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Vintage Cards and Creations
BSE: 532360|NSE: VINCARDS|ISIN: INE810A01022|SECTOR: Printing & Stationery
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Vintage Cards and Creations is not traded in the last 30 days
Vintage Cards and Creations is not traded in the last 30 days
« Mar 10
Accounting Policy Year : Mar '11
1.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956. Company follows the mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. FIXEDASSETS:

Fixed assets are stated at cost. Cost includes purchase price net of excise duties and taxes recoverable, where claimed, interest on amount borrowed for acquisition of assets for the period up to the date the asset is ready to be put to use and incidental expenses related in bringing the assets to working condition for their intended use.

Capital work in progress is stated at cost. Cost includes expenses incurred during preoperative / installation period, cost of capital goods, in transit and advances to suppliers.

3. DEPRECIATION ON FIXEDASSETS:

Depreciation On Fixed Assets has been provided on the Straight Line Method at the rate prescribed in schedule XIV to the Companies Act, 1956.

In respect of additions to the assets made during the year, depreciation for the year is calculated from the date of such additions. Depreciation on assets disposed off during the year is charged up to the date of disposal.

4. INVENTORYVALUATION:

Raw materials are valued at cost which is determined on First in First Out Basis. Cost includes the purchase price, duties and taxes (net of duties and taxes recoverable.

Work in progressed at factory cost consisting of direct material and labor cost together will related factory overheads Finished goods manufactured by the company are valued at lower of cost together with related factory overheads Finished goods manufactured by the Company are valued at lower of cost or net realizable values. An adequate write off for the stock is made for old and absolute items.

5. INVESTMENTS:

Long term investments are valued at cost less provision for diminution in value, if the diminution is other than temporary

6. SUNDRY DEBTORS/LOANS AND ADVANCES/CREDITORS:

The Company has been making Provision for Bad and Doubtful debts and Also on Amounts Payable to Creditors. This year the management has taken a decision to write off Payables and Receivables outstanding for a Period of More than 3 years and accounts where there is no Transaction in Three Years. The Payables which have been written off are to be shown as Contingent Liabilities for a further Period of One year.

7. FOREIGN EXCHANGE TRANSACTIONS:

Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transaction and subsequent gains/losses are recognized on realization.

Monitory assets and liabilities relating to foreign currency transaction remaining unsettled at the end of the year are translated at year end rates. The difference in translation of monetary assets and liabilities on foreign exchange transactions are recognized in the profit and loss account for the year.

8. REVENUE RECOGNITION:

Revenue from sale of goods is recognized on dispatch to customers or authorized agent or transporter. Sales are net of sales tax recovered, sales returns, trade discounts, rebate and allowances.

9. EMPLOYEES BENEFITS.

Employees benefit comprises payments under defined contribution plans like provident fund and family pension. Payments under defined contribution plans are charged to the profit and loss account. The liability in respect of the defined benefit schemes like gratuity and leave encashment benefit on retirement is provided on the basis of actuarial valuation at the end of each year.

10. RESEARCH AND DEVELOPMENT:

Revenue expenditure on research and development is charged under their respect heads of accounts. Capital expenditure on research and development is included as part of fixed assets and depreciated on the same basis as the other fixed assets.

11. IMPAIRMENT OF ASSETS:

An asset is related as impaired when the carrying cost of assets exceeds its recoverable value .An impairment loss is charged to profit and loss account in the year in which the asset is identified as impaired he impairment loss recognized in prior accounting period id revised if there has been a change in the estimate of recoverable amount.

12. INCOMETAX:

Income taxes have been computed using the tax effect accounting method, where taxes are accrued in the same period as the related revenue and expense. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to timing differences between the taxable income and the accounting income over a period. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the timing differences are expected to b recovered or settles. The effect of changes in Tax rates on deferred tax assets and liabilities is recognized in the statement of income in the period of change. The effect of changes in tax rates on deferred tax assets and liabilities is realized in the statement of income in the period of change. Deferred tax assets are recognized only to the extent management is virtually certain as to the sufficiency to future taxable income against which the deferred tax assets can be realized.

13. PROVISIONS AND CONTINGENCIES:

Contingencies are recorded which it is probable that a liability will be incurred and the amount can be reasonably estimated. Where no reliable 'estimates can be made as to the outcome of an event, a disclosure is made as contingent liability .Contingent assets are not recognized in the accounts.

14. EARNINGS PER SHARE:

The basic earnings per share are computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit after tax for the year and the weighted average

15. LEASES:

Operating Lease:

Lease where the lesser effectively retains substantially all the risks and benefits of ownership of the leased term is classified as operating lease.

Operating Lease payments are recognized as an expense in the profit and loss account.

16. EVENTS AND CONTINGENCIES AFTER THE BALANCE SHEET DATE

i) Sale of place and machinery/Disposal

ii) Loss cannot be valued

iii) Going concern affected

Source : Dion Global Solutions Limited
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