Accounting Policies of Raj Irrigation Pipes & Fittings Ltd. Company

Mar 31, 2014

A) Method of Accounting

a) The financial statements are prepared on the historical cost convention and in accordance with the generally accepted accounting principles.

b) The company follows the accrual system of accounting except where otherwise stated.

B) Fixed Assets

a) Fixed Assets are stated at actual cost, inclusive of freight, installation cost, duties, taxes and other incidental expenses but net of CENVAT.

b) Depreciation is provided on a Straight Line method at rates prescribed by Schedule XIV to the Companies Act,1956.

C) Investment

Long term investments are valued at cost. Current investments are valued at lower of Cost or market price.

D) Revenue Recognition

a) Income & Expenditure items are recognised on accrual basis.

b) Sales would include sale of finished goods, semi-finished goods and scrap inclusive of excise duty and sales tax.

E) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, under the applicable tax rates and tax laws.

ii) Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystalise.

F) Impairment

The carrying amounts of the assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any indication exists, the asset recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

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Sep 30, 2012

A) Method of Accounting

a) The financial statements are prepared on the historical cost convention and in accordance with the generally accepted accounting principles.

b) The company follows the accrual system of accounting except where otherwise stated.

B) Fixed Assets

a) Fixed Assets are stated at actual cost, inclusive of freight, installation cost, duties, taxes and other incidental expenses but net of CENVAT.

b) Depreciation is provided on a Straight Line method at rates prescribed by Schedule XIV to the Companies Act, 1956.

C) Investment

Long term investments are valued at cost. Current investments are valued at lower of Cost or market price.

D) Revenue Recognition

a) Income &. Expenditure items are recognized on accrual basis.

b) Sales would include sale of finished goods, semi-finished goods and scrap inclusive of excise duty and sales tax. - -

E) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, under the applicable tax rates and tax laws. ii) Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

F) Impairment

The carrying amounts of the assets are reviewed at each balance sheet date to determine whether there is any Indication of impairment. If any indication exists, the asset recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount,

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Sep 30, 2011

A) Method of Accounting

a) The financial statements are prepared on the historical cost convention and in accordance with the generally accepted accounting principles.

b) The company follows the accrual system of accounting except where otherwise stated.

B) Fixed Assets

a) Fixed Assets are stated at actual cost, inclusive of freight, installation cost, duties, taxes and other incidental expenses but net of CENVAT.

b) Depreciation is provided on a Straight Line method at rates prescribed by Schedule XIV to the Companies Act,1956.

C) Investment

Long term investments are valued at cost. Current investments are valued at lower of Cost or market price.

D) Revenue Recognition

a) Income & Expenditure items are recognized on accrual basis.

b) Sales would include sale of finished goods, semi-finished goods and scrap inclusive of excise duty and sales tax.

E) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, under the applicable tax rates and tax laws.

ii) Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

F) Impairment

The carrying amounts of the assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any indication exists, the asset recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

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Sep 30, 2010

A) Method of Accounting

a) The financial statements are prepared on the historical cost convention and in accordance with the generally accepted accounting principles.

b) The company follows the accrual system of accounting except where otherwise stated.

B) Fixed Assets

a) Fixed Assets are stated at actual cost, inclusive of freight, installation cost, duties, taxes and other incidental expenses but net of CENVAT.

b) Depreciation is provided on a Straight Line method at rates prescribed by Schedule XIV to the Companies Act,1956.

C) Investment

Long term investments are valued at cost. Current investments are valued at lower of Cost or market price.

D) Revenue Recognition

a) Income & Expenditure items are recognised on accrual basis.

b) Sales would include sale of finished goods, semi-finished goods and scrap inclusive of excise duty and sales tax.

E) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, under the applicable tax rates and tax laws.

ii) Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystalise.

F) Impairment

The carrying amounts of the assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any indication exists, the asset recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

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Sep 30, 2009

A) Method of Accounting

a) The financial statements are prepared on the historical cost convention and in accordance with the generally accepted accounting principles.

b) The company follows the accrual system of accounting except where otherwise state.

B) Fixed Assets

a) Fixed Assets are stated at actual cost, inclusive of freight, installation cost, duties, taxes and other incidental expenses but net of CENVAT.

b) Depreciation is provided on a Straight Line method at rates prescribed by Schedule XIV to the Companies Act,1956.

c) Investment

Long term investments are valued at cost. Current investments are valued at lower of Cost or market price.

d) Revenue Recognition

a) Income & Expenditure items are recognised on accrual basis.

b) Sales would include sale of finished goods, semi-finished goods and scrap inclusive of excise duty and sales tax.

E) Taxes on Income

i) Current tax is measured at the amount expected to be paid to the taxation authorities, under the applicable tax rates and tax laws.

ii) Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystalise.

F) Impairment

The carrying amounts of the assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any indication exists, the asset recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.