Twinkle Papers Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

NOTE-1

General Information: Twinkle Papers Private Limited is a Pnvale Limited Company, incorporated under the Companies Act. 2013. The company is primarily engaged in the manufacturing and Trading of Corrugated Boxes, Poly Jars etc. having manufacturing unit at Malerkotla, Distt Sangrur. Punjab.

NOTE-2SIGNIFICANT ACCOUNTING POLICIES:

1 General: The accounts and thereon the financial statements, of the Company, have been prepared on the basis of going concern under the historical Cost Convention on accrual basis of accounting, to comply in all material aspects with applicable accounting principles in India, the Accounting Standards covered by the Accounting Standard Rules and the relevant provisions of the Companies Act, 1956.

Accounting policies not specifically refened to otherwise, are consistent with and in accordance with generally accepted accounting practices and mandatory Accounting Standards as prescribed b\ the Institute of the Chartered Accountants of

2 Use of Estimates: five preparation of the financial statements in conformity with the GAAP requires that the management make estimates and assumptions that aifect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements, and the reported amount of revenues and expenses during the reported penod. Actual results could differ from those estimates.

3.Fixed Assets :Fixed assets are stated at the historical cost, which is inclusive of freight, installation cost and duties and other incidental expenses related to acquisition. The cost of fixed assets capitalized during the year includes incidental expenses incurred directlv attributable to the asset.

Tlte portion of GST paid on acquisition of fixed assets, to the extent it is claimable/allowed to be set off against cxpcnscs/outflow of dutics/other items under a statute has been debited directlv to the said duty liability’ account instead of to the respective fixed asset account

Expenses incurred on major refurbishment extending the life of Plant & Machinery has been capitalized to the respective Asset during the year.

-I Depreciation :Depreciation is provided on W.D.V method as per the life prescribed in of Schedule II of the Companies Act,

5 Capital Work in Progress. Capital work-in-progress is carried at cost, comprising direct cost, related incidental expenses and attributable borrowing cost/interest

6 Investments: Investments are classified into current and long-term investments. Current investments are stated at the lower of cost and lair value. Long-term investments are slated at cost. A provision for diminution is made to recognize a decline, other titan temporary, in the value of long-term investments.

7 Inventories Inventories have been physically taken and certified bv the management and have been valued as under-

i) Raw Material At Cost on FIFO Method

ii jFinishcd Goods At Estimated Cost of Production

iii) Stores & Spares & Packing Material At Cost

iv )Work in progress At Estimated Cost or net Realisable value whichever is

8 CenvarCenvai Credit on GST paid goods and services is accounted for bv reducing the purchase of related goods or

9 Sales/Kevcnue Recognition’ Sales are recognized, net of returns, oil dispatch ot goods to customers or as per the terms ot contract and are reflected in the accounts at gross realizable value but Sales tax recovered is excluded.

Income front investments/interest is recognized when declared/accrued.

hi the opinion of the Management and to the best of their knowledge and belief the value of the realization of "Sundry Debtors" and Other Current Assets in the ordinary course of business, will not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.