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Accounting Policies of Rajlaxmi Industries Ltd. Company

Mar 31, 2015

A Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Difference between actual results and estimates are recognized in the year in which the results are known/materialized.

b Revenue Recognition :

Sales comprise of invoiced value of goods sold.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Revenues/ineomes and eosts/expenditures are accounted for as and when they are earned and incurred.

e In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value at which they are stated if realised in the ordinary course of business. Provision has been made in the accounts for all known liabilities and the same are not in excess of the amount considered necessary.

d Taxation:

i. Provision for taxation, if any is made on the basis of the taxable income computed as per provisions of Income Tax Act, 1961.

ii. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT is recognised as an asset in the balance Sheet when it is probable that future economic benefit associated with it will flow to the company.

ii. Deferred Tax resulting from timing difference are expected to crystallise in ease of deferred tax liabilities with reasonable eertainity and in ease of deferred tax assets with virtual eertainity that there would be adequate future taxable income against such deferred tax can be realised.

e Investments:

Current investments are stated at lower of cost and fair value.

f Cash and Cash Equivalents :

The Cash and Cash equivalents includes Balances with Scheduled Bank in current accounts and cash on hand. S Earnings Per Share:

Basie and diluted earnings per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

h Provisions, Contingent Liabilities & Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will he an outflow of resources.Contingent liabilities are not recognised as a liability but are disclosed in the notes.Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

A Basis of Preparation :

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those of previous year.

B Summary of Significant Accounting policies

i. Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Difference between actual results and estimates are recognized in the year in which the results are known/materialized.

ii. Revenue Recognition :

Sales comprise of invoiced value of goods sold.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Revenues/incomes and costs/expenditures are accounted for as and when they are earned and incurred.

iii. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value at which they are stated if realised in the ordinary course of business. Provision has been made in the accounts for all known liabilities and the same are not in excess of the amount considered necessary.

iv. Taxation :

a. Provision for taxation, if any is made on the basis of the taxable income computed as per provisions of Income Tax Act, 1961.

b. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT is recognised as an asset in the balance Sheet when it is probable that future economic benefit associated with it will flow to the company.

c. Deferred Tax resulting from timing difference are expected to crystallise in case of deferred tax liabilities with reasonable certainity and in case of deferred tax assets with virtual certainity that there would be adequate future taxable income against such deferred tax can be realised.

v. Investments :

Current investments are stated at lower of cost and fair value.

vi. Cash and Cash Equivalents :

The Cash and Cash equivalents includes Balances with Scheduled Bank in current accounts and cash on hand.

vii. Earnings Per Share:

Basic and diluted earnings per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

viii.Provisions, Contingent Liabilities & Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.Contingent liabilities are not recognised as a liability but are disclosed in the notes.Contingent assets are neither recognised nor disclosed in the financial statements


Mar 31, 2013

A. Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Difference between actual results and estimates are recognized in the year in which the results are known/materialized.

b. Revenue Recognition :

Revenues/incomes and costs/expenditures are accounted for as and when they are earned and incurred.

c. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value at which they are stated if realized in the ordinary course of business. Provision has been made in the accounts for all known liabilities and the same are not in excess of the amount considered necessary.

d. Taxation :

i. Provision for taxation, if any is made on the basis of the taxable income computed as per provisions of Income Tax Act, 1961.

ii. Deferred Tax resulting from timing difference are expected to crystallize in case of deferred tax liabilities with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against such deferred tax can be realized.

e. Investments :

Current investments are stated at lower of cost and fair value.

f. Cash and Cash Equivalents :

The Cash and Cash equivalents includes Balances with Scheduled Bank in current accounts and cash on hand.

g. Earnings Per Share:

Basic and diluted earnings per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

h. Provisions, Contingent Liabilities & Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized as a liability but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

A Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Difference between actual results and estimates are recognized in the year in which the results are known/materialized.

b Revenue Recognition :

Revenues/incomes and costs/expenditures are accounted for as and when they are earned and incurred. However, insurance claims are accounted for on cash basis. Further interest received/paid from/to debtors and creditors are accounted on cash basis.

c In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value at which they are stated if realised in the ordinary course of business. Provision has been made in the accounts for all known liabilities and the same are not in excess of the amount considered necessary.

d Taxation :

i. Provision for taxation, if any is made on the basis of the taxable income computed as per provisions of Income Tax Act, 1961.

ii. Deferred Tax resulting from timing difference are expected to crystallise in case of deferred tax liabilities with reasonable certainity and in case of deferred tax assets with virtual certainity that there would be adequate future taxable income against such deferred tax can be realised.

e Cash and Cash Equivalents :

The Cash and Cash equivalents includes Balances with Scheduled Bank in current accounts and cash on hand.

f Earnings Per Share:

Basic and diluted earnings per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

g Provisions, Contingent Liabilities & Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.Contingent liabilities are not recognised as a liability but are disclosed in the notes.Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

1) Statement of Significant Accounting Policies and Practices followed by the Company.

a) System of Accounting :- The Company follows mercantile system of accounting based on the fundamental accounting assumption viz. going concern, consistency and accurate concepts, except where specifically stated to be otherwise.

b) Preparation of Financial Statement :

The Financial statements have been prepared on the basis of historical cost conventions not considering the impact of the changes in the purchasing power of money.

c) Valuation of Inventories : Stock is valued at cost

d) Revenue Recognition:

a) Revenues/incomes and costs/expenditures are accounted for as and when they are earned and incurred. However, insurance claims are accounted for on cash basis. Further interest received/paid from/to debtors and creditors are accounted on cash basis.

e) In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value at which they are stated if realised in the ordinary course of business. Provision has been made in the accounts for all known liabilities and the same are not in excess of the amount considered necessary.

f) Taxation:

A) Provision for Taxation, if any, is made on the basis of the taxable income computed as per provisions of Income Tax Act, 1961.

B) Deferred Tax resulting from timing difference are expected to crystallise in case of deferred tax liabilities with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against such deferred tax assets can be realised.


Mar 31, 2009

A) System of Accounting :-

The Company follows mercantile system of accounting based on the fundamental accounting assumption viz. going concern, consistency and accurate concepts, except where specifically stated to be otherwise.

b) Preparation of Financial Statement:

The Financial statements have been prepared on the basis of historical cost conventions not considering the impact of the changes in the purchasing power of money.

c) Valuation of Inventories : Stock is valued at cost

d) Revenue Recognition:

a) Revenues/incomes and costs/expenditures are accounted for as and when they are earned and incurred. However, insurance claims are accounted for on cash basis. Further interest received/paid from/to debtors and creditors are accounted on cash basis.

e) In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value at which they are stated if realised in the ordinary course of business. Provision has been made in the accounts for all known liabilities and the same are not in excess of the amount considered necessary.

f) Taxation:

A) Provision for Taxation, if any, is made on the basis of the taxable income computed as per provisions of Income Tax Act, 1961.

B) Deferred Tax resulting from timing difference are expected to crystallise in case of deferred tax liabilities with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against such deferred tax assets can be realised.

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