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Accounting Policies of Virat Crane Industries Ltd. Company

Mar 31, 2015

1. Basis of Presentation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

2. Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of Assets or Liabilities in the future periods.

3. Fixed Assets :

Fixed assets are stated at cost and net of subsidies less accumulated depreciation/impairment losses, if any. The cost comprises purchase consideration, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition to the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from sale/discard of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is sold/discarded.

4. Depreciation:

a. Depreciation is provided on Straight Line Method over the useful lives of the assets in the manner prescribed in Schedule II to the Companies act, 2013.

b. Individual assets costing less than Rs.10,000 are fully depreciated in the year of acquisition at the discretion of the management..

c. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis.

5. Investments: Long term investments made by Company are stated at Cost.

6. Inventories: All inventories except Work In Progress are valued at Lower of Cost or Net Realizable Value.

a. First In First out method has been followed for issues for determining the inventory value.

b. Work in Progress is valued on the basis of technical evaluation adopted by the Management.

7. Deferred Tax: Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. Contingent Liabilities: Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

9. Deferred Revenue Expenditure: Deferred revenue Expenditure is written off over a period of five years against profits.

10. Retirement Benefits: As per the information provided and explanations given to us and as per the verification of books of accounts, the company need not make any provisions for retirement benefits during the year.

11. Revenue Recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Sale of Goods:

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are net of sales returns, rebates and sales tax, wherever applicable.

12. General: Accounting policies not specifically referred to are in consistent with the generally accepted accounting principles followed in India.


Mar 31, 2014

1. Basis of Presentation of Financial Statements:

The financial statements have been prepared and presented under the historic cost convention on accrual basis to comply in all material respects with the notified Accounting Standards by the Companies ( Accounting Standard) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The Accounting Policies have been consistently applied by the Company and are consistent with those used in the previous year. All 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 the Schedule VI of the Companies Act, 1956.

2. Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of Assets or Liabilities in the Future periods.

3. Fixed Assets :

Fixed assets are stated at cost and net of subsidies less accumulated depreciation/impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition to the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. Gains or losses arising from sale/discard of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is sold/discarded.

4. Depreciation:

a. Depreciation is provided on Straight Line Method as per rates prescribed under Schedule XIV to the Companies Act, 1956.

b. Individual assets costing less than Rs.5000 are fully depreciated in the year of acquisition.

c. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis.

5. Investments: Investments are valued at cost or market price whichever is lower and in the absence of market quotation, cost price is adopted for Current Investments and Long term Investments are valued at cost.

6. Inventories: All inventories except Work In Progress are valued at Lower of Cost or Net Realizable Value.

a. First In First out method has been followed for issues for determining the inventory value.

b. Work in Progress is valued on the basis of technical evaluation adopted by the Management.

7. Deferred Tax: Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. Contingent Liabilities: Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

9. Deferred Revenue Expenditure: Deferred revenue Expenditure is written off over a period of five years against profits.

10. Retirement Benefits: As per the information provided and explanations given to us and as per the verification of books of accounts, the company need not make any provisions for retirement benefits during the year.

11. Revenue Recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Sale of Goods:

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are net of sales returns, rebates and sales tax, wherever applicable.

12. General: Accounting policies not specifically referred to are in consistent with the generally accepted accounting principles followed in India.


Mar 31, 2012

1) ACCOUNTING CONVENTION:

Financial Statements are prepared under historical cost convention modified by revaluation of certain fixed assets in ac- cordance with the Accounting Standards issued by The Institute of Chartered Ac- countants of India and referred to in sec- tion 211 (3C)ofthe Companies Act, 1956. The significant accounting policies are as follows.

2) REVENUE RECOGNITION:

a. Income and expenditure is accounted on accrual basis on receipt of invoices.

b. Sales comprises of sale of goods net of returns, trade discount and taxes.

3) DEPRECIATION:

a. Depreciation is provided on Straight line method applying the rates as per schedule IV of the Companies Act 1956.

b. The additional depreciation provided on the revalued amounts of the assets is written off against the revaluation re- serve.

4) INVESTMETNS:

Investments are valued at cost or market price which ever is lower and in the ab- sence of market quotation cost price is adopted for current investments and long term investments are valued at cost.

5) INVENTORY:

All inventories except work-in-progress are valued at lower of cost or net realisable value which ever is lower.

a. First in First out method has been fol- lowed for issues for determining the inventory value.

b. Work-in-progress is valued on the ba- sis of technical evaluation adopted by the Management.

6) DEFERRED TAX:

Deferred tax is recognized, subject to con- sideration of prudence, on timing differ- ences being the differences between tax- able income and accounting income that originate in one period and are capable of reversal in one or more subsequent peri- ods

7) CONTINGENT LIABILITIES:

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor dis- closed in the financial statements.

8) IMPAIREMENT OF ASSETS:

At each balance sheet date, the company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount if the carrying amount of the asset exceeds its recover- able amount an impairment loss is recog- nized in profit and loss account to the ex- tent the carrying amount exceeds recov- erable amounts.

9) ESTIMATES:

Estimates are used for provision for doubt- ful debts, useful life of fixed assets and obligations under employee retirement plan.

10) DEFFERED REVENUE EXPENDITURE:

Deferred revenue expenditure is written off over a period of five years against prof- its.

12) INTEREST TO SUPPLIERS:

Interest claimed by suppliers if any on delayed payments is accounted on settle- ment basis.


Mar 31, 2010

1) ACCOUNTING CONVENTION:

Financial Statements are prepared under historical cost convention in accordance with the Accounting Standards issued by institute of Chartered Accountants of India and referred to in section 211 (3C) of the Companies Act, 1956. The significant accounting policies are as follows.

2) REVENUE RECOGNITION:

a. Income and expenditure is accounted on accrual basis on receipt of invoices.

b. Sales comprises of sale of goods net of returns, trade discount and taxes.

3) RETIREMENT BENEFITS:

Leave Wages-and Gratuity is accounted on actuarial valuation.

4) ASSETS:

Fixed assets have been valued at cost less depreciation.

5) DEPRECIATION:

a. Depreciation is provided on Straight line method applying the rates as per schedule IV of the Companies Act 1956.

b. The additional depreciation provided on the revalued amounts, of the assets is written off against the revaluation reserve.

6) INVESTMETNS:

Investments are at cost or market price which ever is lower and in the absence of market quotation cost price is adopted for current investments and long term investments are valued at cost.

7) INVENTORY:

All inventories except work-in -progress are valued at lower of cost or net realisable value which ever is lower.

a. First in First out method has been followed for issues for determining the inventory value,

b. Work-in-progress is valued on the basis of technical evaluation, adopted by the Management.

8. DEFERRED TAX:

Deferred tax is recognized, subject to consideration of prudence, on timingdiWerenceS being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods

9) CONTINGENT LIABILITIES:

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements .,-...,.

10) IMPARIRMENT OF ASSETS:

At each balance sheet date, the company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount if the carrying amount of the asset exceeds its recoverable amount an impairment loss is recognized in profit and loss account to the extent the carrying amount exceeds recoverable amounts.

11) ESTIMATES:

Estimates are used for provision for doubtful debts, useful life of fixed assets and obligations under employee retirement plan. -

12) DEFFERED REVENUE EXPENDITURE:

Deferred revenue expenditure is written off over a period of five years against profits.

13) INTEREST TO SUPPLIERS:

Interest claimed by suppliers if any on delayed payments is accounted oh settlement basis.