Mar 31, 2012
I. Accounting convections: The financial statements are prepared under
historical cost conventions. These Statements have been prepared in
accordance with applicable Accounting Standards and relevant
presentational requirements of the Companies Act, 1956.
II. Revenue recognition: Revenue in respect of sales of finished goods
is recognized at the point of dispatch of finished t goods to
customers. Sales are exclusive of excise duty and sales tax.
III. Fixed Assets: Alt fixed assets are stated at cost. The cost of
fixed assets comprise its purchase price cost of construction and any
directly attributable cost in bringing the assets to working conditions
for its intended use.
IV. Depreciation: Depreciation is provided on straight-line method on
pro-rata basis at the rate prescribed in the schedule XIV of the
companies Act. 1956,
V. Inventories are valued as follows:
a) Raw materials, packing materials components and consumables are
valued at lower of cost on FIFO Basis or net realizable value,
b) Finished goods and work in progress are valued at standard cost or
realizable value whichever is lower excluding Excise duty.
c) Stock on consignment is valued at lower of cost or realizable value.
VI. Investments: Investments in shares are permanent in nature and
hence are valued at cost, unless there is diminution in value which is
Permanent in nature.
VII. Foreign exchange transactions: Exchange gain/loss on transaction
concluded during the period is recognized as gain or loss on the basis
of actual payment made/received. Exchange differences on liabilities
arising on purchases from outside India and standing at the year end is
charged or credited to the profit & Loss A/c
VIII. Indirect taxes: Excise duty & Sales Tax on finished goods at
factory is accounted for as and when the material is cleared.
IX. Employees Benefits;.
(a) Contributions payable under employees Provident Fund Act 1952 are
accounted for on accrual Basis and charged to Profit & Loss account as
expenses for the year. It is a defined contribution plan.
(b) Provisions for Leave Encashment are made on actuarial valuation,
using the projected unit credit method, as at the date olives balance
sheet. It is anon funded Defined Benefit Obligation
X. Miscellaneous Expenditure: Preliminary expenses, share/debenture
issue expenses and Deferred Revenue Expenditure are amortized over a
period decided appropriate by the management, not exceeding ten years.
XI. Impairment of assets:. At each reporting date, the company reviews
the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired.
The impairment includes excess of book value over the present value of
estimated future cash flows expected to arise from the continuing use
of an assets and from the disposal at the end of its useful life. If
such an indication exists in carrying amount of the asset, being the
higher than the assets fair value. The excess of the assets carrying
value over its recoverable value is expended in account.
Mar 31, 2010
I. Accounting convetions: The financial statements are prepared
under historical cost conventions. These Statements have been prepared
in accordance with applicable Accounting Standards and relevant
presentational requirements of the Companies Act, 1956.
II. Revenue recognition: Revenue in respect of sales of finished goods
is recognized at the point of dispatch of finished t goods to
customers. Sales are exclusive of excise duty and sales tax.
III. Fixed Assets: Alt fixed assets are stated at cost. The cost of
fixed assets comprise its purchase price cost of construction and any
directly attributable cost in bringing the assets to working conditions
for its intended use.
IV. Depreciation: Depreciation is provided on straight-line method on
pro-rata basis at the rate prescribed in the schedule XIV ofthe
companies Act. 1956,
V- Inventories are valued as follows:
a) Raw materials, packing materials components and consumables are
valued at lower of cost on FIFO Basis or net realizable value,
b) Finished goods and work in progress are valued at standard cost or
realizable value whichever is lower excluding Exciseduty.
c) Stock on consignment is valued at lower of cost or realizable value.
VI. Invesfnients: Investments in shares are permanent in nature and
hence are valued at cost, unless there is diminution in value which is
Permanent in nature.
VII. Foreign exchange transactions: Exchange gain/loss on transaction
concluded during the period is recognized as gain or loss on the basis
of actual payment made/received. Exchange differences on liabilities
arising on purchases from outside India and standing at the year end is
charged orcredited to the profit & Loss A/c
VIII. Indirect taxes: Excise duty & Sales Tax on finished goods at
factory is accounted for as and when the material is cleared.
IX. Employees Benefits;.
(a) Contributions payable under employees Provident Fund Act 1952 are
accounted for on accrual Basis and charged to Profit & Loss account as
expenses for the year. It is a defined con tribution plan.
(b) Provisions for Leave Encashment are made on actuarial valuation,
using the projected unit credit method, as at the date olihe balance
sheet. It is anon funded Defined Benefit Obligation
X. Miscellaneous Expenditure: Preliminary expenses, share/debenture
issue expenses and Deferred Revenue Expenditure are amortized over a
period decided appropriate by the management, not exceeding ten years.
XI. Impairment of assets:. At each reporting date, the company
reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been
impaired. The impairment includes excess of book value over the present
value of estimated future cash flows expected to arise from the
continuing use of an assets and from the disposal at the end of its
useful life. If such an indication exists in carrying amount ofthe
asset, being the higher than the assets fair value. The excess ofthe
assets carrying value over its recoverable value is expended in
account.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article