis.

iii) Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

j. Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

k. Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/materialize.

l. Foreign Currency Transactions:

i) The transactions in foreign currencies on revenue accounts are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange, prevailing on the date of transaction and the date of realisation is charged to the Profit & Loss Account.

iii) Non monetary foreign currency items are carried at cost.

iv) Differences on translation of Current Assets and Current Liabilities remaining unsettled at the year-end are recognised in the Profit and Loss Account.

v) The premium in respect of forward exchange contract is amortised over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognised in the Profit & Loss Account.

m. Accounting for Taxation of Income :

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.


Mar 31, 2011

1. Basis Of Accounting :

i) The Financial Statements have been prepared in compliance with the Accounting Standards notified by Companies (Accounting Standard) Rules 2006 and the relevant provisions of the Companies Act, 1956 in all material aspects.

ii) Financial Statements are based on historical cost convention and are prepared on accrual basis

2. Revenue Recognition:

i) Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

ii) Revenue in respect of export sales is recognised on shipment of products.

iii) Interest is recognised on a time proportion basis taking in to account the amount outstanding and the rate applicable.

iv) Dividend income is recognised when the right to receive payment is established.

3. Fixed Assets:

Fixed Assets are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4. Impairment of Fixed Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

5. Depreciation:

a) Tangible Assets

i. Depreciation on all Fixed Assets, except Furniture and Fixtures at Studios, is provided on 'Writ- ten Down Value Method' at the rates and in the manner prescribed in the Schedule XIV of the Companies Act, 1956.

ii. Depreciation on Furniture and Fixtures at Studios is amortized equally over a period of six years from the date of capitalisation.

iii. Fixed assets acquired on lease basis are amortised over the period of the lease term.

b) Intangible Assets

Trade Mark is amortised on Straight Line Method over a period of ten years.

6. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capital- ised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Profit and Loss Account.

7. Inventories:

Inventories are valued as follows:

i) Finished Goods are valued at lower of cost or net realisable value. *

ii) Work-in-Process are valued at lower of cost or net realisable value. *

iii) Raw Materials are valued at lower of cost or net realisable value. **

iv) Accessories and Packing Materials are valued at lower of cost or net realisable value.

* Cost is arrived at on full absorption basis as per Accounting Standard - 2 "Valuation of Inventories.

** Cost is arrived at on weighted average cost method.

8. Investments:

Investments that is intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair market value whichever is lower.

9. Miscellaneous Expenditure:

i) Preliminary expenses are amortized in the year in which they are incurred.

ii) Expenses on preferential issue of shares/warrants are written off against the securities premium received.

10. Employee Benefits:

i) Company's contribution to Provident Fund and other Funds for the year is accounted on accrual basis and charged to the Profit & Loss Account for the year.

ii) Liability for leave encashment benefits has been provided on accrual basis.

iii) Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

11. Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

12. Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and li- abilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

13. Foreign Currency Transactions:

i) The transactions in foreign currencies on revenue accounts are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange, prevailing on the date of transaction and the date of realization is charged to the Profit & Loss Account.

iii) Non monetary foreign currency items are carried at cost.

iv) Differences on translation of Current Assets and Current Liabilities remaining unsettled at the year- end are recognized in the Profit and Loss Account.

v) The premium in respect of forward exchange contract is amortized over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognized in the Profit & Loss Account.

14. Accounting for Taxation of Income :

Current Taxes:

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes:

Deferred tax assets resulting from "timing difference" between taxable and accounting income is ac- counted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.




Mar 31, 2010

1. Basis of Accounting:

i) The Financial Statements have been prepared in compliance with the Accounting Standards notified by Companies (Accounting Standard) Rules 2006 and the relevant provisions of the Companies Act, 1956 in all material aspects

ii) Financial Statement sare base donhi storical cost convention and areprepared on accrualbasis

2. Revenue Recognition:

i) Revenue is recognized whenit iseamed and nosignificant uncertainty existsast oitsrealization or collection. ii) Revenue in respect of export sales is recognised on shipmen to of products.

iii) Interest is recognised ona time proportion basista king in to account the a moun toutstanding and the rateapplicable. iv) Dividend income is recognised when the right to receive payment is established.

3. Fixed Assets:

Fixed Assets are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4. Impairment of Fixed Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

5. Depreciation:

a) Tangible Assets

i) Depreciation on all Fixed Assets, except Furniture and Fixtures at Studios, is provided on Written Down Value Method at the rates and in the manner prescribed in the Schedule XIV of the Companies Act, 1956.

ii) Depreciation on Furniture and Fixtures at Studiosisamortized equally over aperiod of six years from the date of capitalisation.

iii) Fixed assets acquired on lease basis are amortised over theperiodoftheleaseterm.

b) Intangible Assets

i) Trade MarkisamortisedonStraightLineMethodoveraperiodoftenyears

6. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Profitand Loss Account.

7. Inventories:

Inventories are valued as follows:

i) Finished Goods are valued at lower of cost or net realisable value.*

ii) Work-in-Process are value datlower of cost or net realisable value.*

iii) RawMaterials arevaluedatlowerofcostornetrealisablevalue.**

iv) Accessories and Packing Material sarevaluedatlowerofcostornetrealisablevalue.

v) Publicity Materials arevalued at cost.

*Cost is arrived atonfullabsorption basis as per Accounting Standard-2 "Valuation of Inventories.

** Cost isarrivedaton weighted average cost method.

8. Investments:

Investments that is intended to be held for more than a year from the date of acquisition are classified as long term investmentsandarecarriedat cost lessanyprovisionforpermanentdiminutioninvalue.lnvestmentsotherthan long term investments being currentinvestments are valued at costorfairmarketvaluewhicheveris lower

9. Miscellaneous Expenditure:

i) Preliminary expenses are amortised in the year in which theyareincurred.

ii) Expenses on preferential issue of shares/warrants are written off against the securities premium received.

10. Employee Benefits:

i) Companys contribution to Provident Fund and other Funds for the year is accounted on accrual basis and chargedtotheProfit&LossAccountfortheyear.

ii) Liability for leave encashment benefits has been provided on accrual basis.

iii) Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basisoftheactuarialvaluation,usingtheprojectedunit credit method asatthedateofthe Balance Sheet.

11. Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requiresanoutflowofresour cesandareliableestimatecanbemadeoftheamountoftheobligaion.Adisclosurefor a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision ordisclosure is made.

12. Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

13. Foreign Currency Transactions:

i) The transactions in foreign currencies on revenue accounts are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange, prevailing on the date of transaction and the date of realisation is charged to the Profit & Loss Account.

iii) Non monetary foreign currency items are carried at cost

iv) Differences on translation of Current Assets and Current Liabilities remaining unsettled at the year-end are recognised in the Profit and Loss Account.

v) The premium in respect of forward exchange contract is amortised over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognised in the Profit & Loss Account.

14. Accounting forTaxation of Income:

CurrentTaxes

Provision for current income-tax is recognized in accordance with the provisionsof Indian Income- taxAct, 1961 and is made annually based on the tax liability after ]taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

 
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