Ideal Carpets Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2012

I) Basis for preparation of financial statements.

The financial statements have been prepared to comply in all material respects with the Notified accounting standard by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The Company has consistently applied the accounting policies.

ii) Presentation & disposer of Financial Statement

During the year ended 31.03.2012, the revised Schedule VI, as notified under the companies Act, 1956 has been applicable on the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact the recognition and measurement followed by the company in preparation of financial statement. However, it has significant impact on the presentation and disposer on the financial statement. The company has prepared this financial statement and classified its assets & liabilities according to the requirement of Revised Schedule VI of the companies act, 1956.

iii) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

iv) Inventories

The Inventory of Raw Material, Finished Goods, Work-in-Progress, Stores and Spares are valued at cost or net realisable value, whichever is lower.

v) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Further:

a. The Export Sales are accounted on F.O.B. Basis.

b. The Company accepts Dyeing and Spinning Job Work on Lot Basis and the same is accounted on Lot Disposal Basis.

c. Interest on STDR''s is recognized as and when recognized by the banks,

vi) Foreign Currency Transactions

a. Foreign currency transactions are recorded at the exchange rate prevailing on the transaction dates.

b. Current assets and current liabilities in foreign currency remaining unsettled at the end are converted at the year-end rates.

c. Exchange gains/losses on settlement conversion are have been recognised in Profit & Loss Account.

vii) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

viii) Depreciation

Depreciation has been provided on fixed assets according to Written down Value Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended vide Notification dated 16th December 1994 issued by the Dept, of Company Affairs, Government of India.

ix) Export Incentives

The export incentives in form of DEPB & Import Licence are accounted on Accrual Basis.

x) Investment / Income from Subsidiary - USA

The company has wholly owned subsidiary company at USA namely "M/s Ideal Carpets Inc", During the year under review, the Company has not made any investment in the said Subsidiary. The business activity in the subsidiary company has virtually closed down due to economic crisis in America. In the absence of adequate manpower and infrastructure facilities being available to the subsidiary the financial statements of the subsidiary for the period 1st January, 2011 till the date of closure are being prepared by the CPA at USA. The ultimate trading result will be incorporated in the books of accounts of the company on receipt of the same during current year.

xi) Investments

Investments are classified as long term and short term. Long-term investments are valued at cost.

xii) Retirement Benefit

Contributions to defined contribution scheme such a Provident Fund, ESIC, are charged to the Profit & Loss Account as and when incurred. The company has policy of providing gratuity benefit on as and when the liability to pay arises. Expenditures on Bonus paid to employees are recognized on accrual basis.

xiii) Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

xiv) Contingencies and Event Occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affects the financial position of company.

xv) Net profit or loss for the period, prior period items and changes in accounting policies

During the year under review, there are no material changes in the accounting policies Profit and Loss account doesn''t contain any item materially affecting and having reference of prior period.

xvi) Provisions

A provision is recognized when an enterprise ahs a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

xvii) Segment Reporting Policies

The company operates in single line of business and hence the requirement of discloser under AS-17 is not applicable.

xviii) Earning Per Share

In determining Earning per Share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing the baste earning per share is the weighted average number of shares outstanding during the year.

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Mar 31, 2011

I) Basis for preparation of financial statements.

The financial statements are prepared under the historical cost conventions on accrual basis in accordance with generally accepted accounting principles and Accounting standards referred to in section 211(3C) of the Companies Act, 1956. However, the Company has not followed AS-21, AS-22.

ii) Consistency

The foregoing accounting policies are applied consistently except as otherwise stated in the Notes to Accounts.

iii) Inventories

The Inventory of Raw Material, Finished Goods, Work-in-Progress, Stores and Spares are valued at cost or net realisable value, whichever is lower.

iv) Revenue Recognition

a. Export Sales: The Export Sales are accounted on F.O.B. Basis.

b. Job Charges: The Company accepts Dyeing and Spinning Job Work on Lot Basis and the same is accounted on Lot Disposal Basis.

c. Interest on STDRs is recognized as and when recognized by the banks.

v) Foreign Currency Transactions

a. Foreign currency transactions are recorded at the exchange rate prevailing on the transaction dates.

b. Current assets and current liabilities in foreign currency remaining unsettled at the end are converted at the year-end rates.

c. Exchange gains/losses on settlement conversion are:

i. Cost of fixed assets purchased during the year have been adjusted by gains /losses on account of fluctuations in the currency price

ii. Apart from the transactions mentioned above in Clause c (i) above, all other settlements in foreign exchange have been recognised in Profit & Loss Account.

vi) Fixed Assets

a. The valuation put on fixed assets includes cost of acquisition, installation charges and all costs incidental thereto.

b. Depreciation has been provided on fixed assets according to Written down Value Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended vide Notification dated 16th December 1994 issued by the Dept. of Company Affairs, Government of India. Depreciation on Building under construction has not been charged during the year.

vii) Export Incentives

The export incentives are accounted on Accrual Basis.

viii) Investment/Income from Subsidiary-USA

During the year under review, the Company has not invested any amount in its wholly owned subsidiary company at USA. The company has subscribed 100 % paid up equity of M/s Ideal Carpets Inc. Income if any, in the nature of dividend / bonus will be accounted for in the year of receipt.

ix) Investments

Investments are classified as long term and short term. Long-term investments are valued at cost.

x) Retirement Benefits

Contributions to defined contribution scheme such a Provident Fund, ESIC, are charged to the Profit &Loss Account as incurred. The company has policy of providing gratuity benefit on as and when the liability to pay arises. Expenditures on Bonus paid to employees are recognized on accrual basis.

xi) Contingencies and Event Occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affects the financial position of company.

xii) Net profit or loss for the period, prior period items and changes in accounting policies.

During the year under review, there are no material changes in the accounting policies Profit and Loss account doesnt contain any item materially affecting and having reference of prior period.

xiii) Earning Per Share

In determining Earning per Share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing the basic earning per share is the weighted average number of shares outstanding during the year.

xiv) Impairment of Assets

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

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Mar 31, 2010

I) Basis for preparation of financial statements.

The financial statements are prepared under the historical cost conventions on accrual basis in accordance with generally accepted accounting principles and Accounting standards referred to in section 211(3C) of the Companies Act, 1956. However, the Company has not followed AS-21, AS-22 and AS-23 keeping in view the provisions contained u/s 145 of the Income Tax Act, 1961.

ii) Consistency

The foregoing accounting policies are applied consistently except as otherwise stated in the Notes to Accounts. However, company has changed method of Depreciation from Straight Line method to Written Down Value from Financial Year 2008-2009.

iii) Inventories

The Inventory of Raw Material, Finished Goods, Work-in-Progress, Stores and Spares are valued at cost or net realisable value, whichever is lower.

iv) Revenue Recognition

a. Export Sales: The Export Sales are accounted on F.O.B. Basis.

b. Job Charges: The Company accepts Dyeing and Spinning Job Work on Lot Basis and the same is accounted on Lot Disposal Basis.

c. Interest on STDRs is recognized as and when recognized by the banks.

v) Foreign Currency Transactions

a. Foreign currency transactions are recorded at the exchange rate prevailing on the transaction dates.

b. Current assets and current liabilities in foreign currency remaining unsettled at the end are converted at the year-end rates.

c. Exchange gains/losses on settlement conversion are:

i. Cost of fixed assets purchased during the year have been adjusted by gains /losses on account of fluctuations in the currency price

ii. Apart from the transactions mentioned above in Clause c (i) above, all other settlements in foreign exchange have been recognised in Profit & Loss Account.

vi) Fixed Assets

a. The valuation put on fixed assets includes cost of acquisition, installation charges and all costs incidental thereto.

b. Depreciation has been provided on fixed assets according to Written down Value Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended vide Notification dated 16th December 1994 issued by the Dept. of Company Affairs, Government of India. Depreciation on Building under construction has not been charged during the year.

vii) Export Incentives

The export incentives are accounted on Accrual Basis.

viii) Investment/Income from Subsidiary-USA

During the year under review, the Company has not invested any amount in its wholly owned subsidiary company at USA. The company has subscribed 100 % paid up equity of M/s Ideal Carpets Inc. Income if any, in the nature of dividend / bonus will be accounted for in the year of receipt.

ix) Investments

Investments are classified as long term and short term. Long-term investments are valued at cost.

x) Retirement Benefits

Contributions to defined contribution scheme such a Provident Fund, ESIC, are charged to the Profit &Loss Account as incurred. The company has policy of providing gratuity benefit on as and when the liability to pay arises. Expenditures on Bonus paid to employees are recognized on accrual basis.

xi) Contingencies and Event Occurring after the Balance Sheet Date

There are no contingencies and events after the Balance Sheet date that affects the financial position of company.

xii) Net profit or loss for the period, prior period items and changes in accounting policies During the year under review, there are no material changes in the accounting policies Profit and Loss account doesnt contain any item materially affecting and having reference of prior period.

xiii) Earning Per Share

In determining Earning per Share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing the basic earning per share is the weighted average number of shares outstanding during the year.

xiv) Impairment of Assets

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