Accounting Policies of Hittco Tools Ltd. Company

Mar 31, 2012

A) Fixed Assets

Capitalised at acquisition cost including directly attributable cost. Interest and incidental expenditure during construction are also capitalised where appropriate. Expenditure incurred during construction period has been capitalised on a pro rate basis on the buildings, plant & machinery and capital work in progress on commissioning of the project.

b) Depreciation

Depreciation has been provided on the Straight Line Method in accordance with Schedule XIV of the Companies Act, 1956.

c) Inventories

Inventories are valued at lower of cost or net realisable value. Cost are determined on the basis of FIFO. Finished goods and Work in process include an appropriate share of overheads.

d) Retirement Benefits

Contributions to Provident Fund is charged to Profit and Loss account. The Company set up its own Gratuity Fund Trust and the Premiums are charged to Profit and Loss account. In relation to superannuation and leave salary, the Company complies with the statutory requirements.

e) Provision for Current and Deferred Tax

Provision for Current Income Tax is made on the taxable income using the applicable tax rules and laws. Deferred tax Assets are not recognised unless there is a sufficient assurance with respect reversal of the same in future years.

f) Foreign Currency Transactions

Foreign exchange transactions are recorded at the exchange rates prevailing on the date of transactions. The Net loss/gain arising on such restatement is adjusted to the profit & loss account except exchange difference related to acquisition of fixed assets. The company has exercised the option as per the Companies Accounting Standard Rules, 2009. As per the option exchange difference so far as they relate to acquisition of depreciable capital assets are adjusted to fixed assets.

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Mar 31, 2011

Accounts are prepared under the Historical Cost convention and comply with the applicable Accounting Standards.The significant accounting policies followed by the company are as follows :

a) Fixed Assets

Capitalised at acquisition cost including directly attributable cost. Interest and incidental expenditure during construction are also capitalised where appropriate. Expenditure incurred during construction period has been capitalised on a pro rata basis on the buildings, plant and machinery and Capital Work in progress on commissioning of the project.

b) Depreciation

Depreciation has been provided on the Straight Line Method in accordance with Schedule X IV of the Companies Act, 1956.

c) Inventories

Inventories are valued at lower of cost or net realisable value. Cost are deteremined on the basis of FIFO. Finished goods and Work in process include an appropriate share of overheads.

d) Retirement Benefits

Contributions to Provident Fund is charged to Profit and Loss account. The Company set up its own Gratuity Fund Trust and the Premiums are charged to Profit and Loss account. In relation to superannuation and leave salary, the Company complies with the Statutory requirements.

e) Provision for Current and Deferred Tax

Provision for Current Income Tax is made on the taxable income using the applicable tax rules and laws. Deferred Tax arising on account of timing difference and which are capable of reverse in one or more subsequent periods, is recognised using the tax rates and tax laws that have enacted or substantially enacted. Deferred Tax Assets are not recognised unless there is a sufficient assurance with respect to reversal of the same in future years.

f) Foreign Currency Transactions

Foreign exchange transactions are recorded at the exchange rates prevailing on the date of transactions. The Net loss/gain arising on such restatement is adjusetd to the Profit & Loss account except exchange difference related to acquistion of fixed assets. The Company has exercised the option as per the Companies Accounting Statdrad Rules, 2009.As per the option exchange difference so far as they relate to aqusition of depreciable capital assets are adjusted to fixed assets.

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Mar 31, 2010

Accounts are prepared under the Historical Cost convention and comply with the applicable Accounting Standards.The significant accounting policies followed by the company are as follows :

a) Fixed Assets

Capitalised at acquisition cost including directly attributable cost. Interest and incidental expenditure during construction are also capitalised where appropriate. Expenditure incurred during construction period has been capitalised on a pro rata basis on the buildings, plant and machinery and Capital Work in progress on commissioning of the project.

b) Depreciation

Depreciation has been provided on the Straight Line Method in accordance with Schedule X IV of the Companies Act, 1956.

c) Inventories

Inventories are valued at lower of cost or net realisable value. Cost are deteremined on the basis of FIFO. Finished goods and Work in process include an appropriate share of overheads.

d) Retirement Benefits

Contributions to Provident Fund is charged to Profit and Loss account. The Company set up its own Gratuity Fund Trust and the Premiums are charged to Profit and Loss account. In relation to superannuation and leave salary, the Company complies with the Statutory requirements.

e) Provision for Current and Deferred Tax

Provision for Current Income Tax is made on the taxable income using the applicable tax rules and laws. Deferred Tax arising on account of timing difference and which are capable of reverse in one or more subsequent periods, is recognised using the tax rates and tax laws that have enacted or substantially enacted. Deferred Tax Assets are not recognised unless there is a sufficient assurance with respect to reversal of the same in future years.

f) Foreign Currency Transactions

Foreign exchange transactions are recorded at the exchange rates prevailing on the date of transactions. Outstanding foreign currency assets and liablities are not on account of acquistion of fixed assets and are restated at year end rates. The net Loss/gain arising on such restatement, settlement is adjusted to the profit and loss account.