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Accounting Policies of Rajesh Malleables Ltd. Company

Mar 31, 2014

1. ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued in earlier year, in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. SALES

Sale, if applicable is net of cash discount and Special Turnover discount.

3. FIXED ASSETS

a. Fixed Assets are stated at historical cost except as mention as below in Para 3(b).

b. The Compaq had revalued the Land on 31.03.1994 on the basis of the market value as on that date as per an Approved Value. Accordingly, it is stated at revalued amount from 31.03.1994. The resultant increase on account of revaluation had been credited to Revaluation Reserve account.

4. DEPRECIATION

Depreciation has not been provided as the manufacturin6 activity temporarily suspended during year review.

5. INVESTMENTS

Investments being long term are stated at cost.

6. INVENTORIES

The Company is following the policy as provided in AS 2 for the purpose of valuation of its inventories however there are no inventories as on 31st March 2014.

7. RETIREMENT BENEFITS

The Company accounts for the Gratuity on cash basis to maintain consistency in preparation of annual accounts.

8. CENVAT CREDIT

Cenvat Credit of excise duty is accounted on accrual basis on purchase of materials, if applicable.

9. MISCELLANEOUS EXPENDITURE

The Company follows the policy to write off the miscellaneous expenditure over a period 5 years however during the year under review, there is no balance left under the said head.

10. PRIOR PERIOD ADJUSTMENTS

Material items of Prior period expenses/income are disclosed separately, is applicable.

11. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for Current Tax is made after taking into consideration benefits admissible under the provision of the Income-tax Act 1961. Deferred tax is recognized for all timing differences; being the differences between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

12. BORROWING COST

Interests and other costs if applicable in connection with borrowing of funds by the company are recognized as expenses in the period in which they are incurred.

13. CONTINGENT LIABILITIES

The Contingent Liabilities are disclosed by way of notes.


Mar 31, 2013

1. ACCOUNTING CONVENTION :

The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued in earlier year, in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. SALES :

Sale, if applicable is net of cash discount and Special Turnover discount.

3. FIXED ASSETS :

a. Fixed Assets are stated at historical cost except as mention as below in Para 3(b).

b. The Company had revalued the Land on 31.03.1994 on the basis of the market value as on that date as per an Approved Valuer. Accordingly, it is stated at revalued amount from 31.03.1994. The resultant increase on account of revaluation had been credited to Revaluation Reserve account.

4. DEPRECIATION :

Depreciation has not been provided as the manufacturing activity temporarily suspended during year review.

5. INVESTMENTS :

Investments being long term are stated at cost.

6. INVENTORIES :

The Company is following the policy as provided in AS 2 for the purpose of valuation of its inventories however there are no inventories as on 31st March 2013.

7. RETIREMENT BENEFITS :

The Company accounts for the Gratuity on cash basis to maintain consistency in preparation of annual accounts.

8. CENVAT CREDIT :

Cenvat Credit of excise duty is accounted on accrual basis on purchase of materials, if applicable.

9. MISCELLANEOUS EXPENDITURE :

The Company follows the policy to write off the miscellaneous expenditure over a period 5 years however during the year under review, there in no balance left under the said head.

10. PRIOR PERIOD ADJUSTMENTS :

Material items of Prior period expenses/income are disclosed separately, if applicable.

11. PROVISION FOR CURRENT AND DEFERRED TAX :

Provision for Current Tax is made after taking into consideration benefits admissible under the provision of the Income-tax Act 1961. Deferred tax is recognized for all timing differences; being the differences between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

12. BORROWING COST :

Interests and other costs if applicable in connection with borrowing of funds by the company are recognized as expenses in the period in which they are incurred.

13. CONTINGENT LIABILITIES :

The Contingent Liabilities are disclosed by way of notes.


Dec 31, 2010

1. ACCOUNTING CONVENTION

The Accounts are prepared on historical cost basis except for certain fixed assets revalued in earlier year, in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. SALES

Sale is net of cash discount and Special Turnover discount.

3. FIXED ASSETS

(i) Fixed Assets except as stated in (ii) below, are stated at historical cost.

(ii) Land, Factory Building and Plant & Machinery as on 31.03.1994 had been revalued on the basis of their market value as on 31.03.1994 as per revaluation made by an approved valued. Accordingly, they have been stated at revalued amounts. The resultant increase had been credited to Revaluation Reserve.

4. DEPRECIATION

(i) Depreciation on Buildings and Plant & Machinery acquired up to 30th June, 1987 has been calculated on "Straight Line Method" as per provisions of Section 205 (2) (b) of the Companies Act, 1956 read with circular of Central Government dt.10-1-1985 at the increased rates prescribed under the Income Tax Rules w.e.f. 2-4-1987.

(ii) In respect of Buildings, Plant & Machinery acquired after 1st July 1987, depreciation has been provided on "Straight Line Method" at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(iii) Depreciation on all other remaining assets has been provided on "Written Down Value Method" at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(iv) In case of the Buildings and Plant & Machineries revalued, the depreciation on the incremental value has been provided on the basis of residual life of the assets as estimated by the Company's technical personnel and the same is withdrawn from the Revaluation Reserve Account and credited to the Profit & Loss Account.

5. INVESTMENTS

Investments being long term are stated at cost.

6. INVENTORIES

The inventories are valued as under:

1. Stores and Spare Parts and Fuel At Weighted Average cost or net realizable value, whichever is lower.

2. Raw materials At Weighted Average cost or net realizable value whichever slower

3. Finished Goods/Traded Goods At lower of cost or net realizable value. The cost is ascertained on the basis of absorption costing.

4. Process Stock At lower of cost or net realizable value. The Cost is ascertained on the basis of absorption costing.

7. RETIREMENT BENEFITS

Contributions made to the trust in the past, were charged to the Profit & Loss Account. The Company does not have a separate trust for Gratuity Fund since 2001. Thereafter the company has made payment for its accrued liability of gratuity during the previous years. The Company accounts for the same on cash basis.

8. CONVERSION OF FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of the transaction. The receivables in relation to earning in Foreign Exchange (Export Sales) and outstanding foreign currency liabilities in relation to acquisition of current assets or incurring of expenditure are restated at the rate prevailing as at the balance sheet date.

9. CENVAT CREDIT

Cenvat Credit of excise duty is accounted on accrual basis on purchase of materials.

10. MISCELLANEOUS EXPENDITURE

The company does not have any balance under the accounting head Miscellaneous Expenditure. In the past such expenditure were written off equally during the period of five years.

11. EXPENDITURE/INCOME

All items of income/expenses are accounted for on accrual basis except (i) leave encashment, medical benefits and leave travel allowance which is accounted for on cash basis and (ii) Interest on some of secured and unsecured loans as stated in Note no. 5 of Notes on Accounts.

12. PRIOR PERIOD EXPENSES/INCOME

Material items of Prior period expenses/income are disclosed separately.

13. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for Current Tax is made after taking into consideration benefits admissible under the provision of the Income -tax Act 1961. Deferred tax is recognized for all timing differences; being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent Periods. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

14. BORROWING COST

Interests and other costs in connection with borrowing of funds by the company are recognized as expenses in the period in which they are incurred.

15. CONTINGENT LIABILITIES

The Contingent Liabilities are disclosed by way of notes.


Mar 31, 2010

1. ACCOUNTING CONVENTION

The Accounts are prepared on historical cost basis except for certain fixed assets revalued in earlier year, in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. SALES

Sale is net of cash discount and Special Turnover discount.

3. FIXED ASSETS

(i) Fixed Assets except as stated in (ii) below, are stated at historical cost.

(ii) Land, Factory Building and Plant & Machinery as on 31.03.1994 had been revalued on the basis of their market value as on 31.03.1994 as per revaluation made by an approved valuer. Accordingly, they have been stated at revalued amounts. The resultant increase had been credited to Revaluation Reserve.

4. DEPRECIATION

(i) Depreciation on Buildings and Plant & Machinery acquired upto 30th June, 1987 has been calculated on "Straight Line Method" as per provisions of Section 205 (2) (b) of the Companies Act, 1956 read with circular of Central Government dt. 10-1 -1985 at the increased rates prescribed under the Income Tax Rules w.e.f. 2-4-1987.

(ii) In respect of Buildings, Plant & Machinery acquired after 1st July 1987, depreciation has been provided on "Straight Line Method" at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(iii) Depreciation on all other remaining assets has been provided on "Written Down Value Method" at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(iv) In case of the Buildings and Plant & Machineries revalued, the depreciation on the incremental value has been provided on the basis of residual life of the assets as estimated by the Companys technical personnel and the same is withdrawn from the Revaluation Reserve Account and credited to the Profit & Loss Account.

5. INVESTMENTS

Investments being long term are stated at cost.

6. INVENTORIES

The inventories are valued as under:

1. Stores and Spare Parts and Fuel At Weighted Average cost or net realizable value, whichever is lower.

2. Raw materials At Weighted Average cost or net realizable value whichever is lower.

3. Finished Goods At lower of cost or net realizable value. The cost is ascertained on the basis of absorption costing.

4. Process Stock At lower of cost or net realizable value. The Cost is ascertained on the basis of absorption costing.

7. RETIREMENT BENEFITS

Contributions made to the trust in the past, were charged to the Profit & Loss Account. The Company does not have a separate trust for Gratuity Fund since 2001. Thereafter the company has made payment for its accrued liability of gratuity during the previous year. The Company accounts for the same on cash basis.

8. CONVERSION OF FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of the transaction.

The receivables in relation to earning in Foreign Exchange (Export Sales) and outstanding foreign currency liabilities in relation to acquisition of current assets or incurring of expenditure are restated at the rate prevailing as at the balance sheet date.

9. CENVAT CREDIT

Cenvat Credit of excise duty is accounted on accrual basis on purchase of materials.

10. MISCELLANEOUS EXPENDITURE

The company does not have any balance under the accounting head Miscellaneous Expenditure. In the past such expenditure were written off equally during the period of five years.

11. EXPENDITURE/INCOME

All items of income/expenses are accounted for on accrual basis except (i) leave encashment, medical benefits and leave travel allowance which is accounted for on cash basis and (ii) Interest on some of secured and unsecured loans as stated in Note no. 5 of Notes on Accounts.

12. PRIOR PERIOD EXPENSES/INCOME

Material items of Prior period expenses/income are disclosed separately.

13. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for Current Tax is made after taking into consideration benefits admissible under the on of the Income-tax Act 1961. Deferred tax is recognized for all timmg deferences; being he differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The carrying amount of deferred tax asset/liabdity is reviewed at each Balance Sheet date and consequential adjustments are carried out.

14. BORROWING COST

Interests and other costs in connection with borrowing of funds by the company are recognized as expenses in the period in which they are incurred.

15. CONTINGENT LIABILITIES

The Contingent Liabilities are disclosed by way of notes.


Mar 31, 2009

1. ACCOUNTING CONVENTION

The Accounts are prepared on historical cost basis except for certain fixed assets revalued in earlier year, in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. SALES

Sale is net of cash discount and Special Turnover discount.

3. FIXED ASSETS

(i) Fixed Assets except as stated in (ii) below, are stated at historical cost.

(ii) Land, Factory Building and Plant & Machinery as on 31.03.1994 had been revalued on the basis of their market value as on 31.03.1994 as per revaluation made by an approved value. Accordingly, they have been stated at revalued amounts. The resultant increase had been credited to Revaluation Reserve.

4.DEPRECIATION

(i) Depreciation on Buildings and Plant & Machinery acquired up to 30th June, 1987 has been calculated on Straight Line Method" as per provisions of Section 205 (2) (b) of the Companies Act, 1956 read with circular of Central Government dt.10-1-1985 at the increased rates prescribed under the Income Tax Rules w.e.f. 2-4-1987.

(ii) In respect of Buildings, Plant & Machinery acquired after 1st July 1987, depreciation has been provided on "Straight Line Method" at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(iii) Depreciation on all other remaining assets has been provided on Written Down Value Method" at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(iv) In case of the Buildings and Plant & Machineries revalued, the depreciation on the incremental value has been provided on the basis of residual life of the assets as estimated by the Company's technical personnel and the same is withdrawn from the Revaluation Reserve Account and credited to the Profit & Loss Account.

5. INVESTMENTS

Investments being long term are stated at cost.

6. RETIREMENT BENEFITS

Contributions made to the trust in the past, were charged to the Profit & Loss Account. The Company does not have a separate trust for Gratuity Fund since 2001. Thereafter the company has not made provision for its accrued liability of gratuity. The Company accounts for the same on cash basis.

7. CONVERSION OF FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of the transaction. The receivables in relation to earning in Foreign Exchange (Export Sales) and outstanding foreign currency liabilities in relation to acquisition of current assets or incurring of expenditure are restated at the rate prevailing as at the balance sheet date.

8. CENVAT CREDIT

Cenvat Credit of excise duty is accounted on accrual basis on purchase of materials.

9. MISCELLANEOUS EXPENDITURE

The company does not have any balance under the accounting head Miscellaneous Expenditure. In the past such expenditure were written off equally during the period of five years.

10. EXPENDITURE/INCOME

All items of income/expenses are accounted for on accrual basis except (i) leave encashment, medical benefits and leave travel allowance which is accounted for on cash basis and (ii) Interest on some of secured and unsecured loans as stated in Note no. 5 of Notes on Accounts.

11. PRIOR PERIOD EXPENSES/INCOME

Material items of Prior period expenses/income are disclosed separately.

12. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for Current Tax is made after taking into consideration benefits admissible under the provision of the Income -tax Act 1961. Deferred tax is recognized for all timing differences; being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent Periods. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

13. BORROWING COST

Interests and other costs in connection with borrowing of funds by the company are recognized as expenses in the period in which they are incurred.

14. CONTINGENT LIABILITIES

The Contingent Liabilities are disclosed by way of notes.


Mar 31, 2008

1. ACCOUNTING CONVENTION

The Accounts are prepared on historical cost basis except for certain fixed assets revalued in earlier year, in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. SALES

Sale is net of cash discount and Special Turnover discount.

3. FIXED ASSETS

(i) Fixed Assets except as stated in (ii) below, are stated at historical cost.

(ii) Land, Factory Building and Plant & Machinery as on 31.03.1994 had been revalued on the basis of their market value as on 31.03.1994 as per revaluation made by an approved value. Accordingly, they have been stated at revalued amounts. The resultant increase had been credited to Revaluation Reserve.

4. DEPRECIATION

(i) Depreciation on Buildings and Plant & Machinery acquired up to 30th June, 1987 has been calculated on Straight Line Method" as per provisions of Section 205 (2) (b) of the Companies Act, 1956 read with circular of Central Government dt.10-1-1985 at the increased rates prescribed under the Income Tax Rules w.e.f. 2-4-1987.

(ii) In respect of Buildings, Plant & Machinery acquired after 1st July 1987, depreciation has been provided on Straight Line Method" at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(iii) Depreciation on all other remaining assets has been provided on "Written Down Value Method" at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(iv) In case of the Buildings and Plant & Machineries revalued, the depreciation on the incremental value has been provided on the basis of residual life of the assets as estimated by the Company's technical personnel and the same is withdrawn from the Revaluation Reserve Account and credited to the Profit & Loss Account.

5. INVESTMENTS

Investments being long term are stated at cost.

6. INVENTORIES

The inventories are valued as under:

1. Stores and Spare Parts and Fuel At Weighted Average cost or net realizable value, whichever is lower.

2. Raw materials At Weighted Average cost or net realizable value whichever slower

3. Finished Goods At lower of cost or net realizable value. The cost is ascertained on the basis of absorption costing.

4. Process Stock At lower of cost or net realizable value. The Cost is ascertained on the basis of absorption costing.

7. RETIREMENT BENEFITS

Contributions made to the trust in the past, were charged to the Profit & Loss Account. The Company does not have a separate trust for Gratuity Fund since 2001. Thereafter the company has not made provision for its accrued liability of gratuity. The Company accounts for the same on cash basis.

8. CONVERSION OF FOREIGN CURRENCY TRANSACTION

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of the transaction. The receivables in relation to earning in Foreign Exchange (Export Sales) and outstanding foreign currency liabilities in relation to acquisition of current assets or incurring of expenditure are restated at the rate prevailing as at the balance sheet date.

9. CENVAT CREDIT

Cenvat Credit of excise duty is accounted on accrual basis on purchase of materials.

10. MISCELLANEOUS EXPENDITURE

The company does not have any balance under the accounting head Miscellaneous Expenditure. In the past such expenditure were written off equally during the period of five years.

11. EXPENDITURE/INCOME

All items of income/expenses are accounted for on accrual basis except (i) leave encashment, medical benefits and leave travel allowance which is accounted for on cash basis and (ii) Interest on some of secured and unsecured loans as stated in Note no. 5 of Notes on Accounts.

12. PRIOR PERIOD EXPENSES/INCOME

Material items of Prior period expenses/income are disclosed separately.

13. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for Current Tax is made after taking into consideration benefits admissible under the provision of the Income -tax Act 1961. Deferred tax is recognized for all timing differences; being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent Periods. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

14. BORROWING COST

Interests and other costs in connection with borrowing of funds by the company are recognized as expenses in the period in which they are incurred.

15. CONTINGENT LIABILITIES

The Contingent Liabilities are disclosed by way of notes.

 
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