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Accounting Policies of Vivid Global Industries Ltd. Company

Mar 31, 2015

I. Basis of Accounting:

The financial statements are prepared under historical cost convention on an accrual basis.

ii. Inventories

Inventories are valued as under:

Raw Material and Packing Material : At cost or net realisable value, whichever is lower

Work-In-Process : At cost or net realisable value, whichever is lower

Finished goods : At cost or net realisable value, whichever is lower

Stores & spares : At cost

By products/Scrap : At Net Realisable Value

Fuel : At cost

Cost of Raw Material and Packing Material is determined on First in First out basis.

Cost of Finished goods and work-in-process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

iii. Fixed Assets and Depreciation :

Fixed assets are stated at historical cost less accumulated depreciation.

Depreciation has been provided for by the straight line method at the rates specified in revised Schedule II of the Companies Act, 2013.

The difference in the Opening Written Down Balances of the Assets held as on 01st April 2014 as per the old method of Depreciation and now prescribed Method of Depreciation, has been adjusted from the retained earnings of the Company.

Depreciation on additions during the year is charged on pro rata basis.

The amortization of the value of the Leasehold Premises has not been provided for. The Company does not not follow the procedure of amortizing its leasehold assets over the period of the lease.

iv. Revenue Recognition :

Sales are recognised when the goods are invoiced or despatched to the customers and are recorded exclusive of excise duty and net of trade discount and sales tax.

Export sales are recognised on the date of Shipping bill.

Duty Drawback is accounted in the year in which it is received.

v. Long Term investments are valued at cost.

vi. Foreign currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. All foreign currency

assets and liabilities (except those towards fixed assets) are translated at year end exchange rate and related exchange gain/loss is recognised in Profit and Loss Account.

Adjustmenmt in respect of liabilities incurred for acquisition of fixed assets are adjusted in the carrying amount of fixed assets.




Mar 31, 2014

I. Basis of Accounting:

The financial statements are prepared under historical cost convention on an accrual basis.

ii. Inventories

Inventories are valued as under :

Raw Material and Packing Material : At cost or net realisable value, whichever is lower Work-In-Process : At cost or net realisable value, whichever is lower Finished goods : At cost or net realisable value, whichever is lower Stores & spares : At cost By products/Scrap : At Net Realisable Value

Fuel : At cost

Cost of Raw Material and Packing Material is determined on First in First out basis.

Cost of Finished goods and work-in-process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

iii. Fixed Assets and Depreciation :

Fixed assets are stated at historical cost less accumulated depreciation.

Depreciation has been provided for by the straight line method at the rates specified in ScheduleXIV of the Companies Act, 1956.

Depreciation on additions during the year is charged on pro rata basis.

The amortization of the value of the Leasehold Premises has not been provided for. The Company does not not follow the procedure of amortizing its leasehold assets over the period of the lease.

iv. Revenue Recognition :

Sales are recognised when the goods are invoiced or despatched to the customers and are recorded exclusive of excise duty and net of trade discount and sales tax. Export sales are recognised on the date of Shipping bill. Duty Drawback is accounted in the year in which it is received.

v. Long Term investments are valued at cost.

vi. Foreign currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. All foreign currency assets and liabilities (except those towards fixed assets) are translated at year end exchange rate and related exchange gain/loss is recognised in Profit and Loss Account.

Adjustment in respect of liabilities incurred for acquisition of fixed assets are adjusted in the carrying amount of fixed assets.

II). The following are the observations during the course of Audit under review and brought to the notice of the members of the Company :-

1) Due to the complexities of business the value of the Inventory has been considered as has been verifed, valued and certified by the Management.

2) Balances of Sundry Debtors and Sundry Creditors as on 31/03/2014 are subject to confirmation. No confirmations of balances have been obtained from the parties and hence the value of these Debtors and Creditors for the balance sheet purpose has been take as certified by the Management.

Installed capacity is as certified by the Management and not verifed by the auditors. It denotes estimated production of a product, if the entire plant & machinery is operated on triple shift basis during the year and is exclusively utilised for its production. However, the plant and machinery is common for the production of various dye-intermediates and hence the installed capacity may vary depending upon the product mix adopted by the company.


Mar 31, 2013

I. Basis of Accounting:

The fnancial statements are prepared under historical cost convention on an accrual basis.

ii. Inventories

Inventories are valued as under:

Raw Material and Packing Material : At cost or net realisable value, whichever is lower

Work-In-Process : At cost or net realisable value, whichever is lower

Finished goods : At cost or net realisable value, whichever is lower

Stores & spares : At cost

By products/Scrap : At Net Realisable Value

Fuel : At cost

Cost of Raw Material and Packing Material is determined on First in First out basis. Cost of Finished goods and work-in-process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

iii. Fixed Assets and Depreciation :

Fixed assets are stated at historical cost less accumulated depreciation. Depreciation has been provided for by the straight line method at the rates specifed in ScheduleXIV of the Companies Act, 1956. Depreciation on additions during the year is charged on pro rata basis. The amortization of the value of the Leasehold Premises has not been provided for. The Company does not not follow the procedure of amortizing its leasehold assets over the period of the lease.

iv. Revenue Recognition :

Sales are recognised when the goods are invoiced or despatched to the customers and are recorded exclusive of excise duty and net of trade discount and sales tax. Export sales are recognised on the date of Shipping bill. Duty Drawback is accounted in the year in which it is received.

v. Long Term investments are valued at cost.

vi. Foreign currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. All foreign currency assets and liabilities (except those towards fxed assets) are translated at year end exchange rate and related exchange gain/loss is recognised in Proft and Loss Account. Adjustmenmt in respect of liabilities incurred for acquisition of fxed assets are adjusted in the carrying amount of fxed assets.

vii The following are the observations during the course of Audit under review and brought to the notice of the members of the Company :-

1) Due to the complexities of business the value of the Inventory has been considered as has been verifed, valued and certifed by the Management.

2) Balances of Sundry Debtors and Sundry Creditors as on 31/03/2013 are subject to confrmation. No confrmations of balances have been obtained from the parties and hence the value of these Debtors and Creditors for the balance sheet purpose has been take as certifed by the Management.

3) The Company has not been following the Guidelines issued by the Institute of Chartered Accountants of India on Accounting for Excise Duty and Cenvat.

4) The Company has not deducted Employees Contribution of Provident Fund from the salaries of its employees for the period of 6 months i.e from the 1/4/12 to 30/09/12 and has also not provided for its Liaility towards the Employers Contribution for Provident Fund for the same period. The provision required


Mar 31, 2011

I. Basis of Accounting :

The financial statements are prepared under historical cost convention on an accrual basis. ii. Inventories

Inventories are valued as under :

Raw Material and Packing Material : At cost or net realisable value, whichever is lower

Work-In-Process : At cost or net realisable value, whichever is lower

Finished goods : At cost or net realisable value, whichever is lower

Stores & spares : At cost

By products/Scrap : At Net Realisable Value

Fuel : At cost

Cost of Raw Material and Packing Material is determined on First in First out basis.

Cost of Finished goods and work-in-process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

iii. Fixed Assets and Depreciation :

Fixed assets are stated at historical cost less accumulated depreciation.

Depreciation has been provided for by the straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

Depreciation on additions during the year is charged on pro rata basis.

The amortization of the value of the Leasehold Premises has not been provided for. The Company does not not follow the procedure of amortizing its leasehold assets over the period of the lease.

iv. Revenue Recognition :

Sales are recognised when the goods are invoiced or despatched to the customers and are recorded exclusive of excise duty and net of trade discount and sales tax. Export sales are recognised on the date of Shipping bill. Duty Drawback is accounted in the year in which it is received.

v. Long Term investments are valued at cost.

vi. Foreign currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. All foreign currency assets and liabilities (except those towards fixed assets) are translated at year end exchange rate and related exchange gain/loss is recognised in Profit and Loss Account. Adjustmenmt in respect of liabilities incurred for acquisition of fixed assets are adjusted in the carrying amount of fixed assets.

vii The following are the observations during the course of Audit under review and brought to the notice of the members of the Company :-

a) Balances of Sundry Debtors and Sundry Creditors as on 31/03/2011 are subject to confirmation. No confirmations of balances have been obtained from the parties and hence the value of these Debtors and Creditors for the balance sheet purpose has been take as certified by the Management.

b) The Company has not been following the Guidelines issued by the Institute of Chartered Accountants of India on Accounting for Excise Duty and Cenvat. The Company records the Purchases inclusive of Excise Duty and Credits the Purchase Account for the Excise Duty Payable on its Sales. All the Payments made by the Company towards the Excise Duty are debited to the Profit & Loss Account. However the Excise Duty on Export Sales (Refundable) is recorded as an Asset but no corresponding liability for the same is recognised.


Mar 31, 2010

I. Basis of Accounting:

The financial statements are prepared under historical cost convention on an accrual basis.

ii. Inventories

Inventories are valued as under:

Material and Packing Material : At cost or net realisable value, whichever is lower

Work-In-Process : At cost or net realisable value, whichever is lower

Finished goods : At cost or net realisable value, whichever is lower

Stores & spares : At cost

By products/Scrap : At Net Realisable Value

Fuel : At cost

Cost of Raw Material and Packing Material is determined on First in First out basis.

Cost of Finished goods and work-in-process include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

iii. Fixed Assets and Depreciation :

Fixed assets are stated at historical cost less accumulated depreciation.

Depreciation has been provided for by the straight line method at the rates specified in ScheduleXIV of the Companies Act, 1956.

Depreciation on additions during the year is charged on pro rata basis.

The amortization of the value of the Leasehold Premises has not been provided for. The Company does not not follow the procedure of amortizing its leasehold assets over the period of the lease.

iv. Revenue Recognition : Sales are recognised when the goods are invoiced or despatched to the customers and are recorded exclusive of excise duty and net of trade discount and sales tax. Export sales are recognised on the date of Shipping bill. Duty Drawback is accounted in the year in which it is received.

v. Long Term investments are valued at cost.

vi. Foreign currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. All foreign currency assets and liabilities (except those towards fixed assets) are translated at year end exchange rate and related exchange gain/loss is recognised in Profit and Loss Account.

Adjustmenmt in respect of liabilities incurred for acquisition of fixed assets are adjusted in the carrying amount of fixed assets.

vii The following are the observations during the course of Audit under review and brought to the notice of the management:-

Balances of Sundry Debtors and Sundry Creditors as on 31/03/2010 are subject to confirmation. No confirmations of balances have been provided from the parties and hence the value of these Debtors and Creditors for the balance sheet purpose has been taken as certified by the Management.

 
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