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Accounting Policies of Sudar Industries Ltd. Company

Mar 31, 2015

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

i) These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii) The Company follows mercantile system of accounting and recognizes all significant items of income and expenditure on accrual basis.

iii) All income & expenditure having material bearing on the financial statements are recognized on an accrual basis.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian Rule GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

C. FIXED ASSETS Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Projects under which assets are not ready for their intended use are shown as Capital Work-In-Progress.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

Depreciation

The depreciation on fixed assets has been provided on Written down Value method over the useful life of assets as prescribed under Part C of Schedule II of the Companies Act 2013 Depreciation is not provided on Land.

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal and external factors. An Impairment loss is recognized wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and the value in use. In assessing value in use the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

The Management based on internal and external technical evaluation, reassessed the remaining useful life of assets primarily consisting of Factory Premises from 30 years to 40 years as regards to the useful life of assets as prescribed under Part C of Schedule II of the Companies Act 2013. had the Company continued with the useful lives mentioned in Schedule II, the charge for depreciation for the year ended March 31, 2015 would have been higher by 131.15 lakhs for assets held at April 1, 2014.

D. LEASES

As per Accounting Standard 19 "Leases", the disclosures as defined in the Accounting Standard are given as below:

a) Operating Leases: Rentals are expensed on a straight line basis with reference to lease terms and other considerations.

b) (i) Finance leases prior to 1st April, 2001: Rentals are expensed with reference to lease terms and other considerations.

(ii) Finance leases on or after 1st April, 2001: The lower of the fair value of the assets and present value of the minimum lease rentals is capitalized as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to Statement of Profit and Loss.

c) However, rentals referred to in (a) or (b) (i) above and the interest component referred to in (b) (ii) above, pertaining to the period up to the date of commissioning of the asset are capitalized.

d) All assets given on finance lease are shown as receivables at an amount equal to net investment in the lease. Initial direct costs in respect of lease are expensed in the period in which such costs are incurred. Income from lease assets is accounted by applying the interest rate implicit in the lease to the net investment.

E. IMPAIRMENTS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

C. FOREIGN CURRENCY TRANSACTIONS

As per Accounting Standard 11 "The Effects of Changes in Foreign Exchange Rates", the disclosures as defined in the Accounting Standard are given as below:

a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

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

c. Non-monetary foreign currency items are carried at cost.

d. In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary assets and liabilities are restated at the year end rates.

e. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss, except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

G. INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category- wise. Long-term 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.

H. INVENTORIES

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any, except in case of by-products which are valued at net realizable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products are determined on weighted average basis.

I. REVENUE RECOGNITION

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

Dividend income is recognized when the right to receive payment is established.

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

J. EMPLOYEE BENEFITS

Short term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-employment benefits Defined contribution plans.

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Company's contribution is recognized as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

Defined benefit plans

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees' services.

Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Statement of Profit and Loss.

K. BORROWING COSTS

As per Accounting Standard 16 "Borrowing Costs", the disclosures as defined in the Accounting Standard are given as below:

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets.

A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred.

As per AS-16: Borrowing Cost Disclosures there is no borrowing cost incurred in respect of any Qualified Capital Assets as well as no interest or financial charges incurred on qualifying assets haven't been capitalized during the year.

L. RESEARCH AND DEVELOPMENT EXPENSES

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are charged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capitalized.

M. CASH FLOW STATEMENT

The Company has prepared the Cash Flow Statement using the indirect method on compliance with Accounting Standard issued by the Institute of Chartered Accountants of India (AS-3).

N. TAXATION

As per Accounting Standard 22 "Accounting for Tax on Income", the disclosures as defined in the Accounting Standard are given as below:

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for

The period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

A. Consolidate Financial Statement AS - 21

The financial statements of the company including both Garment and Chemical Division are combined on a line - by - line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating inter branch transactions in accordance with Accounting Standard - 21.

A. Consolidate Financial Statement AS - 21

The financial statements of the company including both Garment and Chemical Division are combined on a line - by - line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating inter branch transactions in accordance with Accounting Standard - 21.


Mar 31, 2014

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared to comply with Accounting Principles Generally accepted in India (Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rule, 2006 and the relevant provisions of the Companies Act, 1956.

The financial statements are prepared on accrual basis under the historical cost convention, except for certain fixed assets which are carried at revalued amounts. The financial statements are presented in Indian rupees rounded off to the nearest rupees in Lacs.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian Rule GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

C. FIXED ASSETS Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are shown as Capital Work-In-Progress.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

Depreciation

Depreciation on the fixed assets added/disposed off/ discarded during the year has been provided on WDV Basis at the rates specified under Companies Act, 1956 with reference to the month of addition/ disposal/discarding.

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal and external factors. An Impairment loss is recognized wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is the greater of the assets'' net selling price and the value in use. In assessing value in use the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

D. LEASES

As per Accounting Standard 19 "Leases", the disclosures as defined in the Accounting Standard are given as below:

a) Operating Leases: Rentals are expensed on a straight line basis with reference to lease terms and other considerations.

b) (i) Finance leases prior to 1st April, 2001: Rentals are expensed with reference to lease terms and other

considerations.

(ii) Finance leases on or after 1st April, 2001: The lower of the fair value of the assets and present value of the minimum lease rentals is capitalized as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to Statement of Profit and Loss.

c) However, rentals referred to in (a) or (b) (i) above and the interest component referred to in (b) (ii) above, pertaining to the period up to the date of commissioning of the asset are capitalized.

d) All assets given on finance lease are shown as receivables at an amount equal to net investment in the lease. Initial direct costs in respect of lease are expensed in the period in which such costs are incurred. Income from lease assets is accounted by applying the interest rate implicit in the lease to the net investment.

E. IMPAIRMENTS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. FOREIGN CURRENCY TRANSACTIONS

As per Accounting Standard 11 "The Effects of Changes in Foreign Exchange Rates", the disclosures as defined in the Accounting Standard are given as below:

a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

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

c) Non-monetary foreign currency items are carried at cost.

d) In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary assets and liabilities are restated at the yearend rates.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss, except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

G. INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term 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.

H. INVENTORIES

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any, except in case of by-products which are valued at net realizable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products are determined on weighted average basis.

I. REVENUE RECOGNITION

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

Dividend income is recognized when the right to receive payment is established.

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

J. EMPLOYEE BENEFITS

Short term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-employment benefits

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Company''s contribution is recognized as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

Defined benefit plans

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees'' services.

Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Statement of Profit and Loss.

K. BORROWING COSTS

As per Accounting Standard 16 "Borrowing Costs", the disclosures as defined in the Accounting Standard are given as below:

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets.

A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred.

As per AS-16: Borrowing Cost Disclosures there is no borrowing cost incurred in respect of any Qualified Capital Assets as well as no interest or financial charges incurred on qualifying assets haven''t been capitalized during the year.

L. RESEARCH AND DEVELOPMENT EXPENSES

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are charged to the Statement of Profit and Loss unless a product''s technological feasibility has been established, in which case such expenditure is capitalized.

M. CASH FLOW STATEMENT

The Company has prepared the Cash Flow Statement using the indirect method on compliance with Accounting Standard issued by the Institute of Chartered Accountants of India (AS-3).

N. TAXATION

As per Accounting Standard 22 "Accounting for Tax on Income", the disclosures as defined in the Accounting Standard are given as below:

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.


Mar 31, 2012

1. Basis of Preparation of financial statement: -

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

Accounting policies not specifically referred to otherwise are in consonance with prudent accounting principles.

All income and expenditure having material bearing on the financial statement are recognized on an accrual basis.

2. Use of Estimate: -

The presentation of financial statement requires estimates and assumptions to be made that affect the reported amounts of asset and liabilities on the date of financial statement and the reported amount of revenue and expenses during the relevant period. The estimates are made to the best of management's ability considering all necessary information. Differences, if any, between actual result and estimate are recognized in the period in which results are ascertained.

Statement of significant Accounting policies

3. Fixed Assets and Depreciation: -

a) Fixed assets are stated at their original cost (net of CENVAT / Value Added Tax) including freight and other incidental expenses related to acquisition and installation of the concerned assets less accumulated depreciation and impairment losses if any.

b) Depreciation on the fixed assets added/disposed off/ discarded during the year has been provided on WDV Basis at the rates specified under Companies Act, 1956 with reference to the month of addition/ disposal/discarding.

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal and external factors. An impairment loss is recognized wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and the value in use. In assessing value in use the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

4. Inventories: -

i. Raw Materials are valued at cost or net, realizable value whichever is lower.

ii. Semi Finished Goods (Work in progress) are valued at cost.

iii. Finished Goods:

Manufactured goods are valued at cost or net realisable value whichever is lower. Cost includes cost of raw materials used and all the related overhead expenses. Traded Goods are valued at cost or net realisable value whichever is lower. Cost is determined by using the First in First out (FIFO) method.

5. Investments: -

Investments that are readily realizable and intended to be held for not more than a year are classified as Current Investments. All other Investments are classified as Long term Investments. Current Investments are stated at lower of cost and market rate on an individual investment basis. Long term investments are considered "at cost” on individual investment basis, unless there is a decline other than temporary in the value, in which case adequate provision is made against such diminution in the value of investments.

6. Recognition of Income and Expenditure:-

Sales are recognized when goods are supplied and are recorded net of rebates, Sales Tax, Expenses are accounted for on accrual basis and provision is made for all known losses and expenses.

7. Employee Benefits:-

Contributions to defined contribution schemes such as provident fund are charged to profit and loss account as incurred. Gratuity Act is not applicable to the Company however provision for Gratuity is made on the basis of Valuation done by Actuary provision and for Leave encashment payable to the employees provision is not made as the same is accounted on cash basis.

8. Miscellaneous Expenditure: -

Preliminary expenses have been amortized over a period of five years.

9. Foreign Currency Transaction:-

No Foreign Currency Transaction had taken place during the year.

10. Taxation :-

Provision for current tax is made based on the tax payable under the current provisions of the tax laws applicable in the jurisdiction where in the income is assessable.

Deferred tax expenses or benefit is recognized on timing differences being the difference between taxable income and accounting income that arises in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets and liabilities are accounted for, using the tax rates and tax laws applicable as on the Balance Sheet date.

11. Borrowing cost:

Borrowing cost attribution to acquisition, construction or production or qualified assets are capitalized as part of the cost of that asset, till the period in which the asset is ready for used. Other borrowing costs are recognized as an expense in the period in which these are incurred.

12. Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles 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 revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized.

13. Cash Flow Statement

The Company has prepared the Cash Flow Statement using the Indirect Method in compliance with Accounting Standard issued by The Institute of Chartered Accountants of India (AS-3).

14. Provision, contingent liabilities and contingent assets

Provision are recognized when the company has a present and legal or constructive obligation as a result of past event, it is problem that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount of obligation can be made. Provisions are determined based on test estimated required to settle the obligation at the balance sheet date. Provision are reviewed at each balance sheet date and adjusted to reflect current best estimate. A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may but probably will not require an outflow of resources. When there is possible obligation or present obligation in respect of which like hood of outflow of resource is remote, no provision or disclosure is made.

15. Contingencies

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of Notes to Accounts.


Mar 31, 2010

A) Basis of Preparation of financial statements.

i. The Financial Statement are Prepared under the historical cost convention on an accrual basis in accordance with the generally accepted accounting principles prevalent in India.

ii. According policies not specifically referred to otherwise are in consonance with prudent accounting princoles.

iii. All income and expenditure having material bearing on the financial statements are recognized on an accrual basis.

b) Use of Estimate

The presentation of financial statement requires estimates and assumptions to be made that affect the reported amounts of asset and liabilities on the date of financial statement and the reported amounts of revenue and expenses during the reporting period. The estimate are made to the best of the managements ability- considering all necessary information. Differences, if any, between actual result and estimate are recognized in the period in which the results are ascertained.

II. Statement of significant Accounting policies.

a Fixed Assets and Depreciation:

Fixed Assets are stated at cost net of CENVAT / values Added Tex less accumulated Depreciation and impairment loss if any. The Company capitalized all costs relating to the acquisition and installation of fixed assets. Depreciation on the fixed assets added disposed off/ discarded during the year has been provided on WDV Basis at the rates specified under Companies Act, 1956 with reference to the month of addition disposal discarding. Depreciation for the F. Year 2005-06. 2006-07. 2007-08 & 2008-09 have been charged as per the rates specified by Income Tax Act 1961 in their respective years . During the current Financial Year we have recalculated the depreciation for all the above five financial years as per the rates specified by Companies Act 1956. This has resulted in write back of depreciation of Rs 9.98.393/-

b Inventories:

Inventory of goods is valued at Cost or Market value whichever is less. Cost is ascertained on first in first out (FIFO) basis and includes all applicable charges and duties.

Raw Material, packing material, and store & consumption are valued at cost.

Works in process are valued at raw material cost conversion cost.

Finished goods are valued at cost or net realizable value whichever is lower.

c Investment:

Long term investments are stated at cost and provision for diminution in value in the value thereof is made to recognize a decline of a permanent nature Current investment is carried at the lower of cost and fair value as at the balance sheet date.

d Recognition Of Income and Expenditure:

Sale are recognized when goods are supplied and are recorded net of Rebares. Sales Tax, Expenses are accounted for on accrual basis and provision is made for all known losses and expenses.

e Contribution to provident fund:

Contribution to provident Fund is made at predetermined rate and charges to the profit and loss Account.

f Employees Retirement Benefits:

Liability in respect of Gratuity is recognized in respect of eligible employees in term of the Payment of Gratuity Act, 1972.

g Foreign Currency Transactions:

No foreign Currency Transaction taken place during the year.

h Taxation:

Income tax expenses comprises of current & deferred Income Tax .

Current taxes

Provision for current income tax is recognized in accordance with the proision of Indian Income tax Act 1961. and annually based on the tax liability after credut for allowances and exemption.

Deferred Taxes

Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred Tax is recognized at the , Balance Sheet date, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

i Borrowing cost:

Borrowing costs attribution to acquisition, construction or production or qualifying assets are capitalized as part of the cast of that assel till the period in which the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

j Provision, Contingent liabilities and Contingent Assets:

Provision are recognized when the Company has a present legal or constructive obligation as a result of past event, it is problem that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are determined based on best estimated required to settle the obligation at the balance sheet date. Provision are reviewed at each balance sheet date and adjusted to reflect current best estimate. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may but probably will not, require an outflow of resource. When there is a possible obligation or a present obligation in respect of which the like hood of outflow of resources is remote, no provision or disclosure is made.

k Impairment of Assets:

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of asset. If such recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belong is less then its carrying amount. The carrying amount is reduced to its recoverable amount. This reduction is treated as on impairment has and is reangnired in the pront and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

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