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

Accounting Policies of Vishal Malleables Ltd. Company

Mar 31, 2014

A) Basis of Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, except for certain fixed assets which are revalued in the year 2004-05 and PVC claim not acertainable are accounted on receipt basis.

B) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expense during the reporting period. Difference between the actual results and estimated are recognized in the period in which the results are known/materialized.

C) Fixed Assets

Fixed assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

D) Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

E) Depreciation and Amortization

Depreciation on all fixed assets is provided on Straight Line Value Method, except on Building and Furniture & Fixtures, depreciation is provided on Written Down Value Method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions and/or sales of fixed assets during the year is provided on pro rata basis. Depreciation on revalued assets is provided on Written Down Value Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

F) Impairment of Assets

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

G) Foreign Currency Transactions

a) Transaction denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

b) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit & Loss Account.

H) Investments

Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

I) Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products are determined on FIFO basis. By-products are valued at net realizable value. Cost of work in process and finished stock is determined on absorption costing method.

J) Revenue Recognition

Revenue is recognized only when it can be reliably measure and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods and excise duty, sales during trial run period, adjusted for discounts (net). Dividend income is recognized when right to receive established. Interest receivable from customers on late payments is recognized as revenue in the year of receipt.

K) Excise Duty and Sales Tax/Value Added Tax

Excise duty and Sales Tax/Value Added Tax is accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

L) Employee Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

M) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All the borrowing costs are charged to Profit and Loss Account

N) Provision for Current and Deferred Tax

Deferred tax liability arises on account of "timing difference" has not been considered due to net loss for the year under review and tehrefore deferred tax assets is recognised and carried forward only to the extent that there is virtual certainity that the asset will be realised in future.

O) Provisions. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

A) Basis of Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, except for certain fixed assets which are revalued in the year 2004-05 and PVC claim not acertainable are accounted on receipt basis.

B) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expense during the reporting period. Difference between the actual results and estimated are recognized in the period in which the results are known/materialized.

C) Fixed Assets

Fixed assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

D) Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

E) Depreciation andAmortization

Depreciation on all fixed assets is provided on Straight Line Value Method, except on Building and Furniture & Fixtures, depreciation is provided on Written Down Value Method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions and/or sales of fixed assets during the year is provided on pro rata basis. Depreciation on revalued assets is provided on Written Down Value Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

F) Impairment of Assets

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

G) Foreign Currency Transactions

a) Transaction denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

b) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit & Loss Account. H) Investments

Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

I) Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversicr Rs.nd other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and'' spares, packing materials, trading and other products are determined on FIFO basis. By-products are valued at net realizable value. Cost of work in process and finished stock is determined on absorption costing method.

J) Revenue Recognition

Revenue is recognized only when it can be reliably measure and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods and excise duty, sales during trial run period, adjusted for discounts (net). Dividend income is recognized when right to receive established. Interest receivable from customers on late payments is recognized as revenue in the year of receipt.

K) Excise Duty and Sales TaxA/alue Added Tax

Excise duty and Sales TaxA/alue Added Tax is accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

L) Employee Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

M) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All the borrowing costs are charged to Profit and Loss Account

N) Provision for Current and Deferred Tax

Deferred tax liability arises on account of "timing difference" has not been considered due to net loss for the year under review and tehrefore deferred tax assets is recognised and carried forward only to the extent that there is virtual certainity that the asset will be realised in future.

O) Provisions. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

1. Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention basis (except for certain fixed assets which was revalued in the year 2004-05) in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, and -

(a) Lease Rent (GEDA) receipt (b) Commission/Brokerage on sales debited under "Selling Expenses" (c) PVC claim not ascertainable are accounted on receipt basis, which are not ascertainable is accounted on payment basis.

2. Use of Estimates:

The preparation of financial statements requires that the management makes estimates and assumption that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period, which the results are known/materialised.

3. Fixed Assets:

Fixed Assets are stated at cost net of Modvat/Cenvat and includes amounts added on revaluation less accumulated depreciation. All costs including financial cost till commencement of commercial production, net charges on foreign exchange, contracts and adjustments arising from exchange rate variation attributable to the fixed assets are capitalised.

4. Depreciation:

Depreciation on all fixed assets has been provided on straight line value method, except on Building, furniture & fixtures depreciation has been provided on written down value method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions and/or sales of fixed assets during the year has been provided on pro- rata basis. Depreciation on revalued assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

5. Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time the transaction through bank documents.

(b) Any income or expenses on account of exchange difference either on settlement or on translation of foreign currency is recognised in the profit and loss account.

6. Investments:

Current investments are carried at the lower of cost and quoted/fair value, computed category-wise. Long term investments are stated at cost provision for dimination in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

7. inventories:

Item of inventories are valued at lower of cost or net realisable value. Cost of inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products is determined on FIFO basis. By-products are valued at net realisable value. Cost of work-in-process and finished stock is determined on absorption costing method.

8. Revenue Recognition & Turnover:

Turnover includes sale of goods and excise duty adjusted to discounts (Net).

Interest receivable from customers on late payments is recognised as revenue in the year of receipt.

9. Excise Duty and Sales Tax:

Excise duty has been accounted on the basis of payments made in respect of goods cleared.

10 Employee Retirement Benefits:

Company's contribution to Provident Fund is charged to Profit and Loss Account. The Company has funded its gratuity liability under Group Gratuity scheme of Life Insurance Corporation of India and provision for gratuity to employees is made on the basis of actuarial calculation and charged to Profit and Loss Account.

11. Borrowing Cost:

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. Aqualifying asset is one that necessarily takes substantial period of time to get ready for intended used.

12. Contingent Liabilities:

All known liabilities wherever material are provided for and liabilities, which are material and whose future outcome can not be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes on Accounts.


Mar 31, 2010

1. Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention basis (except for certain fixed assets which was revalued in the year 2004-05) in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956, and -

(a) Lease Rent (GEDA) receipt (b) Commission/Brokerage on sales debited under "Selling Expenses" (c) PVC claim not ascretainable are accounted on receipt basis, which are not ascertainable is accounted on payment basis.

2. Use of Estimates:

The preparation of financial statements requires that the management makes estimates and assumption that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period, which the results are known/materialised.

3. Fixed Assets:

Fixed Assets are stated at cost net of Modvat/Cenvat and includes amounts added on revaluation less accumulated depreciation. All costs including financial cost till commencement of commercial production, net charges on foreign exchange, contracts and adjustments arising from exchange rate variation attributable to the fixed assets are capitalised.

4. Depreciation:

Depreciation on all fixed assets has been provided on straight line value method, except on Building, furniture & fixtures depreciation has been provided on written down value method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions and/or sales of fixed assets during the year has been provided on pro- rata basis. Depreciation on revalued assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

5. Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time the transaction through bank documents.

(b) Any income or expenses on account of exchange difference either on settlement or on translation of foreign currency is recognised in the profit and loss account.

6. Investments:

Current investments are carried at the lower of cost and quoted/fair value, computed category-wise. Long term investments are stated at cost provision for dimination in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

7. Inventories:

Item of inventories are valued at lower of cost or net realisable value. Cost of inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products is determined on FIFO basis. By-products are valued at net realisable value. Cost of work-in-process and finished stock is determined on absorption costing method.

8. Revenue Recognition & Turnover:

Turnover includes sale of goods and excise duty adjusted to discounts (Net).

Interest receivable from customers on late payments is recognised as revenue in the year of receipt.

9. Excise Duty and Sales Tax:

Excise duty has been accounted on the basis of payments made in respect of goods cleared.

10. Employee Retirement Benefits:

Companys contribution to Provident Fund is charged to Profit and Loss Account. The Company has funded its gratuity liability under Group Gratuity scheme of Life Insurance Corporation of India and provision for gratuity to employees is made on the basis of actuarial calculation and charged to Profit and Loss Account.

11. Borrowing Cost:

Borrowing cost that are attributable to the acquisition or construction of 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 used.

12. Contingent Liabilities:

All known liabilities wherever material are provided for and liabilities, which are material and whose future outcome can not be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes on Accounts.


Mar 31, 2009

1. Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention basis (except for certain fixed assets which was revalued in the year 2004-05) in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, except -

(a) Lease Rent (GEDA) (b) Commission/Brokerage on sales debited under "Selling Expenses" which are not ascertainable is accounted on payment basis (c) PVC Claim not ascertainable are accounted on receipt basis.

2. Use of Estimates:

The preparation of financial statements requires that the management makes estimates and assumption that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period, which the results are known/materialised.

3. Fixed Assets:

Fixed Assets are stated at cost net of IVlodvat/Cenvat and includes amounts added on revaluation less accumulated depreciation. All costs including financial cost till commencement of commercial production, net charges on foreign exchange, contracts and adjustments arising from exchange rate variation attributable to the fixed assets are capitalised.

4. Depreciation.

Depreciation on all fixed assets has been provided on straight line value method, except on Building, furniture & fixtures depreciation has been provided on written down value method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions and/or sales of fixed assets during the year has been provided on pro- rata basis. Depreciation on revalued assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

5. Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time the transaction through bank documents.

(b) Any income or expenses on account of exchange difference either on settlement or on translation of foreign currency is recognised in the profit and loss account.

6. Investments:

Current investments are carried at the lower of cost and quoted/fair value, computed category-wise. Long term investments are stated at cost provision for dimination in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

7. Inventories.

Item of inventories are valued at lower of cost or net realisable value. Cost of inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products is determined on FIFO basis. By-products are valued at net realisable value. Cost of work-in-process and finished stock is determined on absorption costing method.

8. Revenue Recognitions Turnover:

Turnover includes sale of goods and excise duty adjusted to discounts (Net).

Interest receivable from customers on late payments is recognised as revenue in the year of receipt.

9. Excise Duty and Sales Tax:

Excise duty has been accounted on the basis of payments made in respect of goods cleared.

10. Employee Retirement Benefits:

Companys contribution to Provident Fund is charged to Profit and Loss Account. The Company has funded its gratuity liability under Group Gratuity scheme of Life Insurance Corporation of India and provision for gratuity to employees is made on the basis of actuarial calculation and charged to Profit and Loss Account.

11. Borrowing Cost:

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. Aqualifying asset is one that necessarily takes substantial period of time to get ready for intended used.

12. Contingent Liabilities:

All known liabilities wherever material are provided for and liabilities, which are material and whose future outcome can not be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes on Accounts.

 
Subscribe now to get personal finance updates in your inbox!