Accounting Policies of Jyoti Overseas Ltd. Company

Mar 31, 2014

1. RECOGNITION OF INCOME & EXPENDITURE: The Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act,1956.The Company generally follow mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current /non current classification of assets and liabilities.

2. USE OF ESTIMATES: The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual result and estimates are recognised in the period in which the results are known / materialized.

3. FIXED ASSETS: Fixed assets are stated at cost net of Modvat/ Cenvat and include proportionate financial Cost till commencement of Production less accumulated depreciation.

4. DEPRECIATION: Fixed Assets are depreciated under the ''Straight Line Method'' as per the rates and in the manner prescribed under Schedule XIV of the Companies Act,1956 .

5. IMPAIRMENT OF ASSETS : Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s Fixed Assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an assets exceeds the recoverable amount

6. INVESTMENTS: No Investments.

7. INVENTORY VALUATION: No Inventory

8. Foreign Currency Transactions: (a) Monetary items denominated in foreign currencies at the year end are translated at the appropriate rate of exchange on the date of Balance Sheet except those covered by forward contract which are accounted for at the contract rate and gains/losses in fluctuations in the exchange rate are credited/charged to the Profit and Loss Account. (b) Foreign Currency loans are converted at the year end rate of exchange and the difference arising due to fluctuation in the exchange rate are adjusted to the value of related fixed assets.

9. TREATMENT OF RETIREMENT BENEFITS: Retirement benefits to employees are accounted for on accrual basis.

10. BORROWING COST: Borrowing cost that is attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

11. TAXES ON INCOME: Provision for current tax is made after taking into consideration benefits admissible under the Provision of the Income Tax Act, 1961. Deferred tax is recognised on timing difference between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date,and the assets if arising, is recognised if there being reasonable certainty of its absorption against profits expected to be earned in the not too distant future periods.

12. EARNINGS PER SHARE: In accordance with the Accounting Standard 20 "Earnings per Share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

13. TREATMENT OF CONTINGENT LIABILITIES: Contingent liabilities are not provided for. These are being disclosed in the notes to the Accounts.

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Mar 31, 2011

1. Recognition of Income & Expenditure: The Financial Statements have been prepared under the historical cost convention in accordance with applicable Accounting Standards in India and the provisions of the Companies Act, 1956.

The Company generally follow mercantile system of Accounting and recognize significant items of Income and Expenditure on accrual basis.

2. Use of Estimates: The presentation of Financial Statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialized.

3. Fixed Assets: Fixed Assets are stated at cost net of Modvat/ Cenvat and include proportionate financial Cost till Commencement of Production less accumulated depreciation.

4. Depreciation: Depreciation on Fixed Assets has been provided on Straight Line Method at the rates prescribed in the Schedule XIV of the Companies Act, 1956.

5. Impairment of Assets: Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's Fixed Assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an assets exceeds the recoverable amount.

6. Investments: No Investment.

7. Inventory Valuation: Raw Materials & Stores, Spares are valued at Cost or Net realizable value which ever is Lower. Finished Goods are valued at Lower of cost or Net Realisable Value.

8. Sales: Revenue from Sale of goods is recognised when the significant risk and rewards of ownership of goods have passed to the buyer, which generally coincides with delivery.

9. Foreign Currency Transactions: (a) Monetary items denominated in foreign currencies at the year end are translated at the appropriate rate of exchange on the date of Balance Sheet except those covered by forward contract which are accounted for at the contract rate and gains/losses in fluctuations in the exchange rate are credited/charged to the Profit and Loss Account, (b) Foreign Currency loans are converted at the year end rate of exchange and the difference arising due to fluctuation in the exchange rate are adjusted to the value of related fixed assets.

10. Treatment of Retirement Benefits: Retirement benefits to employees are accounted for on accrual basis.

11. Borrowing Cost: Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

12. Taxes on Income: Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax is recognised on timing difference between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date; and the assets if arising, is recognised if there being reasonable certainty of its absorption against profits expected to be earned in the not too distant future periods.

13. Earnings per Share: In accordance with the Accounting Standard 20 "Earnings per Share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

14. Treatment of Contingent Liability: Contingent liabilities are not provided for .These are being disclosed in the Notes on Accounts.

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Mar 31, 2009

1. Recognition of Income & Expenditure: The Financial Statements have been prepared under the historical cost convention in accordance with applicable Accounting Standards in India and the provisions of the Companies Act, 1956.

The Company generally follows mercantile system of Accounting and recognize significant items of income and Expenditure on accrual basis.

2. Use of Estimates: The presentation of Financial Statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialized.

3. Fixed Assets: Fixed Assets are stated at cost net of Modvat / Cenvat and include proportionate financial Cost till Commencement of Production less accumulated depreciation.

4. Depreciation: Depreciation on Fixed Assets has been provided on Straight Line Method at the rates prescribed in the Schedule XIV of the Companies Act, 1956.

5. Impairment of Assets: Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys Fixed Assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an assets exceeds the recoverable amount.

6. Investments: No Investment.

7. Inventory Valuation: Raw Materials & Stores, Spares are valued at Cost or Net realizable value which ever is Lower. Finished Goods are valued at Lower of cost or Net Realizable Value.

8. Sales: Revenue from Sale of goods is recognized when the significant risk and rewards of ownership of goods have passed to the buyer, which generally coincides with delivery.

9. Foreign Currency Transactions: (a) Monetary items denominated in foreign currencies at the year end are translated at the appropriate rate of exchange on the date of Balance Sheet except those covered by forward contract which are accounted for at the contract rate and gains/losses in fluctuations in the exchange rate are credited/charged to the Profit and Loss Account, (b) Foreign Currency loans are converted at the year end rate of exchange and the difference arising due to fluctuation in the exchange rate are adjusted to the value of related fixed assets.

10. Treatment of Retirement Benefits: Retirement benefits to employees are accounted for on accrual basis.

11. Borrowing Cost: Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

12. Taxes on Income: Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax is recognized on timing difference between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.; and the assets if arising, is recognized if there being reasonable certainty of its absorption against profits expected to be earned in the not too distant future periods.

13. Earnings per Share: In accordance with the Accounting Standard 20 "Earnings per Share" issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted

14. Treatment of Contingent Liability: Contingent liabilities are not provided for .These are being disclosed in the Notes on Accounts.

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Mar 31, 2008

1. Recognition of Income & Expenditure: The Financial Statements have been prepared under the historical cost convention in accordance with applicable Accounting Standards in India and the provisions of the Companies Act, 1956.

The Company generally follows mercantile system of Accounting and recognize significant items of income and Expenditure on accrual basis.

2. Use of Estimates: The presentation of Financial Statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialized.

3. Fixed Assets: Fixed Assets are stated at cost net of Modvat / Cenvat and include proportionate financial Cost till Commencement of Production less accumulated depreciation.

4. Depreciation: Depreciation on Fixed Assets has been provided on Straight Line Method at the rates prescribed in the Schedule XIV of the Companies Act, 1956.

5. Impairment of Assets: Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company’s Fixed Assets. If any indication exists, an asset’s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of assets exceeds the recoverable amount.

6. Investments: Long term Investment are valued at cost.

7. Inventory Valuation: Raw Materials, Stores, Spares and Packing Materials are valued at Cost. Finished Goods and Work-in-progress are valued at Lower of cost or Net Realizable Value.

8. Sales: Revenue from Sale of goods is recognized when the significant risk and rewards of ownership of goods have passed to the buyer, which generally coincides with delivery.

9. Foreign Currency Transactions: (a) Monetary items denominated in foreign currencies at the year end are translated at the appropriate rate of exchange on the date of Balance Sheet except those covered by forward contract which are accounted for at the contract rate and gains/losses in fluctuations in the exchange rate are credited/charged to the Profit and Loss Account. (b) Foreign Currency loans are converted at the year end rate of exchange and the difference arising due to fluctuation in the exchange rate are adjusted to the value of related fixed assets.

10. Treatment of Retirement Benefits: Retirement benefits to employees are accounted for on accrual basis.

11. Borrowing Cost: Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

12. Taxes on Income: Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax is recognized on timing difference between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.; and the assets if arising, is recognized if there being reasonable certainty of its absorption against profits expected to be earned in the not too distant future periods.

13. Earnings per Share: In accordance with the Accounting Standard 20 “Earnings per Share” issued by the Institute of Chartered Accountants of India, basic earnings per share is computed using the weighted average number of shares outstanding during the year.

14. Treatment of Contingent Liability: Contingent liabilities are not provided for .These are being disclosed in the Notes on Accounts.