Lakhani India Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2011

A) Method of Accounting:

The accompanying financial statements have been prepared in accordance with the historical cost conventions in accordance with the Accounting Standards referred to in Section 211(3C) of the Companies Act,1956 and other relevant provisions of the said Act. All the expenses and revenue exceeding Rs 2000 are accounted on accrual basis.

b) Fixed Assets :

(i) Fixed Assets are shown at Original cost in the Balance Sheet.

(ii) Expenditure incurred on renovation/modernisation on the existing fixed assets is added to the book value of these assets where such renovation/modernisation increases the Future benefit from them beyond their previously assessed standard of performance.

c) Depreciation:

Depreciation is provided on straight line method at the rates prescribed in schedule XIV of the Companies Act,1956, on prorata basis with reference to the date of addition/deletion.

d) Investment:

Long Term investments are stated at cost, less provision if any for diminution in the value of such investments, other than temporary. Till last financial year interest was capitalised on the amount invested in group companies. But during the current year the policy of capitalising interest was discontinued. Due to this the loss of the Compnay is higher by Rs.85.81 Lacs . Consequently reserves are also lower by Rs.85.81 Lacs.

e) Inventories:

Inventories are valued at cost or net realisable value whichever is lower

f) Foreign Exchange:

Foreign currency transactions are accounted for at the exchange rate prevailing on the date of transaction. Gain/ Loss arising out of fluctuation in rate between transaction date and on the last date of the financial year is accounted for in profit & loss account according to AS-11(Revised).

g) Excise duty:

The Liability towards excise duty on finished goods is accounted for at the time of removal of finished goods from Excise go down.

h) Employee benefits:

In accordance with the Payment of Gratuity Act 1972, the Company provides for gratuity covering eligible employees on the basis of actuarial valuation as carried out by an Actuary. The liability is unfunded.

- Provision is made for leave encashment based on actuarial valuation carried out by an independent actuary as at the Balance Sheet date. The liability is unfunded.

- Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employees state insurance are charged to Profit and Loss Account.

- The liability for bonus is provided @8.33% of eligible salary and wages under the Payment of Bonus Act, 1965.

- Other employee benefits are accounted for on accrual basis.

i) Provision for Taxation:

Provision for taxation is made taking into consideration the provisions of Income Tax Act,1961

j) Deferred Taxation:

Deferred tax is provided for all timing differences as required under the provisions of Accounting Standard-22 issued by The Institute of Chartered Accountants of India.

k) Borrowing Costs:

Borrowing Costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of cost of such assets upto the date the assets are ready for its intended use.

All other borrowing costs are recognised as an expense in the year in which they are incurred.

l) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statement.

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Mar 31, 2010

A) Method of Accounting:

The accompanying financial statements have been prepared in accordance with the historical cost conventions in accordance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 and other relevant provisions of the said Act. All the expenses and revenue exceeding Rs 2000 are accounted on accrual basis.

b) Fixed Assets :

(i) Fixed Assets are shown at Original cost in the Balance Sheet.

(ii) Expenditure incurred on renovation/modernisation on the existing fixed assets is added to the book value of these assets where such renovation/modernisation increases the future benefit from them beyond their previously assessed standard of performance.

c) Depreciation:

Depreciation is provided on straight line method at the rates prescribed in schedule XIV of the Companies Act, 1956, on prorata basis with reference to the date of addition/deletion.

d) Investment:

Long Term Investments are stated at costless provision if any for diminution in the value of such investments, other , than temporary. Cost includes interest paid.

e) Inventories:

Inventories are valued at cost or net realisable value whichever is lower

f) Foreign Exchange:

Foreign currency transactions are accounted for at the exchange rate prevailing on the date of transaction. Gain/ Loss arising out of fluctuation in rate between transaction date and on the last date of the financial year is accounted for in profit & loss account according to AS-11 (Revised).

g) Excise duty:

The Liability towards excise duty on finished goods is accounted for at the time of removal of finished goods from Excise godown.

h) Employee benefits:

In accordance with the Payment of Gratuity Act 1972, the Company provides for gratuity covering eligible employees on the basis of actuarial valuation as carried out by an Actuary. The liability is unfunded.

Provision is made for leave encashment based on actuarial valuation carried out by an independent actuary as at the Balance Sheet date. The liability is unfunded.

Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employees state insurance are charged to Profit and Loss Account.

The liability for bonus is provided @20% of eligible salary and wages under the Payment of Bonus Act, 1965.

Other employee benefits are accounted for on accrual basis.

i) Provision for Taxation:

Provision for taxation is made taking into consideration the provisions of Income Tax Act, 1961

j) Deferred Taxation:

Deferred tax is provided for all timing differences as required under the provisions of Accounting Standard-22 issued by The Institute of Chartered Accountants of India.

k) Borrowing Costs:

Borrowing Costs that are attibutable to the acquistion, construction or production of qualifying assets are capitalised as part of cost of such assets upto the date the assets are ready for its intended use.

All other borrowing costs are recognised as an expense in the year in which they are incurred.

l) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statement.

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Mar 31, 2009

A) Method of Accounting:

The accompanying financial statements have been prepared in accordance with the historical cost conventions in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 and other relevant provisions of the said Act. All the expenses and revenue exceeding Rs 2000 are accounted on accrual basis.

b) Fixed Assets:

(i) Fixed Assets are shown at Original cost in the Balance Sheet.

(ii) Expenditure incurred on renovation/modernisation on the existing fixed assets is added to the book value of these assets where such renovation/modernisation increases the future benefit from them beyond their previously assessed standard of performance.

c) Depreciation:

Depreciation is provided on straight line method at the rates prescribed in schedule XIV of the Companies Act, 1956, on prorata basis with reference to the date of addition/deletion.

d) Investment:

Long Term Investments are stated at costless provision if any for dimiunition in the value of such investments.otherthan temporary. Cost includes interest paid.

e) Inventories:

Inventories are valued at cost or net realisable value whichever is lower

f) Foreign Exchange:

Foreign currency transactions are accounted for at the exchange rate prevailing on the date of transaction. Gain/ Loss arising out of fluctuation in rate between transaction date and on the last date of the financial year is accounted for in profit & loss account according to AS-11 (Revised). Fixed Assets purchased in foreign currency are accounted in books gross of customs duty paid at the time of acquisition. Cost is reduced when claim of custom duty is made from the authorities in the subsequent year.

g) Excise duty:

The Liability towards excise duty on finished goods is accounted for at the time of removal of finished goods from Excise godown.

h) Employee benefits:

In accordance with the Payment of Gratuity Act 1972, the Company provides for gratuity covering eligible employees - on the basis of actuarial valuation as carried out by an Actuary. The liability is unfunded.

Provision is made for leave encashment based on actuarial valuation carried out by an independent actuary as at the Balance Sheet date. The liability is unfunded.

Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employees state insurance are charged to Profit and Loss Account.

The liability for bonus is provided @20% of eligible salary and wages under the Payment of Bonus Act, 1965 irrespective of allocable surplus.

Other employee benefits are accounted for on accrual basis.

i) Provision for Taxation:

Provision for taxation is made taking into consideration the provisions of Income Tax Act, 1961

j) Deferred Taxation:

Deferred tax is provided for all timing differences as required under the provisions of Accounting Standard-22 issued by The Institute of Chartered Accountants of India.

k) Borrowing Costs:

Borrowing Costs that are attibutable to the acquistion, construction or production of qualifying assets are capitalised as part of cost of such assets upto the date the assets are ready for its intended use.

All other borrowing costs are recognised as an expense in the year in which they are incurred.

l) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made.

Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Contingent liabilities are not recognised but are disclosed in the notes.

Contingent assets are neither recognised nor disclosed in the financial statement.

(m) The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

(n) The estimates of future salary increase considered in the acturial valuation takes into account factors like inflation, seniority, promotion and other relevant factors.

(o) The employees are assumed to retire at the age of 58 years.

(h) The mortality rate considered are as per the published rate in the LIC(1994-96) mortality tables.