Omni Dye-Chem Exports Ltd. कंपली की लेखा नीति

Mar 31, 2010

(a) Basis of Preparation

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP), applicable Accounting Standards issued by The Institute of Chartered Accountants of India and under the historical cost convention, on accrual basis.

(b) Use of Estimates

The preparation of Financial statement of the company is on conformity with Indian Generally Accepted Accounting principles require management to make estimates that affect the reported amount of assets and liabilities at the date of the Financial Statement and the reported amounts revenue and expenses, during the reporting period, although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from these estimates, which are recognized in the period in which the results are known/materialized.

(c) Fixed Assets

Fixed Assets are stated at cost. Cost includes taxes, duties, freight and other incidental expenses related to acquisition, improvements and installation of the assets.

(d) Deprecation

(i) Deprecation is provided on "Straight Line Method", at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 of India.

(ii) Assets costing Rs. 5,000/- or less are depreciated in full in the year of purchase.

(e) Investments

Long terms investments are stated at cost. Diminution of permanent nature, if any, is provided for.

(f) Inventories

Inventories are valued at lower of cost or net realizable value. Cost is computed on the basis of cost of purchase inclusive of freight etc., "First-In-Fist - Out" basis.

(g) Intangible Assets

There are no intangible assets.

(h) Revenue Recognition

Sales, net of taxes, are accounted for on dispatch of goods to customers.

(i) Retirement Benefits

(i) Provident Funds and Employees State Insurance Fund (Defined Contribution Schemes) are administered by Central Government of India and contributions to the said funds are charged to Profit and Loss Account or accrual basis.

(ii) The Company is not providing Leave encashment (Defined Benefit Scheme).

(iii) Year end accrued liabilities on account of Gratuity (Defined Benefit Scheme) is provided for the employees', based on their last drawn salary, completed years of services, instead of ascertaining actuarial impact.

(j) Borrowing Cost

Borrowing costs that are allocated to the acquisition or construction of qualified assets are capitalized as part of cost of such assets. A qualifying asset in one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charges to revenue.

(k) Foreign Currency Transactions

Transactions in foreign currencies are accounted for at equivalent rupee value incurred/earned in foreign currency. Assets/Liabilities at the year end are realigned at the applicable exchange rates or at forward contract rates, where applicable and variations are adjusted to the respective capital or revenue hands.

(l) Treatment of Prior Period and Extra Ordinary Items

Any material (other than those arising out of over/ under estimation in earlier years) arising as a result of error or omission in preparation of earlier years financial statements are separately disclosed.

(m) Taxation

Income tax expense will comprise of current tax and deferred charge or credit

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred Tax should be recognized to that extent only, subject to consideration of prudence in respect of deferred tax assets, or timing differences, being the differences between the taxable incomes and accounting income that originate in one year and are capable of reversal in one or more subsequent years, having tax consequences.

(n) Provisions, Contingent liabilities and Contingent Assets

A provision is made based on reliable estimate when it is probable that an outflow or resources embodying economic benefits will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.