Accounting Policies of Naina Semiconductor Ltd. Company

Mar 31, 2014

1. Fixed Assets Depreciation has been provided on straight-line basis in accordance with and at the rates prescribed in Schedule XIV to the Companies Act, 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time on all the assets. Depreciation on assets whose actual cost do not exceed Rs. 5000/- is provided at the rate of 100%.

2. Depreci ation Depreciation on Assets is provided on Straight Line Method at the rate prescribed in the Schedule XIV of the Companies Act,1956 by applying revised rate in terms of Notification dated 16.12.1993. Depreciation on addition to assets is charged on pro-rata basis. During this year no depreciation was charged on the fixed assets lying in Haldawni factory which is closed & not in use since 2001 & due to this the profit was overstated by Rs 10.12 Lacs.

3. Revenue Recognition Sales of products and scrap are recognized on the basis of dispatch to Customers.

4. Inventories

I) Raw material inventory is valued at cost. Cost for the purpose of valuation are ascertained under first in first out basis.

II) Work in progress inventory is valued at cost.

III) Finished goods inventory is valued at the lower of cost or net realizable value.

5. Gratuity & Excise Duty Provision for Gratuity has been made during the year on accrual basis. Excise duty has been accounted on the basis of both payment made in respect of goods cleared and also provision made for finished goods lying in factory premises.

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Mar 31, 2011

1. Fixed Assets

Depreciation has been provided on straight-line basis in accordance with and at the rates prescribed in Schedule XIV to the Companies Act, 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time on all the assets. Depreciation on assets whose actual cost do not exceed Rs. 5000/- is provided at the rate of 100%.

2. Depreciation

Depreciation on Assets is provided on Straight Line Method at the rate prescribed in the Schedule XIV of the Companies Act,1956 by applying revised rate in terms of Notification dated 16.12.1993. Depreciation on addition to assets is charged on pro-rata basis.

3. Revenue Recognition

Sales of products and scrap are recognised on the basis of despatch to Customers.

4. Inventories

I) Raw material inventory is valued at cost. Cost for the purpose of valuation are ascertained under first in first out basis.

II) Work in progress inventory is valued at cost.

III) Finished goods inventory is valued at the lower of cost or net realisable value.

5. Gratuity & Excise Duty

Provision for Gratuity has been made during the year on accrual basis. Excise duty has been accounted on the basis of both payment made in respect of goods cleared and also provision made for finished goods lying in factory premises.

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Mar 31, 2010

1. Fixed Assets

Depreciation has been provided on straight-line basis in accordance with and at the rates prescribed in Schedule XIV to the Companies Act, 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time on all the assets. Depreciation on assets whose actual cost do not exceed Rs. 5000/- is provided at the rate of 100%.

2. Depreciation

Depreciation on Assets is provided on Straight Line Method at the rate prescribed in the Schedule XIV of the Companies Act.1956 by applying revised rate in terms of Motification dated 16.12.1993. Depreciation on addition to assets is charged on pro-rata basis.

3. Revenue Recognition

Sales of products and scrap are recognised on the basis of despatch to Customers.

4. Inventories

I) Raw material inventory is valued at cost. Cost for the purpose of valuation are ascertained under first in first out basis.

II) Work in progress inventory is valued at cost.

III) Finished goods inventory is valued at the lower of cost or net realisable value.

5. Gratuity & Excise Duty

Provision for Gratuity has been made during the year on accrual basis. Excise duty has been accounted on the basis of both payment made in respect of goods cleared and also provision made for finished goods lying in factory premises.