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Accounting Policies of Veljan Denison Ltd. Company

Mar 31, 2015

1. Financial Statements are prepared based on historical cost convention and in accordance with Generally Accepted Accounting Principles in India ("Indian GAPP") and Company with all Material respect with the Mandatory Accounting Standard ("AS") prescribed under section 133 of the Companies Act,2013 ("The Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended ), and with relevant provisions of the Act and Pronouncements of the Institute of Chartered Accounts of India (ICAI). The Financial Statements have been prepared on Accrual basis . The Accounting Policies have been consistently applied by the Company are consistent with those used in the Previous Year.

2. Fixed assets are stated at cost net of Cenvat and Vat credit less accumalated depreciation. Cost of aquisition of Fixed assets is inclusive of freight, duties and taxes wherever input credits are not availed and cost of installation/correction expenses.

3. Depreciation is provided on Tangible assets in accordance with the useful life prescribed as per Schedule II of the Companies Act, 2013. Intangible asset software is written off over a period of 3 years.

4. Raw materials and consumables stores are valued at cost on weighted average method, Finished Goods and Work-in-Progress are valued at cost on weighted average method realisable value whichever less.

5. Jigs & Fixtures and Patterns are (valued after providing for) amortisation at 20% and 10% respectively Under written down value method. Initial tools were capitalised and amortised at 10% on WDV value and further issue of tools are charged to revenue as and when issued.

6. Contributions to Provident Fund are remitted to the Provident Fund Commissioner at prescribed rates Group Gratuity Schemes administered through Trustees for which policies are taken from Life Insurance Corporation of India. The said remittances and premiums are charged to the revenue.

7. Liability in respect of Encashment of leave salary to the Employees of the company is provided for actual basis.

8. All contingent Liabilities are indicated by way of a note and will be provided/paid on crystallisation.

9. Sales are inclusive of Excise duty, Sales tax and packing charges collected.

10. Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws.

11. Foreign currency transaction:

a) Transaction in foreign currency are initially accounted at the exchange rate prevailing on the date of transaction and adjusted appropriately to Capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year.

b) At each Balance Sheet date :

Foreign currency monetary items are reported using the rate of exchange on that date. Foreign currency non monetary items are reported using the exchange rate at which they are initially recognised.

12. Impairment of Assets:

At the date of each Balance Sheet, the company evaluates for indications of impairment internally if any to the carrying amounts of its fixed assets. If any indications exist, the recoverable amount is estimedated at the higher of the realisable value and value in use, as considered appropriate. If the estimated realisable value is less than the carring amount, and impairment loss is recognised.

Reversal of impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years.


Mar 31, 2014

1. Financial Statements are Prepared based on historical cost convention and in accordance with Generally accepted accounting principles

2 Fixed assets are stated at cost net of Cenvat and Vat credit less accumulated depreciation. Cost of acquisition of Fixed assets is inclusive of freight, duties and taxes wherever input credits are not availed and cost of installation/errection expenses.

3 Depreciation on Tangible assets of the company is provided on straight line method as per Schedule XIV of the Companies Act, 1956. Intangible asset software is written off over a period of 3 years.

4 Raw materials and consumables stores are valued at cost on weighted average method, Finished Goods and Work-in-Progress are valued at cost on weighted average method or realisable value whichever less

5 Jigs & Fixtures and Patterns are (valued after providing for) amortisation at 20% and 10% respectively Under written down value method. Initial tools were capitalised and amortised at 10% on WDV value and further issue of tools are charged to revenue as and when issued.

6 Contributions to Provident Fund are remitted to the Provident Fund Commissioner at prescribed rates Group Gratuity Schemes administered through Trustees for which policies are taken from Life Insurance Corporation of India. The said remittances and premiums are charged to the revenue.

7 Liability in respect of Encashment of leave salary to the Employees of the company is provided for actual basis.

8 All contingent Liabilities are indicated by way of a note and will be provided/paid on crystallisation.

9 Sales are inclusive of Excise duty, Sales tax and packing charges collected.

10 Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws.

11 Foreign currency transaction:

a) Transaction in foreign currency are initially accounted at the exchange rate prevailing on the date of transaction and adjusted appropriately to Capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year.

b) At each Balance Sheet date :

Foreign currency monetary items are reported using the rate of exchange on that date. Foreign currency non monetary items are reported using the exchange rate at which they are initially recognised.

12 Impairment of Assets:

At the date of each Balance Sheet, the company evaluates for indications of impairment internally if any to the carrying amounts of its fixed assets. If any indications exist, the recoverable amount is estimated at the higher of the realisable value and value in use, as considered appropriate. If the estimated realisable value is less than the carring amount, and impairment loss is recognised.

Reversal of impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years.


Mar 31, 2013

1. Financial Statements are Prepared based on historical cost convention and in accordance with Generally accepted accounting principles

2. Fixed assets are stated at cost net of Cenvat and Vat credit less accumalated depreciation. Cost of aquisition of Fixed assets is inclusive of freight, duties and taxes wherever input credits are not aviled and cost of installation/errection expenses.

3. Depreciation on Tangible assets of the company is provided on straight line method as per Schedule XIV of the Companies Act, 1956. Intangible asset software is written off over a period of 3 years.

4. Raw materials and consumables stores are valued at cost on weighted average method, Finished Goods and Work-in-Progress are valued at cost on weighted average method or realisable value whichever less.

5. Jigs & Fixtures and Patterns are (valued after providing for) amortisation at 20% and 10% respectively Under written down value method. Initial tools were capitalised and amortised at 10% on WDV value and further issue of tools are charged to revenve as and when issued.

6 Contributions to Provident Fund are remitted to the Provident Fund Commissioner at prescribed rates Group Gratuity Schemes administered through Trustees for which policies are taken from Life Insurance Corporation of India. The said remittances and premiums are charged to the revenue.

7. Liability in respect of Encashment of leave salary to the Employees of the company is provided for actual basis.

8. All contingent Liabilities are indicated by way of a note and will be provided/paid on crystallisation.

9. Sales are inclusive of Excise duty, Sales tax and packing charges collected.

10. Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws.

11. Foreign currency transaction:

a) Transaction in foreign currency are initially accounted at the exchange rate prevailing on the date of transaction and adjusted appropriately to Capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year.

b) At each Balance Sheet date:

Foreign currency monetary items are reported using the rate of exchange on that date. Foreign currency non monetary items are reported using the exchange rate at which they are initially recognised.

12. Impairment of Assets:

At the date of each Balance Sheet, the company evaluates for indications of impairment internally if any to the carrying amounts of its fixed assets. If any indications exist, the recoverable amount is estimated at the higher of the realisable value and value in use, as considered appropriate. If the estimated realisable value is less than the carrying amount, and impairment loss is recognised.

Reversal of impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years.


Mar 31, 2012

1. Financial Statements are prepared based on historical cost convention and in accordance with generally accepted accounting principles

2. Fixed Assets are stated at cost net of Cenvat and Vat credit less accumulated depreciation. Cost of acquisition of Fixed assets is inclusive of freight, duties and taxes wherever input credits are not availed and cost of installation/errection expenses.

3. Depreciation on Tangible Assets of the Company is provided on straight line method as per Schedule XIV of the Companies Act, 1956. Intangible Asset Software is written off over a period of 3 years.

4. Raw materials and consumables stores are valued at cost on weighted average method, Finished Goods and Work-in-Progress are valued at cost on weighted average method or realisable value whichever is less

5. Jigs & Fixtures and Patterns are (valued after providing for) Amortisation at 20% and 10% respectively Under written down value method. Initial tools were capitalised and Amortised at 10% on WDV value and further issue of tools are charged to revenue as and when issued.

6. Contributions to Provident Fund are remitted to the Provident Fund Commissioner at prescribed rates Group Gratuity Schemes administered through Trustees for which policies are taken from Life Insurance Corporation of India. The said remittances and premiums are charged to the revenue.

7. Liability in respect of Encashment of leave salary to the Employees of the company is provided on actual basis.

8. All contingent Liabilities are indicated by way of a note and will be provided/paid on crystallisation.

9. Sales are inclusive of Excise Duty, Sales Tax and packing charges collected.

10. Provision for Tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws.

11. Foreign Currency transaction:

a) Transaction in foreign currency are initially accounted at the exchange rate prevailing on the date of transaction and adjusted appropriately to Capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year.

b) At each Balance Sheet date:

Foreign currency monetary items are reported using the rate of exchange on that date.

Foreign currency non monetary items are reported using the exchange rate at which they are initially recognised.

12. Impairment of Assets:

At the date of each Balance Sheet, the company evaluates for indications of impairment internally if any to the carrying amounts of its fixed assets. If any indications exist, the recoverable amount is estimated at the higher of the realisable value and value in use, as considered appropriate. If the estimated realisable value is less than the earring amount, an impairment loss is recognised.

Reversal of impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for the Asset no longer exist or have decreased. However, the increase in carrying amount of an Asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the Asset in prior years.


Mar 31, 2011

The following are the significant accounting policies adopted by the company in the preparation and presentation of financial statements:

1. Financial Statements are Prepared based on historical cost convention and in accordance with Generally accepted accounting principles

2. Fixed assets are stated at cost net of Cenvat and Vat credit less accumulated depreciation. Cost of acquisition of Fixed assets is inclusive of freight, duties and taxes wherever input credits are not availed and cost of installation/erection expenses.

3. Depreciation on Tangible assets of the company is provided on straight line method as per Schedule XIV of the Companies Act, 1956. Intangible asset software is written off over a period of 3 years.

4. Raw materials and consumables stores are valued at cost on weighted average method, Finished Goods and Work-in-Progress are valued at cost on weighted on method realisable value whichever less

5. Jigs & Fixtures and Patterns are (valued after providing for) amortisation at 20% and 10% respectively Under written down value method. Initial tools were capitalised and amortised at 10% on WDV value and further issue of tools are charged to revenue as and when issued.

6. Investments are stated at cost

7. Contributions to Provident Fund are remitted to the Provident Fund Commissioner at prescribed rates Group Gratuity Schemes administered through Trustees for which policies are taken from Life Insurance Corporation of India. The said remittances and premiums are charged to the revenue.

8. Liability in respect of Encashment of leave salary to the Employees of the company is provided for actual basis.

9. All contingent Liabilities are indicated by way of a note and will be provided/paid on crystallisation.

10. Sales are inclusive of Excise duty, Sales tax and packing charges collected.

11. Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws.

12. Foreign currency transaction:

a) Transaction in foreign currency are initially accounted at the exchange rate prevailing on the date of transaction and adjusted appropriately to Capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year.

b) At each Balance Sheet date : Foreign currency monetary items are reported using the rate of exchange on that date. Foreign currency non monetary items are reported using the exchange rate at which they are initially recognised.

13 Impairment of Assets:

At the date of each Balance Sheet, the company evaluates for indications of impairment internally if any to the carrying amounts of its fixed assets. If any indications exist, the recoverable amount is estimated at the higher of the realisable value and value in use, as considered appropriate. If the estimated realisable value is less than the carrying amount, and impairment loss is recognised.

Reversal of impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years.


Sep 30, 2009

1. Financial Statements are based on historical cost convention and in accordance with Generally accepted accounting practices

2. Fixed assets are stated at cost net of Cenvat and Vat credit less accumalated depreciation. Cost of aquisetion of Fixed assets is inclusive of freight, duties and taxes wherever input credits are not aviled and cost of installation/errection expenses.

3. Depreciation on Tangible assets of the company is provided on striaght line method as per Schedule XIV of the Companies Act, 1956. Intangible asset software is written off over a period of 3 years.

4. Raw materials and consumables stores are valued at cost on weighted average method, Finished Goods and Work-in-Progress are valued at cost on weighted on method realisable value whichever less

5. Jigs & Fixtures and Patterns are (valued after providing for) amortisation at 20% and 10% respectively Underwritten down value method. Intional tools were capitalised and amortised at 10% on WDV value and further issue of tools are charges to revenve as and when issued.