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

Accounting Policies of Venlon Enterprises Ltd. Company

Mar 31, 2015

Basis of Accounting

The Financial Statements are prepared on the historical cost convention (except for revaluation of plant and machinery, building and land), in accordance with applicable Accounting Standards and the relevant provisions of the Companies Act. 2013.

Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the dale of financial statements and reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates arc recognized in the period ifl which the results are known / materialised.

Revenue kecoemtioa

All income and expenditure are accounted on accrual basis.

Fixed Assets

All tangible assets are staled at acquisition cost or revalued amounts, as the case may be. net of uccumul depreciation and impairment losses, if any. Lhe cost includes expenditure incurred in the acquisition construction I installation and other related expenses in bringing the asset to working condition for its intended In respect of qualifying assets, related pre operational expenses including borrowing costs are also capitalized Cast of revaluation of fixed assets, the original cost as written up by the valued, is considered in the account an< differential amount Is transferred to revaluation reserve. Subsequent expenditures related to an item of fixed are added to its book value only if they increase the future benefits from the existing asset beyond its presto iissessed standard of performance. Loss arising from retirement of. and gains or losses from disposal of fixed a; arc recognised in the Statement of Profit and l,oss.

Costs relating to acquisition of Software are capitalised as Intangible Assets"

Depreciation

Depreciation on fixed Assets has been provided on Straight line Method over the estimated useful lives of the asset prescribed in Schedule IT to the Companies Act. 2013 which are as follows;

factory Building - 30 Years

Office Building - 60 Years

Plant & Equipment - 23 Years

Furniture &. fixtures - 10 Years

Electrical Installations - ItJ Years Vehicles - 8 Years

Windmill - 22 Years

Roads - 10 Years

Investments

Long term imesimerii are staled 61 cost. Provision tor diminution in value is made if the decline in value is other than temporary.

Foreign Current Transactions

I he Company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency are recorded at the exchange rale prevailing on I he dale of iransactions-

Exchange differences arising on foreign exchange transactions settled during the year are recognised in the profit and loss statement of the year.

a) Transaction

Monetary assets and liabilities in foreign currency, which are ouislanding as ai the year-end. are translated at the year- end at the closing exchange rale and llie resultant exchange differences are recognized in the profit and loss statement. Non monetary items are stated in the balance sheet using the exchange rate at the date of the transaction.

b) The Exchange differences arising on reporting of long term foreign currency monelary items at rate different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital assets is added to or deducted from the cost of ihe assets and shall be depreciated over the balance life of the assets, and in other cases is accumulated in a "Foreign Currency monetary item Translation difference account ' In the companies financial statements and amortized over the balance period of such long term assets or liabilities, by recognition as Income or expense In each of such periods.

Pgnyajjye instruments

The Company's exposure to foreign currency fluctuations relates to foreign currency assets, liabilities and forecasted cash flows. The Company limits the effects of foreign exchange rale fluctuations by following established risk management policies including the use of derivatives. The Company enters into forward exchange contracts, where the counterparty is a bank.

Inventories

(i) inventories are valued as follows:

Stores, Spares, Packing Materials, Raw Materials, Finished Goods and Stock in Process - al lower of cosl and net realizable value.

(ii) Cost of Raw Materials, Stores. Spares and Packing Materials is determined on weighted average basis. Cost of Finished Goods and Stock in Process is determined by considering materials, labour and other related direct expenses.

Customs Oiitv and Excise Puiv

Customs Duly and Excise Duty have been accounted for on [he basis of both pay menus made in respect of goods cleaned as welt as provision made for goods lying in bonded warehouse. Such provision is included in the valuation of closing stocks of respective materials and goods.

Short term employee benefits are accounted in the period during which the services have been rendered.

Eligible employees receive benefits from provident fund, superannuation fund, employee stale insurance and other funds which are defined contribution plans. Both the eligible employee and the company make monthly contributions to the respective government administered funds equal to the specified percentage of the covered employee's salary. The company has no further obligation beyond its monthly contributions.

Income Taxes

Tax expense comprises of both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Dclerrcd tax assets and liabilities arising on account of timing difference and which are capable of reversal In subsequent periods are recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the company has carry forward unabsorbed depreciation and tax losses, deferred Tax assets are recognized only to the extent there is a virtual certainty supported by convincing evidence ihat sufficient laxable income will be available against which such deferred tax assets can he realized.

Borrowing costs

Interest and other borrowing costs attributable to the acquisition of or construction of qualifying assets till the date of commercial use of the assets arc capitalized. All other borrowing costs are charged to revenue.

Provisions and fnutiUEtmt Liabilities

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. 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 resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2014

Basis of Accounting

The Financial Statements. are prepared on the historical cost convention (except for revaluation of Plant and Machinery), in accordance with applicable Accounting Standards and the relevant provisions of the Companies Act, 1

Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and Iiabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known / materialised.

Revenue Recognition

All Income and expenditure are accounted on accrual basis.

Fixed Assets

Fixed Assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and provision for impairment, if any. The cost includes expenditure incurred in the acquisition and construction / installation and other related expenses in bringing the asset to working condition for its intended use. In respect of qualifying assets, related pre operational expenses including borrowing costs are also capitalised. In case of revaluation of fixed assets, the original cost as written up by the valuer, is considered in the account and the differential amount is transferred to revaluation reserve.

Costs relating to acquisition of Software are capitalised as "Intangible Assets"

Depreciation

Depreciation on Fixed Assets other than Special tools. Jigs, fixtures included under the head Plant &. Machinery and Software has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act. 1956 on prorata basis from the date of additions and/or disposal.

Investments

Long Term Investments arc stated at cost. Provision for diminution in value is made if the decline in value is other than temporary.

Foreign Currency Transactions

The Company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency arc recorded at the exchange rate prevailing on (the date of transactions.

Exchange differences arising on foreign exchange transactions settled during the year are recognised in the profit and loss statement of the year.

a) Transaction

Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year-end at the closing exchange rate and the resultant exchange differences arc recognised in the profit and loss statement. Non monetary items are staled in the balance sheet using the exchange rate at the date of the transaction.

b) The Exchange differences arising on reporting of long term foreign currency monetary items at rate different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital assets is added to or deducted from the cost of the assets and shall be depreciated over 1 he balance life of the assets, and in other cases is accumulated in a "Foreign Currency monetary item Translation difference account "In the companies financial statements and amortized over the balance period of such Jong term assets or liabilities, by recognition as income or expense in each of such periods.

Derivative instruments

The Company''s exposure to foreign currency fluctuations relates to foreign currency assets, liabilities and forecasted cash Hows. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. the Company enters into forward exchange contracts, where the counterparty if a bank.

Inventories

(i) Inventories are valued as follows:

Stores. Spares, Packing Materials. Raw Materials. Finished GoodHand Stock in Process - at lower of cost and net realisable value.

(iij Cost of Raw Materials, Store:''- Spares and Packing Materials is determined on weighted average basis. Cost of finished Goods and Stock in Process is determined by considering materials, labour and other related direct expenses.

Customs Duty and Excise Duty have been accounted for on the basis of both payments made in respect of goods cleared as well as provision made for goods lying in bonded warehouse. Such provision is included in the valuation of closing slocks of respective materials and goods.

Retirement & other employee benefits

Short term employee benefits are accounted in the period during which the services have been rendered.

The Company''s contribution to the Provident Fund is remitted to a trust established for this purpose based On fixed percentage of the eligible employees'' salary and charged to Profit &, Loss statement. The company is generally liable for annual contributions and any shortfall in the fund assets, based on the Government specified minimum rate of return and recognises such contribution and shortfall, if any, as an expense in the year incurred.

Superannuation benefits to employees, a defined contribution plan, as per company''s scheme, have been funded with Life Insurance Corporation of India and the contribution is charged to Profit &. Loss statement when the contribution to the fund is due.

The Company''s liability towards Gratuity. Pension lo certain categories of employees are accounted for based on Actuarial valuation done at the year end using the Projected Unit Credit Method. Actuarial gains and losses are charged to Profit & Loss statement. Gratuity liability is funded to the trust established for the purpose,

Income Taxes

Tax expense comprises of both current and deferred taxes. Current Tax is provided on the taxable income rising the applicable tax rates and tax laws. Deferred tax asses and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are recognised only to the extent that there is reasonable certainity that sufficient future taxable income will be available against Which such deferred tax assets can be realised. If the company has carry forward unabsorbed depreciation and tax losses, deferred Tax assets are recognised only to the extent there is a virtual certainity supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realised.

Borrowing costs

Interest and other borrowing costs attributable to the acquisition of or construction of qualifying assets till the date of commercial use of the assets are capitalised. All other borrowing costs are charged to revenue.

Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. 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 resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2013

Basis of Accounting

The Financial Statements are prepared on the historical cost convention (except for revaluation of Plant and Machinery), in accordance with applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known / materialised.

Revenue Recognition

All income and expenditure are accounted on accrual basis.

Sale of goods are recognised upon passage of title to the customers which generally coincides with their delivery. Revenue from job work charges for materials lying in stock, pending despatches at the year end, are accounted for on accrual basis.

Fixed Assets

Fixed Assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and provision for impairment, if any. The cost includes expenditure incurred in the acquisition and construction / installation and other related expenses in bringing the asset to working condition for its intended use. In respect of qualifying assets, related pre operational expenses including borrowing costs are also capitalised. In case of revaluation of fixed assets, the original cost as written up by the valuer, is considered in the account and the differential amount is transferred to revaluation reserve.

Costs relating to acquisition of Software are capitalised as "Intangible Assets"

Depreciation

Depreciation on Fixed Assets other than Special tools, Jigs, Fixtures included under the head Plant & Machinery and Software has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 on prorata basis from the date of additions and/or disposal.

Special tools, Jigs & Fixtures are written off over a period of three years based on Technical estimate. Software is amortised on straight line basis over a period of three years.

Investments

Long Term Investments are stated at cost. Provision for diminution in value is made if the decline in value is other than temporary.

Foreign Currency Transactions

The Company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transactions.

Exchange differences arising on foreign exchange transactions settled during the year are recognized in the profit and loss account of the year.

Transaction

Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year- end at the closing exchange rate and the resultant exchange differences are recognized in the profit and loss account. Non monetary items are stated in the batance sheet using the exchange rate at the date of the transaction.

Derivative instruments

The Company''s exposure to foreign currency fluctuations relates to foreign currency assets, liabilities and forecasted cash flows. The Company limits the effects of foreign exchange rate fluctuations by following estabilished risk management policies including the use of derivatives. The Company enters into forward exchange contracts, where the

Inventories ;

(i) Inventories are valued as follows:

Stores, Spares, Packing Materials, Raw Materials, Finished Goods and Stock in Process - at lower of cost and net

(ii) Cost of Raw Materials, Stores, Spares and Packing Materials is determined on weighted average basis. Cost of Finished Goods and Stock in Process is determined by considering materials, labour and other related direct expenses.

Customs Duty and Excise Duty

Customs Duty and Excise Duty have been accounted for on the basis of both payments made in respect of goods cleared as well as provision made for goods lying in bonded warehouse. Such provision is included in the valuation of closing stocks of respective materials and goods.

Retirement & other employee benefits

Short term employee benefits are accounted in the period during which the services have been rendered.

The Company''s contribution to the Provident Fund is remitted to a trust established for this purpose based on fixed percentage of the eligible employees'' salary and charged to Profit & Loss Account. The company is generally liable for annual contributions and any shortfall in the fund assets, based on the Government specified minimum rate of return and recognises such contribution and shortfall, if any, as an expense in the year incurred.

Superannuation benefits to employees, a defined contribution plan, as per company''s scheme, have been funded with Life Insurance Corporation of India and the contribution is charged to Profit & Loss Account, when the contribution to The Company''s liability towards Gratuity, Pension to certain catagories of employees and long term employee Compensated Leave Encashment being defined benefit plans are accounted for based on Actuarial valuation done at the year end using the Projected Unit Credit Method. Actuarial gains and losses are charged to Profit & Loss Account. Gratuity liability is funded to the trust established for the purpose.

Income Taxes

Tax expense comprises of both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assests and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are recognised only to the extent that there is reasonable certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised. If the company has carry forward unabsorbed depreciation and tax losses, deferred Tax assets are recognised only to the extent there is a virtual certainity supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realised.

Borrowing costs

Interest and other borrowing costs attributable to the acquisition of or construction of qualifying assets till the date of commercial use of the assets are capitalised. All other borrowing costs are charged to revenue.

Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. 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 resources. Where there is a possible obligation or a present obligation that the likelihood of outflow'' of resources is remote, no provision or disclosure is made.


Mar 31, 2012

Basis of Accounting

The Financial Statements are prepared on the historical cost convention (except for revaluation of Plant and Machinery), in accordance with applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known / materialised.

Revenue Recognition

All income and expenditure are accounted on accrual basis.

Sale of goods are recognised upon passage of title to the customers which generally coincides with their delivery. Revenue from job work charges for materials lying in stock, pending despatches at the year end. are accounted for on accrual basis.

Fixed Assets

Fixed Assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and provision for impairment, if any. The cost includes expenditure incurred in the acquisition and construction / installation and other related expenses in bringing the asset to working condition for its intended use. In respect of qualifying assets, related pre operational expenses including borrowing costs are also capitalised. In case of revaluation of fixed assets, the original cost as written up by the valuer, is considered in the account and the differential amount is transferred to revaluation reserve.

Costs relating to acquisition of Software are capitalised as "Intangible Assets"

Depreciation

Depreciation on Fixed Assets other than Special tools, Jigs, Fixtures included under the head Plant & Machinery and Software has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 on prorata basis from the date of additions and/or Special tools, Jigs & Fixtures are written off over a period of three years based on Technical estimate. Software is amortised on straight line basis over a period of three years.

Investments

Long Term Investments are stated at cost. Provision for diminution in value is made if the decline in value is other than temporary.

Foreign Currency Transactions

The Company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transactions.

Exchange differences arising on foreign exchange transactions settled during the year are recognized in the profit and loss account of the year.

Transaction

Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year- end at the closing exchange rate and the resultant exchange differences are recognized in the profit and loss account.

Non monetary items are stated in the balance sheet using the exchange rate at the date of the transaction.

Derivative instruments

The Company's exposure to foreign currency fluctuations relates to foreign currency assets, liabilities and forecasted cash flows. The Company limits the effects of foreign exchange rate fluctuations by following estabilished risk management policies including the use of derivatives. The Company enters into forward exchange contracts, where the As per Accounting Standard ('AS') 11 - The Effects of Changes in Foreign Exchange Rates', the premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortized as expense or income over the life of the contract. All other derivatives, which are not covered by AS 11, are measured using the mark-to-market principle and losses, if any, are

Inventories

(i) Inventories are valued as follows:

Stores, Spares, Packing Materials, Raw Materials, Finished Goods and Stock in Process - at lower of cost and net

(ii) Cost of Raw Materials, Stores, Spares and Packing Materials is determined on weighted average basis. Cost of Finished Goods and Stock in Process is determined by considering materials, labour and other related direct expenses.



Customs Duty and Excise Duty

Customs Duty and Excise Duty have been accounted for on the basis of both payments made in respect of goods cleared as well as provision made for goods lying in bonded warehouse. Such provision is included in the valuation of closing stocks of respective materials and goods.

Retirement & other employee benefits

Short term employee benefits are accounted in the period during which the services have been rendered

The Company's contribution to the Provident Fund is remitted to a trust established for this purpose based on fixed percentage of the eligible employees' salary and charged to Profit & Loss Account. The company is generally liable for annual contributions and any shortfall in the fund assets, based on the Government specified minimum rate of return and recognises such contribution and shortfall, if any. as an expense in the year incurred.

Superannuation benefits to employees, a defined contribution plan, as per company's scheme, have been funded with Life Insurance Corporation of India and the contribution is charged to Profit & Loss Account, when the contribution to the fund is The Company's liability towards Gratuity. Pension to certain catagories of employees and long term employee Compensated Leave Encashment being defined benefit plans are accounted for based on Actuarial valuation done at the year end using the Projected Unit Credit Method. Actuarial gains and losses are charged to Profit & Loss Account. Gratuity liability is funded to the trust established for the purpose.

Income Taxes

Tax expense comprises of both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assests and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted Deferred tax assets are recognised only to the extent that there is reasonable certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised. If the company has carry forward unabsorbed depreciation and tax losses, deferred Tax assets are recognised only to the extent there is a virtual certainity supported by comincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realised

Borrowing costs

Interest and other borrowing costs attributable to the acquisition of or construction of qualifying assets till the date of commercial use of the assets are capitalised. All other borrowing costs are charged to revenue

Provisions and Contingent Liabilities

The Company recognises a provision w hen there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made w hen there is a possible obligation or a present obligation that may. but probably will not require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2010

A Basis of Presentation: The accounts have been prepared in accordance with the Mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant presentation requirement of the Companies Act, 1956.

b Fixed Assets: Fixed Assets are stated at cost or Revaluation net of accumulated depreciation Cost comprises of the purchase price and any directly attributable costs of bringing the assets to working condition for its use including interest and other incidental expenses upto the date of commercial production Surplus on revaluation of fixed assets is credited to Capital Reserve Account

c. Depreciation: Depreciation is provided on straight-line method as per rates specified in Schedule XIV of Companies Act, 1956, as amended from time to time

d Inventories: Inventories are valued at lower of Average Cost or Net realisable Value Other items are valued at cost The Proforma price at which goods are transferred to various depots from Mysore Plant is considered as Cost for the purpose of valuation of finished Goods lying at Depots.

e. Investments: Investments are stated at cost of acquisition

f Revenue Recognition:

i) Revenue and Cost are accrued as they are earned or incurred

ii) Premium Paid to LIC in respect of Employees Group Gratuity Scheme is charged to Profit and Loss Account Provision for gratuity liability has been made in the account in respect of employees at Mumbai office, who have put in qualifying period of service

g. Foreign Currency Transactions:

Transactions in Foreign Currency are recorded at the exchange rates prevailing at the time of transaction and Exchange differences arising from foreign currency transactions are dealt with in Profit and Loss Account and adjusted where they relate to fixed Assets Current Assets and Liabilities at the year-end are converted at closing Rates and exchange losses are dealt with in the Profit and Loss Account or adjusted in Cost of Fixed Assets

h Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying assets are capitalised as part of the cost of such assets A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use All other borrowing costs are charged to revenue

i Deferred Taxation:

Deferred Tax resulting from Timing differences between book and tax profits is accounted for under the liability method, at the current rates of tax, to the extent that the timing differences are expected to crystallise.

 
Subscribe now to get personal finance updates in your inbox!