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Accounting Policies of Punit Commercials Ltd. Company

Mar 31, 2015

ACCOUNTING CONCEPTS:

The Company follows mercantile system or accounting and recognises income and expenses on accrual basis.

FIXED ASSETS:

Fixed Assets an recorded at cost of acquisition including the expenditure incurred in connection with the acquisition and installation ofthe assets.

DEPRECIATION:

Depreciation is provided on straight line method in accordance with the rates and in the manner provided in the Schedule U to the Companies Act, 2013.

INVESTMENTS:

AH the investments are long term investments and are stated at cost.

BORROWING COSTS:

Borrowing costs that are attributable to the acquisition or construction or qualifying assets, the assets that take substantial period of time to get ready for intended use, are capitalised as part of the cost of such assets.

INTANGIBLE ASSET:

Intangible Assets are stated at cost of acquisition Less accumulated amortization.

REVENUE RECOGNITION:

Service Receipts are recognized on completion of provision of services and are recorded inclusive of all the relevant taxes and duties. The same is recognized as income on completion of transaction and at the time of performance it is not unreasonable to expect ultimate collection. Other revenue items are recognized as income on their accrual basis.

RETIREMENT BENEFITS:

The Company does not have defined employee retirement policy as the employee strength does not exceed the statutory minimum.

IMPAIRMENT OF ASSETS

An asset is heated as impaired when the carrying cost of the Asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The Impairment loss recognized in prior accounting periods is increased / reversed where there has been change in the estimate of recoverable amount The recoverable value it the higher of the net selling price and value in use.

USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with AS-20 "Earnings Per Share". Basic earnings per share are computed by dividing the net profit or loss for the period by the weighted average number of Equity Shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit or loss for the period by the weighted average number of Equity Shares outstanding during the period as adjusted for the effects of all dilutive potential equity shares.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made ofthe amount of the amount or obligations disclosure for the contingent liability is made when there is a possible obligation or a present obligation that may be, but probably will not require outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of resources is remote, no provision or disclosure is needed.

TAXES ON INCOME:

Current tax is determined as the tax payable in respect of taxable income for the year.

Deferred tax for the year is recognized on timing difference, being 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 assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there » a reasonable / virtual certainty of realization.


Mar 31, 2014

ACCOUNTING CONCEPTS:

The Company follows mercantile system of accounting, and recognises income and expenses on accrual basis.

FIXED ASSETS:

Fixed Assets are recorded at cost of acquisition including the expenditure incurred in connection with the acquisition and installation of the assets.

DEPRECIATION:

Depreciation is provided on straight line method in accordance with the rates and in the manner provided in the Schedule XIV to the Companies Act, 1956.

INVESTMENTS:

All the investments are long term investments and are stated at cost.

BORROWING COSTS:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets, the assets that take substantial period of time to get ready for intended use, are capitalised as part of the cost of such assets.

INTANGIBLE ASSET:

Intangible Assets are stated at cost of acquisition less accumulated amortization.

REVENUE RECONGNITION:

Service Receipts are recognized'' on completion of provision of services and are recorded inclusive of all the relevant taxes and duties. The same is recognized as income on completion of transaction and at the time of performance it is not unreasonable to expect ultimate collection. Other revenue items are recognized as income on their accrual basis.

RETIREMENT BENEFITS:

The Company does not have defined employee retirement policy as the employee strength does not exceed the statutory minimum.

IMPAIRMENT OF ASSETS:

An asset is treated as impaired When the carrying cost of the Asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The Impairment loss recognized in prior accounting periods is increased / reversed where there has been change in the estimate of recoverable amount The recoverable . value is the higher of the net selling price and value in use.

USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with AS-20 "Earnings Per Share". Basic earnings per share are computed by dividing the net profit or loss for the period by the weighted average number of Equity Shades outstanding during the period, diluted earnings per share is computed by dividing the net profit or loss for the period by the weighted average number of Eqtiity Shares outstanding during the period as adjusted for the effects of all dilutive potential equity shares.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS The Company creates a provision when there exists 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 amount of obligation disclsure for the contingent liability is made when there is a possible obligation or a present obligation that may be ,but probably will not require outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of resources is remote,no provision or disclosure is needed.

TAXES ON INCOME:

Current tax is determined as the tax payable in respect of taxable income for the year.

Deferred tax for the year is recognized on timing difference, being 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 assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable / virtual certainty of realization.


Mar 31, 2013

ACCOUNTING CONCEPTS:

The Company follows mercantile system of accounting, and recognises income and expenses on accrual basis

FIXED ASSETS:

Fixed Assets are recorded at cost of acquisition including the expenditure incurred in connection with the acquisition and installation of the assets.

DEPRECIATION:

Depreciation is provided on straight hne method in accordance with tin- mtes and in Ihe manner provided in ihe Schedule XIV to Ihe Companies Act. 1956

INVESTMENTS:

All the investments are long term investments and are s''ated at cost

BORROWING COSTS;

Borrowing costs that are attributable to the acquisition or construction of qualifying assets, the assets (hat lake substantial period of time to get ready for intended use, are capitalised as pan of the cost of uch assets

INTANGIBLE ASSET:

Intangible Assets are stated at cost of acquisition less accumulated amortization

REVENUE RECONCNITION:

Service Receipts are recognized on completion of provision of serv,ees and arc recorded inclusive of all the relevant lnxes and duties. The same is recognized r.s income on completion of transaction and at the lime of performance n is tot unreasonable to expect ultimate collection. Other revenue items are recognized as income on their accrual basis

RETIREMENT BENEFITS:

The Company does not have defined employee retirement policy as the employee strength does nut exceeC the itasutor, minimum.

IMPAIRMENT OF ASSETS

An asserts treated as impaired when the carrying cosi of (he Assi''i exceeds ik recoverable value An imnfiirmeni loss ,-. charged to Ihe Profit & I.OSS account in the year in which an assei is iOer lied as impaired I he tmptiirmer.i ms;. recognized in prior accounting periods is increased /reversed where there has been change in ihe estimate of recoieraM.'' amount. The recoverable value is the higher of the net selling price and value in ust

USE OF ESTIMATES

The preparation of financial statements requires management to make estimates jnd assumption that affect the reported amounts of assets and liabilities on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with AS-20 "Earnings Per Share" Basic earnings, per share are computed by dividing the net profil or loss for the period by the weighted average number of Equity Shares outstanding during the period. Dihted earnings per share is computed by dividing the net profit or loss for the period by the weighted average number of Equity Shares outstanding during the period as adjusted for the effects of all dilutive potential equity shares.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and alreliable estimate can he made of the amount of the amount of obligation A disclsure lor the contingent liability is made when there is a possible obligation or a prcseni obligation thai may be but probably will not require outflow of resources. When there is a possible obligation or a present obligation in respect of which tikelihoou of resources is reniole.no provision or disclosure is needed

TAXES ON INCOME:

Current tax is determined as the tax payable in respect of taxable income for the year.

Deferred tax for the year is recognized on timing difference, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred lax assets and liabilities are measured assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable / virtual certainty of realization.


Mar 31, 2012

ACCOUNTING CONCEPTS:

The Company follows mercantile system of accounting, and recognises income and expenses on accrual basis.

FTXEDASSETS:

Fixed Assets are recorded at cost of acquisition including the expenditure incurred in connection with the acquisition and installation of the assets.

DEPRECIATION:

Depreciation is provided on straight line method in accordance with the rates and in the manner provided in the Schedule XIV to the Companies Act, 1956.

INVESTMENTS:

All the investments are long term investments and are stated at cost

BORROWING COSTS:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets, the assets that take substantial period of time to get ready for intended use, are capitalised as part of the cost of such assets.

INTANGIBLE ASSET:

Intangible Assets are stated at cost of acquisition less accumulated amortization.

REVENUE RECONGNITION:

Service Receipts are recognized on completion of provision of services and are recorded inclusive of all the relevant taxes and duties. The same is recognized as income on completion of transaction and at the time of performance it is not unreasonable to expect ultimate collection. Other revenue items are recognized as income on their accrual basis.

RETIREMENT BENEFITS:

The Company does not have defined employee retirement policy as the employee strength does not exceed the statutory minimum.

IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of the Asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The Impairment loss recognized in prior accounting periods is increased / reversed where there has been change in the estimate of recoverable amount The recoverable value is the higher of the net selling price and value in use.

USE OF ESTIMATES

The preparation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities .on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with AS-20 "Earnings Per Share". Basic earnings per share are computed by dividing the net profit or loss for the period by the weighted average number of Equity Shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit or loss for the period by the weighted average number of Equity Shares outstanding during the period as adjusted for the effects of all dilutive potential equity shares.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company creates a provision when there exists 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 amount of obligation disclsure for. the contingent liability is made when there is a possible obligation or a present obligation that may be, but probably with not require outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of resources is remote,no provision or disclosure is needed.

TAXES ON INCOME:

Current tax is determined as the tax payable in respect of taxable income for the year.

Deferred tax for the year is recognized on timing difference, being 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 assuming the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only if there is a reasonable / virtual certainty of realization.


Mar 31, 2010

1) Basis of Accounting: The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. Accounting Policies, not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2) Investments classified as Long-Term and are valued at Cost. Other Investments are valued at Lower of Cost or Market Value.

3) Foreign Currency Transactions :

a) Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions. b) Monetary items denominated in foreign currencies at the year end are translated at the exchange rate prevailing on the last date of the accounting year.

4) Inventories: Raw materials are valued at cost. Finished Goods are valued at net realisable value as certified by the director.

5) Taxation: The current charge for Income Taxes is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax assets and liabilities are recognised for future tax consequences attributable to the timing difference that results between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

6) Sales: Export sales are shown at CIF Value.



 
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