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Accounting Policies of Spectacle Ventures Ltd. Company

Mar 31, 2015

A. BASIS OF PREPARATION

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with generally accepted accounting principles in India.

b. USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual result could differ from these estimates and differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

c. Recognition of Income and Expenditure

I) The Company recognizes revenue when the significant terms of the arrangements are enforceable, services have been delivered and the collectability is reasonably assured. The method for recognizing revenues and costs depends on the nature of the services rendered.

ii) Direct fiscal duties and taxes are charged out as an expense in the year in which they are paid or provided.

d. Fixed Assets and Depreciation

Fixed assets are stated at cost of acquisition and include other direct/indirect and incidental expenses incurred to put them into use but excludes CENVAT availed on such assets

Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

The Company provides depreciation on written down value method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to / deductions from assets is calculated pro-rata from the date the assets are put to use /till the date the assets are sold/ disposed off. Intangible assets are amortised equally over their useful life.

e. Investments

Investments are classified as current investments and long term investments. Current investments are stated at lower of cost and fair value. Long term investments are stated at cost less provision for permanent diminution in value of such investments.

f. Cash Flow statement is prepared in accordance with AS-3.

g. EMPLOYEE BENEFIT:

1. Short term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

2. Long term benefits:

a) Defined Contribution Plan:

Provident Fund: The PF Act is not applicable to company.

b) Defined Benefit Plan:

Gratuity : Gratuity payable under the Payment of Gratuity Act, 1972 and liability if any, will be accounted on payment basis.

h. Taxes on Income:

i) Current tax is determined, under the tax payable method on the liability as computed after taking credit for allowances and exemptions. Adjustments in books are made only after the completion of the assessment.

ii) Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income, that originate in one period and reverse in one or more subsequent period.


Mar 31, 2014

1 . BASIS OF PREPARATION

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with generally accepted accounting principles in India.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual result could differ from these estimates and differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

3. Recognition of Income and Expenditure

i) The company recognizes revenue when the significant terms of the arrangements are enforceable, services have been delivered and the collectability is reasonably assured. The method for recognizing revenues and costs depends on the nature of the services rendered.

ii) Direct fiscal duties and taxes are charged out as an expense in the year in which they are paid or provided.

4. Fixed Assets and Depreciation

Fixed assets are stated at cost of acquisition and include other direct/indirect and incidental expenses incurred to put them into use but excludes CENVAT availed on such assets

Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

Depreciation on fixed assets is provided using the Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation is calculated on a pro-rata basis from the date of installation till the date the assets are sold or disposed. Individual assets costing less than Rs. 5,000/- are depreciated full in the year of acquisition.

5. Investments

Investments are classified as current investments and long term investments. Current investments are stated at lower of cost and fair value. Long term investments are stated at cost less provision for permanent diminution in value of such investments.

6. Inventories

Inventories are valued at the lower of cost and net realizable value, including necessary provisions for obsolescence. Cost is determined using the weighted average method. Cost of work -in-progress and finished goods include material cost and appropriate share of manufacturing overheads.

7. Cash Flow statement is prepared in accordance with AS-3.

8. Sales Revenue from sale of products is recognized when the product has been delivered in accordance with the sales contract. Revenue from product sales are shown as net of excise duty, sales tax separately charged and applicable discounts. Commission is recognized based on the agreement & arrangements made with the parties. Interest is recognized based on the rates agreed as per the agreements.

9. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. Monetary foreign currency assets and liabilities are translated into Rupee at the rate of exchange prevailing on the balance sheet date. The difference in translation of monetary assets and liabilities and realized gains and losses on foreign currency transactions, other than those relating to fixed assets acquired outside India are recognized in the profit and loss account

10 Retiring benefits :

i) Retiring Benefits in the form of Provident Fund is not Applicable in the view of non applicability of the provident Fund Act.

ii) The Gratuity Act is not applicable in the non- completion of qualifying years of service by the employees.

iii) Leave encashment is paid and payable at the end of the each calendar year and necessary provisions if any, required is being made in the accounts.

11. Taxes on Income:

i) Current tax is determine, under the tax payable method on the liability as computed after taking credit for allowances and exemptions. Adjustments in books are made only after the completion of the assessment.

ii) Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income, that originate in one period and reverse in one or more subsequent period.


Mar 31, 2013

1. BASIS OF PREPARATION

The financial statements are prepared under the historical cost convention on accrual basis and in accordance with generally accepted accounting principles in India.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual result could differ from these estimates and differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

3. Recognition of Income and Expenditure

i) The company recognizes revenue when the significant terms of the arrangements are enforceable, services have been delivered and the collectability is reasonably assured. The method for recognizing revenues and costs depends on the nature of the services rendered.

ii) Direct fiscal duties and taxes are charged out as an expense in the year in which they are paid or provided.

4. Fixed Assets and Depreciation

Fixed assets are stated at cost of acquisition and include other direct/indirect and incidental expenses incurred to put them into use but excludes CENVAT availed on such assets

Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

Depreciation on fixed assets is provided using the Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation is calculated on a pro –rata basis from the date of installation till the date the assets are sold or disposed. Individual assets costing less than Rs. 5,000/- are depreciated full in the year of acquisition.

5. Investments

Investments are classified as current investments and long term investments. Current investments are stated at lower of cost and fair value. Long term investments are stated at cost less provision for permanent diminution in value of such investments.

6. Inventories

Inventories are valued at the lower of cost and net realizable value, including necessary provisions for obsolescence. Cost is determined using the weighted average method. Cost of work – in-progress and finished goods include material cost and appropriate share of manufacturing overheads.

7. Cash Flow statement is prepared in accordance with AS-3 except in case of Subsidiaries for which cash flow is not available due to non availability of information.

8. Sales

Revenue from sale of products is recognized when the product has been delivered in accordance with the sales contract. Revenue from product sales are shown as net of excise duty, sales tax separately charged and applicable discounts. Commission is recognized based on the agreement & arrangements made with the parties. Interest is recognized based on the rates agreed as per the agreements.

9. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. Monetary foreign currency assets and liabilities are translated into Rupee at the rate of exchange prevailing on the balance sheet date. The difference in translation of monetary assets and liabilities and realized gains and losses on foreign currency transactions, other than those relating to fixed assets acquired outside India are recognized in the profit and loss account

10 Retiring benefits :

i) Retiring Benefits in the form of Provident Fund is not Applicable in the view of non applicability of the provident Fund Act.

ii) The Gratuity Act is not applicable in the non- completion of qualifying years of service by the employees.

iii) Leave encashment is paid and payable at the end of the each calendar year and necessary provisions if any, required is being made in the accounts.

11. Taxes on Income:

i) Current tax is determine, under the tax payable method on the liability as computed after taking credit for allowances and exemptions. Adjustments in books are made only after the completion of the assessment.

ii) Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income, that originate in one period and reverse in one or more subsequent period.

12. Contingent liabilities

a) i) Liability towards irrevocable letters of credit established: Rs. Nil. (PY Rs. NIL)

ii) Liability in respect of Bank Guarantees: Rs. NIL. (PY Rs. NIL)

iii) Corporate Guarantees given for other group Companies: Rs. Nil. (PY Rs. NIL)

iv) Corporate guarantees given to Customers: Rs. NIL. (PY Rs. NIL)

b) Show cause notices against the company not acknowledged as debt : Rs NIL (PY Rs. NIL)

 
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