Accounting Policies of Desh Rakshak Aushdhalaya Ltd. Company

Mar 31, 2015

L .A. SYSTEM OF ACCOUNTING

The company follows the mercantile system of accounting and recognize Income and Expenditure on an accrual basis except in case of significant uncertainties. The Accounting policies applied by the company are consistent with those used in the previous year. The financial statement are prepared to comply in all material respects with. the mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies' Act, 2013.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilization level.

2. REVENUE RECOGNITION

Revenue from the sale of manufactured products are recognised upon passage of title to the customer and generally coincides with the delivery and acceptance. .

3. FIXED ASSETS AND DEPRECIATION

FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum of Rs. 13535861- capital work in progress.

DEPRECIATION

Depreciation has been provided on WDV method at the rates prescribed in Schedule XIV of the Companies Act, 2013 on usage basis. Additions to fixed assets during the year are being depreciated on pro-rata basis on put to use basis at the rates prescribed in the schedule XIV of the Companies Act, 2013. Depreciation on opening Balance plus addition from April to Sept, has been taken full rate and on the addition made from October to March, the depreciation has been charged at half rate on the basis of life of the assets.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs. 11.75 lacs held on a long term basis and are valued at cost of acquisition since the shares are not quoted in any exchange.

6. INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales - G.Profit Margin

d. stores and spares At cost

7. SALES

The company has done an export sales of Rs. 5951252- to Nepal country.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

c. Provident Fund contributions Rs. 93827/-, ESI Rs. 19300-, Vat Rs. 174556- TDS Rs. 138122- arc payable as on 31.3.2015.

d. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

e. A sum of Rs. 708832/- has been deposited to the Commissioner of Provident Fund as fine towards late deposit of Provident Fund.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11. PROVISION FOR TAXATION

The company have profit of Rs. 807572- as per P&L account on which Income. Tax works out Rs. 494501 after add - back of depreciation. The company has deposited a sum of Rs. 708832- as fine on Provident Fund which will be add in the profit of the company which Income Tax Works out Rs. 219029- In this way Total Income Tax works out Rs. 713530- against which the company has deposit Rs. 591149- as Advance Tax & TDS, Hence a sum of Rs. 122381- has to be paid to Income Tax.

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Mar 31, 2014

1 .A The company follows the mercantile system of accounting and recognises Income and Expenditure on an accrual basis except in case of significant uncertainties.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilisation level.

2. REVENUE RECOGNITION

Revenue from the sale of manufactured products are recognised upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum ofRs. 13515861 - work in progress.

DEPRECIATION

a. Depreciation has been provided on WDV method at the rates prescibed in Schedule of the Companies Act, 1956 as amended vide Notification No. 756[E] dated 16th December 1993.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs. 17.65 lacs held on a long term basis and are valued at cost of acquisition since the shares are not quoted in any exchange and also to the companies where most of the Directors are common.

6. INVENTORIES BASIS OF VALUATION

INVENTORIES

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales- G.Profit Margin

d. stores and spares At cost

7. SALES

The company has done an export sales ofRs. 5672920/- to Nepal country.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

C. Provident Fund contributions Rs. 83444/- and ESI Rs. 18926/-, Vat Rs. 97016-TDS

Rs. 118267 are payable as on 31.3.2014.

d. Accounting policies not specifically referred to are consistent with generally accepted'' accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11. PROVISION FOR TAXATION

The company have profit of Rs. 1196480- as per P&L account during the year after adjustment and will pay Income Tax as per separate calculation.

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Mar 31, 2013

1 .A The company follows the mercantile system of accounting and recognises Income and Expenditure on an accrual basis except in case of significant uncertainties.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilisation level.

2. REVENUE RECOGNITION

Revenue from the sale of manufacture and traded products are recognised upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION

FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum ofRs. 13515861-work in progress.

DEPRECIATION

a. Depreciation has been provided on straight line method at the rates prescribed in Schedule of the Companies Act, 1956 as amended vide Notification No. 756[E] dated 16th December 1993. No depreciation has been provided on the revaluation cost of the assets.

b. Depreciation on additions is being provided on prorata basis from the date of such additions.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs. 17.65 lacs held on a long term basis and are valued at cost of acquisition since the shares are not quoted in any exchange and also to the companies where most of the Directors are common.

Stores and spares purchased are charged to Profit & Loss account in the year of purchase as the quantum is not material.

7. SALES

The company has done an export sales ofRs. 3496577/- to Nepal country.

8 RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

C. Provider Fund contributions Rs. 149672/- and ESI Rs. 32978/- are payable as on 31.3.2013.

d. Accounting policies not specifically referred to are consistent with generally accepted'' accounting practices.

10 PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11 PROVISION FOR TAXATION

The company have profit ofRs. 354394- as per P&L account during the year after adjustment and will pay Income Tax as per separate calculation..

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Mar 31, 2012

1.A The company follows the mercantile system of accounting and recognises Income and Expenditure on an accrual basis except in case of significant uncertainties.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilisation level.

2. REVENUE RECOGNITION

Revenue from the sale of manufacture and traded products are recognised upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum ofRs. 13515861- work in progress during the FY 2011-12 and Rs. 2154999]-was for the FY 2010-11..

DEPRECIATION

a. Depreciation has been provided on straight line method at the rates prescribed in Schedule of the Companies Act, 1956 as amended vide Notification No. 756[E] dated 16th December 1993. No depreciation has been provided on the revaluation cost of the assets.

b. Depreciation on additions is being provided on prorata basis from the date of such additions.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs, 17.65 lacs held on a long term basis and are valued at cost of acquisition since the shares are not quoted in any exchange and also to the companies where most of the Directors are common.

Stores and spares purchased are charged to Profit & Loss account in the year of purchase as the quantum is not material.

7. SALES

The company has done an export sales ofRs. 5622753/- to Nepal country.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid. .

b. Provision of Gratuity has not been made since it is paid as and when due.

C. Provident Fund contributions Rs. 283036/- and ESI Rs. 15963/- are payable as on 31.3.2012.

d. Accounting policies not specifically referred to are consistent with generally accepted' accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11. PROVISION FOR TAXATION

The company have profit ofRs. 342057- as per P&L account during the year after adjustment and will pay Income Tax as per separate calculation.

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Mar 31, 2010

1A SYSTEM OF ACCOUNTING

The company follows the mercantile system of accounting and recognises income and Expenditure on an accrual basis except in case of significant uncertainties.

B. The accounts of the company have been prepared based on the going concern con- cept and the company is operating at a very low capacity utilisation level.

2 REVENUE RECOGNITION

Revenue from the sale of manufacture and traded products are recognised upon pas- sage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION

FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum of Rs. 17496990- upto last financial year and Rs. 8053001- during the FY 2009-10 (Total amount Rs. 25549991- shown under the head of work in progress and pending since a long time for adjustments.

DEPRECIATION

a. Depreciation has been provided on straight line method at the rates prescribed in Schedule of the Companies Act, 1956 as amended vide Notification No. 756[E] dated 16th December 1993. No depreciation has been provided on the revaluation cost of the assets.

b. Depreciation on additions is being provided on prorata basis from the date of such additions.

4 TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMENTS

Investment Rs. 17.65 lacs held on a long term basis and are valued at cost of acqui- sition since the shares are not quoted in any exchange and also to the companies where most of the Directors are common.

6 INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales-G.Profit Margin

d. stores and spares At cost

Stores and spares purchased are charged to Profit & Loss account in the year of purchase as the quantum is not material.

7. SALES

The company has done an export sales of Rs. 2852785/- to the different countries.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of old Gratuity Rs. 328062/- has been shown in the Balance Sheet during the year.

C. Provident Fund contributions Rs. 62103/- and ESI Rs. 15101/- are payable as on 31.3.2010.

d. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

11 PROVISION FOR TAXATION

Since the company have old loss of Rs. 1561037- as per Income Tax Return but during the year after adjustment, the company will pay Income Tax as per separate calculation..

TDS Rs. 149137/-, VAT UK Rs, 43081/-VAT UP State Rs. 53679-, and CST Rs. 75557/ - are payable during the year.

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Mar 31, 2009

1 SYSTEM OF ACCOUNTING

The company follows the merchantile system of accounting and recognizes Income and Expenditure on an accrual basis except in case of significant uncertainties. B The accounts of the company have been prepared based on the going concern concept and the company is operating at a very low capacity utilization level.

2. REVENUE RECOGNITION

Revenue from the sale of manufacture and traded products are recognized upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use

The fixed assets includes a sum of Rs. 17496990/- shown under the head of work in progress and pending sinece a long time for adjustments and also there is an addition of Rs. 7996405/- during the year, which included in above figures.

DEPRECIATION

a. Depreciation has been provided on straight line method at the rates prescribed in Schedule of the companies Act, 1956 as amended vide Notification No. 756 [E] dated 16th December 1993. No depreciation has been provided on the revaluation cost of the assets.

b. Depreciation on additions is being provided on prorate basis from the date of such additions.

4 TECHNICAL KNOW- HOW FEES

No technical know-how fee is paid during the year.

5. INVESTMEN

I nvestment Rs. 17.65 lacs held on a long term basis and are valued at cost of acquisition since the share are not quoted in any exchange and also of the companies where most of the directors are common.

6. INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b Work- in-progress At cost

c Finished goods Sales-G. Profit Margin

d Stores and spares At cost

Store and spares purchased are charged to profit & Loss account in the year of purchase as the quantum is not material

7 SALES

The company has done an export sales of Rs 6751275/- To the different countries.

8 RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9 RETIREMENT BENEFITS

a Retirement benefits are accounted for as and when paid

b Provision of old Grativity Rs. 472415/- has been shown in the Balance sheet & there is no provision during the year.

c. Provident Fund cc ntnbutions Rs. 54205/- and ESI Rs. 13258/- are payable as on 31 3.2009. d Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

10 PROPOSED DIVIDEND

No Dividend declared during the year.

11. PROVISION FOR TAXATION

Since the company have old losses hence no provision for Income tax is made. However, MAT has to be deposited TDS Rs. 102142/- and VAT Rs. 10765/- are payable during the year.