Balaji Industrial Corporation Ltd. कंपली की लेखा नीति

Mar 31, 2014

(i) BASIS OF ACCOUNTING

Financial statements are prepared under the historical cost convention and as a going concern and in accordance with the normally accepted Accounting Standards.

(ii) FIXED ASSETS

A) TANGIBLE ASSETS

Fixed assets are stated at Cost net of Cenvat Credit & VAT Credit less accumulated depreciation. Cost is inclusive of freight, duties, taxes and all directly attributable costs of bringing the assets to their working condition for its intended use.

B) INTANGIBLE ASSETS

Costs relating to Trade Marks and Designs which are acquired are capitalized and amortized on a straight line basis over a period of 5 years.

(iii) EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure incurred during the construction period is included under Capital Work-in-Progress and will be capitalized when ready for commercial use.

(iv) BORROWING COSTS

Borrowing costs that are attributable to construction of qualifying assets are capitalized as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as expenses in the period in which they are incurred.

(v) DEPRECIATION

Depreciation is provided on straight-line basis at the rates specified in Schedule-XIV of the Companies Act, 1956, on pro rata basis.

(vi) INVENTORIES

(a) Finished goods are valued at cost or market price whichever is less. Cost includes appropriate share of related overheads and excise duty payable on such goods.

(b) Stocks of raw- materials, stores, spare parts, material-in-transit etc., are valued at First-in-First out (FIFO) method. Cost includes expenses of procurement, excise and other duties net of Cenvat Credit.

(vii) TURNOVER

Turnover includes of Sale of Goods, Excise duty net of Trade Discounts and excludes Value Added Tax.

(viii) INVESTMENTS

Investments are long term and valued at cost. Permanent diminution in value will be recognized in the Statement of Profit and Loss. Income from Investments is recognized in the year in which it accrues and at gross value.

(ix) EXCISE DUTY

Excise duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying as closing stock.

(x) RETIREMENT BENEFITS

Contribution to defined contribution schemes such as provident fund and family pension fund is charged to Statement of Profit & Loss as incurred. In respect of gratuity, no provision has been made in the accounts for the actuarially ascertained liability for future payment of gratuity. Gratuity payments are charged to Statement of Profit and Loss in the year in which payments are made.

(xi) FOREIGN CURRENCY TRANSACTIONS

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) The monetary items denominated in foreign currencies at the year-end are translated at the year-end rates.

(c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

(xii) TAXES ON INCOME

Income Tax is computed in accordance with Accounting Standard - 22 (AS-22) issued by the Institute of Chartered Accountants of India. Tax expenses are accrued in the same period as the revenue and expenses to which they relate.

Provision for current income tax is made on the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws. The difference between taxable income and the net profit or loss before tax for the year, as per the financial statements, are identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e. differences that originate in one accounting period and reverse in another.

(xiii) IMPAIRMENT OF ASSETS:

Impairment is ascertained at each balance sheet date in respect of the Company''s fixed assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

(xiv) ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized in terms of Accounting Standard 29-''Provisions,Contingent Liabilities and Contingent Assets''(AS-29), issued by the ICAI, when there is a present legal or statutory obligation as a result of past events.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the financial statements.

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Mar 31, 2011

(i) BASIS OF ACCOUNTING

Financial statements are prepared under the historical cost convention and as a going concern and in accordance with the normally accepted accounting standards.

(ii) FIXED ASSETS

a. Tangible Assets :

Fixed assets are stated at cost net of Cenvat Credit, less accumulated depreciation. Cost is inclusive of freight, duties, taxes and all directly attributable costs of bringing the assets to their working condition for its intended use.

b. Intangible Assets :

Trade Mark and Designs : Costs relating to Trade Marks and Designs which are acquired are capitalised and amortised on a straight line basis over a period of 5 years.

(iii) EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure incurred during the construction period is included under capital Work-in-progress and will be capitalised when ready for commercial use.

(iv) BORROWING COSTS

Borrowing costs that are attributable to construction of qualifying assets are capitalised as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as expenses in the period in which they are incurred.

(v) DEPRECIATION

Depreciation is provided on straight-line basis at the rates specified in Schedule XIV of the Companies Act, 1956,onpro rata basis.

(vi) INVENTORIES

(a) Finished goods are valued at cost or market price whichever is less. Cost includes appropriate share of related overheads and excise duty payable on such goods.

(b) Stocks of raw- materials, stores, spare parts, material-in-transit etc., are valued at First-in- First out (FIFO) method. Cost includes expenses of procurement, excise and other duties net of Cenvat Credit.

(vii) TURNOVER

Turnover includes Sale of Goods, Conversion Charges, Excise duty and Value added tax net of Trade Discounts.

(viii) INVESTMENTS

Investments are long term and valued at cost. Permanent diminution in value will be recognised in the profit and loss account. Income from Investments is recognised in the year in which it accrues andatgross value.

(ix) EXCISEDUTY

Excise duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying as closing stock.

(x) RETIREMENTBENEFITS

Contribution to defined contribution schemes such as provident fund and family pension fund is charged to Profit & Loss Account as incurred. In respect of gratuity, no provision has been made in the accounts for the actuarially ascertained liability for future payment of gratuity. Gratuity payments are charged to profit and loss account in the year in which payments are made.

(xi) FOREIGN CURRENCY TRANSACTIONS

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) The monetary items denominated in foreign currencies at the year-end are translated at the year-end rates.

(c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss Account.

(xii) TAXESONINCOME

Income Tax is computed in accordance with Accounting Standard – 22 (AS-22) issued by the Institute of Chartered Accountants of India. Tax expenses are accrued in the same period as the revenue and expenses to which they relate.

a) Provision for current income tax is made on the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws. The difference between taxable income and the net profit or loss before tax for the year, as per the financial statements, are identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e. differences that originate in one accounting period and reverse in another.

(xiii) IMPAIRMENT OF ASSETS

Impairment is as curtained at each balance sheet date in respect of the Company's fixed assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

(xiv) ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized in terms of Accounting Standard 29-'Provisions,Contingent Liabilities and Contingent assets'(AS-29), issued by the ICAI, when there is a present legal or statutory obligation as a result of past events.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on a non going basis and only those having a largely probable outflow of resources are provided for.