Intercorp Industries Ltd. कंपली की लेखा नीति

Mar 31, 2012

A) Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention and on the principals of a going concern. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b) Tangible Assets:

i) Tangible Assets are stated at cost including allocated costs less accumulated depreciation.

ii) Construction period expenses including administrative and supervision expenses attributable to projects are capitalized. Financial cost during the construction period on loan raised for projects is capitalized.

iii) Projects / Plant & Machinery being got executed on turnkey basis are accounted / capitalized only on successful completion of the projects /Plant & machinery by the suppliers / contractors.

c) Depreciation:

Depreciation is provided on all fixed assets on straight line method basis in accordance with rates specified under Schedule XIV to the Company Act, 1956.

d) Inventories:

Finished goods /stock in trade is valued at cost or net realizable value whichever is lower. Raw materials, Packing Material are valued at cost. Cost is determined on first in first out (FIFO) basis.

e) Sales:

Sales are accounted for on dispatch of goods to the customers. Sales are net of return and sales tax, where applicable.

f) Foreign currency Transaction:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Foreign currency transactions remaining unsettled at the year end are translated at year end.

g) Impairment of Tangible Assets;

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

Reversal of impairment losses recognized in prior year is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined ( net of depreciation ) had no impairment loss been recognized for the assets in prior years.

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Mar 31, 2010

A) The financial statements have been prepared under the historical cost convention.

b) Fixed Assets:

i) Fixed Assets are stated at cost including allocated costs less accumulated depreciation.

ii) Construction period expenses including administrative and supervision expenses attributable to projects are capitalized. Financial cost during the construction period on loan raised for projects is capitalized.

iii) Projects / Plant & Machinery being got executed on turnkey basis are accounted / capitalized only on successful completion of the projects /Plant & machinery by the suppliers / contractors.

c) Depreciation:

Depreciation is provided on all fixed assets on straight line method basis in accordance with rates specified under Schedule XIV to the Company Act, 1956. No write off is made in respect of leasehold land since the lease is a long lease,

d) Inventories:

Finished goods /stock in trade in valued at cost or net realizable value whichever is lower. Raw materials, Packing Material are valued at cost. Cost is determined on first in first out (FIFO) basis.

e) Sales:

Sales are accounted for on dispatch of goods to the customer. Sales are net of return and sales tax where applicable.

f) Foreign currency Transaction:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Foreign currency transactions remaining unsettled at the year end are translated at year end.

g) Impairment of Fixed Assets;

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

Reversal of impairment losses recognized in prior year is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined ( net of depreciation ) had no impairment loss been recognized for the assets in prior years.