Accounting Policies of Navcom Industries Ltd. Company

Mar 31, 2015

1.1 Method Of Accounting

a. The Company follows mercantile system of accounting and recognises Income & expenditure on accrual basis , net duties are recorded in the books

b. Financial statements are based on historical cost. These cost are not adjusted to reflect the impact of changing value In

1.2 Revenue Recognition

Sale of goods is recognized on shipment or dispatch to customer, sale of goods on Consignment basis is recognized on sale of the relative

1.3 Retirement Benefits

Retirement benefits to employees are provided for by payments to provident fund and by payment of gratuity on retirement of employees after putting in qualifying years of service.

1.4 Deferred Revenue Expenditure.

Revenue expenses of substantial magnitude which are expected to benefit for some years in future are charged considering relative benefit of the expenditure.

1.5 Fixed Assets and Depreciation

i) Fixed Assets are stated at cost less depreciation. Cost comprises of direct cost of acquisition or construction and other attributable cost.

ii) Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

lii) Depreciation is calculated on pro-rata basis from the date of additions except in the case of Assets costing upto Rs.5000 each, where each such assets is fully depreciated in the year of purchase.

iv) Cost of Leasehold land is amortised over the lease Period.

v) On assets sold discarded. etc. depreciation is Provided unto the date of sale/discard.

1.6 Investments

Investments are stated at cost.

1.7 Inventories

Stocks of raw materials, packing materials, stores, spares and fuel are stated at cost and are valued on FIFO basis. Goods in transit in bonded warehouse are valued at costs Incurred till the year end. Goods in process are stated at estimated cost ascertained by reducing gross margin, if any from the estimated selling price. Finished goods are valued at cost or selling price whichever Is lower, wherein cost includes material costs, labour and Factory overheads.

1.8 Sundry Debtors, Advances and Deposits

Balances considered irrecoverable are written off and those considered doubtful are provided for.

1.00 Contingent Liabilities

Contingent Liabilities are disclosed in the accounts by way of note giving nature of liability and its quantum, if ascertained.

1.01 Taxes on Income

a. Taxes include current taxes only. Current tax Is based on tax payable in respect of taxable income for the year.

b. In view of uncertainty of realization, no provision for deferred tax asset has been made in the accounts. .

c. The Company provides tax liability on the basis of current tax and deferred tax. Since company has loss for the year and being a sick company and having unabsorbed depreciation and other available deductions, the Company is not liable for Income Tax as well as Tax on profit under section 115 JB of the Income Tax Act, 1961 . Therefore, no provision for current tax liability has been made. As regards deferred tax, no asset has been recognized because of uncertainty of its

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Mar 31, 2009

1.1 Accounting System

1] The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

2] Financial statements are based on historical cost. These costs are not adjusted to reflect impact of changing value in the purchasing power of money.

1.2 Revenue Recognition

Sale of goods is recognized on shipment or dispatch to customer, sale of goods on Consignment basis is recognized on sale of the relative goods by consignee.

1.3 Fixed Assets and Depreciation

1] Fixed Assets are stated at cost less depreciation. Cost comprises cost of acquisition or construction and other attributable costs. Administrative Expenses and interest up to the date of commencement of production are capitalized in proportion of cost of major assets.

2] Expenditure on leasehold land is amortized over the period of its tenure.

1.4 Investment

Investments are stated at cost.

1.5 Inventories

Stocks of raw materials, packing materials, stores, spares and fuel are stated at cost and are valued on FIFO basis. Goods in transit in bonded warehouse are valued at costs incurred till the year end. Goods in process are stated at estimated cost ascertained by reducing gross margin, if any from the estimated selling price. Finished goods are valued at cost or selling price whichever is lower, wherein cost includes material costs, labour and Factory overheads.

1.6 Sundry Debtors, Advances and Deposits

Balances considered irrecoverable are written off and those considered doubtful are provided for.

1.7 Contingent liabilities :

Contingent Liabilities are disclosed in the accounts by way of giving note and giving nature of liability and its quantum , if ascertained.

1.8 Deferred Revenue Expenses

Revenue expenses of a substantial magnitude which are expected to benefit for some years in future are charged to Profit & Loss Account over numbers of years considering relative benefit of the expenditure.

2 Retirement benefits.

Retirement benefits to employees are provided for by payments to provident fund and by payment of gratuity on retirement of employees after putting in qualifying years of service.

3 Taxation:

Taxes include current taxes and deferred taxes. Current tax is based on tax payable in respect of taxable income for the year.

Deferred tax is computed on the basis of timing differences between book and tax profits for the year and is accounted for using the prevailing the rates and law. Deferred tax assets arising from temporary timing differences are recognized to the extent there is a reasonable certainty about its realization in future.

4. In view of uncertainty of realization, no provision for deferred tax asset has been made in the accounts.

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Mar 31, 2008

1.1 Accounting System

1] The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

2] Financial statements are based on historical cost. These costs are not adjusted to reflect impact of changing value in the purchasing power of money.

1.2 Revenue Recognition

Sale of goods is recognized on shipment or dispatch to customer, sale of goods on Consignment basis is recognized on sale of the relative goods by consignee.

1.3 Fixed Assets and Depreciation

1] Fixed Assets are stated at cost less depreciation. Cost comprises cost of acquisition or construction and other attributable costs. Administrative Expenses and interest up to the date of commencement of-production are capitalized in proportion of cost of major assets.

2] Expenditure on leasehold land is amortized over the period of its tenure.

1.4 Investment

Investments are stated at cost.

1.5 Inventories

Stocks of raw materials, packing materials, stores, spares and fuel are stated at cost and are valued on FIFO basis. Goods in transit in bonded warehouse are valued at costs incurred till the year end. Goods in process are stated at estimated cost ascertained by reducing gross margin, if any from the estimated selling price. Finished goods are valued at cost or selling price whichever is lower, wherein cost includes material costs, labour and Factory overheads.

1.6 Sundry Debtors, Advances and Deposits

Balances considered irrecoverable are written off and those considered doubtful are provided for.

1.7 Contingent liabilities :

Contingent Liabilities are disclosed in the accounts by way of giving note and giving nature of liability and its quantum . if ascertained.

1.8 Deferred Revenue Expenses

Revenue expenses of a substantial magnitude which are expected to benefit for some years in future are charged to Profit & Loss Account over numbers of years considering relative benefit of the expenditure.

2 Retirement benefits.

Retirement benefits to employees are provided for by payments to provident fund and by payment of gratuity on retirement of employees after putting in qualifying years of service.

3 Taxation:

Taxes include current taxes and deferred taxes. Current tax is based on tax payable in respect of taxable income for the year.

Deferred tax is computed on the basis of timing differences between book and tax profits for the year and is accounted for using the prevailing tax rates and law. Deferred tax assets arising from temporary timing differences are recognized to the extent there is a reasonable certainty about its realization in future.

4. In view of uncertainty of realization, no provision for deferred tax asset has been made in the accounts

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Mar 31, 2007

1.1 Accounting System

1] The company follows the mercantile system of accounting and recourses income and expenditure on accrual basis.

2] Financial statements are based on historical cost. These costs are not adjusted to reflect impact of changing value in the purchasing power of money.

1.2 Revenue Recognition

Sale of goods is recognised on shipment or despatch to custmoer. sale of goods on Consignment basis is recognised on sale of the relative goods by consignee.

1.3 Foreign Currency Transactions

Gains & losses on account of exchange rate fluctuations are recognised in the accounts in the year of realisation.

1.4 Fixed Assets and Depreciation

1] Fixed Assets are stated at cost less depreciation. Cost comprises cost of acquisition or construction and other attributable costs. Administrative Expenses and interest up to the date of commencement of production are capitalised in proportion of cost of major assets.

2] Depreciation is provided on straight line basis at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956. Expenditure on leasehold land is amortised over the period of its tenure.

3] Depreciation is calculated on pro-rata basis from the date of its additions.

1.5 Investment

Investments are stated at cost.

1.6 Inventories

Stocks of raw materials, packing materials, stores, spares and fuel are stated at cost and are valued on FIFO basis. Goods in transit in bonded warehouse are valued at costs incurred till the year end. Goods in process are stated at estimated cost ascertained by reducing gross margin, if any from the estimated selling price. Finished goods are valued at cost or selling price whichever is lower, wherein cost includes material costs. labour and Factory overheads.

1.7 Sundry Debtors, Advances and Deposits

Balances considered irrecoverable are written off and those considered doubtful are provided for.

1.8 Contingent liabilities :

Contingent Liabilities are disclosed in the accounts by way of giving note and giving nature of liability and its quantum . if ascertained.

1.9 Deferred Revenue Expenses

Revenue expenses of a substantial magnitude which are expected to benefit for some years in future are charged to Profit & Loss Account over numbers of sears considering relative benefit of the expenditure.

1.10 Retirement benefits.

Retirement benefits to employees are provided for by payments to provident fund and by payment of gratuity on retirement of employees after putting in qualifying years of service.

2 Taxation:

Taxes include current taxes and deferred taxes. Current tax is based on tax payable in respect of taxable income for the year.

Deferred tax is computed on the basis of timing differences between book and tax profits for the year and is accounted for using the prevailing tax rates and law. Deferred tax assets arising from temporary timing differences are recognized to the extent there is a reasonable certainty about its realization in future.

3. In view of uncertainty of realization, no provision for deferred tax asset has been made in the accounts

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Mar 31, 2006

1.1 Accounting System

1] The company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.

2] Financial statements are based on historical cost. These costs are not adjusted to reflect impact of changing value in the purchasing power of money.

1.2 Revenue Recognition

Sale of goods is recognised on shipment or dispatch to customer, sale of goods on Consignment basis is recognised on sale of the relative goods by consignee.

1.3 Foreign Currency Transactions

Gair s & losses on account of exchange rate fluctuations are recognised in the accounts in the year of realisation.

1.4 Fixed Assets and Depreciation

1] Fixed Assets are stated at cost less depreciation. Cost comprises cost of acquisition or construction and other attributable costs. Administrative Expenses and interest up to the cate of commencement of production are capitalised in proportion of cost of major assets.

2] Depreciation is provided on straight line basis at the rates and in the manner laid down in Schedule XIV to the Companies Act. 1956. Expenditure on leasehold land is amortised over the period of its tenure.

3] Depreciation is calculated on pro-rata basis from the date of its additions.

1.5 Investment

Investments are stated at cost.

1.6 Inventories

Stocks of raw materials, packing materials, stores, spares and fuel are stated at cost and are valued on FIFO basis. Goods in transit in bonded warehouse are valued at costs incurred till the year end. Goods in process are stated at estimated cost ascertained by reducing gross margin, if any from the estimated selling price. Finished goods are valued at cost or selling price whichever is lower, wherein cost includes material costs, labour and Factory overheads.

1.7 Sundry Debtors, Advances and Deposits

Balances considered irrecoverable are written off and those considered doubtful are provided for.

1.8 Contingent liabilities :

Contingent Liabilities are disclosed in the accounts by way of giving note and giving nature of liability and its quantum , if ascertained.

1.9 Deferred Revenue Expenses

Revenue expenses of a substantial magnitude which are expected to benefit for some years in future are charged to Profit & Loss Account over numbers of years considering relative benefit of the expenditure.

1.10 Retirement benefits.

Retirement benefits to employees are provided for by payments to provident fund and by payment of gratuity on retirement of employees after putting in qualifying years of service.

2 Taxation:

Taxes include current taxes and deferred taxes. Current tax is based on tax payable in respect of taxable income for the year.

Deferred tax is computed on the basis of timing differences between book and tax profits for the year and is accounted for using the prevailing tax rates and law. Deferred tax assets arising from temporary timing differences are recognized to the extent there is a reasonable certainty about its realization in future.

3. In view of uncertainty of realization, no provision for deferred tax asset has been made in the accounts.