Accounting Policies of ACIL Cotton Industries Ltd. Company

Mar 31, 2014

[1] BASIS OF ACCOUNTING:

The financial statement are prepared under historical cost convention on accrual method of accounting and are in accordance with the requirements of the Companies Act, 1956.

[2] FIXED ASSETS:

Capitalisation at acquisition cost including directly attributable cost such as freight, insurance, and specific installation charges for bringing the assets to its working condition.

Depreciation is provided on the Fixed assets on SLM in the manner specified in schedule XIV of the Co. Act, 1956 for the full year. Depreciation is not provided on the Assets sold during the year.

[3] VALUATION OF INVENTORY:

Stock of Raw Material have been valued at fixed cost.

[4] RECOGNITION OF INCOME AND EXPENDITURE

Revenue/Incomes and Costs/Expenditures are accounted on accrual basis.

[5] CONTINGENT LIABILITY

Contingent liability is provided on the basis demand made upon the Company.

[6] INVESTMENTS

Investments are valued at the acquisition cost and includes brokerage and other expenses on purchase.

[7] DEFERRED TAX

No provision made.

[8] RELATED PARTY DISCLOSURES

As per Accounting Standard 18 as issued by ICAI, there is no transaction of any related party.

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Mar 31, 2013

[1] BASIS OF ACCOUNTING:

The financial statement are prepared under historical cost convention on accrual method of accounting and are in accordance with the requirements of the Companies Act, 1956.

[2] FIXED ASSETS:

Capitalization at acquisition cost including directly attributable cost such as freight, insurance, and specific installation charges for bringing the assets to its working condition.

Depreciation is provided on the Fixed assets on SLM in the manner specified in schedule XIV of the Co. Act, 1956 for the full year. Depreciation is not provided on the Assets sold during the year.

[3] VALUATION OF INVENTORY:

Stock of Raw Material have been valued at fixed cost.

[4] RECOGNITION OF INCOME AND EXPENDITURE

Revenue/Incomes and Costs/Expenditures are accounted on accrual basis.

[5] CONTINGENT LIABILITY

Contingent liability is provided on the basis demand made upon the Company.

[6] INVESTMENTS

Investments are valued at the acquisition cost and includes brokerage and other expenses on purchase.

[7] DEFERRED TAX

No provision made.

[8] RELATED PARTY DISCLOSURES

As per Accounting Standard 18 as issued by ICAI, there is no transaction of any related party.

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Mar 31, 2012

[1] BASIS OF ACCOUNTING:

The financial statement are prepared under historical cost convention on accrual method of accounting and are in accordance with the requirements of the Companies Act, 1956.

[2] FIXED ASSETS:

Capitalisation at acquisition cost including directly attributable cost such as freight, insurance, and specific installation charges for bringing the assets to its working condition.

Depreciation is provided on the Fixed assets on SLM in the manner specified in schedule XIV of the Co. Act, 1956 for the full year. Depreciation is not provided on the Assets sold during the year.

[3] VALUATION OF INVENTORY:

Stock of Raw Material have been valued at fixed cost.

[4] RECOGNITION OF INCOME AND EXPENDITURE

Revenue/Incomes and Costs/Expenditures are accounted on accrual basis.

[5] CONTINGENT LIABILITY

Contingent liability is provided on the basis demand made upon the Company.

[6] INVESTMENTS

Investments are valued at the acquisition cost and includes brokerage and other expenses on purchase.

[7] DEFERRED TAX

No provision made.

[8] RELATED PARTY DISCLOSURES

As per Accounting Standard 18 as issued by ICAI, there is no transaction of any r elated party.

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Mar 31, 2010

I) BASIS OF ACCOUNTING

Financial Statements are prepared under the historical cost convention on accrued basis in accordance with the requirement of the Companies Act, 1956.

ii) INVENTORIES

The Inventories are valued at cost or Market value whichever is lower.

iii) FIXED ASSETS

a. Fixed assets are stated at cost of acquisition.

b. Depreciation has been provided on straight line method in accordance with section 205(2)(b) of the Companies Act, 1956 at the rates and in the manner specified in Schedule XTV of the said Act. No depreciation has been charged during the year as all fixed assets have been disposed off.

iv) CONTINGENT LIABILITIES

They are disclosed by way of notes on the accounts, provision is made in the account in respect of those liabilities which are likely to materialise after the year end till the finalisation of the accounts and have a material effect on the financial statement.

v) REVENUE RECOGNITION

Sales represent invoice value of products.

vi) INVESTMENTS

Long Term investments are stated at cost.

vii) MISCELLANEOUS EXPENDITURE

Preliminary and Share issue expenses are amortised over a period of ten years.

ix) CONTINGENT LIABILITIES

Contingent liabilities not provided are disclosed by way of notes.

x.) IMPAIRMENT OF ASSETS

The carrying amounts of the companys assets are reviewed at each balance sheet date. If any indication of impairment exists, an impairment loss is recognized to the excess of the carrying amount over the estimated recoverable amount.