Kusum Iron & Steel Ltd. कंपली की लेखा नीति

Mar 31, 2014

A) BASIS OF ACCOUNTING:

The accounts of the company are prepared under the historical cost convention and are in accordance with the applicable Accounting Standards and accordingly accrual basis of accounting is followed for reorganization of Income and Expenses.

b) REVENUE RECOGNITION:

i) Revenue is accounted in books on accrual basis.

ii) Power Subsidy will be accounted on settlement of bill.

c) FIXED ASSETS:

Fixed assets are shown at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of Freight, Duties, Taxes and Incidental Expenses related to such acquisition.

d) DEPRECIATION:

Depreciation on Fixed Assets have been provided on Straight Line Method at rates prescribed in the Schedule-XIV of the Companies Act, 1956. Leasehold Land is not depreciated.

e) IMPAIRMENT LOSS:

At each balance sheet date, the Company reviews the carrying amount of its Fixed Assets to determine whether there is any indication that these Assets suffered any impairment loss.

f) INVENTORIES:

Inventories are valued as follows:

i) Raw materials, Stores & Spares : NIL.

ii) Finished goods : At Cost.

iii) Land : At cost.

g) TAXES ON INCOME:

Income Tax Expense comprises current tax and deferred tax charge or credit. The deferred tax charge or credit is recognized using current tax rates, when there is unabsorbed depreciation or carry forward losses. Deferred tax assets/liabilities are recognized only if there is virtual certainty, so that the Company in future can utilize these assets/liabilities. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the year to reassess assets/liabilities. However no deferred tax assets/liabilities have been provided, since there is no virtual certainty of Profit.

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Mar 31, 2013

A) BASIS OF ACCOUNTING :

The accounts of the company are prepared under the historical cost convention and are in accordance with the applicable Accounting Standards and accordingly accrual basis of accounting is followed for reorganization of Income and Expenses.

b) REVENUE RECOGNITION :

i) Revenue is accounted in books on accrual basis. ii) Power Subsidy will be accounted on settlement of bill.

c) FIXED ASSETS :

Fixed assets are shown at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of Freight, Duties, Taxes and Incidental Expenses related to such acquisition.

d) DEPRECIATION :

Depreciation on Fixed Assets have been provided on Straight Line Method at rates prescribed in the Schedule-XIV of the Companies Act, 1956. Leasehold Land is not depreciated.

e) IMPAIRMENT LOSS :

At each balance sheet date, the Company reviews the carrying amount of its Fixed Assets to determine whether there is any indication that these Assets suffered any impairment loss.

f) INVENTORIES :

Inventories are valued as follows:

i) Raw materials, Stores & Spares: at cost.

ii) Finished goods: Cost or Market Price which ever is lower.

iii) Land: At cost or market value whichever is lower.

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Mar 31, 2012

A) BASIS OF ACCOUNTING :

The accounts of the company are prepared under the historical cost convention and are in accordance with the applicable Accounting Standards and accordingly accrual basis of accounting is followed for reorganization of Income and Expenses.

b) REVENUE RECOGNITION :

i) Sales are recognized at the time of invoicing thereof upon the passage of title to the customers/clients.

ii) Power Subsidy will be accounted on settlement of bill.

c) FIXED ASSETS :

Fixed assets are shown at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of Freight, Duties, Taxes and Incidental Expenses related to such acquisition.

d) DEPRECIATION :

Depreciation on Fixed Assets have been provided on Straight Line Method at rates prescribed in the Schedule-XIV of the Companies Act, 1956. Leasehold Land is not depreciated.

e) IMPAIRMENT LOSS :

At each balance sheet date, the Company reviews the carrying amount of its Fixed Assets to determine whether there is any indication that these Assets suffered any impairment loss.

f) INVENTORIES :

Inventories are valued as follows:

i) Raw materials, Stores & Spares: at cost.

ii) Finished goods: Cost or Market Price which ever is lower.

iii) Land: At cost or market value whichever is lower.

g) TAXES ON INCOME :

Income Tax Expense comprises current tax and deferred tax charge or credit. The deferred tax charge or credit is recognized using current tax rates, when there is unabsorbed depreciation or carry forward losses. Deferred tax assets/liabilities are recognized only if there is virtual certainty, so that the Company in future can utilize these assets/liabilities. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the year to reassess assets/liabilities. However no deferred tax assets/liabilities have been provided, since there is no virtual certainty of Profit.

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Mar 31, 2010

A) BASIS OF ACCOUNTING :

The accounts of the company are prepared under the historical cost convention and are in accordance with the applicable Accounting Standards and accordingly accrual basis of accounting is followed for reorganization of Income and Expenses.

b) REVENUE RECOGNITION :

i) Sales are recognized at the time of invoicing thereof upon the passage of title to the customers/clients.

ii) Power Subsidy will be accounted on settlement of bill.

c) FIXED ASSETS :

Fixed assets are shown at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of Freight, Duties, Taxes and Incidental Expenses related to such acquisition.

d) DEPRECIATION :

Depreciation on Fixed Assets have been provided on Straight Line Method at rates prescribed in the Schedule-XIV of the Companies Act, 1956. Leasehold Land is not depreciated.

e) INVESTMENTS :

Investment are stated at cost.

f) IMPAIRMENT LOSS :

At each balance sheet date, the Company reviews the carrying amount of its Fixed Assets to determine whether there is any indication that these Assets suffered any impairment loss.

g) INVENTORIES :

Inventories are valued as follows:

i) Raw materials, Stores & Spares : at cost.

ii) Finished goods : Cost or Market Price which ever is lower.

iii) Land : At cost or market value which ever is lower.

h) MISCELLANEOUS EXPENDITURE :

Preliminary Expenses/Shares and Debenture Issue Expenses etc. are amortized over a period of ten years.

i) TAXES ON INCOME :

Income Tax Expense comprises current tax and deferred tax charge or credit. The deferred tax charge or credit is recognized using current tax rates, when there is unabsorbed depreciation or carry forward losses. Deferred tax assets/liabilities are recognized only if there is virtual certainty, so that the Company in future can utilize these assets/liabilities. Deferred tax assets/ liabilities are reviewed as at each balance sheet date based on developments during the year to reassess assets/liabilities. However no deferred tax assets/ liabilities have been provided, since there is no virtual certainty of Profit.