| 6. SIGNIFICANT ACCOUNTING
POLICIES AND NOTES TO ACCOUNTS |
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A. ACCOUNTING POLICIES
The Accounts of the company are prepared on going concern
assumption under the historical cost convention and on
accrual basis, in accordance with the applicable Accounting
Standards except where otherwise stated. |
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(a) FIXED ASSETS:
Fixed Assets are valued at cost (net of CENVAT) less depreciation.
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(b) DEPRECIATION:
Depreciation on Fixed Assets is provided for at the rate
prevalent at the time of their acquisition, as per rates
prescribed in Schedule XIV of the Companies Act, 1956.
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| (c) INVENTORIES
: Inventories are valued as under: |
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| All items of inventories are
valued at lower of cost and net realizable value except
for scrap which is considered at estimated net realizable
value. |
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| Cost includes all costs of
purchase, conversion and other costs incurred in bringing
the inventories to their present location and condition. |
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| The basis of determining cost
for different categories of inventories: |
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| a) Stores,
Raw materials and Packing Materials – Weighted average
basis. |
| b) Work in Progress
and Finished goods- Material cost and appropriate share
of production overhead. |
| c) Purchased goods –
purchase price. |
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| (d) CONTINGENT
LIABILITIES: |
| Where there is reliable estimable
amount of present obligation that warrant to be settled
as a result of past event with probable outflow of resources
embodying economic benefit, provision is made in the account
therefor. |
| Other contingent liabilities
are disclosed in notes to accounts. |
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| (e) MISCELLANEOUS EXPENDITURE:
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| Preliminary expenses are written
off in the year in which they are incurred. |
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| ( f) REVENUE RECOGNITION
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| 1) Sales and services
are accounted for when the sale of goods or services are
completed on accrual basis. Sales are net of Sales tax
/ VAT but gross of excise duty. |
| 2) All items of income
and expenses are recognized on accrual basis unless stated
otherwise. |
| 3) Export benefits are
accounted for on the basis of realization. |
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| NICCO CABLES
LIMITED |
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| 6B. NOTES TO ACCOUNTS |
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| 1. Information on Related
parties pursuant to AS 18 issued by ICAI |
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| Related Party disclosures:
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I)
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Related Parties: |
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Nicco Engineering
Services Ltd. (Holding Company) |
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Nicco Corporation Limited (Ultimate
Holding Company) |
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| The Following transactions
were carried out with related parties in the ordinary
course of business. |
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Nicco Engineering
Services Ltd
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Holding Company
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Holding Company
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31.03.10
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31.03.09
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Equity Shares
issued to holding company and nominees.
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Rs 10,00,000.00
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Rs.10,00,000.00
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| Key Management Personnel: |
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| 1. Mr. Rajive Kaul Director |
| 2. Mr. Udayan Ray Director |
| 3. Mr. Sanjoy Bhattacharya
Director |
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| 2. Since the company
is yet to commence business in commercial term recognition
of deferred tax does not arise. |
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| 3. Previous Year
figures have been regrouped wherever necessary. |
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As per our attached report of even
date
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FOR G.BASU & CO.
Chartered Accountants
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On behalf of the Board of Directors
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Udayan Ray
Director
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Sanjay Bhattacharya
Director
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(Manoj Kumar Das)
(Partner)
Membership Number: 013783
Basu House,3 Chowringee Approach
Kolkata: 700 072
Kolkata, The 23rd day of April, 2010 |
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