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Accounting Policies of YKM Industries Ltd. Company

Mar 31, 2014

1.1 Basis for preparation of Financial Statements:

The Company''s Financial Statements are prepared under historical cost conventions on the accrual basis in compliance with the mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the companies Act, 2013 to the extent notified and the provisions of the Companies Act, 1956. The accounting policies have been consistantly applied.

1.2 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting policies requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s knowledge of current events and actions, actual results could differ from those estimates. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.3 Employee Benefits:

The Company does not have any employee and hence liability towards retirement benefit does not arise.

1.4 Investments:

Long Term Investments are stated at cost unless there is a permanent fall in the value. Provision for diminution is made to recognise a decline other than temporary, in the value of Long Term Investments.

1.5 Deferred Tax:

Tax expense comprises of deferred tax. Deferred tax resulting from timing difference between book profit and tax profit for the year is accounted based on the rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. However deferred tax assets arising from timing difference are recognised to the extent of reasonable certainity about its realisability in future.


Mar 31, 2012

1.1 Basis for preparation of Financial Statements:

The Company's Financial Statements are prepared under historical cost conventions on the accrual basis in compliance with the mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956.The accounting policies have been consistantly applied.

1.2 Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.3 Fixed Assets:

Fixed Assets are stated at cost less depreciation, cost comprises of purchase price and any directly attributable cost of bringing the assets to working condition for its intended use.

1.4 Depreciation:

Depreciation on Fixed Assets is provided on straight line method as per the rates prescribed under schedule XIV to the Companies Act, 1956.

1.5 Employee Benefits:

The Company does not have any employee and hence liability towards retirement benefit does not arise.

1.6 Investments:

Long Term Investments are stated at cost unless there is a permanent fall in the value. Provision for diminution is made to recognise a decline other than temporary, in the value of Long Term Investments.

1.7 Deferred Tax:

Tax expense comprises of deferred tax. Deferred tax resulting from timing difference between book profit and tax profit for the year is accounted based on the rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. However deferred tax assets arising from timing difference are recognised to the extent of reasonable certainity about its readability in future.


Mar 31, 2009

(a).Basis for preparing of financial statements:

The Company maintains its accounts on accrual basis following the historical cost convention in compliance with the accounting standards specified to be mandatory by the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

(b).Revenue Recognition:

Revenue in respect of sale of goods is recognised on despatch of goods from the Company and is recorded at invoice value and revenue in respect of export incentives is accounted on accrual basis.

(c).Fixed Assets:

Fixed Assets are stated at cost less depreciation, cost comprises of purchase price and any directly attributable cost of bringing the assets to working condition for its intended use.

(d).Depreciation:

Depreciation on Fixed Assets is provided on straight line method as per the rates prescribed under schedule XIV to the Companies Act, 1956.

(d).lmpairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment value is charged for when an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(e).Foreiqn Currency Transaction:

Transactions in foregin currencies in respect of export sales are recorded at the exchange rates prevailing on the date of each transaction and variance arising therefrom is dealt within the export sales account itself. Foreign currency current assets and current liabilities are translated at year end rates and resulting gains/losses are recognised in Profit and Loss Account.

(f). Investments:

Long Term Investments are stated at cost unless there is a permanent fall in the value. A Provision for diminution is made to recognise a decline other than temporary, in the value of Long Term Investments.

 
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