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

Accounting Policies of Sturdy Industries Ltd. Company

Mar 31, 2015

1.i Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India ("GAAP"), applicable Accounting Standards issued by The Institute of Chartered Accountants of India and under the historical cost convention, on accrual basis.

1.ii Revenue Recognition :

Revenue is being recognized in accordance with the Guidance Note on Accrual Basis of Accounting issued by The Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the realization of income same is not accounted for till such time the uncertainty is resolved.

l.iii Treatment of Expenses :

All expenses are accounted for on accrual basis.

l.iv Fixed Assets:

Fixed Assets are stated at historical cost, less depreciation. Costs of fixed assets include taxes, duties, freight and other expense incidental and related there to the construction, acquisition, and installation of respective assets.

l.v Inventories :

a. Stock of raw material and consumables are carried at cost (computed on first-in-first-out

basis) or Net Realizable Value, whichever is lower.

b. Stock of work-in-progress is value at cost upto the level of processed and includes cost of material consumed, labour and manufacturing overhead. However, there was no stock- in-progress at end the financial year.

c. Finished goods are value at cost of manufacturing (computed on first-in-first-out basis) or net realizable value, whichever is lower.

l.vi Depreciation / Amortization :

Depreciation on fixed assets has been provided on WDV method on prorata basis over the useful life prescribed in schedule II to the Companies Act, 2013 after considering salvage value of five percent of original cost. The Company has considered useful life of assets same as prescribed under the Companies Act, 2013.

Depreciation upto 31.03.2014 was provided on SLM method on prorate basis at the rates prescribed in schedule XIV to the Companies Act, 1956.

Due to transition from schedule XIV to schedule II, depreciation on assets existing as on 31.03.2014, has been provided in such a way so that assets should be depreciated after considering salvage value of five percent of original cost of the assets over a useful life of assets as prescribed under schedule II of the companies Act, 2013.

Assets of which useful life has already been expired but depreciation charged till previous financial year was less than 95% of original cost of the assets, difference of 95% of Original Cost and depreciation charged till last year, has been charged to profit and loss account as depreciation.

Assets on which depreciation has already been charged above of 95% of Original Cost of the assets till previous financial year and written down value of the assets is less than 5% of Original Cost, salvage value has been considered remaining WDV as on first day of current financial year.

1.vii Taxes on Income :

a. Since the company has incurred cash losses during the Financial Year. No provision for Income tax has been made.

b. Deferred tax has been recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

1.viii Earning Per Share :

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.ix Employees Benefits :

i. Provident Fund and Employee State Insurance

The Company's Contribution to the recognized Provident Fund and Employees State Insurance (Defined Contribution Scheme), paid/payable during the year, is debited to the Profit and Loss Account.

ii. Gratuity Fund

Accrued liabilities on account of Gratuity (Defined Benefit Scheme) is provided for the employees', based on their last drawn salary, completed years of services, instead of ascertaining actuarial impact.

1.x Transaction in Foreign Currency :

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Profit or loss resultant due to fluctuation in currency rate are recognized as income or expense in profit and loss account.

1.xi. Investments :

Long term investments are carried at cost. However, provision is made for diminution in value (if any), other than temporary, on an individual basis.

l.xii. Borrowing Cost :

Interest and other borrowing costs on specific borrowings, attributable to qualifying assets, are capitalized. A qualifying asset in one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged to revenue over the tenure of the loan.

1.xiii. Accounting for Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized in terms of Accounting Standard 29 - Provisions, Contingent Liabilities and Contingent Assets (AS-29), notified by the Companies (Accounting Standards) Rules, 2006, when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the financial statements.

1.xiv Research and Development

No Expenses have been incurred on Research and Development

1.xv Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment of company's assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

1.xvi Use of Estimates

The preparation of Financial Statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption in respect of certain items that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of income and expenses during the reporting period. Actual result/outcome could differ from estimates. Any revision in accounting estimates is recognised prospectively in the period in which such results are materialised.






Mar 31, 2014

1. Basis of preparation

The financial statements of the company are prepared under the historical cost convention on accrual basis of accounting and in accordance with generally accepted principles in India, Provision of the Companies Act 1956(the Act) and comply in material aspects with the Accounting Standards notified under Section 211(3C) of the Act, read with Companies (Accounting Standards) Rules,2006.

2. Revenue Recognition

a) sale of Goods is Recognized on dispatches'' to customers which generally coincides with transfer of title, significant risk and rewards of ownership to customers and includes excise duty.

b) dividend Income is accounted for when right to receive is established.

c) interest is recognized on time proportionate basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation, less impairment losses, if any. Cost is inclusive of all identifiable expenditure incurred to bring the assets to their working condition for intended use. Where an asset is scrapped or otherwise disposed off, the cost and related depreciation is written back and the resultant profit or loss, if any, is reflected in the Profit and Loss Account.

4. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method as per the classification and in the manner specified in Schedule-XIV to the Companies Act, 1956 except depreciation on Plant & Machinery is provided on basis of plant in a continuous process in Aluminum and Irrigation Division.

5. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment of company''s assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

6. Investments

Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

7. Inventories

Inventories are valued as follows:

a) Finished Products produced and purchased by the company are carried at lower of cost or realizable Price.

b) Raw Material produced and purchases by the company are carried at lower of cost or Net realizable Price.

c) Work in Progress is carried at cost plus propionate expenses.

d) Scrap is carried at lower of cost and net realizable value.

e) Stores and spare parts are carried at cost or Net realizable Price whichever is less.

8. Use of Estimates

The preparation of Financial Statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption in respect of certain items that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of income and expenses during the reporting period. Actual result/outcome could differ from estimates. Any revision in accounting estimates is recognised prospectively in the period in which such results are materialised.

9. Provision for Taxes

Since the company has incurred cash losses during the Financial Year. No provision for Income tax has been made.

10. Provision, Contingent Liabilities & Contingent Assets.

Provision involving substantial degree of estimation in measurement is recognised when there is 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 but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

11. Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchanges rate prevailing on the date of transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year ends rates. In case of items which are covered by forward exchanges contracts, the difference between the year end rate and rate on the date of the contracts is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

12. Prior Period Items etc.

Material Items if any, relating to the prior period, non-recurring and extraordinary items etc., are disclosed separately.

13. Employee Benefits

The company''s contribution in respect of Provident Fund are charged against revenue every year. Present Liability for future payment of gratuity and unavailed leave benefits to the employees at the end of the year will provided on the basis of actuarial valuation and will be charged to revenue as and when it becomes applicable .

14. Research and Development

No Expenses have been incurred on Research and Development .

15. Other Accounting Policies

These are consistent with the generally accepted accounting standards as issued from time to time.


Mar 31, 2013

1. Basis of preparation

The financial statements of the company are prepared under the historical cost convention on accrual basis of accounting and in accordance with generally accepted principles in India, Provision of the Companies Act 1956(the Act) and comply in material aspects with the Accounting Standards notified under Section 211(3C) of the Act, read with Companies (Accounting Standards) Rules,2006.

2. Revenue Recognition

a) sale of Goods is Recognized on dispatches'' to customers which generally coincides with transfer of title, significant risk and rewards of ownership to customers and includes excise duty.

b) dividend Income is accounted for when right to receive is established.

c) interest is recognized on time proportionate basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation, less impairment losses, if any. Cost is inclusive of all identifiable expenditure incurred to bring the assets to their working condition for intended use. Where an asset is scrapped or otherwise disposed off, the cost and related depreciation is written back and the resultant profit or loss, if any, is reflected in the Profit and Loss Account.

4. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method as per the classification and in the manner specified in Schedule-XIV to the Companies Act, 1956 except depreciation on Plant & Machinery is provided on basis of plant in a continuous process in Aluminum and Irrigation Division.

5. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment of company''s assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

6. Investments

Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

7. Inventories

Inventories are valued as follows:

a) Finished Products produced and purchased by the company are carried at lower of cost or realizable Price.

b) Raw Material produced and purchases by the company are carried at lower of cost or Net realizable Price.

c) Work in Progress is carried at cost plus propionate expenses.

d) Scrap is carried at lower of cost and net realizable value.

e) Stores and spare parts are carried at cost or Net realizable Price whichever is less.

8. Us e of Estimates

The preparation of Financial Statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption in respect of certain items that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of income and expenses during the reporting period. Actual result/outcome could differ from estimates. Any revision in accounting estimates is recognised prospectively in the period in which such results are materialised.

9. Provision for Taxes

A) Current Tax:

Provision for Income Tax is determined in accordance with the provisions of Income tax Act, 1961.

10. Provision, Contingent Liabilities & Contingent Assets.

Provision involving substantial degree of estimation in measurement is recognised when there is 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 but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

11. Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchanges rate prevailing on the date of transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year ends rates. In case of items which are covered by forward exchanges contracts, the difference between the year end rate and rate on the date of the contracts is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

12, Prior Period Items etc.

Material Items if any, relating to the prior period, non-recurring and extraordinary items etc., are disclosed separately.

13. Employee Benefits

The company''s contribution in respect of Provident Fund are charged against revenue every year. Present Liability for future payment of gratuity and unavailed leave benefits to the employees at the end of the year will provided on the basis of actuarial valuation and will be charged to revenue as and when it becomes applicable.

14, Research and Development

No Expenses have been incurred on Research and Development.

15. Other Accounting Policies

These are consistent with the generally accepted accounting standards as issued from time to time,

 
Subscribe now to get personal finance updates in your inbox!