Mar 31, 2015
A] Basis of Accounting:
The financial statements of Gorani Industries Limited have been
prepared to comply with the generally accepted accounting principles in
India (Indian GAAP), including the Accounting Standards notified under
the relevant provisions of the Companies Act, 2013. The financial
statements have been prepared under historical cost convention on
accrual basis. The accounting policies have been consistently applied
by the company unless otherwise stated.
B] Sales:
The sales of goods are recognized at the point of dispatch of the
finished to the customers.
C] Income:
The Income is accounted for on accrual basis.
D] Fixed Assets:
Fixed Assets are stated at cost. The cost of an asset comprises its
purchase price/cost of construction and any directly attributable
expenses for bringing the assets to their working condition for its
intended use. Expenditure for additions, modifications, improvements
and renewals are capitalized and expenditure for maintenance and
repairs are charged to the Profit & Loss Account.
E] Depreciation:
Depreciation on Fixed Assets has been provided on useful life of the
assets as prescribed in the Schedule II to the Companies Act, 2013 on
straight line method (SLM). Assets which are purchased, sold or
scrapped during the year, depreciation has been provided on pro-rata
basis.
F] Borrowing Cost:
Borrowing cost that is attributable to the acquisition or construction
of qualifying assets is capitalized as part of the cost of such assets.
A qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing
cost is recognized as an expense in the period in which they are
incurred.
G] Foreign Currency Transaction:
The transactions in foreign currencies are recorded at the rate
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the rate prevailing on the balance
sheet date. Exchange gains/ losses on settlement and on conversion of
monetary items denominated in foreign currency are dealt with in the
profit and loss account.
H] Inventories:
Inventories are stated at the lower of cost or net realizable value.
Cost is determined on the basis of FIFO method. The cost of work in
progress and finished goods comprise direct material, direct labour,
and other direct cost and related production overheads.
I] Contingent Liabilities:
Contingent liabilities as defined in Accounting Standard 29 on
"Provisions, contingent liabilities and contingent assets" are
disclosed by way of notes to the accounts. Disclosure is not made if
the possibility of an outflow of future economic benefits is remote.
Provision is made if it is probable that an outflow of future economic
benefits will be required to settle the obligation.
J] Retirement Benefits:
i] The Company accounts for group gratuity for the eligible employees
on the basis of payments to Life Insurance Corporation of India as
actuarially determined with reference to agreement between them.
ii] Leave encashment liability is accounted on actual payment basis as
per the rules applicable to the company.
iii] Company's contribution to Provident Fund and ESIC are charged to
Profit and Loss Account.
K] Research & Development:
Capital expenditure on research and development is treated in the same
way as expenditure on Fixed Assets. The revenue expenditure on Research
& Development is written off in the year in which it is incurred.
L] Accounting on Taxes:
Tax Expenses comprises current tax and deferred tax.
Deferred tax is recognized on timing difference being the difference
between taxable income and accounting income originate in one period
and are capable of reversal in one or more subsequent periods.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward losses are recognized if there is virtual certainty that there
will be sufficient future taxable income available to realize such
losses.
As explained by the management, the brought forward business loss and
unabsorbed depreciation are more than timing difference between tax
depreciation and book depreciation; therefore the provision as
stipulated by AS- 22 is not required. Company shall recognize deferred
tax assets in succeeding years only when there is certainty that
sufficient taxable income will be available.
M] Impairment of Fixed Assets:
The Company on an annual basis makes on assessment of any indicator
that may lead to impairment of assets. If any such indication exists,
the company estimates the recoverable amount of the assets. If such
recoverable amount is less than the carrying amount, then the carrying
amount is reduced to its recoverable amount by treating the difference
between them, as impairment loss and the same is charged to profit &
loss account. Based on the aforesaid review, the Company is of opinion
that there is no impairment of any of its fixed assets as at 31st March
2015.
Mar 31, 2014
A] Basis of Accounting:
The financial statements of Gorani Industries Limited have been
prepared to comply with the Accounting Standards referred to in the
Companies (Accounting standards) Rule 2006 and the relevant provision
of the Companies Act, 1956. The financial statements have been prepared
under historical cost convention on accrual basis .The accounting
policies have been consistently applied by the company unless otherwise
stated.
B] Sales:
The sales of goods are recognized at the point of dispatch of the
finished to the customers.
C] Income:
The Income is accounted for on accrual basis.
D] Fixed Assets:
Fixed Assets are stated at cost. The cost of an asset comprises its
purchase price/cost of construction and any directly attributable
expenses for bringing the assets to their working condition for its
intended use. Expenditure for additions, modifications, improvements
and renewals are capitalized and expenditure for maintenance and
repairs are charged to the Profit & Loss Account.
E] Depreciation:
Depreciation on Fixed Assets has been provided on straight line method
at the rates and in the manner specified in Schedule XIV to the
Companies Act, 1956. Assets which are purchased during the year,
depreciation has been provided on pro-rata basis. No depreciation is
provided on assets sold or scrapped during the year.
F] Borrowing Cost:
Borrowing cost that is attributable to the acquisition or construction
of qualifying assets is capitalized as part of the cost of such assets.
A qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing
cost is recognized as an expense in the period in which they are
incurred.
G] Foreign Currency Transaction:
The transactions in foreign currencies are recorded at the rate
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the rate prevailing on the balance
sheet date. Exchange gains/ losses on settlement and on conversion of
monetary items denominated in foreign currency are dealt with in the
profit and loss account.
H] Inventories:
Inventories are stated at the lower of cost or net realizable value.
Cost is determined on the basis of FIFO method. The cost of work in
progress and finished goods comprise direct material, direct labour,
and other direct cost and related production overheads.
I] Contingent Liabilities:
Contingent liabilities as defined in Accounting Standard 29 on
"Provisions, contingent liabilities and contingent assets" are
disclosed by way of notes to the accounts. Disclosure is not made if
the possibility of an outflow of future economic benefits is remote.
Provision is made if it is probable that an outflow of future economic
benefits will be required to settle the obligation.
J] Retirement Benefits:
i] The Company accounts for group gratuity for the eligible employees
on the basis of payments to Life Insurance Corporation of India as
actuarially determined with reference to agreement between them.
ii] Leave encashment liability is accounted on actual payment basis as
per the rules applicable to the company.
iii] Company''s contribution to Provident Fund and ESIC are charged to
Profit and Loss Account.
K] Research & Development:
Capital expenditure on research and development is treated in the same
way as expenditure on Fixed Assets. The revenue expenditure on Research
& Development is written off in the year in which it is incurred.
L] Accounting on Taxes
Tax Expenses comprises current tax and deferred tax.
Deferred tax is recognized on timing difference being the difference
between taxable income and accounting income originate in one period
and are capable of reversal in one or more subsequent periods.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward losses are recognized if there is virtual certainty that there
will be sufficient future taxable income available to realize such
losses.
As explained by the management, the brought forward business loss and
unabsorbed depreciation are more than timing difference between tax
depreciation and book depreciation; therefore the provision as
stipulated by AS- 22 is not required. Company shall recognize deferred
tax assets in succeeding years only when there is certainty that
sufficient taxable income will be available.
M] Impairment of Fixed Assets:
The Company on an annual basis makes on assessment of any indicator
that may lead to impairment of assets. If any such indication exists,
the company estimates the recoverable amount of the assets. If such
recoverable amount is less than the carrying amount, then the carrying
amount is reduced to its recoverable amount by treating the difference
between them, as impairment loss and the same is charged to profit &
loss account. Based on the aforesaid review, the Company is of opinion
that there is no impairment of any of its fixed assets as at 31st March
2014.
Mar 31, 2013
A] Basis of Accounting:
The financial statements of Gorani Industries Limited have been
prepared to comply with the Accounting Standards referred to in the
Companies (Accounting standards) Rule 2006 and the relevant provision
of the Companies Act, 1956. The financial statements have been prepared
under historical cost convention on accrual basis .The accounting
policies have been consistently applied by the company unless otherwise
stated.
B] Sales:
The sales of goods are recognized at the point of dispatch of the
finished to the customers.
C] Income:
The Income is accounted for on accrual basis.
D] Fixed Assets:
Fixed Assets are stated at cost. The cost of an asset comprises its
purchase price/cost of construction and any directly attributable
expenses for bringing the assets to their working condition for its
intended use. Expenditure for additions, modifications, improvements
and renewals are capitalized and expenditure for maintenance and
repairs are charged to the Profit & Loss Account.
E] Depreciation:
Depreciation on Fixed Assets has been provided on straight line method
at the rates and in the manner specified in Schedule XIV to the
Companies Act, 1956. Assets which are purchased during the year,
depreciation has been provided on pro-rata basis. No depreciation is
provided on assets sold or scrapped during the year.
F] Borrowing Cost:
Borrowing cost that is attributable to the acquisition or construction
of qualifying assets is capitalized as part of the cost of such assets.
A qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing
cost is recognized as an expense in the period in which they are
incurred.
G] Foreign Currency Transaction:
The transactions in foreign currencies are recorded at the rate
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the rate prevailing on the balance
sheet date. Exchange gains/ losses on settlement and on conversion of
monetary items denominated in foreign currency are dealt with in the
profit and loss account.
H] Inventories:
Inventories are stated at the lower of cost or net realizable value.
Cost is determined on the basis of FIFO method. The cost of work in
progress and finished goods comprise direct material, direct labour,
and other direct cost and related production overheads.
I] Contingent Liabilities:
Contingent liabilities as defined in Accounting Standard 29 on
"Provisions, contingent liabilities and contingent assets" are
disclosed by way of notes to the accounts. Disclosure is not made if
the possibility of an outflow of future economic benefits is remote.
Provision is made if it is probable that an outflow of future economic
benefits will be required to settle the obligation.
J] Retirement Benefits:
i] The Company accounts for group gratuity for the eligible employees
on the basis of payments to Life Insurance
Corporation of India as actuarially determined with reference to
agreement between them.
ii] Leave encashment liability is accounted on actual payment basis as
per the rules applicable to the company.
iii] Company''s contribution to Provident Fund and ESIC are charged to
Profit and Loss Account.
K] Research & Development:
Capital expenditure on research and development is treated in the same
way as expenditure on Fixed Assets. The revenue expenditure on Research
& Development is written off in the year in which it is incurred.
L] Accounting on Taxes
Tax Expenses comprises current tax and deferred tax.
Deferred tax is recognized on timing difference being the difference
between taxable income and accounting income originate in one period
and are capable of reversal in one or more subsequent periods.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward losses are recognized if there is virtual certainty that there
will be sufficient future taxable income available to realize such
losses.
As explained by the management, the brought forward business loss and
unabsorbed depreciation are more than timing difference between tax
depreciation and book depreciation; therefore the provision as
stipulated by AS- 22 is not required. Company shall recognize deferred
tax assets in succeeding years only when there is certainty that
sufficient taxable income will be available.
M] Impairment of Fixed Assets:
The Company on an annual basis makes on assessment of any indicator
that may lead to impairment of assets. If any such indication exists,
the company estimates the recoverable amount of the assets. If such
recoverable amount is less than the carrying amount, then the carrying
amount is reduced to its recoverable amount by treating the difference
between them, as impairment loss and the same is charged to profit &
loss account. Based on the aforesaid review, the Company is of opinion
that there is no impairment of any of its fixed assets as at 31st March
2013.
Mar 31, 2012
A] Basis of Accounting:
The financial statements of Gorani Industries Limited have been
prepared to comply with the Accounting Standards referred to in
the Companies (Accounting standards) Rule 2006 and the relevant
provision of the Companies Act, 1956. The financial statements
have been prepared under historical cost convention on accrual
basis .The accounting policies have been consistently applied by
the company unless otherwise stated.
B] Sales:
The sales of goods are recognized at the point of dispatch of the
finished to the customers.
C] Income:
The Income is accounted for on accrual basis.
D] Fixed Assets:
Fixed Assets are stated at cost. The cost of an asset comprises its
purchase price/ cost of construction and any directly attributable
expenses for bringing the assets to their working condition for its
intended use. Expenditure for additions, modifications, improvements
and renewals are capitalized and expenditure for maintenance and
repairs are charged to the Profit & Loss Account.
E] Depreciation:
Depreciation on Fixed Assets has been provided on straight line method
at the rates and in the manner specified in Schedule XIV to the
Companies Act, 1956. Assets which are purchased during the year,
depreciation has been provided on pro-rata basis. No depreciation is
provided on assets sold or scrapped during the year.
F] Borrowing Cost:
Borrowing cost that is attributable to the acquisition or construction
of qualifying assets is capitalized as part of the cost of Such assets.
A qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing
cost is recognized as an expense in the period in which they are
incurred.
G] Foreign Currency Transaction:
The transactions in foreign currencies are recorded at the rate
prevailing on the date of the transaction. Monetary items denominated in
foreign currency are restated at the rate prevailing the balance
sheet date. Exchange gains/ losses on settlement and on conversion of
monetary items denominated in foreign currency are dealt with in the
profit and loss account. -
H] Inventories:
Inventories are stated at the lower of cost or net realizable value.
Cost is determined on the basis of FIFO method. The cost of work in
progress and finished goods comprise direct material, direct labour,
and other direct cost and related production overheads.
I] Excise Duty:
Company has enjoyed the benefit under Central Excise SSI exemption,
hence not paying duty.
J] Retirement Benefits:
i] The Company accounts for group gratuity for the eligible employees
on the basis of payments to Life Insurance , Corporation of India as
actuarially determined with reference to agreement between them.
ii] Leave encashment liability is accounted on actual payment basis as
per the rules applicable to the company.
iii] Company's contribution to Provident Fund and ESIC are charged to
Profit and Loss Account.
K] Research & Development:
Capital expenditure on research and development is treated in the same
way as expenditure on Fixed Assets. The revenue expenditure on
Research & Development is written off in the year in which it is
incurred.
M] Segment Reporting Policies Identification of segments:
a] Primary Segments
Business segment: The Company has only one segment of Home Appliances
and the products considered as part of the segment are Kerosene wick
Stove, LPG Stove, Range hood (Chimney) and Gas Geysers. Since inherent
nature of all activities of the company is governed by the same set of
risks and returns and also all the products are falling in the same
category in trade parlance therefore as per the guidelines of the AS-17
no primary segment is reporting required for the year.
N] Disclosure of Related party/Related Party Transactions Narine
of the related parties and relationship.
(a) Associates Companies
M/s Blow Hot Kitchen Appliances (P) Ltd. .
O] Accounting on Taxes
Tax Expenses comprises current tax and deferred tax.
Deferred tax is recognised on timing difference being the difference
between taxable income and accounting income originate in one period
and are capable of reversal in one or more subsequent periods.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward losses are recognised if there is virtual certainty that there
will be sufficient future taxable income available to realize such
losses.
As explained by the management, the brought forward business loss and
unabsorbed depreciation are more than timing difference between tax
depreciation and book depreciation; therefore the provision as
stipulated by AS- 22 is not required.
Company shall recognize deferred tax assets in succeeding years only
when there is certainty that sufficient taxable income will be
available.
P] Impairment of Fixed Assets:
The Company on an annual basis makes on assessment of any indicator that
may lead to impairment of assets. If any such indication exists, the
company estimates the recoverable amount of the assets. If such
recoverable amount is less than the carrying amount, then the carrying
amount is reduced to its recoverable amount by treating the difference
between them, as impairment loss and the same is charged to profit &
loss account. Based on the aforesaid review, the Company is of opinion
that there is no impairment of any of its fixed assets as at 31st March
2012.
Mar 31, 2011
A] Basis of Accounting:
The financial statements of Gorani Industries Limited have been
prepared to comply with the Accounting Standards referred to in the
Companies (Accounting standards) Rule 2006 and the relevant provision
of the Companies Act, 1956. The financial statements have been prepared
under historical cost convention on accrual basis The accounting
policies have been consistently applied by the company unless otherwise
stated.
B] Sales:
The sales of goods are recognized at the point of dispatch of the
finished to the customers.
C] Income:
The Income is accounted for on accrual basis.
D] Fixed Assets:
Fixed Assets are stated at cost. The cost of an asset comprises its
purchase price/ cost of construction and any directly attributable
expenses for bringing the" assets to their working condition for its
intended use. Expenditure for additions, modifications, improvements
and renewals are capitalized and expenditure for maintenance and
repairs are charged to the Profit & Loss Account.
E] Depreciation:
Depreciation on Fixed Assets has*been provided on straight line method
at the rates and in the manner specified in Schedule XIV to the
Companies Act, 1956. Assets which are purchased during the year,
depreciation has been provided on pro-rata basis. No depreciation is
provided on assets sold or scrapped during the year.
F] Borrowing Cost:
Borrowing cost that is attributable to the acquisition or construction
of qualifying assets is capitalized as part of the cost of such assets.
A qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing
cost is recognized as an expense in the period in which they are
incurred.
G] Foreign Currency Transaction:
The transactions in foreign currencies are recorded at the rate
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the rate prevailing on the balance
sheet date. Exchange gains/ losses on settlement and on conversion of
monetary items denominated in foreign currency are dealt with in the
profit and loss account.
H] Inventories:
Inventories are stated at the lower of cost or net realizable value.
Cost is determined on the basis of FIFO method. The cost of work in
progress and finished "goods comprise direct material, direct labour,
and other direct cost and related production overheads.
I] Excise Duty:
Company has enjoyed the benefit under Central Excise SSI exemption,
hence not paying duty.
J] Retirement Benefits:
i] The Company accounts for group gratuity for the eligible employees
on the basis of payments to Life Insurance Corporation of India as
actuarially determined with reference to agreement between them.
ii] Leave encashment liability is accounted on actual payment basis as
per the rules applicable to the company.
iii] Company's contribution to Provident Fund and ESIC are charged to
Profit and Loss Account.
K] Research & Development:
Capital expenditure on research and development is treated in the same
way as expenditure on Fixed Assets. The revenue expenditure on Research
& Development is written off in the year in which it is incurred,
L] Segment Reporting Policies
Identification of segments:
a] Primary Segments
Business segment: The company has only one segment of Home Appliances
and the products considered as part of the segment are Kerosene wick
Stove, LPG Stove, Range hood (Chimney) and Gas Geysers. Since inherent
nature of all activities of the company is governed by the same set of
risks and returns and also all the products are falling in the same
category in trade parlance therefore as per the guidelines of the AS-17
no primary segment is reporting required for the year.
M] Impairment of Fixed Assets:
The Company on an annual basis makes on assessment of any indicator
that may lead to impairment of assets. If any such indication exists,
the company estimates the recoverable amount of the assets. If such
recoverable amount is less than the carrying amount, then the carrying
amount is reduced to its recoverable amount by treating the difference
between them, as impairment loss and the same is charged to profit &
loss account. Based on the aforesaid review, the Company is of opinion
that there is no impairment of any of its fixed assets as at 31st March
2011.
Mar 31, 2010
(A) Basis of Accounting :
The financial statementsof Gorani Industries Limited have been prepared
to comply with the Accounting Standards referred to in the Companies
(Accounting Standards) Rule 2006 and the relevant provision of the
Companies Act, 1956. The Financial Statements have been prepared under
historical cost convention on accural basis. The accounting policies
have been consistently applied by the company unless otherwise stated.
(B) Sales :
The sales of goods are recognised at the point of dispatch of the
fnished trading goods to the customers.
(C) Income :
The Income is accounted for on accrual basis.
(D) Fixed Assets :
Fixed Assets are stated at cost. The Cost of an asset comprises of its
purchase price/cost of construction and any directly attributable
expenses for bringing the assets to their working condition for its
intended use. Expenditure for additions, modifications, improvements
and renewals are capitalised and expenditure for maintenance and
repairs are charged to the Profit & Loss Account. When assets are sold
or discarded, their cost and accumulated depreciation (if any) are
removed from the accounts and any gain or loss resulting from their
disposal is included in the Profit and Loss Account.
(E) Depreciation :
Depreciation on Fixed Assets has been provided on straight line method
at the rates and in manner specified in Schedule XIV to the Companies
Act, 1956. Assets, which are purchased during the year, depreciation
thereon has been provided on pro-rata basis.
(F) Borrowing Cost :
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets is capitalised as part of the cost of such assets.
A qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing
cost is recognized as an expense in the period in which they are
incurred.
(G) Foreign Currency Transaction :
The transactions in foreign currencies are recorded at the rate
prevailing on the date of the transaction. Monetary items denominated
in foreign currency are restated at the rate prevailing on the balance
sheet date. Exchange gains/ losses on settlement and on conversion of
monetary items denominated in foreighn currency are dealt with in the
profit and loss account. (H) Inventories :
Items of Inventory are valued at lower of cost or net realizable value.
Cost of determined on the basis of FIFI method. The cost of work in
progress and finished goods comprise direct material, direct labour,
and other direct cost and related production overheads.
(I) Excise Duty :
Company is enjoying the benefit under Central Excise SSI exemption,
hence not paying duty. (J) Retirement Benefits :
(i) The company accounts for Group gratuity for the eligible employees
on the basis of payments to Life Insurance Corporation of India as
actuarially determined with reference to agreement between them.
(ii) Leave encashment liability is accounted on actual payment basis as
per the rules applicable to the Company.
(iii) Companys contribution to Provident Fund and ESIC are charged to
Profit and Loss Account. But the payments therof slight delay is
observed during the year. (K) Research & development :
Capital expenditure on research and development is treated in-the same
way as expenditure on Fixed Assets. The
revenue expenditure on Research & Development is written off in the
year in which it is incurred.
(M) Segment Reporting Policies Identification of segments : a) Primary
Segments
Business Segment: The company has only one segment of hoe appliances
and the products considered as part of the segment are Kerosene Wick
Stove, LPG Stove Range hood (Chimney) and Gas Geysers. Since inherent
nature of all activities of the company is governed by the same set of
risks and returns and also all the products are falling in the same
category therefore as per the guidelines of the AS-17 no primary
segment is reporting required for the year.
(N) Disclosuree of Related Party / Related party Transactions Name of
the related parties and relationship :
a) Associated Companies - M/s Blow Hot Kitchen Appliances (P) Ltd.
b) Key Management Personnel and their relatives
Mr. Sanjay Gorani Managing Director
Mr. Anil Gorani Director
Smt. Maju Gorani Director
Narendra Gorani Relative of Director
(O) Accounting for Taxes :
Tax Expenses comprises current tax, deferred tax and fringe benefit
tax. The provision for Fringe Benefit Tax for the year has been
determined in accordance with the provisions of section 115 WC of the
Income Tax Act, 1961.
Deferred tax is recognised, on timing difference being, the diffreence
between taxable income and accounting income originate in one period
and are capable of reversal in one or more subsequent periods.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward losses are recognised if there is virtual certainty that there
will be sufficient future taxable income available to realizes such
losses.
As explained by the management, the brought forward business loss and
unabsorbed depreciation are more than timing difference between tax
depreciation and book depreciation; therefore the provision as
stipulated by
AS-22 is not required. Company shall recognize deferred tax assets in
succeeding years only when there is certainty that sufficient taxable
income will be available.
(P) Impairment of Fixed Assets :
The Company on an annual basis makes on assessment of any indicator
that may lead to impairment of assets. If any such indication exists,
the company estimates the recoverable amount of the assets. If such
recoverable amount is less than the carrying amount, then the carrying
amount is reduced to its recoverable amount by treating the difference
between them as impariment loss and the same is charged to profit &
loss account. Based on the aforesaid review, the Company is of opinion
that there is no impairment of any of its fixed assets as at 31st March
2010.
Mar 31, 2000
(A) Accounting Conventions : The accounts are prepared under the
historical cost convention in accordance with the provisions of the
Companies Act, 1956 and Materially comply with the mandatory Accounting
Standards issued by the Institute of Chartered Accountants of India.
(B) Sales : The revenue from sales of good is recognised at the point
of dispatch of the fnished goods to the customers.
(C) Income : The Income is accounted for on accrual basis.
(D) Fixed Assets : Fixed Assets are stated at cost. The Cost of asset
comprises of purchase price/ cost of construction and any other
directly attributable expenses (including interest charged upto date of
production) for bringing the assets in working condition for its
intended use.
(E) Depreciation : Depreciation on Fixed Assets has been provided on
straight line method at the rates and in manner specified in Schedule
XIV to the Companies Act 1956. Assets which is purchased during the
year and used for less than 180 days, the depreciation is charged @ 50%
of the prescribed rate.
The Company rectified the mistake in providing depreciation on
furniture and fixture during the year. The Company provided
depreciation î6.23% instead of 6.33% specified in Company Act 1956. The
amount of Rs. 12284/- due to such rectification is included in current
year depreciation.
(F) INVENTORIES :
Inventories are valued as follows :
(i) Raw Material, Stores & Spares, Components & Consumable are Valued
at Cost.
(ii) Process Stocks are valued at direct raw material cost plus average
cost of processing for various operation performed to get the final
product.
(iii) Finished Goods are valued at cost or realisable value which ever
is lower.
(G) Miscellaneous Expenditure :
(i) Preliminary and Share Issue Expenses are amortised equally over a
period of 10 years.
(ii) Expenditure incurred in respect of advertisement, publicity and
travelling for product launching and appointment of dealers &
distributors all over the country are amortised over a period of 3
years.
(iii) Expenditure incurred in respect of Sales Promotion, Scheme for
dealers Conferences outside India amortised over a period of 3 years.
(iv) Company had paid stamp duty/Panchayat duty of Rs. 1,10,000/- @1%
on long term fund borrowed from the Bank as per final decision of the
Honble Court in general. The expenses are amortised over a period of
3 years being the period of benefit/repayment of Term Loan.
(H) Excise Duty : Excise Duty is exempt on present product i. e.
Kerosene Wick Stove manufactured by the Company.
(I) Retirement Benefits :
(i) The company accounts for gratuity on the basis of payments to Life
Insurance Corporation of India as actuarially determined.
(ii) Leave encashment liability is provided on actual liability basis
as per the rules of the Company.
(J) Research & development :
Capital expenditure on research and development is treated in the same
way as expenditure on Fixed Assets. The revenue expenditure on Research
& Development is written off in the year in which it is incurred.
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