Marvel Industries Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2009

(A) Basis of Accounting

(i) The accounts are prepared on the historical cost basis and on the Principles of a going concern.

(ii) Accounting policies not specifically referred to otherwise are Consistent and in consonance with generally accepted accounting principles.

(B) Fixed Assets

(i) Fixed Assets are stated at their original cost which includes expenditure incurred on the acquisition and construction / installation and other related expenses. The preoperative expenditure incurred is allocated to various Fixed Assets in the ratio of respective cost of Assets.

(ii) Depreciation on Fixed Assets has been provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis with reference to the month of addition/disposal.

(iii) Leasehold land is amortized over the period of lease.

(C) Investments

Long Term Investments are stated at cost, or market values whichever is lower. Where the market price is not available, the value is taken as book value.

(D) Inventories

Inventories are valued under:

Raw Material : At weighted average cost (Net of modvat)

Work in process : At lower of cost or net realizable value

Finished Goods : At lower of cost or net realizable value

Stores & Spares : At lower of cost or net realizable value

Scrap & Reprocessed Materials : At net realizable value.

(E) Purchases

Purchases of Material and Stores are net of Modvat credit

(F) Sales

Sales are net of Excise duty and Sales tax where applicable and of returns, claims and discount, etc.

(G) Excise and Custom Duty

Excise/Custom duty in respect of finished goods and Raw materials lying in factory and Bonded warehouses are accounted for on clearance.

(H) Exports Benefits

The duty benefit availed on clearance of raw material against advance licence is taken in the year of clearance of goods under the licence irrespective of the year of export.

(I) Foreign Exchange Transactions

Transactions in foreign currency are recorded at the original rates of exchange in force at the time of transaction was effected. Assets and Liabilities, which have not materialized on the balance sheet date, are accounted for at the exchange rates prevailing at the date of the balance sheet. The net exchange Profit/Loss is charged to the Profit & Loss account.

(J) Retirement Benefits

Retirement Benefits of Gratuity and leave encashment is accounted for as per actuarial valuation in term of the revised accounting standard AS (15) issued by the institute of Chartered Accountant of India.

K) Prior Period Items

Prior Period expense / income is accounted under the head prior period adjustment account. Material items if any are disclosed separately by way of a note.