SENSEX NIFTY India | Accounting Policy > Textiles - Processing > Accounting Policy followed by Nakoda - BSE: 521030, NSE: NAKODA
BSE: 521030|NSE: NAKODA|ISIN: INE559B01023|SECTOR: Textiles - Processing
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« Dec 11
Accounting Policy Year : Dec '12
(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the applicable accounting standards and as per provisions of the Companies Act, 1956. The company follows the mercantile system of accounting and recognizes Income and Expenditure on accrual basis. Accounting Policies not referred to otherwise are consistent with the generally accepted accounting principles.

(B) FixedAssets:

FixedAssets are stated at cost lessAccumulated Depreciation. Cost comprises purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

(C) Depreciation:

Depreciation on Fixed Assets has been calculated on straight line method at the rate prescribed in schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion during the year has been provided on prorate basis.

(D) Investments:

Investments are stated at cost of acquisition.

(E) Inventories:

Inventories are valued at lower of cost or net realisable value using FIFO cost method.

(F) Retirement Benefits:

Contribution to Provident Fund, Liability for Leave encashment and Gratuity are accounted foron accrual basis.

(G) Excise Duty:

The liability for Central Excise duty on account of stocks lying in factory has not been provided in the books of accounts as the same is being accounted foron payment basis and not carried into stock as per practice followed by the company. However, the liability if accounted would have no effect on the Profit forthe year.

(H) Revenue Recognition:

a) SalesisnetofSalestax/VAT, Excise duty, Sales return, Rate difference, damage goods Compensation etc.

b) Other income is accounted on due basis as per the terms.

(I) Foreign Currency Transactions :

Transaction in foreign currency are recorded at the rates of exchange in force at the time transactions are affected

(J) Borrowing Cost:

Borrowing Cost that are directly attributable to the acquision, construction of qualifying assets, Wherever applicable, are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(K) Impairment Loss:

As required by theAccounting Standards (AS 28) Impairment ofAssets issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no Impairment loss during the year.

Source : Dion Global Solutions Limited
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