Majestic Industries Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

1. Accounting Concepts

i) The accounts have been prepared on historical cost convention.

ii) The Company follows the Mercantile System of Accounting and recognizes income & expenditure on accrual basis. However, indeterminate / unsettled income / expenditure is accounted for as & when determined /settled.

iii) Accounting policies not specifically referred herein to the contrary are consistent with generally accepted accounting principles in India.

2. Fixed Assets

i) Fixed Assets are stated at cost of acquisition/construction (net of cenvat) less accumulated depreciation and impairment loss, if any.

ii) All costs including freight, insurance and installation charges for bringing the asset to its working condition for use and financing cost till commencement of commercial production are capitalized.

3. Depreciation

Depreciation is provided on written down value method, at the rates specified in Schedule-XIV to the Companies Act, 1956, pro-rata on monthly balances.

4. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceed its recoverable value. An impairment loss is charged to the Profit and Loss Account in_the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount.

5. Valuation of Inventories

The Company did not carry any inventories during-the year under consideration.

6. Revenue Recognition

Revenue is recognized only when the sale of goods or rendering of services under a contract is completed. Sales / Services, if any, are reflected net of Sales Tax / Value Added Tax / Service Tax and inclusive of Excise Duty, wherever applicable.

7. Retirement Benefits

Provision for Gratuity has been made as per the applicable provisions of Payment of Gratuity Act. In accordance with the management, leave encashment, if any accrued & due, is paid within the financial year and accounted for accordingly and provisions of Employees State Insurance / Provident Fund Acts have not been attracted during the year.