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Accounting Policies of Worldwide Leather Export Ltd. Company

Mar 31, 2015

SYSTEM OF ACCOUNTING :

The Financial Statements are prepared under historical cost convention and on accrual basis in accordance with the generally accepted Accounting Principles in India, the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of Companies Act, 2013.

All assets and liabilities have been classified as current and non current, wherever applicable, as per the normal operating cycle of the Company as set out in Schedule 111 to the Companies Act, 2013.

FIXED ASSETS :

Fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use.

DEPRECIATION :

a) Depreciation on tangible fixed assets is accounted on straight line method based on useful life of assets as prescribed in Schedule II of the Companies Act, 2013.

b) Intangible assets are amortised over the period of useful life of the assets as estimated by the management.

INVESTMENTS :

Long term investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term investments which will suffer permanent dimunition in their value will be reduced to their current value.

INVENTORIES :

Traded Goods are valued at Lower of Cost and Net Realizable Value.

FOREIGN CURRENCY TRANSACTIONS :

a) Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. All trade debtors and creditors related to foreign currency transaction outstanding at the year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognised in the Profit & Loss Account.

b) In respect of Forward Exchange Contracts, the difference between the forward rate and the exchange rate on date of transaction has been recognised as income or expense as the case may be over the life of contract.

SALES AND OTHER INCOME

a) Sales includes Excise Duty (except on exports) but does not include VAT/Sales Tax and is recognised at the point of despatch to the buyer.

b) Other Income is accounted for on accrual basis to the extent the amount is considered recoverable.

TAXES ON INCOME

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to consideration of prudence, in respect of deferred tax assets/liabilities on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

OTHERS:

a) Premium on import entitlements is accounted for on sale thereof.

b) Liability towards gratuity is funded with Life Insurance Corporation of India and administered through a separate trust set up by the Company. The Company's contribution towards the Fund is charged to Profit & Loss Account. Provision of gratuity for employees not covered by the scheme is made as per the estimation of the management.

c) Impairment Loss in the value of assets, as specified in Accounting Standard - 28, is recognised whenever carrying value of such assets exceeds the market value or value in use , whichever is higher.

MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure U/s. 35DD of the Income Tax Act, 1961, is written off over a period of five years.

2. Capital commitments remaining to be executed and not provided for amounts to Rs. 316.94 lacs ( Rs. 353.77 lacs); advance their against amounts to Rs. 282.75.03 lacs ( Rs. 238.03 lacs).

3. a) There are no dues to any entity which is covered under small scale industrial undertaking.

b) There are no suppliers which fall under under the Micro, Small and Medium Enterprises Development Act, 2006, hence the information required under the said act is not given.

4. The disclosures pursuant to Section 186(4) of the Companies Act, 2013 in respect of the loans given by the Company is detailed below:

a) Loan of Rs. 40.00 Lacs given to Bharat Roll Industry Pvt. Ltd. for Working Capital purposes.

b) Loan of f 50.00 Lacs given to WIG Brothers Const. Pvt. Ltd. Pvt. Ltd. for Working Capital purposes.


Mar 31, 2014

SYSTEM OF ACCOUNTING:

The company follows Mercantile system of accounting and recognises Income and Expenditure on Accrual basis. The accounts are prepared on historical cost basis, as a going concern, and are consistent with generally accepted accounting principles.

FIXED ASSETS:

Fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use.

DEPRECIATION :

a) Depreciation on tangible assets is accounted on straight line method at or above the rates provided in schedule XIV to the Companies Act, 1956.

b) Intangible assets are amortised over the period of useful life of the assets as estimated by the management.

INVESTMENTS

Long term investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term investments which have sufferred permanent dimunittoo in their value are reduced to their current value.

INVENTORIES:

a) Raw Material, Stores & Spares At Lower of cost and net realizable value.However, materials and other items held for and Packing Material use in the production of inventories are not written down below cost if the finished producted in which they will be incoporated are expected to be sold at or above cost. Cost is determined on "Weighted Average Basis".

b) Finished Goods At Lower of cost and net realizable value. Cost includes direct materials, labour and manufacturing overheads.

c) Semi Finished Goods At Lower of estimated cost and net realizable value

d) Traded Goods At Lower of cost and net realizable value.

FOREIGN CURRENCY TRANSACTIONS :

a) Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. All trade debtors and creditors related to foreign currency transaction outstanding at the year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognised in the Profit & Loss Account.

b) In respect of Forward Exchange Contracts, the difference between the forward rate and the exchange rate on date of transaction has been recognised as income or expense as the case may be over the life of contract.

SALES AND OTHER INCOME

a) Sales includes Excise Duty (except on exports) but does not include VAT/Sales Tax and is recognised at the point of despatch to the buyer.

b) Other Income is accounted for on accrual basis to the extent the amount is considered recoverable. TAXES ON INCOME

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to consideration of prudence, in respect of deferred tax assets/liabilities on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

OTHERS:

a) Premium on import entitlements is accounted for on sale thereof.

b) Liability towards gratuity is funded with Life Insurance Corporation of India and administered through a separate trust set up by the Company. The Company''s contribution towards the Fund is charged to Profit & Loss Account. Provision of gratuity for employees not covered by the scheme is made at the undiscounted amount.

c) Impairment Loss in the value of assets, as specified in Accounting Standard - 28, is recognised whenever carrying value of such assets exceeds the market value or value in use, whichever is higher.

MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure U/s. 35DD of the Income Tax Act, 1961, is written off over a period of five years.


Mar 31, 2013

SYSTEM OF ACCOUNTING :

The company follows Mercantile system of accounting and recognises Income and Expenditure on Accrual basis. The accounts are prepared on historical cost basis, as a going concern, and are consistent with generally accepted accounting principles.

FIXED ASSETS:

Fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use.

DEPRECIATION :

a) Depreciation on tangible assets is accounted on straight line method at or above the rates provided in schedule XIV to the Companies Act, 1956.

b) Intangible assets are amortised over the period of useful life of the assets as estimated by the management.

INVESTMENTS :

Long term investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term investments which have sufferred permanent dimunition in their value are reduced to their current value.

INVENTORIES :

a) Raw Material, Stores & Spares At Lower of cost and net realizable value.However, materials and other Hems held for and Packing Material use in the production of inventories are not written down below jcost if the finished producted in which they will be incoporated are expected to be sold at or above cost.

Cost is determined on "Weighted Average Basis".

b) Finished Goods At Lower of cost and net realizable value. Cost includes direct materials, labour and manufacturing overheads,

c) Semi Finished Goods At Lower of estimated cost and net realizable value

FOREIGN CURRENCY TRANSACTIONS :

a) Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. All trade debtors and creditors related to foreign currency transaction outstanding at the year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognised in the Profit & Loss Account.

b) In respect of Forward Exchange Contracts, the difference between the forward rate and the exchange rate on date of transaction has been recognised as income or expense as the case may be over the life of contract.

SALES:

Sale of goods is recognised at the point of dispatch to the buyer and is net of sales tax/ Value added Tax and excise duty, as applicable.

TAXES ON INCOME

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to consideration of prudence, in respect of deferred tax assets/liabilities on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

OTHERS:

a) Premium on import entitlements is accounted for on safe thereof.

b) Liability towards gratuity is funded with Life Insurance Corporation of India and administered through a separate trust set up by the Company. The Company''s contribution towards the Fund is charged to Profit & Loss Account. Provision of gratuity for employees not covered by the scheme is made at the undiscounted amount.

c) Impairment Loss in the value of assets, as specified in Accounting Standard - 28, is recognised whenever carrying vaiue of such assets exceeds the market value or value in use , whichever is higher.

 
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