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TTK Prestige
BSE: 517506|NSE: TTKPRESTIG|ISIN: INE690A01010|SECTOR: Domestic Appliances
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« Mar 12
Accounting Policy Year : Mar '13
1.1. Basis for preparation of accounts:

The Accounts have been prepared to comply in all material aspects with applicable Accounting Principles in India, the applicable Accounting Standards notified under Section 211(3C) of The Companies Act 1956 and the relevant provisions thereof. Financial Statements are prepared based on historical cost and on the basis of a going concern. The Company follows the mercantile system ofAccounting and recognizes income and expenditure on an accrual basis.

1.2. FixedAssets:

Fixed Assets are stated at cost of acquisition inclusive of freight, taxes, insurance etc. relating to the acquisition including installation/erection charges up to the date the asset is put to use, as applicable.

Borrowing costs attributable to acquisition / construction or production of a qualifying asset is capitalized as a part of cost of the asset.

Depreciation:

The Company is providing depreciation on Written Down Value (WDV) method by adopting the rates specified in Schedule XIV of the Companies Act, 1956 in respect of all Fixed Assets capitalized up to 31st March, 1997. In respect of additions from 1st April 1997, the Company is providing depreciation by adopting Straight Line method specified in Schedule XIV ofthe Companies Act, 1956. ERP Software, being intangible asset is depreciated at 20% on straight line basis in line with AS 26. Depreciation on additions during the year is provided on pro-rata basis.

Leasehold land is amortized over the period ofthe Lease.

1.3. Revenue Recognition:

Sales are stated at net of returns and, sales tax. The Excise Duty relatable to sales is separately disclosed and deducted from Sales. Sales Revenue is recognized when significant risks and rewards of ownership ofthe goods have passed to the buyer.

Dividend income from investments is accounted for when the right to receive the payment is established.

Interest Income is recognized on a time proportion basis taking in to account the amount outstanding and the rate applicable.

1.4. Investments:

Investments are classified into Current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost.

1.5. ImpairmentofAssets:

Impairment loss, if any is provided to the extent, the carrying amount of the assets exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

1.6. Trade Receivables and Loans and advances:

Sundry Debtors and Loans and advances are stated after making adequate provisions for doubtful balances.

1.7. Provisions:

A Provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year end date and adjusted to reflect the best current estimate.

1.8. Retirement /Post retirement benefits:

The Company also provides for retirement/post retirement benefits in the form of Gratuity, Pension, and Leave Encashment. Such benefits are provided for based on the valuations, as at the Balance Sheet date, made by independent actuaries. Termination benefits are recognized as an expense as and when incurred.

1.9. Taxes on Income:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

1.10. Foreign CurrencyTransactions:

Transactions in foreign currency are recorded at exchange rates prevailing at the time ofthe transactions and exchange difference arising from foreign currency transaction are dealt with in the profit and loss account and capitalized where they relate to the Fixed Assets. Current Assets and Liabilities at year end are being converted at closing rates and exchange gains /losses are dealt with in the profit and loss account, as per AS 11.

1.11. Grant / subsidies

Grant / subsidy received under Central Investment Subsidy Scheme is directly credited to capital reserve.

1.12 Inventories

Inventories are valued at lower of cost,computed on a weighted average basis and estimated net realizable value, after providing for cost of obsolescene and other anticipated losses, wherever considered necessary. Finished goods and work in Progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

1.13 Borrowingcosts

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such asset. As per AS-16 Borrowing costs , a qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All the other borrowing costs are expensed as and when incurred.

1.14 Earningspershare

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity share holders by weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity share holders and weighted average number of shares outstanding during the year are adjusted for the effects of dilutive part of equity shares , if any.

1.15 SegmentReporting

Identification of Segments

The Company has complied with AS 17 Segment Reporting with the business as its primary segment. The risk and awards are very similar in different geographical areas and hence there is no reportable secondary segment as defined in AS-17.

Segment Policies

(i) Revenues have been identified to segments on the basis of their relationship to the operative activities of the segment. Revenues and expenses that relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under Un-allocable expenses .

(ii) Inter segment revenue and expense are eliminated.

Source : Dion Global Solutions Limited
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