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Moneycontrol.com India | Accounting Policy > Engineering > Accounting Policy followed by Yuvraaj Hygiene Products - BSE: 531663, NSE: N.A
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Yuvraaj Hygiene Products

BSE: 531663|ISIN: INE139D01020|SECTOR: Engineering
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Yuvraaj Hygiene Products is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
 2.1 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS :
 
 i) These Financial Statements have been prepared in accordance with
 generally accepted accounting principles in India under the historical
 cost convention on an accrual basis. Pursuant to Section 133 of the
 Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules
 2014, till the standards of accounting or any addendum thereto are
 prescribed by Central Government in consultation and recommendation of
 the National Financial Reporting Authority, the existing Accounting
 Standards notified under the Companies Act, 1956 shall continue to
 apply.
 
 ii) Consequently these financial statements have been prepared to
 comply in all material aspects with the accounting standards notified
 under Section 211(3C) of the Companies Act, 1956 (Companies (Accounting
 Standards) Rules, 2006, (as amended) and other relevant provisions of
 the Companies Act, 2013.
 
 2.2 USE OF ESTIMATES :
 
 The preparation of financial statements in conformity with Indian GAAP
 requires estimates and assumptions to be made that affect the reported
 amounts of revenues, expenses, assets and liabilities and the
 disclosure of contingent liabilities, at the end of the reporting
 period. Differences between actual results and estimates are recognised
 in the period in which the results are known / materialized.
 
 2.3 FIXED ASSETS :
 
 Tangible Assets
 
 Tangible assets are stated at cost, net of accumulated depreciation and
 accumulated impairment losses, if any.
 
 Subsequent expenditure related to an item of fixed asset are added to
 its book value only if it increases the future benefits from the
 existing asset beyond its previously assessed standard of performance.
 
 Items of fixed assets that have been retired from active use and held
 for disposal are stated at the lower of their net book value and net
 realizable value. Any expected loss, is recognised immediately in the
 Statement of Profit and Loss.
 
 Losses arising from the retirement of and gains or losses arising from
 disposal of fixed assets which are carried at cost are recognized in
 the Statement of Profit and Loss.
 
 Intangible Assets
 
 Intangible assets are stated at acquisition cost, net of accumulated
 amortization and accumulated impairment losses, if any. Intangibles
 assets are amortized on a straight line basis over the estimated useful
 lives.
 
 Gains or losses, if any arising from the retirement or disposal
 proceeds and the carrying amount of the asset are recognised as income
 or expense in the Statement of Profit and loss.
 
 2.4 METHOD OF DEPRECIATION AND AMORTIZATION :
 
 i) Depreciation, on tangible assets is calculated on written-down value
 basis over the estimated useful lives of the assets.
 
 ii) Effective 1st April 2014, the Company depreciates its fixed assets
 over the useful life in the manner prescribed in Schedule II of the
 Act, as against the earlier practice of depreciating at the rates
 prescribed in Schedule XIV of the Companies Act, 1956.
 
 iii) Cost of Goodwill and trademarks are amortized over the estimated
 useful lives of 25 and 10 years
 
 iv) Depreciation on additions to assets or on sale/discardment of
 assets is calculated pro rata from the month of such addition or upto
 the month of such sale/discardment, as the case may be.
 
 2.5 LEASE :
 
 Where the lessors effectively retain substantially all the risks and
 benefits of ownership of the leased item the lease is classified as
 operating leases. Operating lease payments are recognized as an expense
 in the statement of profit and loss on a straight-line basis over the
 lease term. Initial direct costs such as legal costs, brokerage costs,
 etc. are recognized immediately in the statement of profit and loss.
 
 2.6 BORROWING COSTS :
 
 Interest and other borrowing costs attributable to qualifying assets
 are capitalized. Other interest and borrowing costs are charged to
 revenue.
 
 2.7 GOVERNMENT GRANTS :
 
 During the year, no grants and subsidies has been received from the
 Government. Grants and subsidies from the government if any, received
 against specific fixed assets are adjusted to the cost of the assets
 and those in the nature of promoter''s contribution are credited to
 Capital Reserve. Revenue Grants are recognized in the Profit and Loss
 account in accordance with the related scheme and in the period in
 which these are accrued.
 
 2.8 INVESTMENTS :
 
 Investments that are readily realizable and are intended to be held for
 not more than one year from the date, on which such investments are
 made, are classified as current investments. All other investments are
 classified as long-term investments. Current investments are carried at
 lower of cost or fair value. Long-term investments are carried at cost.
 However, provision for diminution in value is made to recognize a
 decline other than temporary in the value of the investments, such
 reduction being determined and made for each investment individually.
 
 2.9 VALUATION OF INVENTORIES :
 
 Inventories consist of Raw materials, components, stores and spares,
 Finished Goods. Raw materials, components, spares are stated at cost,
 while finished goods are ''at cost or net realizable value, whichever is
 lower''. Cost comprises all cost of purchase, cost of conversion and
 other costs incurred in bringing the inventories to their present
 location and condition. Cost of raw materials, components and stores
 and spares is determined on a weighted average basis.  Cost of finished
 goods includes direct materials and labour and a proportion of
 manufacturing overheads based on normal operating capacity. Due
 allowance is estimated and made for defective and obsolete items,
 wherever necessary, based on the past experience of the Company.
 
 2.10 REVENUE RECOGNITION :
 
 i) Revenues/incomes and Costs/Expenditures are generally accounted on
 accrual, as they are earned or incurred.
 
 ii) Sale of Goods is recognised on transfer of significant risks and
 rewards of ownership which is generally on the dispatch of the goods
 and there is no uncertainty regarding the collectability of the amount.
 
 2.11 STATUTORY AND OTHER TAXES :
 
 Excise duty/Service tax is not applicable to the company. Sales
 tax/Value Added tax paid is set-off against the collection and in case
 of payment of earlier years; the same is debited to Profit and Loss
 account.
 
 2.12 FOREIGN cuRRENcY TRANSIATIONS :
 
 i) All transactions in foreign currency, are recorded at the rates of
 exchange prevailing on the dates when the relevant transactions take
 place
 
 ii) Monetary items in form of current assets and current liabilities in
 foreign currency, outstanding at the close of the year are converted in
 Indian Currency at the appropriate rates of exchange prevailing on the
 date of the Balance Sheet.
 
 2.13 employee BENEFITS :
 
 The company at present does not have any retirement benefit for the
 employees concerned and the staff costs are accounted as period costs.
 
 2.14 TAXATION :
 
 Income-tax expense comprises current and deferred tax charge or credit.
 Provision for current tax is made on the basis of the assessable income
 at the tax rate applicable to the relevant assessment year. The
 deferred tax asset and deferred tax liability is calculated by applying
 the tax rate and the tax laws that have been enacted or substantively
 enacted at the reporting date. In situations where the company has
 unabsorbed depreciation or carry forward tax losses, all deferred tax
 assets are recognized only if there is virtual certainty supported by
 convincing evidence that they can be realized against future taxable
 profits. At each balance sheet date, the carrying amounts of deferred
 tax assets are reviewed to reassure realization. Minimum alternate tax
 credit (MAT credit) is recognized as an asset only when and to the
 extent there is convincing evidence that the company will pay normal
 tax during the specified period. Such asset is reviewed at each Balance
 Sheet date and the Carrying amount of the MAT credit asset is written
 down to the extent there is no longer a convincing evidence to the
 effect that the Company will pay normal income tax during the specified
 period.
 
 2.15 IMPAIRMENT OF ASSETS :
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal/external
 factors. An asset is impaired when the carrying amount of the asset
 exceeds the recoverable amount. An impairment loss is charged to the
 Statement of Profit and Loss in the year in which an asset is
 identified as impaired. An impairment loss recognised in prior
 accounting periods is reversed if there has been change in the estimate
 of the recoverable amount.
 
 2.16 Segment REPoRTING :
 
 At present the company deals only in single segment of household
 cleaning items, hence the company''s operating businesses are organized
 and managed accordingly and no further segment identification is done
 and no such accounting policies in respect to disclosures of the same.
 The company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the company as a whole.
 
 2.17 Earnings Per Share :
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting attributable taxes) by the weighted average number of equity
 shares outstanding during the period. The weighted average number of
 equity shares outstanding during the period is adjusted for events if
 any such as bonus issue, bonus element in a rights issue, share split,
 and reverse share split (consolidation of shares) that have changed the
 number of equity shares outstanding, without a corresponding change in
 resources.  For the purpose of calculating Diluted earnings per share,
 the net profit or loss for the period attributable to equity
 shareholders and the weighted average number of shares outstanding
 during the period are adjusted for the effects of all dilutive
 potential equity shares.
 
 2.18 PRoVISioNS, coNTINGENT LIABILITIES AND coNTIGENT ASSETS :
 
 Provisions: Provisions are recognized when there is a present
 obligation as a result of past event, it is probable that an outflow of
 resources embodying economic benefits will be required to settle the
 obligation and there is a reliable estimate of the amount of the
 obligation. Provisions are measured at best estimate of the expenditure
 required to settle the obligation at the balance sheet date and are not
 discounted to its present value.
 
 Contingent Liabilities: Contingent liability are disclosed when there
 is a possible obligation arising from past events, the existence which
 will be confirmed by the occurrence or non-occurrence of one or more
 uncertain future events not within the control of the company or a
 present obligation that arises from past events where it is either not
 probable that an outflow of resources will be required to settle or a
 reliable estimated of the amount cannot be made.
 
 Contingent Assets: Contingent Assets are neither recognised nor
 disclosed in the financial statements.
 
 2.19 cash and cash equivalents
 
 Cash and cash equivalents for the purposes of cash flow statement
 comprise cash at bank and in hand and short- term investments with an
 original maturity of three months or less, if any.
 
 
Source : Dion Global Solutions Limited
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