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Accounting Policies of Trishakti Electronics & Industries Ltd. Company

Mar 31, 2014

I) Basis of Preparation

Pursuant to circular 15/2013 dated 13.09.2013 read with circular 08/2014 dated 04.04.2014, till the standards of Accounting or any addendum there to are prescribed by the central government in consultation with and upon recommendation from the national Financial Reporting Authority, the existing Accounting Standards notified under the companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 1956.

All the assets and liabilities have been classified as current or non current as per the company''s normal operating cycle and other criteria set out in schedule VI of the Companies Act, 1956 ("The Act"). Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.

iii) Fixed Assets :

Fixed Assets are stated at original cost which includes expenditure incurred in acquisition and installation and other related expenses.

iii) Depreciation :

Depreciation on Assets has been provided on written down value method as prescribed in the schedule XIV of the companies Act, 1956.

iv) Investments

Long-term investments and current maturities of long-term investments are stated at cost less provision for other than temporary diminution in value. Current investments, except for current maturities of long term investments, are stated at the lower of cost and fair value, determined on a portfolio basis.

v) Inventories

Stores & spares parts has been valued at cost on FIFO basis. Inventories are taken, valued & certified by the management.

vi) Employees Benefits :

Employees benefit of short term nature are recognised as expense as and when it accrues.

Employees benefit of long term nature are recognised as expense based on actuarial valuation.

Company''s contribution in respect of Employees'' Provident Fund is made to Government Provident Fund and is charged to Profit & Loss Account.

Accrued leave for the year is paid to the employees during the year itself.

Other retirement benefits to the employees of the Company are not applicable during the year under review. The same will be provided as and when became due.

vii) Revenue Recognition

The Company maintains its accounts on accrual basis, except otherwise stated.

viii) Expenses :

Material known liabilities are provided on the basis of available information /estimates.

ix) Claims :

Claims have been accounted for on receipt/payment basis.

x) Foreign Exchange Transaction :

Transaction in foreign currency relating to (a) imports are recorded at the exchange rate prevailing at the time of such transaction, (b) Exports are recorded at the realised value as certified by the banks, however exports for which exchange sale forward contracts have been entered into with the banks are recorded at the respective forward contract value. Realised gains/losses on foreign exchange transaction are recognised in the Statement of Profit and Loss at the time of actual realisation of gains/losses.

Unrealised exports are recorded at the exchange rate prevailing at the close of the year. However, unrealised exports for which exchange sale forward contract have been entered into with the banks are recorded at the respective forward contract value.

xi) Income Tax

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act, 1961.

Deferred Income Tax is provided, using the liability method, on all temporary differences at the Balance Sheet date between the tax basis of assets and liabilities and their carrying amounts for financial reporting purpose.

Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

Deferred Tax Assets and Liabilities are measured using the tax rates and the tax laws that have been enacted or subsequently enacted at the Balance Sheet date.

xii) Impairment:

Impairment of cash generating units/assets is ascertained and considered where exceeds the recoverable amount being the higher of net realisable amount and value in use.

xiii) Contingent Liabilities :

Contingent liabilities are disclosed by way of notes on accounts.


Mar 31, 2013

I) Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 1956. All the assets and liabilities have been classified as current or non current as per the company''s normal operating cycle and other criteria set out in schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle to be less than 12 months

iii) Fixed Assets :

Fixed Assets are stated at original cost which includes expenditure incurred in acquisition and installation and other related expenses.

iii) Depreciation:

Depreciation on Assets has been provided on written down value method as prescribed in the schedule XIV of the companies Act, 1956.

iv) Investments

Long-term investments and current maturities of long-term investments are stated at cost less provision for other than temporary diminution in value. Current investments, except for current maturities of long term investments, are stated at the lower of cost and fair value, determined on a portfolio basis.

v) Inventories

Stores & spares parts has been valued at cost on FIFO basis. Inventories are taken, valued & certified by the mandgement.

vi) Employees Benefits :

Employees benefit of short term nature are recognised as expense as and when it accrues. Employees benefit of long term nature are recognised as expense based on actuarial valuation. Company''s contribution in respect of Employees'' Provident Fund is made to Government Provident Fund and is charged to Profit & Loss Account.

Accrued leave for the year is paid to the employees during the year itself. Other retirement benefits to the employees of the Company are not applicable during the year under review. The same will be provided as and when became due.

vii) Revenue Recognition The Company maintains its accounts on accrual basis, except otherwise stated.

viii) Expenses: Material known liabilities are provided on the basis of available information /estimates.

ix) Claims: Claims have been accounted for on receipt/payment basis.

x) Foreign Exchange Transaction : Transaction in foreign currency relating to (a) imports are recorded at the exchange rate prevailing at the time of such transaction, (b) Exports are recorded at the realised value as certified by the banks, however exports for which exchange sale forward contracts have been entered into with the banks are recorded at the respective forward contract value.


Mar 31, 2012

I) Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules, 2066, as amended] and other relevant provisions of the Companies Act. 1956. All the assets and liabilities have been classified as current or non current as per the company's normal operating cycle and other criteria set out in schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle to be less than 12 months.

ii) Fixed Assets :

Fixed Assets are stated at original cost which includes expenditure incurred in acquisition and installation and other related expenses.

iii) Depreciation :

Depreciation on Assets has been provided on written down value method as prescribed in the schedule XIV of the companies Act, 1956.

iv) Investments _

Long-term investments and current maturities of long-term investments are stated at cost less provision for other than temporary diminution in value. Current investments, except for current maturities of long term investments, are stated at the lower of cost and fair value, determined on a portfolio basis.

v) Inventories

Stores & spares parts has been valued at cost on FIFO basis. Inventories are taken, valued & certified by the management.

vi) Employees Benefits :

Employees benefit of short term nature are recognised as expense as and when it accrues.

Employees benefit of long term nature are recognised as expense based on actuarial valuation.

Company's contribution in respect of Employees' Provident Fund is made to Government Provident Fund and is charged to Profit & Loss Account.

Accrued leave for the year is paid to the employees during the year itself.

Other same will be provided as and when became due.

vii) Revenue Recognition . stated.

viii) Expenses :

Material known liabilities are provided on the basis of available information / estimates.

ix) Claims : ,

Claims have been accounted for on receipt/payment basis.

<) Foreign Exchange Transaction : '

Transaction in foreign currency relating to (a) imports are recorded at the exchange rate prevailing at the time of such transaction, (b) Exports are recorded at the realised value as certified by the banks, however exports for which exchange sale forward contracts have been entered into with the banks are recorded at the respective forward contracts have been entered into with the banks are recorded at the respective forward contract value. ,

Realised gains/losses on foreign exchange transaction are recognised in the Statement of Profit and Loss at the time of actual realisation of gains/losses.

Unrealised exports are recorded at the exchange rate prevailing at the close of the year. However, unrealised exports for which exchange sale forward contract have been entered into with the banks are recorded at the respective forward contract value.

xi) Income Tax

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act, 1961.

Deferred Income Tax is provided, using the liability method, on all temporary differences at the Balance Sheet date between the tax basis of assets and liabilities and their carrying amounts for financial reporting purpose.

Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

Deferred Tax Assets and Liabilities are measured using the tax rates and the tax laws that have been enacted or subsequently enacted at the Balance Sheet date.

xii) Contingent Liabilities :

Contingent liabilities are disclosed by way of notes on accounts.


Mar 31, 2010

I) Fixed Assets :

Fixed Assets are stated at original cost which include expenditure incurred in acquisition and installation and other related expenses.

ii) Depreciation :

Depreciation on Fixed Assets has been provided on written down value method as prescribed in the schedule XIV of the Companies Act, 1956.

iii) Investments :

Investment are valued at cost.

iv) Inventories :

Stores & spares parts has been valued at cost on FIFO basis.Quoted Shares are valued at Cost or Market value whichever is lower. Unquoted shares are valued at cost. Cost is generally determined on average cost basis. Market value is based on the available market price. Inventories are taken, valued & certified by the management. v) Employees Benefits :

a) Employees benefit of short term nature are recognised as expense as and when it accrues.

b) Employees benefit of long term nature are recognised as expense based on actuarial valuation.

c) Companys contribution in respect of Employees Provident Fund is made to Government Provident Fund and is charged to Profit & Loss Account.

d) Accrued leave for the year is paid to the employees during the year itself.

e) Other retirement benefits to the employees of the Company are not applicable during the year under review. The same will be provided as and when became due.

vi) Expenses :

Material known liabilities are provided on the basis of available information /estimates. vii) Claims :

Claims have been accounted for on receipt/payment basis. viif Foreign Exchange Transaction :

Transaction in foreign currency relating to (a) imports are recorded at the exchange rate prevailing at the time of such transaction, (b) Exports are recorded at the realised value as certified by the banks, however exports for which exchange sale forward contracts have been entered into with the banks are recorded at the respective forward contract value.

Realised gains/losses on foreign exchange transaction are recognised in the Profit and Loss Account at the time of actual realisation of gains/losses.

Unrealised exports are recorded at the exchange rate prevailing at the close of the year. However, unrealised exports for which exchange sale forward contract have been entered into with the banks are recorded at the respective forward contract value.

ix) Contingent Liabilities :

Contingent liabilities are disclosed by way of notes on the Balance Sheet.

x) Recognition of Income & Expenditure:

All Income and Expenditure are accounted for on accrual basis except otherwise stated.

xiii Taxation :

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the Income Tax Act, 1961.

Deferred Income Tax is provided, using the liability method, on all temporary differences at the Balance Sheet date between the tax basis of assets and liabilities and their carrying amounts for financial reporting purpose.

Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

Deferred Tax Assets and Liabilities are measured using the tax rates and the tax laws that have been enacted or subsequently enacted at the Balance Sheet date.

Fringe Benefit Tax are accounted for on estimated value of Fringe Benefit for the period as per provisions of the Income Tax Act.

 
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