Accounting Policies of Vybra Automet Ltd. Company

Mar 31, 2014

1. ACCOUNTING CONVENTION:

The financial statements are prepared under the historical cost convention in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Sales recognized at the point of dispatch from sight to customers. Sales includes excise duty and sales tax and net of sales returns. Realization on account of scrap isalsoincluded in the sales.

3. FIXED ASSETS:

All fixed assets are stated at cost less depreciation.

4. DEPRECIATION:

Depreciation is provided under the straight line method at rates specified in the Schedule XIV of the Companies Act,1956

5. INVENTORIES:

a) Raw materials are valued at cost in FIFO method.

b) Finished goods are valued at cost or market value whichever is less.

c) Work-In-Progress is valued at cost.

d) Stores & Consumables valued at cost in FIFO method.

e) Valuation of dies is arrived at after taking cost of the inputs including cost of conversion. The life of die is determined on the number of impressions/strikes it can withstand as determined by the technical personnel. The die valuation is arrived based on the balance life ofthe die.

f) Scrap is valued at net realizable value.

6. RETIREMENT BENEFITS:

Gratuity under the Gratuity Act is accounted on actuarial valuation. The provision for leave entitlement is determined at the year end on an actuarial basis.

7. BORROWING COST:

The borrowing cost incurred in acquiring qualifying asset is capitalized till the commencement of the commercial production.

8. INCOME TAX:

Current Income Tax is ascertained on the basis of assessable profit computed in accordance with the provisions of Income Tax Act. 1956.

9. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence, on timing difference being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

10. FOREIGN EXCHANGE:

Transaction in foreign currency are recorded at the exchange rates prevailing on the date of transactions.

11. USE OF ACCOUNTING ESTIMATES:

The Preparation of financial statements requires estimates and assumption 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 reporting period.

12. CONTINGENT LIABILITIES:

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

13. IMPAIRMENT OF ASSETS:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired.If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount an impairment loss is recognized in profit and loss account to the extent the carrying amount exceeds recoverable amount.

14. LEASES:

Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in payables.The interest element of the finance charge is charged to the Profit and Loss Account over the lease period. Lease rentals in respect of assets taken on operating lease are charged to the Profit & Loss Account on accrual basis.

15. GENERAL:

1. Confirmations from creditors and loans are awaited.

2. Figures are rounded off to nearest rupee.

3. Previous year''s figures have been re-grouped/rearranged wherever considered necessary.

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Mar 31, 2013

1. ACCOUNTING CONVENTION:

The financial statements are prepared under the historical cost convention in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Sales recognized at the point of dispatch from sight to customers. Sales includes excise duty and sales tax and net of sales returns. Realization on account of scrap is also included in the sales.

3. FIXED ASSETS:

All fixed assets are stated at cost less depreciation.

4. DEPRECIATION:

Depreciation is provided under the straight line method at rates specified in the Schedule XIV of the Companies Act,1956

5. INVENTORIES:

a) Raw material sare valued at cost in FIFO method.

b) Finished goods are valued at cost or market value whichever is less.

c) Work-in-Progress is valued at cost.

d) Stores & Consumables valued at cost in FIFO method.

e) Valuation of dies is arrived at after taking cost of the inputs including cost of conversion.The life of die is determined on the number of impressions/strikes it can withstand as determined by the technical personnel. The die valuation is arrived based on the balance life of the die.

f) Scrap is valued at net realizable value.

6. RETIREMENT BENEFITS:

Gratuity under the Gratuity Act is accounted on actuarial valuation.The provision for leave entitlement is determined attheyear end on an actuarial basis.

7. BORROWING COST:

The borrowing cost incurred in acquiring qualifying asset is capitalized till the commencement of the commercial production.

8. INCOME TAX:

Current Income Tax is ascertained on the basis of assessable profit computed in accordance with the provisions of I ncomeTax Act. 1956.

9. DEFERREDTAX:

Deferred tax is recognized, subject to the consideration of prudence, on timing difference being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

10. FOREIGN EXCHANGE:

Transaction in foreign currency are recorded at the exchange rates prevailing on the date of transactions.

11. USE OF ACCOUNTING ESTIMATES:

The Preparation of financial statements requires estimates and assumption 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 reporting period.

12. CONTINGENT LIABILITIES:

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

13. IMPAIRMENT OF ASSETS:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount an impairment loss is recognized in profit and loss account to the extent the carrying amount exceeds recoverable amount.

14. LEASES:

Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in payables.The interest element of the finance charge is charged to the Profit and Loss Account over the lease period. Lease rentals in respect of assets taken on operating lease are charged to the Profit & Loss Account on accrual basis.

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Mar 31, 2012

1. Accounting Convention:

The financial statements are prepared under the historical cost convention in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956

2. Revenue Recognition:

Sales recognized at the point of dispatch from sight to customers. Sales includes excise duty and sales tax and net of sales returns. Realization on account of scrap is also included in the sales.

3. Fixed Assets:

all fixed assets are stated at cost less depreciation.

4. Depreciation:

Depreciation is provided under the straight line method at rates specified in the schedule XIV of the Companies Act,1956.

5. Inventories:

a) Raw Materials are valued at cost in FIFO method.

b) Finished goods are valued at cost or market value which ever is less.

c) Work-in-progress is valued at cost.

d) Stores & Consumables valued at cost in FIFO method

e) Valuation of dies is arrived at after taking cost of the inputs including cost of conversion. The life of die is determinate on the number of impressions/strikes it can withstand as determined by the technical personnel. The die valuation is arrived based on the balance life of the die.

f) Scrap is valued at net realizable value.

6. Retirement benefits:

Gratuity under the Gratuity Act is accounted on actuarial valuation. The provision for leave entitlement is determined at the year end on an actuarial basis.

7. Borrowing cost:

The borrowing cost incurred in acquiring qualifying asset is capitalized till the commencement of the commercial production.

8. Income Tax:

Current Income Tax is ascertained on the basis of assessable profit computed in accordance with the provisions of Income Tax Act, 196.

9. Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, on timing difference being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

10. Foreign Exchange

Transaction in foreign currency are recorded at the exchange rates prevailing on the date of transactions.

11. Use of Accounting Estimates:

The Preparation of financial statements requires estimates and assumption 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 reporting period.

12. Contingent Liabilities:

Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

13. Impairment of Assets:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount an impairment loss is recognized in profit and loss account to the extent the carrying amount exceeds recoverable amount.

14. Leases:

Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in payable. The interest element of the finance charge is charged to the Profit and Loss Account over the lease period. Lease rentals in respect of assets taken on operating lease are charged to the Profit & Loss Account on accrual basis.

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Mar 31, 2010

1. ACCOUNTING CONVENTION:

The financial statements are prepared under the historical cost convention in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

2. REVENUE RECOGNITION:

Sales recognised at the point of dispatch from sight to customers. Sales includes excise duty and sales tax and net of sales returns. Realization on account of scrap is also included in the sales.

3. FIXED ASSETS

Allfixed assets are stated at cost less depreciation.

4. DEPRECIATION

Depreciation is provided under the straight line method at rates specified in the Schedule XIV of the Companies Act, 1956

5. INVENTORIES:

a) Raw materials are valued at cost in FIFO method.

b) Finished goods are valued at cost or market value whichever is less.

c) Work-in-Progress is valued at cost.

d) Stores & Consumables valued at cost in FIFO method.

e) Valuation of dies is arrived at after taking cost of the inputs including cost of conversion. The life of die is determined on the number of impressions/strikes it can withstand as determined by the technical personnel. The die valuation is arrived based on the balance life of the die.

f) Scrap is valued at net realizable value.

6. RETIREMENT BENEFITS:

Gratuity under the Gratuity Act is accounted on actuarial valuation.The provision for leave entitlement is determined at the year end on an actuarial basis.

7. BORROWING COST:

The borrowing cost incurred in acquiring qualifying asset is capitalized till the commencement of the commercial production.

8. INCOMETAX

Current Income Tax is ascertained on the basis of assessable profit computed in accordance with the provisions of Income Tax Act. 1956.

9. DEFERREDTAX:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

10. FOREIGN EXCHANGE:

Transaction in foreign currency are recorded at the exchange rates prevailing on the date of transactions.

11. USE OF ACCOUNTING ESTIMATES:

The Preparation of financial statements requires estimates and assumption 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 reporting period.

12. CONTINGENT LIABILITIES:

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

13. IMPAIRMENT OF ASSETS:

At each balance sheet date, the Company assesses whetherthere is any indication that an asset may be impaired. lf any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount an impairment loss is recognized in profit and loss account to the extent the carrying amount exceeds recoverable amount.

14. LEASES:

Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in payables.The interest element of the finance charge is charged to the Profit and Loss Account over the lease period. Lease rentals in respect of assets taken on operating lease are charged to the Profit & Loss Account on accrual basis.