Namtech Electronic Devices Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2014

1 Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention and on the accrual basis of accounting

2 Going Concern Basis:

The accounts of the company for the year has been prepared on the basis of going concern, as the company has made arrangements to revive the operation

3 Revenue recognition:

The accounts of the company for the year has been prepared on the basis of going concern, pending revival of the operations

4 Fixed Assets:

Fixed Assets are accounted on historical cost basis.

5 Depreciation:

Depreciation on Fixed Assets is provided under Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

6 Currency Translation - AS-11:

Transactions in foreign currency are accounted at the applicable exchange rate prevailing on the date of transaction. Foreign exchange fluctuation is recognized in the Profit and Loss account at the time the amount is received or paid. Monetary Assets and Liabilities relating to the foreign currency transactions remaining unsettled at the yearend are translated at year end applicable exchange rates or at which they are settled subsequently.

7 Net Profit or Loss for the period, Prior Period Items and changes in Accounting policies - AS - 5:

All items of income and expenses which are recognized in a period are included in the determination of net profit or loss for the period unless an Accounting Standard requires or permits otherwise. Prior period items are recognized as income or expenses which arise in the current period as a result of errors or omissions in the preparation of financial statements of one or more prior period.

8 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 estimate of recoverable amount

9 Provision, Contingent Liabilities and Contingent Assets - AS-29:

Provisions, involving substantial degree of estimation 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 Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

10 Inventories:

Items of inventories are valued at lower of cost or net realizable value and net of provision for obsolescence.

11 Earnings per share:

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extraordinary item. The number of shares of common stock used in computing basic earnings per share is the weighted average number of shares of common stock outstanding during the period

12 Employee Retirement Benefits:

Provision for Employees'' Benefits including Gratuity and Leave encashment are made as per Accounting Standard AS - 15.

13 Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration the admissible expenses under the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

14 Related Party Disclosures:

Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.

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Mar 31, 2011

Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention and on the accrual basis of accounting.

Revenue recognition Income and expenditure are generally accounted for on accrual basis and provision is made for all known losses and liabilities.

Fixed Assets: Fixed Assets are accounted on historical cost basis.

Depreciation: Depreciation on Fixed Assets is provided under Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

Currency Translation AS-11: Transactions in foreign currency are accounted at the applicable exchange rate prevailing on the date of transaction. Foreign exchange fluctuation is recognized in the Profit and Loss account at the time the amount is received or paid. Monetary Assets and Liabilities relating to the foreign currency transactions remaining unsettled at the year end are translated at year end applicable exchange rates or at which they are settled subsequently.

Net Profit or Loss for the period, Prior Period Items and changes in Accounting policies - AS - 5: All items of income and expenses which are recognized in a period are included in the determination of net profit or loss for the period unless an Accounting Standard requires or permits otherwise. Prior period items are recognized as income or expenses which arise in the current period as a result of errors or omissions in the preparation of financial statements of one or more prior period.

Impairment of Assets AS-28: 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 estimate of recoverable amount.

Provision, Contingent Liabilities and Contingent Assets AS-29:

provisions, involving substantial degree of estimation 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 Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Inventories

Items of inventories are valued at lower of cost or net realizable value and net of provision for obsolescence.

Earnings per share

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extraordinary item. The number of shares of common stock used in computing basic earnings per share is the weighted average number of shares of common stock outstanding during the period.

Employee Retirement Benefits:

Provision for Employees' Benefits including Gratuity and Leave encashment are made as per Accounting Standard AS 15.

Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration the, admissible expenses under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

Related Party Disclosures:

Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.

1 The Stock Exchanges had suspended the trading of company's shares with effect from 24.12.2004 . As no

shares of the company is being traded in any Stock Exchange, the company lost the status of Listed Company since then.

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Mar 31, 2010

Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention and on the accrual basis of accounting.

Revenue recognition

Income and expenditure are generally accounted for on accrual basis and provision is made for all known losses and liabilities.

Fixed Assets:

Fixed Assets are accounted on historical cost basis.

Depreciation:

Depreciation on Fixed Assets is provided under Straight Line Method at tit- rates prescribed under Schedule XIV to the Companies Act, 1956.

Currency Translation AS-11:

Transactions in foreign currency are accounted at the applicable exchange rate prevailing on the date of transaction. Foreign exchange fluctuation is recognized in the Profit and Loss account at the time the amount is received or paid. Monetary Assets and Liabilities relating to the foreign currency transactions remaining unsettled at the year end are translated at year end applicable exchange rates or at which they are settled subsequently.

Net Profit or Loss for the period, Prior Period Items and changes in Accounting policies - AS - 5:

All items of income and expenses which are recognized in a period are - included in the determination of net profit or loss for the period unless an Accounting Standard requires or permits otherwise. Prior period items are recognized as income or expenses which arise in the current period as a result of errors or omissions in the preparation of financial statements of one or more prior period.

Impairment of Assets AS-28:

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 estimate of recoverable amount.

Provision, Contingent Liabilities and Contingent Assets AS-29:

Provisions, involving substantial degree of estimation 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 Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Inventories

Items of inventories are valued at lower of cost or net realizable value and net of provision for obsolescence.

Earnings per share

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extraordinary item. The number of shares of common stock used in computing basic earnings per share is the weighted average number of shares of common stock outstanding during the period.

Employee Retirement Benefits:

Provision for Employees Benefits including Gratuity and Leave encashment are made as per Accounting Standard AS 15.

Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration the admissible expenses under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

Related Party Disclosures:

Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.