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SENSEX NIFTY India | Accounting Policy > Castings & Forgings > Accounting Policy followed by Taparia Tools - BSE: 505685, NSE: N.A

Taparia Tools

BSE: 505685|ISIN: INE614R01014|SECTOR: Castings & Forgings
, :
Taparia Tools is not listed on NSE
Mar 13
Accounting Policy Year : Mar '14
a) Basis of accounting and preparation of financial statements
 The financial statements are prepared on accrual basis and comply with
 the Accounting Standards referred in Section 211(3C) of the Companies
 Act, 1956.
 b) Fixed assets
 Fixed Assets are stated at cost of acquisition inclusive of freight,
 duties and taxes and incidental expenses and adjusted by revaluation of
 certain assets.
 c) Depreciation and Amortization
 Depreciation on fixed assets has been provided on written down value
 method at the rates specified in Schedule XIV of the Companies Act,
 d) Inventories
 Inventories are valued at the lower of weighted average cost and net
 realizable value except waste / scrap which is valued at realizable
 Finished goods and process stock include cost of conversion and other
 costs incurred in bringing the inventories to their present location
 and condition. Obsolete, defective and unserviceable inventories are
 duly provided for.
 e) Employee benefits
 i) Retirement Benefits
 The Company''s contributions to Provident Fund/Gratuity are charged
 against revenue. The Gratuity Benefits are administered by a trust
 formed for this purpose through the Group Gratuity Scheme of the LIC of
 India and contributions are made on actuarial valuation basis.
 ii) Leave Encashment Benefits
 Employees of the Company are eligible for Leave Encashment Benefit as
 per rules of the Company.  Provision for Leave Encashment is determined
 accordingly and provided in the Accounts.
 f) Deferred Tax:
 The Company has accounted for Deferred Ta x in accordance with the
 Accounting Standard - 22 Accounting for taxes on Income issued by the
 Council of the Institute of Chartered Accountants of India.
 Accordingly, the deferred tax during the year for timing difference is
 accounted using tax rates that have been enacted; the net difference
 arising thereon is debited to Profit and Loss Account.
 g) Revenue Recognition
 Sales are recognized, net of returns and trade discount, on dispatch of
 goods to customers, sales tax and value added tax are excluded.
 h) Prior Period Items
 Prior period items, if material, are separately disclosed in the Profit
 and Loss account together with the nature and amount.
 i) Foreign currency transactions
 Foreign currency transactions are accounted for at the rate prevailing
 on the date of transaction. Foreign currency monetary assets and
 liabilities at the Balance Sheet date are restated at year-end rate.
 j) Lease Accounting
 Operating Leases: Leasing of assets whereby the lessor essentially
 remains the owner of the asset classified as operating leases. The
 payments made by the Company as lessee in accordance with operational
 leasing contracts or rental agreements are expensed proportionally
 during the lease or rental period respectively.  Any compensation,
 accordingly to agreement, that the lessee is obliged to pay to the
 lessor if the leasing contract is terminated prematurely is expensed
 during the period in which the contract is terminated.
 k) Impairment of Assets
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is an indication of impairment based on the internal and
 external factors.
 An asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable amount. An impairment loss, if any, is charged
 to the Profit and Loss Account in the year in which the asset is
 identified as impaired. Reversal of impairment loss recognized in prior
 years is recorded when there is an indication that impairment loss
 recognized for the asset no longer exists or has been decreased.
Source : Dion Global Solutions Limited
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