Volga Air Technics Ltd. कंपली की लेखा नीति

Mar 31, 2013

1. The Books of Accounts are maintained on Accrual Basis

2. Fixed Assets are stated at cost price net of MODVAT except the Land & Building which are revalued. (They are stated at Revalued amounts).

3. The long Term bbrrpvvmgs from Finahciai Institutions as per Note - 5 i.e. Term Loan from IDBi £ GH% Working Capital Lp3n from Central Bank of India, Bill Discounting facility from Gf)C Ltd. were due for payments before 31.03.2002. However, as the Company is registered with BlFR and as such the financial institutions are not in a position to recover the loans till final order will be passed by BlFR. These loans including such corporate loans and loans from Directors are treated as Long Tetm Borrowings since it is not known when Final order will fee passed by B(FR.

4. Company has Suspended (Stopped) the production from 22.11.2009 and as such Depreciation for plant & machinery is not provided.

5. Due to Suspension of production, no depreciation is provided during the year including depreciation on revalued assets.

6. Prior Period Adjustment :The Company continues to follow the practice of making adjustment through ''Prior Years Adjustments'' in respect of all material transactions pertaining to the period prior to current accounting year. However, there is no Prior Period Adjustment

7. (a)The Company has not provided interest on term loan of financial institutions - IDBI & GIIC, CC Limit of Centra) Bank of India and unsecured loans. (The amount of interest on term loan from I D B I and G 11 C no calculation has been made by Company. Since the matter is pending before BIFR for final disposal

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Mar 31, 2012

1. The Books of Accounts are maintained on Accrual Basis

2. Fixed Assets are stated at cost price net of MODVAT except the Land & Building which are revalued. (They are stated at Revalued amounts).

3. The Long Term borrowings from Financial Institutions as per Note - 4 i.e. Term Loan from IDBI & GI(C. yyorking Capital Loan from Central Bank of India. Bill Loan from GIIC Ltd. GIIC Bills Discounting are due for payments before 31.03.2002. However as the Company is registered with BIFR and as such the financial institution are not in a position to recover the loans till final order is passed by BIFR these loans including such corporate loans and loans from Directors are treated as Long Term Borrowings since it is not known when Final order is pass by BIFR.

4. Company has Suspended (Stopped) the production from 22.11.2009 and as such Depreciation for plant & machinery not provided.

5. Due to Suspension of production no depreciation is provided during the year including depreciation on revalued assets.

6. Prior Period Adjustment :The Company continues to follow the practice of making adjustment through 'Prior Years Adjustments' in respect of all material transactions pertaining to the.period prior to current accounting year. However, there is no Prior Period Adjustment

7. (a)The Company has not provided interest on term loan of financial institutions-IDBI & GIIC, CC Limit of Central Bank of India and unsecured loans. (The amount of interest on term loan from I D B I and G I I C as per the calculation made by Company comes to approx. Rs.413.6.1 lacs, interest in CC limit of Central Bank of India comes to approx. Rs.260.32 lacs).

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Mar 31, 2010

1. The Books of Accounts are maintained on Accrual Basis

2. Fixed Assets are stated at cost price net of MODVAT except the Land & Building which are revalued. (They are stated at Revalued amounts).

3. During the year Company has income from Job work as well as manufacturing and Trading activities. The inventory of Raw Material, WIP and the traded goods is valued at cost or realizable value on first come first out basis

4. Company has Suspended (Stopped ) the production from 30.11 2009 and as such depreciation for plant & machinery is provided for 8 months. The depreciation for other assets is provided as per note 5 below.

5. Depreciation on assets is provided on straight line method as per the rates provided in Schedule XIV to the Companies Act 1956 and also adjusted so as to be in conformity with the said schedule.

6. Depreciation on revalued assets is calculated on their respective revalued amounts on straight line method at the rates provided in Schedule XIV since the useful life is almost same as revaluation was made within short period from the date of acquiring the assets. Depreciation pertaining to the amount of revaluation is withdrawn from the Revaluation Reserve and credited to the Profit & Loss Account.

7. Prior Period Adjustment :The Company continues to follow the practice of making adjustment through Prior Years Adjustments in respect of all material transactions pertaining to the period prior to current accounting year However, there is no Prior Period Adjustment.

8. Car purchased by Mr. M S Bhalavat CMD from loan obtained from a Bank was in turn, acquired by the Company. Till the loan will be repaid, the asset will remain in the name of CMD Mr. M. S. Bhalavat and duly mortgaged. The M O U is signed by him stating that the asset and liability both belong to the Company and he has no personal ownership The car will be transferred in the name of Company on full repayment of loan. The Company reimburses to the CMD for installment & interest as and when payable. The Car which was purchase a previously is sold during the year & payment which was received in the name of CMD ( As the car was in his name) is returned by him to the Company.

9. (a)The Company has not provided interest on term loan of financial instituiions-IDBI & GilC, CC Limit of Central Bank of India and unsecured loans . The amount of interest on term loan from I D B I and G I I C as per the calculation made by Company comes to approx. Rs.329.74 lacs, interest in CC limit of Centra! Bank of India comes to apprcx Rs.207.53 iacs.

(b)Liability of Gratuity benefit has been provided during the year, Provision of Gratuity instead of depositing the same is retained in the Company. No actuarial valuation is made for retirement benefits. The Company has obtained the Insurance from LIC effective from 1.2.2008 for the Gratuity and paid the premium Both the amounts i.e. insurance premium amount and the Gratuity Provision are treated as expenses by the Company. Installment Payment Treated as toan & advances as investment in LIC Gratuity. The Company has not provided Rs. 234584 for encashment of earned leave of the employees.

(c ) No Provision has been made for the notice period pay and compensation to the workers and staff retrenched during the year The amount of compensation and notice period pay comes to Rs. 37.21 lacs & Rs. 4.96 lacs respy.

10 No Depreciation is claimed on the Assets on which 95% of value has already Been Clamed They appear in schedule as te said Assets exist