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Accounting Policies of Vertical Industries Ltd. Company

Mar 31, 2014

I. Basis for Preparation of Financial Statements:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. 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 thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under Companies Act, 1956 shall continue to apply.

Consequently, these financial statements have been prepared on the basis of going concern, under the historical cost convention on the accrual basis, to comply in all material aspects with applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and 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 to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be in 12 months for the purpose of current - noncurrent classification of assets and liabilities.

II. Use of Estimates:

The preparation and presentation of financial statements requires estimates and assumptions and/or revised 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 recognized in the period in which the results are known/materialised.

III. Valuation of Inventories:

Finished and semi-finished products produced and purchased by the Company are carried at lower of cost and net realizable value. Work-in-progress is carried at lower of cost and net realisable value. Stores and spare parts are carried at cost.

IV. Revenue Recognition:

(i) Revenues /Incomes and Costs/Expenditure are generally accounted on accrual, as they are earned or incurred.

(ii) Sale of Goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.

(iii) Company generally follows the mercantile system of accounting and recognizes income and expenses on accrual basis, including provisions or adjustments for committed obligations and amounts demined as payable or receivable during the year.

V. Fixed Assets & Method of Depreciation:

There are no fixed assets for the company. Hence AS-10 "Accounting for Fixed assets" and AS-6 "Accounting for Depreciation'' are not applicable to the company for this financial year.

VI. Foreign CurrencyTransactions:

There is no foreign currency transaction for the company during the year; hence AS-11 "Accounting for foreign exchange" is not applicable for this year.

VII. Employee Benefits:

Expenses and Liabilities in respect of employee benefits are recorded in accordance with Revised Accounting Standard 15 - Employee Benefits (Revised 2005) issued by the Institute of Chartered Accountants of India (the "ICAI").

VIII. Earnings per share:

Basic earnings per share is computed by dividing the profit/ (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

IX. Related PartyTransactions:

During the Financial Year 2013-2014, there is no transaction made with related party, therefore the Accounting standard-18 "Related Party disclosure" is not required.

X. Taxes on Income:

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the assessment year 2014-15. Deferred tax asset and liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance sheet date.


Mar 31, 2013

1. Basic Perparation

The Financial Statements have been prepared on the basis of going concern, under the historical cost convention on the accrual basis, to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956.

2. Recognition of Income & Expenditure:

All items of income and expenditure shown in the statement having material bearing on the accounts are accounted on accrual basis.

3. Fixed Assets:

There is no fixed asset for the company. Hence AS-10 "Accounting for Fixed assets" is not applicablefor this year.

4. Method of Depreciation:

There is no depreciation on Fixed Assets; hence AS-6 "Accounting for depreciation" is not applicable for this year.

5. Valuation of Inventories:

Raw Granite Blocks are valued at cost or net realizable value whichever is less. Finished goods are valued at lower of cost or net realizable value. Work-in-progress is valued at lower of Cost or Net realizable value. Stores, Spares and Consumables are valued at cost.

6. Foreign Currency Transactions:

There is no foreign currency transaction for the company during the year; hence AS- 11 "Accounting for foreign exchange" is not applicable for this year.


Mar 31, 2012

1. The Financial Statements have been prepared on the basis of going concern, under the historical cost convention on the accrual basis, to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956.

2. Income & Expenditure:

All items of income and expenditure shown in the statement having material bearing on the accounts are accounted on accrual basis.

3. Fixed Assets:

Fixed Assets are carried at cost less accumulated depreciation.

4. Depreciation:

Depreciation on Fixed Assets is provided on written down method as per schedule XIV of the Companies Act, 1956.

5. Inventories:

Raw Granite Blocks are valued at cost or net realizable value whichever is less.

Finished goods are valued at lower of cost or net realizable value. Since the Company is an 100% EOU, Central Excise duty is not chargeable on finished goods. Accordingly, Central Excise Duty Component is not included in the valuation of Closing Stock of Granite Polished Slabs.

Work-in-progress is valued at lower of Cost or Net realizable value.

Stores, Spares and Consumables are valued at cost.

6. Foreign Currency Transactions:

Transactions in foreign currency are recorded at the rates of foreign exchange prevailing on the date of transactions.


Mar 31, 2010

A) Basis of preparation of Financial Statements: The Financial Statements have been prepared under historical cost convention method and are in conformity to the generally accepted accounting principles, applicable provisions of The Companies Act, 1956 and as per the Accounting Standards issued by the Institute of Chartered Accountants of India.

b) Income and Expenditure: All items of income and expenditure shown in the statement having material bearing on the accounts are accounted on accrual basis.

c) Fixed Assets: Fixed Assets are carried at cost less accumulated depreciation

d) Depreciation: Depreciation will be provided on written down method as per the rates specified in Schedule XIV of The Companies Act, 1956.

e) Inventories: Raw Granite Blocks are valued at cost or net realisable value which ever is less.

a. Finished Goods are valued at lower of Cost or Net realisable value. Since the Company is an 100% E.O.U., Central Excise duty is not chargeable on finished goods. Accordingly, Central Excise Duty component is not included in the valuation of Closing Stock of Granite Polished Slabs.

b. Work-in-progress is valued at lower of Cost or Net realisable value.

c. Stores, Spares and Consumables are valued at cost.

f) Foreign currency transactions: Transactions in foreign currency are recorded at the rates of foreign exchange prevailing on the date of transactions. Current Assets and Liabilities denominated in Foreign Currency, are translated at the rate of exchange prevailed as at the Balance Sheet date. Difference between the year end exchange rates and original exchange rates in foreign currency, is accounted on exchange gain or loss and dealt with in the Profit & Loss Account.

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