Accounting Policies of Anka India Ltd. Company

Mar 31, 2014

A. USE OF ESTIMATES

The preparation of the financial statements in conformity with Accounting Standards & GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent assets and liabilities as at the date of the financial statements and reported amount of Income and expenses during the period. Examples of such estimates include useful life of fixed assets, provisions for doubtful debts, income taxes, write-off of deferred revenue expenditure and intangible assets. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

b. REVENUE RECOGNITION

Income and Expenditure are accounted for on accrual basis.

c. TANGIBLE FIXED ASSETS AND DEPRECIATION

I) Fixed Assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction/ installation.

ii) Depreciation on Fixed Assets is provided on Written Down Value method and in accordance with the rates provided under the Schedule-XIV of the Companies Act, 1956.

d. IMPAIRMENT OF ASSETS

The Company identifies impairable assets at the year end in accordance with the guiding principles of Accounting Standard 28, issued by the Institute of Chartered Accountants of India, for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystallizes, are charged against revenues for the year.

e. INVENTORIES

The Inventories are valued at lower of cost /net realizable value, Cost includes cost of material and other direct overheads such as inward freight, brokerage on procurement of material etc. Under this broad principle, Inventory is valued at FIFO basis.

f. FOREIGN CURRENCY TRANSACTIONS

i) Initial recognition -

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii) Conversion -

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

iii) Exchange differences -

Exchange differences arising on the settlement of monetary, items or on reporting Company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

iv) Forward exchange contracts not intended for trading or speculation purposes -

The premium or discount arising at the inception of forward exchange contracts is claimed as expenses or income. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

g. RETIREMENT BENEFITS

a) Defined Contribution Plan

(i) The Company makes defined contributions to Provident Fund which are recognized in the Profit and Loss Account on accrual basis.

(ii) The Company''s contribution to State Plan, viz. Employees'' State Insurance Scheme are recognized in the Profit & Loss Account on accrual basis.

b) Defined Benefit Plan

(i) Accruing liability for gratuity is accounted for on the basis of present salaries and length of service of each employee.

(ii) Accruing liability for leave encashment is accounted for on the basis of present salaries and unclaimed leaves.

h. INCOME-TAX/DEFERRED TAX

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the difference that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period, based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

I. PROVISIONS AND CONTINGENT LIABILITIES

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date.Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

j. MISCELLANEOUS EXPENDITURE

Preliminary Expenditure, Pre-Operative Expenditure & Capital Enhancement Fee is amortized over a period of five years from the year in which such expenses are incurred.

k. CLAIMS AGAINST/BYTHE COMPANY

Claims against/by the Company are accounted for on acceptance of the same.

l. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Events occurring after the date of Balance Sheet are considered up to the date of approval of accounts by the Board of Directors.

m. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

n. MEASUREMENT OF EBIDTA

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expense, finance costs and tax expense.

o. OTHER ACCOUNTING POLICIES

These are consistent with the generally accepted accounting principles and practices.

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Mar 31, 2012

A) General

i) The accounts are prepared on historical cost basis and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles as applicable in India.

ii) Income and Expenditure are accounted for on accrual basis.

iii) During the year ended 31st March 2012 , revised schedule VI notified under Companies Act 1956 has become applicable to the company for preparation and presentation of its financial statements. The adoption of revised schedule VI did not have any impact on recognition and measurement principles followed for preparation of financial statements. However , it has significantly impacted the presentation and disclosures made in the financial statements. The company has a lso reclassified previous year figures in accordance to the requirements applicable in the current year.

b) Fixed Assets

Fixed assets are stated at cost of acquisition, including freight, duties and other incidental expenses related to acquisition and installation less depreciation.

Cost of fixed assets borne by other parties is reduced from the carrying value of the respective fixed assets.

c) Inventories

Inventories are valued at lower of cost or net realizable value. Cost is arrived on FIFO basis and is inclusive of taxes and duties paid/incurred (other than those recovered /recoverable from taxing authorities). Adequate provision is made in respect of non-standard and obsolete items.

d) Impairment of Assets

The Company identifies impairable assets at the year end in accordance with the guiding principles of Accounting Standard 28, issued by the Institute of Chartered Accountants of India, for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystallizes, are charged against revenues for the year.

e) Foreign Currency Translation

i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction

ii) Assets and Liabilities receivable/payable in foreign currencies are translated at the year end exchange rates.

iii) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Account.

f) Depreciation

Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule- XIV of the Companies Act, 1956 on pro-rata basis.

g) Retirement and Other Employee Benefits

a) Defined Contribution Plan

The Company makes defined contributions to Provident Fund which are recognized in the Profit and Loss Account on accrual basis.

The Company''s contribution to State Plan, viz. Employees'' State Insurance Scheme are recognized in the Profit & Loss Account on accrual basis.

b) Defined Benefit Plan

(i) Accruing liability for gratuity is accounted for on the basis of present salaries and length of service of each employee.

(ii) Accruing liability for leave encashment is accounted for on the basis of present salaries and unclaimed leaves.

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Mar 31, 2011

A) General

i) The accounts are prepared on historical cost basis and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles as applicable in India.

ii) Income and Expenditure are accounted for on accrual basis.

b) Fixed Assets assets are stated at cost of acquisition, including freight, duties and other incidental expenses related to acquisition and installation less depreciation.

Cost of fixed assets borne by other parties is reduced from the carrying value of the respective fixed assets.

c) Inventories

Inventories are valued at lower of cost or net relisable value. Cost is arrived on FIFO basis and is inclusive of taxes and duties paid/incurred (other than those recovered /recoverable from taxing authorities). Adequate provision is made in respect of non-standard and obsolete items.

d) Impairment of Assets

The Company identifies impairable assets at the year end in accordance with the guiding principles of Accounting Standard 28, issued by the Institute of Chartered Accountants of India, for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystallizes, are charged against revenues for the year.

e) Foreign Currency Translation

i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction

ii) Assets and Liabilities receivable/payable in foreign currencies are translated at the year end exchange rates.

iii) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Account.

f) Depreciation

Depreciation is provided on Straight Line Method at the rates prescribed under the Schedule- XIV of the Companies Act, 1956 on pro-rata basis.

g) Sales

Sales are accounted on dispatch of product and stated net of discounts, returns and sales tax.

h) Excise Duty

Excise Duty Payable on finished goods lying in the factory at the year end is provided. The same being an element of cost of manufacturing is included in the inventory of finished goods.

i) Retirement and Other Employee Benefits

a) Defined Contribution Plan

The Company makes defined contributions to Provident Fund which are recognized in the Profit and Loss Account on accrual basis.

The Company''s contribution to State Plan, viz. Employees'' State Insurance Scheme are recognized in the Profit & Loss Account on accrual basis.

b) Defined Benefit Plan

i) Accruing liability for gratuity is accounted for on the basis of present salaries and length of service of each employee.

ii) Accruing liability for leave encashment is accounted for on the basis of present salaries and unclaimed leaves.

c) Short Term Employee Benefits

Short term employee benefit obligations are measured on an undiscounted basis and charged to the Profit & Loss Account on accrual basis.

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Sep 30, 2010

A) General

i) The accounts are prepared on historical cost basis and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles as applicable in India.

ii) Income and Expenditure are accounted for on accrual basis.

b) Fixed Assets

Fixed assets are stated at cost of acquisition, including freight, duties and other incidental expenses related to acquisition and installation less depreciation.

Cost of fixed assets borne by other parties is reduced from the carrying value of the respective fixed assets.

c) Inventories

Inventories are valued at lower of cost or net relisable value. Cost is arrived on FIFO basis and is inclusive of taxes and duties paid/incurred (other than those recovered /recoverable from taxing authorities). Adequate provision is made in respect of non-standard and obsolete items.

d) Impairment of Assets

The Company identifies impairable assets at the year end in accordance with the guiding principles of Accounting Standard 28, issued by the Institute of Chartered Accountants of India, for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystallizes, are charged against revenues for the year.

e) Foreign Currency Translation

i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction

ii) Assets and Liabilities receivable/payable in foreign currencies are translated at the year end exchange rates.

iii) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Account.

f) Depreciation

Depreciation has been provided on Straight Line Method at the rates prescribed under the Schedule-XIV of the Companies Act, 1956 on pro-rata basis.

g) Sales

Sales are accounted on dispatch of product and stated net of discounts, returns and sales tax.

h) Excise Duty

Excise Duty Payable on finished goods lying in the factory at the year end is provided. The same being an element of cost of manufacturing is included in the inventory of finished goods.

i) Retirement and Other Employee Benefits

a) Defined Contribution Plan

The Company makes defined contributions to Provident Fund which are recognized in the Profit and Loss Account on accrual basis.

The Company''s contribution to State Plan, viz. Employees'' State Insurance Scheme are recognized in the Profit & Loss Account on accrual basis.

b) Defined Benefit Plan

The Company''s liabilities under Payment of Gratuity Act and leave encashment / compensated absences are determined on the basis of actuarial valuation made at the end of each financial year using the projected unit credit method. Actuarial gains and losses are recognized immediately in the Profit and Loss Account as income/expenses. Obligation is measured at the present value of estimated future cash flows using a discounted rate which is determined by reference to market yields at the Balance Sheet date on Government Bonds.

c) Short Term Employee Benefits

Short term employee benefit obligations are measured on an undiscounted basis and charged to the Profit & Loss Account on accrual basis.

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Jun 30, 2009

A) General

i) The accounts are prepared on historical cost basis and as a going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles as applicable in India. ii) Income and Expenditure are accounted for on accrual basis.

b) Fixed Assets

Fixed assets are stated at cost of acquisition, including freight, duties and other incidental expenses related to acquisition and installation less depreciation.

Cost of fixed assets borne by other parties is reduced from the carrying value of the respective fixed assets.

c) Inventories

Inventories are valued at lower of cost or net relisable value. Cost is arrived on FIFO basis and is inclusive of taxes and duties paid/incurred (other than those recovered /recoverable from taxing authorities). Adequate provision is made in respect of non- standard and obsolete items.

d) Impairment of Assets

The Company identifies impairable assets at the year end in accordance with the guiding principles of Accounting Standard 28, issued by the Institute of chartered accountants of india, for the purpose of arriving^^^^irment loss thereon being the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystallizes, are charged against revenues for the year.

e) Foreign Currency Translation

i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction

ii) Assets and Liabilities receivable/payable in foreign currencies are translated at the year end exchange rates.

iii) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Account.

f) Depreciation

Depreciation has been provided on Straight Line Method at the rates prescribed under the Schedule-XIV of the Companies Act, 1956 on pro-rata basis.

g) Sales

Sales are accounted on dispatch of product and stated net of discounts, returns and sales tax.

h) Excise Duty

Excise Duty Payable on finished goods lying in the factory at the year end is provided. The same being an element of cost of manufacturing is included in the inventory of finished goods.

i) Retirement and Other Employee Benefits

a) Defined Contribution Plan

The Company makes defined contribution to Provident Fund which are recognized in the Profit and Loss Account on accrual basis. The Company''s contribution to State Plan, viz. Employees'' State Insurance scheme is recognized in the Profit & Loss Account on accrual basis.

b) Defined Benefit Plan

The Company''s liabilities under Payment of Gratuity Act and compensated absences are determined on the basis of actuarial valuation made at the end of each financial year using the projected unit credit method. Actuarial gain and losses are recog nized immediately in the Profit and Loss Account as income/expenses. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yields at the Balance Sheet date on Government Bonds.

c) Short Term Employee Benefits

Short term employee benefit obligations are measured on an undiscounted basis and charged to the Profit & Loss Account on accrual basis.