Castron Technologies Ltd. कंपली की लेखा नीति

Mar 31, 2010

I) General

a) These accounts have been prepared on the historical cost basis & on the principles of going concern.

b) The accounts are maintained in accordance with the generalljt,accepted Accounting principle and in compliance of provisions of the Companies Act, 1956 except otherwise stated.

ii) Sales:

Sales comprise sale of goods net of return and does not include duties & taxes.

iii) Fixed Assets :

a) Gross block of fixed assets are stated at cost.

b) Depreciation: .

Depreciation is provided under the straight line method at the rates provided by schedule - XIV to the Companies Act, 1956. No depreciation has been provided on Fixed Assets of chemical division as the Assets has not been used during the year.

iv) Inventories:

Inventories are valued at cost or net realisable value whichever is lower. Cost has been determined on Weighted average method.

v) Investment:

Long Terms Investments are being valued at cost, Provision is made for loss only if there is permanent diminution in the value of investment in the opinion of the management.

vi) Deferred Taxation:

Income Tax expense comprises current tax and deferred tax charge or release. The deferred tax charge or credit is ;recognised using current tax rates. Deferred tax assets arising from unabsorbed depreciation 6r carry forward losses are recognised only if there is virtual certainty of realisation of such amounts. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess the realisation.

vii) Research & Development Expenditure

Research & ^Development expenditure reduced by grant received has been amortised over a period of 5 years.

viii) Contingent Liability

These are disclosed by way of notes to the Accounts provision is made in respect of those liabilities, which are likely to materialize after the year and till the finalisation of Accounts have material effect on the position stated in the Balance Sheet.

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 good lying in bonded warehouses and cleared goods and the same has been treated as part of the cost of respective stock as per the revised guidance note on accounting treatment For Excise duty issued by the Institute of Chartered Accountants of India. Amount of excise duty shown as deduction from sales in the total Excise duty for the year except the duty related to difference between closing stock and opening stock. Excise duty related to the difference between closing stock and opening stock is recognized separately in the Profit And Loss A/c.

x) Impairment of Assets

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

xi) Foreign Currency Transactions

i) Transactions denominated in foreign currencies are recorded at the rates of exchange in force at the time transaction are affected. Transactions denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and the exchange rate on the date of transaction, such difference having been recognized over the life of the contract.

ii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss.

xii) Employee Benefits

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit andlLoss Account of the year in which the related service is rendered.

ii) Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized on accrual basis.

xiii) Borrowing Cost ;

Borrowing cost thlat are directly attributable to the acquisition or construction of qualifying assets are capitalized asjpartjof the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to g^et ready for intended use. All other borrowing cost are charged to revenue.

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Mar 31, 2009

I) General

a) These accounts have been prepared on the historical cost basis & on the principles of going concern.

b) The accounts are maintained in accordance with the generally accepted Accounting principle and in compliance of provisions of the Companies Act, 1956 except otherwise stated.

ii) Sales:

Sales comprise sale of goods net of return and does not include duties & taxes.

iii) Fixed Assets:

a) Gross block of fixed assets are stated at cost.

b) Depreciation:

Depreciation is provided under the straight line method at the rates provided by schedule - XIV to the Companies Act, 1956. No depreciation has been provided on Fixed Assets of chemical division as the Assets has not been used during the year.

iv) Inventories:

Inventories are valued at cost or net realisable value whichever is lower. Cost has been determined on Weighted average method.

v) Investment:

Long Terms Investments are being valued at cost. Provision is made for lossonly if there is permanent diminution in the value of investment in the opinion of the management.

vi) Deferred Taxation:

Income Tax expense comprises current tax and deferred tax charge or release. The deferred tax charge or .credit is recognised using current tax rates. Deferred tax assets arising from unabsorbed depreciation or carry forward losses are recognised only if there is virtual certainty of realisation of such amounts. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess the realisation.

vii) Research & Development Expenditure

Research & Development expenditure reduced by grant received has been amortised over a period of 5 years.

viii) Contingent Liability

These are disclosed by way of notes to the Accounts provision is made in respect of those liabilities, which are likely to materialize after the year and till the finalisation of Accounts have material effect on the position stated in the Balance Sheet.

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 good lying in bonded warehouses and cleared goods and the same has been treated as part of the cost of respective stock as per the revised guidance note on accounting treatment For Excise duty issued by the Institute Of Chartered Accountants of India. Amount of excise duty shown as deduction from sales in the total Excise duty for the year except the duty related to difference between closing stock and opening stock. Excise duty related to the difference between closing stock and opening stock is recognized separately in the Profit And Loss A/c.

x) Impairment of Assets

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

xi) Foreign Currency Transactions

i) Transactions denominated in foreign currencies are recorded at the rates of exchange in force at the time transaction are affected. Transactions denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and the exchange rate on the date of transaction, such difference having been recognized over the life of the contract.

ii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss.

xii) Employee Benefits

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered.

ii) Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized on accrual basis.

xiii) Borrowing Cost

Borrowing cost that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing cost are charged to revenue.

ii) Miscellaneous expenses do not include any item exceeding Rs. 5000/- or 1% of turnover whichever is higher.

iii) Managerial remuneration is within limits prescribed in section 198 & 309 of the Companies act, 1956, read with schedule XIII Part II section I.

iv) Ther company sold the chemical unit during the year on slump sale basis.

v) Previous years figures have been regrouped/re-arranged wherever necessary and figures for previous year and current year have been rounded off to the nearest rupee.

vii) Company has not complied with revised AS-15, for employee benefits as obligation of the company towards its employees under long term benefit plans have not been valued by an actuary. Amount of net employee benefit charged to Profit & Loss A/c. for the year is as follows :-

xi) Segment Information :

As the company has only one segment i.e. manufacturing of ferro alloys segment-wise details are not given.