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SENSEX NIFTY India | Accounting Policy > Rubber > Accounting Policy followed by Vamshi Rubber - BSE: 530369, NSE: N.A

Vamshi Rubber

BSE: 530369|ISIN: INE380C01014|SECTOR: Rubber
Jun 22, 16:00
0.5 (1.08%)
Vamshi Rubber is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
a) Basis of Preparation of Financial Statements:
 i) The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on the accrual basis, the applicable accounting
 standards issued by the Institute of Chartered Accountants of India and
 relevant presentational requirements of the Companies Act, 2013.
 ii) Accounting policies not specifically referred to otherwise are in
 consonance with prudent accounting principles.
 iii) All income and expenditure items having material bearing on the
 financial statements are recognized on accrual basis.
 b) Use of Estimates:
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and the reported
 amounts of revenues and expenses during the reported period.
 Differences between the actual results and estimates are recognised in
 the period in which the results are known or materialized.
 c) Fixed Assets:
 Fixed Assets are stated at acquisition cost (net of Cenvat if any)
 including directly attributable cost bringing them to their respective
 working conditions for their intended use less accumulated
 depreciation. All costs, including financing / borrowing cost till
 commencement of commercial production attributable to the fixed assets
 have been capitalized.
 d) Revenue Recognition:
 All revenue income and expenditure are recognized on accrual concept of
 Sale of Precured Tread Rubber
 Revenue is recognized when significant risks and rewards of ownership
 of goods have passed to the buyer and is disclosed including Excise
 Duty and Sales tax and excluding returns, as applicable.
 Interest income is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 e) Government Grants and Subsidies:
 Grants and subsidies from the government are recognized where there is
 reasonable assurance that (i) the Company will comply with the
 conditions attached to them and (ii) the grant/subsidy will be
 f) Depreciation:
 Pursuant to the enactment of the Companies Act, 2013 (''the act''), the
 company has complied with Part C of the Schedule II of the Companies
 Act, 2013 except the useful lives of Plant & Machinery, Computers &
 Software and Non-Factory Building. The same were reviewed by the
 management to reflect periods over which these assets are expected to
 be used. The details of estimate useful lives of these assets are given
 g) Inventories:
 Inventories are valued at lower of cost or net realizable value. Cost
 is determined using FIFO method.
 h) Foreign Currency Transactions:
 Transactions denominated in foreign currencies are normally recorded at
 the exchange rate prevailing at the time of the transaction.
 Forward contracts for hedging: The Company uses foreign exchange
 forward contracts to hedge its exposure to movements in foreign
 exchange rates. The use of these foreign exchange forward contracts
 reduces the risk or cost to the company and the company does not use
 the foreign exchange forward contracts for speculation purposes.
 The premium arising at the inception of such a forward exchange
 contract is amortized as expense over the life of the contract.
 i) Investments:
 Investments made by the company are primarily of long term nature and
 are valued at cost.  Provision will be made for decline, other than
 temporary, in the value of investments.
 j) Borrowing Costs:
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing cost is charged to revenue.
 k) Employee Benefits:
 Gratuity: Liability towards gratuity is provided on the basis of
 actuarial valuation made by an independent actuary.
 Provident Fund: Contributions paid to the prescribed authority are
 charged to statement of profit and loss account every year.
 Leave Encashment: is at the discretion of the management and is charged
 to revenue in the year of payment.
 Ex-gratia is at the discretion of the management and is charged to
 statement of profit and loss account
 l) Earnings per Share:
 The Company reports its Earnings per Share (EPS) in accordance with
 Accounting Standard 20 issued by the Institute of Chartered Accountants
 of India.
 m) Taxes on Income
 - The current charge for income tax is calculated in accordance with
 the relevant tax regulations applicable to the company.
 - Deferred tax asset and liability is recognized for future tax
 consequences attributable to the timing differences that result between
 the profit offered for income tax and the profit as per the financial
 statements. Deferred tax asset & liability are measured as per the tax
 rates / laws that have been enacted or substantively enacted by the
 Balance Sheet date.
 n) Provisions, Contingent Liabilities and Contingent Assets:
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 Notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
Source : Dion Global Solutions Limited
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