Home  »  Company  »  Silverton Spinners  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Silverton Spinners Ltd. Company

Dec 31, 2013

(A) GENERAL

(a) The accounts are prepared on historical cost convention, adjusted by the revaluation of certain fixed assets, using the accrual method of accounting.

(b) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

(c) The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized

(d) During the year, Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The Company has reclassified the previous year figures in accordance with the requirements applicable in the current year.

(B) FIXED ASSETS

(i) Fixed assets are stated at historical cost less accumulated depreciation. Expenditure including interest on loan during construction year are allocated to respective fixed assets in proportion to their cost, on their being put to use. The interest on loans and hire charges on fixed assets are capitalized till the date they are put to use.

(ii) In case of revaluation of fixed assets, the original cost as written up by the approved valuer is considered in the accounts and the differential amount is credited to revaluation reserve.

(C) FOREIGN CURRENCY TRANSACTIONS

(i) Export sales are recorded at the average exchange rate (which approximates the actual rate on the date of transaction) for all transactions and the exchange differences arising on the date of settlement are recognized as income or as expense.

(ii) Fixed assets are recorded at the rates prevailing on the date of settlement or at the rates of forward exchange contract.

(iii) Current assets and current liabilities at the year end are being translated at closing rates prevailing on the Balance Sheet date and the Profit/Loss arising therefrom is taken to Profit & Loss Account.

(D) DEPRECIATION

Depreciation is provided on the basis of Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Depreciation on the fixed asset added during the year has been calculated on pro-rata basis from the date of such assets being put to use. Leasehold land is amortised over the period of lease.

(E) SUBSIDIES

State Capital Investment Subsidy is credited to Capital Reserve.

(F) INVENTORIES

Inventories are valued as under- Raw Material - At lower of cost or net realisable value.

(The cost of Raw Material is computed on FIFO Method.)

Finished goods - At lower of cost or net realisable value.

Stores & Packing Material - At lower of cost or net realisable value.

Trading goods - At lower of cost or net realisable value.

Work in Process - At lower of cost or net realisable value.

Waste - At net realisable value.

The cost of Finished Goods and Work-in-process include cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

(G) CONTINGENT LIABILITIES

Contingent Liabilities which are not provided for are disclosed by way of Notes on Accounts.

(H) MISCELLENOUS EXPENDITURE

Preliminary and public issue expenses are to be written off over a period of 10 years in equal amounts starting from the year the production has commenced. Deferred Revenue Expenses are to be written off in 10 equal yearly installments.

(I) REVENUE RECOGNITION

Sales are recognized on the basis of despatch of the product from the factory and all other incomes & expenditures are accounted for on accrual basis.

(J) TAXES ON INCOME

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per the Income tax Act, 1961. Deferred Tax has been accounted for pursuant to Accounting Standard (AS-22).


Sep 30, 2012

(A) GENERAL

(a) The accounts are prepared on historical cost convention, adjusted by the revaluation of certain fixed assets, using the accrual method of accounting.

(b) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

(c) The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized

(d) During the year, Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The Company has reclassified the previous year figures in accordance with the requirements applicable in the current year.

(B) FIXED ASSETS

(i) Fixed assets are stated at historical cost less accumulated depreciation. Expenditure including interest on loan during construction year are allocated to respective fixed assets in proportion to their cost, on their being put to use. The interest on loans and hire charges on fixed assets are capitalized till the date they are put to use.

(ii) In case of revaluation of fixed assets, the original cost as written up by the approved valuer is considered in the accounts and the differential amount is credited to revaluation reserve.

(C) FOREIGN CURRENCY TRANSACTIONS

(i) Export sales are recorded at the average exchange rate (which approximates the actual rate on the date of transaction) for all transactions and the exchange differences arising on the date of settlement are recognized as income or as expense.

(ii) Fixed assets are recorded at the rates prevailing on the date of settlement or at the rates of forward exchange contract.

(iii) Current assets and current liabilities at the year end are being translated at closing rates prevailing on the Balance Sheet date and the Profit/Loss arising therefrom is taken to Profit & Loss Account.

(D) DEPRECIATION

Depreciation is provided on the basis of Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Depreciation on the fixed asset added during the year has been calculated on pro-rata basis from the date of such assets being put to use. Leasehold land is amortised over the period of lease.

(E) SUBSIDIES

State Capital Investment Subsidy is credited to Capital Reserve.

(F) INVENTORIES

Inventories are valued as under:- Raw Material - At lower of cost or net realisable value.

(The cost of Raw Material is computed on FIFO Method.)

Finished goods - At lower of cost or net realisable value.

Stores & Packing Material - At lower of cost or net realisable value.

Trading goods - At lower of cost or net realisable value.

Work in Process - At lower of cost or net realisable value.

Waste - At net realisable value.

The cost of Finished Goods and Work-in-process include cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

(G) CONTINGENT LIABILITIES

Contingent Liabilities which are not provided for are disclosed by way of Notes on Accounts.

(H) MISCELLENOUS EXPENDITURE

Preliminary and public issue expenses are to be written off over a period of 10 years in equal amounts starting from the year the production has commenced. Deferred Revenue Expenses are to be written off in 10 equal yearly installments.

(I) REVENUE RECOGNITION

Sales are recognized on the basis of despatch of the product from the factory and all other incomes & expenditures are accounted for on accrual basis.

(J) TAXES ON INCOME

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per the Income tax Act, 1961. Deferred Tax has been accounted for pursuant to Accounting Standard (AS-22).


Sep 30, 2011

(A) GENERAL

(a) The accounts are prepared on historical cost convention, adjusted by the revaluation of certain fixed assets, using the accrual method of accounting.

(b) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

(c) The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

(B) FIXED ASSETS

(i) Fixed assets are stated at historical cost less accumulated depreciation. Expenditure including interest on loan during construction year are allocated to respective fixed assets in proportion to their cost, on their being put to use. The interest on loans and hire charges on fixed assets are capitalized till the date they are put to use.

(ii) In case of revaluation of fixed assets, the original cost as written up by the approved valuer is considered in the accounts and the differential amount is credited to revaluation reserve.

(C) FOREIGN CURRENCY TRANSACTIONS

(i) Export sales are recorded at the average exchange rate (which approximates the actual rate on the date of transaction) for all transactions and the exchange differences arising on the date of settlement are recognized as income or as expense.

(ii) Fixed assets are recorded at the rates prevailing on the date of settlement or at the rates of forward exchange contract. There are no transactions which are not settled in the same accounting year.

(iii) Current assets and current liabilities at the yearend are being translated at closing rates prevailing on the Balance Sheet date and the Profit/Loss arising there from is taken to Profit & Loss Account.

(D) DEPRECIATION

Depreciation is provided on the basis of Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Depreciation on the fixed asset added during the year has been calculated on pro-rata basis from the date of such assets being put to use. Leasehold land is amortized over the period of lease.

(E) SUBSIDIES

State Capital Investment Subsidy is credited to Capital Reserve.

(F) INVENTORIES

Inventories are valued as under:-

Raw Material - At lower of cost or net realizable value.

(The cost of Raw Material is computed on FIFO Method.) Finished goods - At lower of cost or net realizable value.

Stores & Packing Material - At lower of cost or net realizable value.

Trading goods - At lower of cost or net realizable value.

Work in Process - At lower of cost or net realizable value.

Waste - At net realizable value.

The cost of Finished Goods and Work-in-process include cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

(G) CONTINGENT LIABILITIES

Contingent Liabilities which are not provided for are disclosed by way of Notes on Accounts.

(H) MISCELLENOUS EXPENDITURE

Preliminary and public issue expenses are to be written off over a period of 10 years in equal amounts starting from the year the production has commenced. Deferred Revenue Expenses are to be written off in 10 equal yearly installments.

(I) REVENUE RECOGNITION

Sales are recognized on the basis of despatch of the product from the factory and all other incomes & expenditures are accounted for on accrual basis.

(J) TAXES ON INCOME

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per the Income tax Act, 1961. Deferred Tax has been accounted for pursuant to Accounting Standard (AS-22).


Sep 30, 2010

(A) GENERAL

(a) The accounts are prepared on historical cost convention, adjusted by the revaluation of certain fixed assets, using the accrual method of accounting.

(b) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

(c) The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

(B) FIXED ASSETS

(i) Fixed assets are stated at historical cost less accumulated depreciation. Expenditure including interest on loan during construction year are allocated to respective fixed assets in proportion to their cost, on their being put to use. The interest on loans and hire charges on fixed assets are capitalized till the date they are put to use.

(ii) In case of revaluation of fixed assets, the original cost as written up by the approved valuer is considered in the accounts and the differential amount is credited to revaluation reserve.

(C) FOREIGN CURRENCY TRANSACTIONS

(i) Export sales are recorded at the average exchange rate (which approximates the actual rate on the date of transaction) for all transactions and the exchange differences arising on the date of settlement are recognized as income or as expense.

(ii) Fixed assets are recorded at the rates prevailing on the date of settlement or at the rates of forward exchange contract. There are no transactions which are not settled in the same accounting year.

(iii) Current assets and current liabilities at the yearend are being translated at closing rates prevailing on the Balance Sheet date and the Profit/Loss arising there from is taken to Profit & Loss Account.

(D) DEPRECIATION

Depreciation is provided on the basis of Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Depreciation on the fixed asset added during the year has been calculated on pro-rata basis from the date of such assets being put to use. Leasehold land is amortized over the period of lease.

(E) SUBSIDIES

State Capital Investment Subsidy is credited to Capital Reserve.

The cost of Finished Goods and Work-in-process include cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

(G) CONTINGENT LIABILITIES

Contingent Liabilities which are not provided for are disclosed by way of Notes on Accounts.

(H) MISCELLENOUS EXPENDITURE

Preliminary and public issue expenses are to be written off over a period of 10 years in equal amounts starting from the year the production has commenced. Deferred Revenue Expenses are to be written off in 10 equal yearly installments.

(I) REVENUE RECOGNITION

Sales are recognized on the basis of despatch of the product from the factory and all other incomes & expenditures are accounted for on accrual basis.

(J) TAXES ON INCOME

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per the Income tax Act, 1961. Deferred Tax has been accounted for pursuant to Accounting Standard (AS-22).

 
Subscribe now to get personal finance updates in your inbox!