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Accounting Policies of Arihant Tournesol Ltd. Company

Mar 31, 2011

I) SYSTEM OF ACCOUNTING

The company follows accrual system of accounting for ail items of costs and revenue.

ii) INFLATION

Assets and Liabilities are shown at historical costs and no adjustments are made for changes in purchasing power of money.

iii) FIXED ASSETS

Fixed Assets are recorded at cost of acquisition or construction plus appropriate share of pre-operative expenses.

iv) DEPRECIATION

Depreciation on fixed assets has been charged on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

v) REVENUE RECOGNITION

Revenue in respect of insurance / other claims, interest, commission etc. is recognised only when it is reasonably certain that the ultimate confection will be made.

vi) GRATUITY

No provision has been made in accounts for gratuity, as the same will be accounted on cash basis.

vii) TAXES ON INCOME

No provision for deferred tax asset is made on account of the business loss and unabsorbed depreciation carried forward under the Income Tax Act. The deferred tax assets has not been recognised as there is no reasonable certainty of sufficient taxable income being available against which such deferred tax assets can be realized.


Mar 31, 2010

I) SYSTEM OF ACCOUNTING

The compnay follows accrual system of accounting for ail items of costs and revenue.

ii) INFLATION

Assets and Liabilities are shown at historical costs and no adjustments are made for changes in purchasing power of money.

iii) FIXED ASSETS

Fixed Assets are recorded at cost of acquisition or construction plus appropriate share of pre-operative expenses.

iv) DEPRECIATION

Depreciation on fixed assets has been charged on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

v) REVENUE RECOGNITION

Revenue in respect of insurance / other claims, interest, commission etc. is recognised only when it is reasonably certain that the ultimate coftection will be made.

vi) GRATUITY

No provision has been made in accounts for gratuity, as the same will be accounted on cash basis.

vii) TAXES ON INCOME

No provision for deferred tax asset is made on account of the business loss and unabsorbed depreciation carried forward under the Income Tax Act. The deferred tax assets has not been recognised as there is no reasonable certainty of sufficient taxable income being available against which such deferred tax assets can be realized.

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