Hinafil India Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2012

1. Basis of accounting :

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and Accounting Standard issued by the Institute of Chartered Accountants of India.

2. The Company generally follows mercantile System of Accounting recognizing significant items of income & expenditure on accrual basis.

3. Going Concern Basis :

The Canara Bank has auctioned immovable properties and Stock of the company and recovered part of defaulted term loan and working capital loan due to that the company's going concern assumption is affected substantially.

4. Fixed assets :

i. Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any.

ii. Depreciation on fixed assets have been provided on Straight Line Method and at the rates and in the manner prescribed in the Schedule XIV of the Companies Act, 1956.

iii. Depreciation on assets added/deducted during the year has been provided on pro rata from/to the month of addition/deduction.

5. inventories

Items of inventories are measured at lower of cost or net realizable value. Cost of inventories comprise of all cost of purchases, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares and packing materials and trading products are determined on FIFO basis. Cost of finished products in determined on absorption costing method.

6. Investments are stated at cost.

7. Sales have been shown gross of sales tax but net of excise duty and recognized at the time of dispatch of goods to the customers.

8. Excise duty is accounted at the stage of removal of goods from bonded warehouse.

9. Gratuity and other retirement benefits will be accounted & paid on cash basis.

10. Borrowing Costs :

Borrowing costs, if attributable to qualifying assets (i.e., assets that necessarily take substantial period of time to get ready for its intended use or sale) are capitalized, otherwise charged to Profit & Loss account.

11. Taxes on Income :

Current tax is determined on the basis of estimated taxable income of the current year in accordance with provisions of the Income Tax Act, 1961.

The Company has substantial unabsorbed depreciation and business losses in Books as well as under Income Tax Act 1961. However, as the availability of sufficient future taxable income against which such losse can be set of cannot be stated to be virtually certain, the deferred tax asset has not been recognized. Deferred tax of earlier years has also been reserved. Current tax provision made as per applicable tax rates under IT Act, 1961.

12. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimations in measurements 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.

13. Impairment of Assets

An asset is treated as impaired when the carrying cost for assets exceeds its recoverable value, an impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimates of recoverable amount.

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Mar 31, 2011

A) Basic of accounting :

The financial statements have been prepared under the historical cost convention, in accordance with applicable mandatory Accounting Standards issued by ICAI and relevant provisions of Companies Act, 1956.

b) The Company generally follows Mercantile System of Accounting recognising significant items of income & expenditure on accrual basis of accounting, except dividend on investment, if any.

c) Going Concern Basis ;

In the year 2004-05, a major fire broke out at the Factory situated at Vapi in which there has been substantial damage to the plant and owing to which the manufacturing operations of the company are not started full-fledged.

The Canara Bank has auctioned immovable properties and Stock of the company and recovered part of defaulted term loan and working capital loan, due to that the Company's going concern assumption Is affected substantially.

d) Fixed assets :

i. Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any.

II. Depreciation on fixed assets have been provided on Straight Line Method and at the rates and in the manner prescribed in the Schedule XIV of the Companies Act, 1956.

iii. Depreciation on assets added/deducted during the year has been provided on pro rata from/to the month of addition/deduction.

e) Inventories

Items of inventories are measured at lower of cost or net realizable value. Cost of inventories comprise of all cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares and packing materials and trading products are determined on FIFO basis. Cost of finished products is determined on absorption costing method.

f) Investments are stated at cost.

g) Sales have been shown gross of sales tax but net of excise duty and recognized at the time of dispatch of goods to the customers.

h) Excise duty is accounted at the stage of removal of goods from bonded warehouse.

i) Gratuity and other retirement benefits will be accounted & paid on cash basis.

j) Borrowing Costs :

Borrowing costs, if attributable to qualifying assets (i.e., assets that necessarily take substantial period of time to get ready for its intended use or sale) are capitalized, otherwise charged to Profit & Loss account.

k) Taxes on Income :

Current tax is determined on the basis of estimated taxable income of the current year in accordance with provisions of the Income Tax Act, 1961.

The Company has substantial unabsorbed depreciation and business losses in Books as well as under Income Tax Act 1961. However, as the availability of sufficient future taxable income against which such losse can be set off cannot be stated to be virtually certain, the deferred tax asset has not been recognized. Deferred tax of earlier years has also been reversed. Current tax provision made as per applicable tax rates under IT Act, 1961.

l) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimations in measurements 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. m) 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 recognized in prior accounting periods is reversed if there has been a change in the estimates of recoverable amount.

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Mar 31, 2010

A) Basis of accounting :

The financial statements have been prepared under the historical cost convention, in accordance with applicable mandatory Accounting Standards issued by ICAI and relevant provisions of Companies Act, 1956.

b) The Company generally follows Mercantile System of Accounting recognising significant items of income & expenditure on accrual basis of accounting, except dividend on investment, if any.

c) Going Concern Basis :

In the year 2004-05, a major fire broke out at the Factory situated at Vapi in which there has been substantial damage to the plant and owing to which the manufacturing operations of the company are not started full-fledged.

The Canara Bank has issued Sale Notice against properties of the company to recover Term Loan and Cash Credit Loans, due to that the Companys going concern assumption is affected substantially. d) Fixed assets :

i. Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any.

ii. Depreciation on fixed assets have been provided on Straight Line Method and at the rates and in the manner prescribed in the Schedule XIV of the Companies Act, 1956.

iii. Depreciation on assets added/deducted during the year has been provided on pro rata from/to the month of addition/deduction,

e) Inventories

Items of inventories are measured at lower of cost or net realizable value. Cost of inventories comprise of all cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares and packing materials and trading products are determined on FIFO basis. Cost of finished products is determined on obsorption costing method.

f) Investments are stated at cost.

g) Sales have been shown gross of sales tax but net of excise duty and recognized at the time of dispatch of goods to the customers.

h) Excise duty is accounted at the stage of removal of goods from bonded warehouse.

i) Gratuity and other retirement benefits will be accounted & paid on cash basis.

j) Borrowing Costs :

Borrowing costs, if attributable to qualifying assets (i.e., assets that necessarily take substantial period of time to get ready for its intended use or sale) are capitalized, otherwise charged to Profit & Loss account.

k) Taxes on Income :

Curent tax is determined on the basis of estimated taxable income of the current year in accordance I with provisions of the Income Tax Act, 1961.

The Company has substantial unabsorbed depreciation and business losses in Books as well as under Income Tax Act 1961. However, as the availability of sufficient future taxable income against which such losse can be set off cannot be stated to be virtually certain, the deferred tax asset has not been recognized. Current tax provision made as per applicable tax rates under IT Act, 1961.

l) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimations in measurements 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.

m) Impairment of Assets

An asset is treated as impaired when the carrying cost fo 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 recognized in prior accounting periods is reversed if there has been a change in the estimates of recoverable amount.

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Mar 31, 2009

A) Basis of accounting :

The financial statements have been prepared under the historical cost convention, in accordance with applicable mandatory Accounting Standards issued by ICAI and relevant provisions of Companies Act, 1956.

b) The Company generally follows Mercantile System of Accounting recognising significant items of income & expenditure on accrual basis of accounting, except dividend on investment, if any.

c) Going Concern Basis :

In the year 2004-05, the company sustained major losses on account of fire at the Factory on 13th October, 2004 and majority of the plant were destroyed and stocks was gutted in the fire. The company is yet to receive insurance claim for the same. In the opinion of the Management the assets of the Company were fully insured and for which it is hopeful getting the claims as also it has further plans to enhance and strengthen the capital base to carry out its operations and therefore the accounts have been prepared on going concern basis.

d) Fixed assets :

i. Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any.

ii. Depreciation on fixed assets have been provided on Straight Line Method and at the rates and in the manner prescribed in the Schedule XIV of the Companies Act, 1956.

iii. Depreciation on assets added/deducted during the year has been provided on pro rata from/to the month of addition/deduction.

e) Inventories

Items of inventories are measured at lower of cost or net realizable value. Cost of inventories comprise of all cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares and packing materials and trading products are determined on FIFO basis. Cost of finished products is determined on obsorption costing method.

f) Investments are stated at cost.

g) Safes have been shown gross of sales tax but net of excise duty and recognized at the time of dispatch of goods to the customers.

h) Excise duty is accounted at the stage of removal of goods from bonded warehouse.

i) Gratuity and other retirement benefits will be accounted & paid on cash basis.

j) Borrowing Costs :

Borrowing costs, if attributable to qualifying assets (i.e., assets that necessarily take substantial period of time to get ready for its intended use or sale) are capitalized, otherwise charged to Profit & Loss account.

k) Taxes on Income :

Curent tax is determined on the basis of estimated taxable income of the current year in accordance with provisions of the income Tax Act, 1961.

The Company has substantial unabsorbed depreciation and business losses in Books as well as under Income Tax Act 1961. However, as the availability of sufficient future taxable income against which such losse can be set off cannot be stated to be virtually certain, the deferred tax asset has not been recognized. Current tax provision made as per applicable tax rates under IT Act, 1961.

l) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimations 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.

m) Impairment of Assets.

An asset is treated as impaired when the carrying cost fo 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 recognized in prior accounting periods is reversed if there has been a change in the estimates of recoverable amount.