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Accounting Policies of Alka India Ltd. Company

Sep 30, 2014

(a) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended September 30, 2014, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(c) Tangible fixed assets

Fixed assets are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and

maintenance expenditure and cost of replacing parts, are changed to the statement of profit and loss for the period during which such expenses are incurred.

(d) Depreciation Tangible fixed assets.

Depreciation on fixed assets is calculated on a straight line method based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.

Rates (WDV)

Furniture and fixtures 6.33%

Computers 16.21%

Vehicles 9.50%

Residential House 1.63 %

(e) Leases

Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased item, are 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.

(f) Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(g) Investments

Investments, which are readily realizable and 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. Investments are not physically verified by us.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties and finance charges of brokers, if an investment is acquired, or partly acquired, by the issue of shares or other securities.

Company has not making any provision for dimluatation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same because it is temporary in nature

(h) Inventories

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(i) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured as per AS-9 Revenue recognitions issued by ICAI.

(j) Accounting for taxes on income

Tax expense comprises of current and deferred taxes. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

(k) Retirement and other employee benefits

Company doesn''t have any employee whose completed 5 year of continues services for provision for gratuity and other benefits. And Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employee state insurance are charged to the profit and loss account if any.

(l) Provisions

A provision is recognized when the company has 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 a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

(m) Contingent liabilities

Provisions are recognized when the Company has present legal or constructive obligation, a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Contingent liabilities, if any, are disclosed by way of notes to the Balance Sheet


Sep 30, 2013

1. Background

Basis of the preparations of financial statements are prepared accordance with "GAAP "un- der the historical cost conversion on the accrual basis. In accordance with the requirements of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and the provisions of the Companies Act, 1956.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

2.1 Summary of significant accounting policies

(a) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended 30 September 2013, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and pre- sentation of its financial statements. The adoption of revised Schedule VI does not im- pact recognition and measurement principles followed for preparation of financial state- ments. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in ac- cordance with the requirements applicable in the current year.

(b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(c) Tangible fixed assets

Fixed assets are stated at cost net of accumulated depreciation and accumulated impair- ment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condi- tion for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to- day repair and maintenance expenditure and cost of replacing parts, are changed to the statement of profit and loss for the period during which such expenses are incurred.

(d) Depreciation Tangible fixed assets.

Depreciation on fixed assets is calculated on a straight line method based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.

Rates (SLM) Furniture and fixtures 6.33%

Computers 16.21%

Vehicles 9.50%

Residential House 1.63%

Office Equipment 6.33%

(e) Leases

Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease pay- ments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

(f) Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign cur- rency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(g) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current invest- ments. All other investments are classified as long-term investments. Investments are not physically verified by us.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties and finance charges of brokers, if an investment is acquired, or partly acquired, by the issue of shares or other securities.

Company has not making any provision for dimulatation in the value of shares and securities. And as per management opinion there is no requirements to make any provi- sions for the same because it is temporary in nature.

(h) Inventories

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(i) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured as per AS-9 Revenue recognitions issued by ICAI.

(j) Accounting for taxes on income

Tax expense comprises of current and deferred taxes. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and re- versal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write- down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

(k) Retirement and other employee benefits

Company doesn''t have any employee who completed 5 year of continous services for provision for gratuity and other benefits. And Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employee state insurance are charged to the profit and loss account if any.

(l) Provisions

A provision is recognized when the company has 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 a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These esti- mates are reviewed at each reporting date and adjusted to reflect the current best esti- mates.

Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

(m) Contingent liabilities

Provisions are recognized when the Company has present legal or constructive obliga- tion, a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Contingent liabilities, if any, are disclosed by way of notes to the Bal- ance Sheet.


Sep 30, 2012

(a) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended 30 September 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(c) Tangible fixed assets

Fixed assets are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are changed to the statement of profit and loss for the period during which such expenses are incurred.

(d) Depreciation Tangible fixed assets.

Depreciation on fixed assets is calculated on a straight line method based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.

(e) Leases

Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased item, are 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.

(f) Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(g) Investments

Investments, which are readily realizable and 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.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities.

Company has not making any provision for dimulation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same because it is temporary in nature

(h) Inventories

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(i) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. As per AS-9 Revenue recognitions issued by ICAI.

(j) Accounting for taxes on income

Tax expense comprises of current and deferred taxes. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

(k) Retirement and other employee benefits

Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employee state insurance are charged to the profit and loss account.

(l) Provisions

A provision is recognized when the company has 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 a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

(m) Contingent liabilities

Provisions are recognized when the Company has present legal or constructive obligation, a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Contingent liabilities, if any, are disclosed by way of notes to the Balance Sheet


Sep 30, 2011

(a) BASIS OF ACCOUNTING

Basis of the preparations of financial statements are prepared accordance with "GAAP " under the historical cost conversion on the accrual basis. In accordance with the requirements of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and the provisions of the Companies Act, 1956.

(b) FIXED ASSETS AND DEPRECIATION.

Fixed assets are stated at cost inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation.

Depreciation is provided on the SLM method at the rates specified in the Schedule XIV to the Companies Act, 1956.

Depreciation is provided on pro-rata basis on the additions/ deductions, if any.

(c) INVENTORIES.

Stock - In - Trade is valued at cost or realizable value whichever is lower.

(d) INVESTMENT.

I. Company valued its investments at Cost at the end of the year but company not diffracted his investments into long term investments to current investments.

II. Company has not making any provision for dimluatation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same because it is temporary in nature.

(e) MISCELLANEOUS EXPENDITURE.

Preliminary Expenses are being written off over a period of Ten Years.

(f) Employee Benefits.

i. Encashment of leave is accounted in the year in which option of encashment is exercised by employees.

ii. Liability for Gratuity will be provided as when accrued.

(g) REVENUE RECOGNITION.

Expenses and income considered payable and receivable respectively are accounted on accrual basis except liability for Leave encashment, if any, which shall be accounted for as and when paid.

(h) TAXES ON INCOME.

Current tax, if any, is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Sep 30, 2010

(a) BASIS OF ACCOUNTING.

Basis of the preparations of financial statements are prepared accordance with "GAAP " under the historical cost conversion on the accrual basis. In accordance with the requirements of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and the provisions of the Companies Act, 1956.

(b) FIXED ASSETS AND DEPRECIATION.

Fixed assets are stated at cost inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation.

Depreciation is provided on the SLM method at the rates specified in the Schedule XIV to the Companies Act, 1956.

Depreciation is provided on pro-rata basis on the additions/ deductions, if any.

(c) INVENTORIES.

Stock - In - Trade is valued at cost or realizable value whichever is lower.

(d) INVESTMENT.

I. Company valued its investments at Cost at the end of the year but company not diffracted his investments into long term investments to current investments.

II. Company has not making any provision for dimluatation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same.

(e) MISCELLANEOUS EXPENDITURE.

Preliminary Expenses are being written off over a period of Ten Years.

(f) Employee Benefits.

i. Encashment of leave is accounted in the year in which option of encashment is exercised by employees.

ii. Liability for Gratuity will be provided as when accrued.

(g) REVENUE RECOGNITION.

Expenses and income considered payable and receivable respectively are accounted on accrual basis except liability for Leave encashment, if any, which shall be accounted for as and when paid.

(h) TAXES ON INCOME.

Current tax, if any, is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Sep 30, 2009

(a) BASIS OF ACCOUNTING.

Basis of the preparations of financial statements arc prepared accordance with "GAAP " under the historical cost conversion on the accrual basis. In accordance with the requirements of the Companies Act, 1956. Accounting policies not referred to otherwise arc consistent with generally accepted accounting principles and the provisions of the Companies Act, 1956.

(b) FIXED ASSETS AND DEPRECIATION.

(i) Fixed assets arc stated at cost inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation.

(ii) Depreciation is provided on the SLM method at the rates specified in the Schedule XIV to the Companies Act, 1956.

(iii) Depreciation is provided on pro-rata basis on the additions/ deductions, if any.

(iv) Company sale its land and building in last year but not booked at the same lime due to possession of the assets so during the year company booked same as sale of assets. And loss booked as prior period items during the year.

(c) INVENTORIES.

Stock -In - Trade is valued at cost or realizable value whichever is lower.

(d) INVESTMENT.

I. Company valued its investments at Cost at the end of the year but company not diffracted his investments into long term investments to current investments. II. Company has not making any provision for dimluatation in the value of shares and securities. And whole the as per management opinion there is no requirements to make any provisions for the same. III. Some investments of the company are stated a market value at the end of the last year so this year we take them at cost and difference arise due to same accounting policy for all investments arc below the line item during the year.

(e) MISCELLANEOUS EXPENDITURE.

Preliminary Expenses are being written off over a period of Ten Years.

Employee Benefits.

i. Encashment of leave is accounted in the year in which option of encashment is exercised by employees.

ii. Liability for Gratuity will be provided as when accrued.

(g) REVENUE RECOGNITION,

Expenses and income considered payable and receivable respectively are accounted on accrual basis except liability for Leave encashment, if any, which shall be accounted for as and when paid.

(h) TAXES ON INCOME

Current tax, if any, is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on liming difference, being the difference between taxable income and accounting income that originate in one period and arc capable of reversal in one or more subsequent periods.

 
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