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Accounting Policies of Vibros Organics Ltd. Company

Mar 31, 2014

A. SYSTEM OF ACCOUNTING

The Company adopts the accrual concept in the preparation of accounts.

b. DEPRECIATION

Depreciation on Fixed Assets is provided on Straight line method in accordance with the provisions of Schedule XIV to the Companies Act 1956.

c. FIXED ASSETS

The Fixed Assets have been stated at historical cost less accumulated Depreciation.

d. VALUATION OF INVENTORIES

- Raw Materials and stores & spares and components are valued at lower of cost or net realizable value.

- Goods in process at factory are valued at Material Cost plus estimated overheads/ realizable value as per physical verification carried out and certified by the Management.

- Work in progress is valued at lower of cost or net realizable value, cost includes construction material, labour and a proportion of construction overheads.

- Finished Goods are valued at lower of cost or net realizable value. Cost is worked out by adopting first in first out (FIFO) method.

e. EMPLOYEE BENEFITS:

- Provision for Gratuity is made in respect of employees covered under payment of Gratuity Act - As per the provisions of the said Act. For other employees - in terms of their appointment is made for eligible employees on actual basis.

- Leave encashment and other retirement benefits are annually provided on actual basis.

f. REVENUE RECOGNITION:

- Sales are inclusive of excise duty.

- Warranty claims, short supplies, free replacements and liquidated damages are accounted for as and when they are finally determined.

- Goods purchased for supply in turnkey jobs are treated as trading goods and such goods are included in sale to the extent approved by the clients.

- Revenue from Turnkey Contract is accounted for on percentage of completion method.

- Claims for Extra /Substituted items are accounted for to the extent considered realizable.

g. INVESTMENTS:

- Current Investments are valued at lower of cost and fair value determined on an individual investment basis.

- Long term investments are carried at cost. Provision is made for diminution other than temporary in the value of such investments.

h. IMPAIRMENT OF ASSETS:

At each balance sheet date an assessment is made to ascertain whether any indication exists that an asset has been impaired. If any such indication exists then an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount, is provided in the books of accounts.

i. BORROWING COST:

Borrowing Cost that is attributable to acquisition or construction of qualifying assets is capitalized as part of cost of such assets. Qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are charged to revenue.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

- Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation.

- No provision is recognized for liabilities whose future outcome cannot be ascertained with reasonable certainties and probability of outflow in settlement is remote. Such contingent liabilities are not recognized but are disclosed in the financial statements.

- Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

A. SYSTEM OF ACCOUNTING

The Company adopts the accrual concept in the preparation of accounts.

b. DEPRECIATION

Depreciation on Fixed Assets is provided on Straight line method in accordance with the provisions of Schedule XIV to the Companies Act 1956.

c. FIXED ASSETS

The Fixed Assets have even slated at historical cost less accumulated Depreciation.

d. VALUATION OF INVENTORIES

- Raw Materials and stores & spares and components are valued al lower of cost or net realizable value.

- Goods in process at factory are valued at Material Cost plus estimated overheads/ realizable value as per physical verification carried out and certified by the Management

- Contract in progress is valued on percentage completion method at the rates provided in the contract reduced by estimated percentages towards expected profit.

- Finished Goods are valued at lower of cost or net realizable value. Cost is worked out by adopting fast in first out (FIFO) method.

e. EMPLOYEE BENEFITS:

- Provision for Gratuity is made in respect of employees covered under payment of Gratuity Act - As per the provisions of the said Act l or other employees - in terms of their appointment is made for eligible employees on actual basis.

- Leave encashment and other retirement benefits are annually provided on actual basis.

f. REVENUE RECOGNITION:

- Sales are inclusive of excise duty.

- Warranty claims, short supplies, free replacements and liquidated damages are accounted for as and when they are finally determined.

- Goods purchased for supply in turnkey jobs are treated as trading goods and such goods are included in sale to the extent approved by the clients.

- Revenue from Turnkey Contract is accounted for on percentage of completion method.

- Claims for Extra /Substituted items are accounted for to the extent considered realizable.

g. INVESTMENTS:

- Current Investments are valued at lower of cost and fair value determined on an individual investment basis.

- Long term investments are carried at cost. Provision is made for diminution other than temporary in the value of such investments.

h. IMPAIRMENT OF ASSFTS:

At each balance shed date an assessment is made to ascertain whether any indication exists that an asset has been impaired. If any such indication exists then an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount, is provided in the books of accounts.

i. BORROWING COST:

Borrowing Cost that is attributable to acquisition or construction of qualifying assets is capitalized as part of cost of such assets. Qualifying assets is one that necessarily bikes substantial period of time to get ready for its intended use. Other borrowing costs are charged to revenue.

j. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

- Provisions are recognized for liabilities that am be measured by using a substantial degree of estimation.

- No provision is recognized for liabilities whose future outcome cannot be ascertained with reasonable certainties annual probability of outflow in settlement is remote. Such contingent liabilities are not recognized but are disclosed in the financial statements.

- Contingent Assets are neither recognized nor disclosed in the financial statements


Mar 31, 2012

A. SYSTEM OF ACCOUNTING

The Company adopts the accrual concept in the preparation of accounts.

b. DEPRECIATION

Depreciation on Fixed Assets is provided on Straight line method in accordance with the provisions of Schedule XIV to the Companies Act 1956.

c. FIXED ASSETS

The Fixed Assets have been stated at historical cost less accumulated Depreciation.

d. VALUATION OF INVENTORIES

- Raw Materials and stores & spares and components are valued at lower of cost or net realizable value.

- Goods in process at factory are valued at Material Cost plus estimated overheads/ realizable value as per physical verification carried out and certified by the Management.

- Contract in progress is valued on percentage completion method a( the rates provided in the contract reduced by estimated percentages towards expected profit.

- Finished Goods are valued at lower of cost or net realizable value. Cosl is worked out by adopting first in first out (FIFO) method.

e. PRE-OPERATIVE EXPENSES

Pre-operative expenses relates io llie plant for the manufacture of Ortho Nitre Chloro Benzene and Para Nitre Chloro Benzene, which shall be capitalized on commissioning of * plant and commencement of commercial production in the said plant.

f. EMPLOYEE BENEFITS:

- Provision for Gratuity is made in respect of employees covered under payment of Gratuity Act - As per the provisions of the said Act. For other employees - in terms of their appointment is made for eligible employees on actual basis.

- Leave encashment and other retirement benefits are annually provided on actual basis.

g. REVENUE RECOGNITION:

- Sales are inclusive of excise duty.

- Warranty claims, short supplies, free replacements and liquidated damages are accounted for as and when they are finally determined.

- Goods purchased for supply in turnkey jobs are treated as trading goods and such goods are included in sale to the extent approved by the clients.

- Revenue from Turnkey Contract is accounted for on percentage of completion method.

- Claims lor Extra /Substituted items are accounted for to the extent considered realizable.

h. INVESTMENTS:

- Current Investments are valued at lower of cost and fair value determined on an individual investment basis.

- Long term investments are carried at cost. Provision is made for diminution other than temporary in the value of such investments.

i. IMPAIRMENT OF ASSETS:

At each balance sheet date an assessment, is made to ascertain whether any indication exists that an asset has been impaired. If any such indication exists then an 26 impairment loss i.e. the amount by which the carrying amount ot ,in asset exceeds its recoverable amount, is provided in the books of accounts.

j. BORROWING COST:

Borrowing Cost that is attributable to acquisition or construction of qualifying assets is capitalized as part of cost of such assets. Qualifying assets is one that necessarily takes substantial period of time to gel ready for its intended use. Other borrowing costs are charged to revenue.

k. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation.

- No provision is recognized for liabilities whose future outcome cannot be ascertained with reasonable certainties and probability of outflow in settlement is remote. Such contingent liabilities are not recognized but are disclosed in the financial statements.

* Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

1. SYSTEM OF ACCOUNTING

The Company adopts the accrual concept in the preparation of accounts.

2. DEPRECIATION

Depreciation on Fixed Assets is provided on Straight line method in accordance with the provisions of Schedule XIV to the Companies Act 1956.

3. FIXED ASSETS

The Fixed Assets have been stated at historical cost less accumulated Depreciation.

4. VALUATION OF INVENTORIES

- Raw Materials and stores & spares and components are valued at lower of cost or net realizable value

- Goods in process at factory are valued at Material Cost plus estimated overheads/ realizable value as pe physical verification carried out and certified by the Management.

- Contract in progress is valued on percentage completion method at the rates provided in the contract reduced by estimated percentages towards expected profit.

- Finished Goods are valued at lower of cost or net realizable value. Cost is worked out by adopting first in first out (FIFO) method.

5. PRE-OPERATIVE EXPENSES

Pre-operative expenses relates to the plant for the manufacture of Ortho Nitro Chloro Benzene and Para Nitro Chloro Benzene, which shall be capitalized on commissioning of plant and commencement of commercial production in the said plant.

6. EMPLOYEE BENEFITS:

- Provision for Gratuity is made in respect of employees covered under payment of Gratuity Act - As per the provisions of the said Act. For other employees - in terms of their appointment is made for eligible employees on actual basis.

- Leave encashment and other retirement benefits are annually provided on actual basis.

7. REVENUE RECOGNITION:

- Sales are inclusive of excise duty.

- Warranty claims, short supplies, free replacements and liquidated damages are accounted for as and when they are finally determined.

- Goods purchased for supply in turnkey j jobs are treated as trading goods and such goods are included in sale to the extent approved by the clients.

- Revenue from Turnkey Contract is accounted for on percentage of completion method.

- Claims for Extra /Substituted items are accounted for to the extent considered realizable.

8. INVESTMENTS:

- Current Investments are valued at lower of cost and fair value determined on an individual investment basis.

- Long term investments are carried at cost. Provision is made for diminution other than temporary in the value of such investments.

9. IMPAIRMENT OF ASSETS:

At each balance sheet date an assessment is made to ascertain whether any indication exists that an asset has been impaired. If any such indication exists then an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount, is provided in the books of accounts.

10. BORROWING COST:

Borrowing Cost that is attributable to acquisition or construction of qualifying assets is capitalized as part of cost of such assets. Qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are charged to revenue.

11. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

- Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation.

- No provision is recognized for liabilities whose future outcome cannot be ascertained with reasonable certainties and probability of outflow in settlement is remote. Such contingent liabilities are not recognized but are disclosed in the financial statements.

- Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

SYSTEM OF ACCOUNTING

The Company adopts the accrual concept in the preparation of accounts.

DEPRECIATION

Depreciation on Fixed Assets is provided on Straight line method in accordance with the provisions of Schedule XIV to the Companies Act 1956.

FIXED ASSETS

The Fixed Assets have been stated at historical cost less accumulated Depreciation.

VALUATION OF INVENTORIES

Raw Material, Stores, Spares & Consumables, Fuel & Packing materials are valued at Cost or market value whichever is lower. Finished Goods are valued at lower of cost or Net Realizable Value.

Work-in-process has been valued at estimated Cost of production. Scrap is valued at estimated realizable value.

PREOPERATIVE EXPENSES

Pre-operative expenses relates to the plant for the manufacture of Ortho Nitro Chloro Benzene and Para Nitro Chloro Benzene, which shall be capitalised on commissioning of plant and commencement of commercial production in the said plant.


Mar 31, 2009

SYSTEM OF ACCOUNTING

The Company adopts the accrual concept in the preparation of ' accounts.

DEPRECIATION

Depreciation on Fixed Assets is provided on Straight line method in accordance with the provisions of Schedule XIV to the Companies Act 1956.

FIXED ASSETS

The Fixed Assets have been stated at historical cost less accumulated Depreciation.

VALUATION OF INVENTORIES

Raw Material, Stores, Spares & Consumables, Fuel & Packing material are valued at Cost or market value whichever is lower. Finished Goods are valued at lower of cost or Net Realisable - Value.

Work-in-process has been valued at estimated Cost of production. Scrap is valued at estimated realizable value.

PRE-OPERATIVE EXPENSES

Pre-operative expenses relating to the plant for the manufacture of Ortho Nitro Chloro Benzene and Para Nitro Chloro Benzene, which shall be capitalized on commissioning of plant and commencement of commercial production in the said plant.

AMORITISATION

Preliminary and Shares Issue Expenses are deferred to be , amortised over a period of ten years.

Deferred Revenue Expenditures and new product development I expenditure are deferred to be amortised over a period of five of years.

 
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