SM Dyechem Ltd. कंपली की लेखा नीति

Mar 31, 2014

A BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and are in conformity with Generally Accepted Accounting Principles and comply with the Accounting Standards notified in the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b RECOGNITION OF INCOME & EXPENDITURE

Gross Sale is net of VAT, Rebates, Discounts & sales return but includes excise duty.

Dividend on long term investments is accounted on receipt basis. Items of Income and Expenditure are generally recognised on accrual basis except as stated otherwise,

c FIXED ASSETS:

Fixed assets are stated at cost less depreciation provided. All costs including financing cost are added to the cost of assets till capitalisation,

d DEPRECIATION:

Depreciation on fixed assets including used assets has been provided on straight line method at the rates stipulated in schedule XIV to the Companies Act, 1956.

e INVENTORIES:

BASIS OF VALUATION

Finished goods is vlaues at cost or net realisable value whichever is less Obsolete and defective stocks are valued at nil value.

f RETIREMENT BENEFITS:

Gratuity & Leave Encashment liability are provided on actuarial valuation basis.

g INVESTMENTS:

Long term investments are carried at Cost or market price whichever is lower. Provision for diminution in value of Long Term Investments is made only if such a decline is other than temporary in the opinion of the management.

h IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. 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 recognised in prior accounting periods is reversed if there has been change in the estimate of recoverable amount.

i PROVISION FOR CURRENT TAX AND DEFERRED TAX

Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the Tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deterred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainly that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.

j PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

---

Jun 30, 2012

A BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and are in conformity with Generally Accepted Accounting Principles and comply with the Accounting Standards notified in the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956

b RECOGNITION OF INCOME & EXPENDITURE

Gross Sale is net of VAT, Rebates, Discounts & sales return but includes excise duty.

Dividend on long term investments is accounted on receipt basis. Items of Income and Expenditure are generally recognised on accrual basis except as stated otherwise.

c FIXED ASSETS:

Fixed assets are stated at cost less depreciation provided. All costs including financing cost are added to the cost of assets till capitalisation.

d. DEPRECIATION:

Depreciation on fixed assets including used assets has been provided on straight line method at the rates stipulated in schedule XIV to the Companies Act, 1956.

e INVENTORIES:

BASIS OF VALUATION

Finished goods is values at cost or net realisable value whichever is less Obsolete and defective stocks are valued at nil value.

f RETIREMENT BENEFITS:

Gratuity & Leave Encashment liability are provided on actuarial valuation basis.

g. INVESTMENTS:

Long term investments are carried at Cost or market price whichever is lower. Provision for diminution in

Term Investments is made only if such a decline is other than temporary in the opinion of the management.

h IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. 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 recognised in prior accounting periods is reversed if there has been change in the estimate of recoverable amount.

i PROVISION FOR CURRENT TAX AND DEFERRED TAX

Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the Tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deterred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainly that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized

j PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

---

Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and are in conformity with Generally Accepted Accounting Principles and comply with the Accounting Standards notified in the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2. RECOGNITION OF INCOME & EXPENDITURE;

Gross Sale is net of Sales Tax/VAT, Rebates, Discounts & sales return but includes excise duty.

Dividend on long term investments is accounted on receipt basis. Items of income and Expenditure are generally recognised on accrual basis except as stated otherwise.

3. FIXED ASSETS:

Fixed assets are stated at cost less depreciation provided. Ail costs including financing cost are added to the cost of assets till capitalisation.

4. DEPRECIATION:

Depreciation on fixed assets including used assets has been provided on straight line method at the rates stipulated in schedule XIV to the Companies Act, 1956.

5. INVENTORIES:

a) BASIS OF VALUATION

Finished goods : At cost or net realisable value, whichever is lower.

b) Obsolete and defective stocks are valued at nil value.

6. RETIREMENT BENEFITS:

Gratuity & Leave Encashment liability are provided on actuarial valuation basis.

7. INVESTMENTS:

Long term investments are carried at Cost or market price whichever is lower. Provision for diminution in value of Long Term Investments is made only if such a decline is other than temporary in the opinion of the management.

8. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. 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 recognised in prior accounting periods is reversed if there has been change in the estimate of recoverable amount.

9. PROVISION FOR CURRENT TAX AND DEFERRED TAX

income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the Tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deterred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainly that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.

10. PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.