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Accounting Policies of Binani Industries Ltd. Company

Mar 31, 2016

1 CORPORATE INFORMATION

Binani Industries Limited is a public limited company (herein after called ''Company'') domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is listed on the Bombay Stock Exchange(BSE), National Stock Exchange(NSE) and the Calcutta Stock Exchange (CSE).

2 SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Companies has prepared these financial statements to comply in all material respects with the Accounting Standards specified under section 133 of the Companies Act 2013 (''the 2013 Act'') read with Rule 7 of the Companies (Accounts) Rules 2014. The Financials Statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financials statements are consistent with those of previous year.

All Assets and Liabilities have been classified as Current or Non-Current as per the Group''s normal operating cycle and other criteria set out in the Revised Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in Cash and Cash Equivalents, the Group has ascertained its operating cycle as up to twelve months for the purpose of Current & Non-Current classification of Assets and Liabilities.

USE OF ESTIMATES

The preparation of the financial statements, in conformity with the generally accepted accounting principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainties about these assumptions and estimates could result in the outcomes requiring adjustment to the carrying amount of assets or liabilities in future periods.

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. Income is recognized on accrual basis except when there is significant uncertainty.

The method of recognizing the revenues and costs depends on the nature of the services rendered:

Income from Services

a) Management Services Fees and Royalty Income are recognized on accrual basis (net of Service Tax).

b) The Company recognizes revenue when the significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured.

c) Sale of Shares and Securities are recognized on the trade dates.

Income from Trading

Sale of Goods recognized on transfer of significant risks and rewards of ownership which is generally on the date of dispatch/ bill of lading.

Interest Income

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Sale of Investments

Income from sale of investments is recognized on transfer of underlying instruments.

Dividend Income

Income from Dividend is recognized when the right to receive payment is established.

FIXED ASSETS

Fixed Assets are stated at cost, net of Cenvat less accumulated depreciation and impairment loss (if any). Cost includes trial run and stabilization expenses, interest, finance costs and incidental expenses up to the date of capitalization less specific grants received, if any. An Intangible Asset is recognized when it is probable that the future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably measured. Intangible assets are stated at cost of acquisition less accumulated amortization and impairment losses, if any.

DEPRECIATION AND AMORTISATION

Depreciation on Plant and Machinery (except office equipments and transport equipment) is provided on Straight Line Method on the basis of the useful life in the manner prescribed as per Schedule II of The Companies Act, 2013.

Depreciation on other Fixed Assets, Office Equipments and Transport Equipments is provided on Written Down Value Method on the basis of the useful life in the manner prescribed as per Schedule II of The Companies Act, 2013.

Intangible Assets are amortized on a straight line basis over the estimated useful economic life. Expenditure on major Computer Software is amortized over the period of expected benefit not exceeding five years.

IMPAIRMENT OF FIXED ASSETS

At the end of each reporting period, the Company determines whether a provision should be made for impairment loss on assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on “Impairment of Assets" issued by the ICAI. An impairment loss is charged to the Statement of Profit and Loss in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in the earlier accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date of investment made are classified as Current Investments. All other investments are classified as Non-Current Investments. Current Investments are carried at lower of cost or fair value determined on an individual investment basis. Hitherto, Non-Current Investments were carried at cost, however pursuant to a Scheme of Amalgamation approved by the Hon''ble High Court of Calcutta, from 31st March 2014 onwards, the Company shall be stating its Non-Current Investments at their fair value and classify the same as "Investments available for sale as financial assets". Provision is made to recognize any diminution other than temporary in the value of such investments.

CASH & CASH EQUIVALENTS

Cash & Cash Equivalent for the purpose of Cash Flow Statement comprise Cash at Bank and in Hand and Short-Term Investments with an original maturity of three months or less.

LEASING BUSINESS

Lease rentals are accounted for as revenue when they contractually accrue. The corresponding assets are depreciated over the life prescribed under Schedule II of the Companies Act, 2013. In the year of addition or disposal of any assets, the depreciation is charged on pro-rata basis in proportion to the period of its ownership.

ASSETS TAKEN ON LEASE

Operating lease payments are recognized as expenditure in the Statement of Profit and Loss on a straight line basis, representative of the time pattern of benefits received from the use of the assets taken on lease.

INVENTORIES

Share and Securities are valued at lower of cost or net realizable value . Cost of inventories is ascertained on ''Weighted Average Method'' basis. The costs incurred in bringing the inventories to their present location and condition forms a part of Cost of inventories.

Traded Goods have been valued at lower of cost and net realizable value. Direct Cost and attributable overheads forms a part of cost of Traded Goods.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of each transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognized in the Statement of Profit and Loss. In case of forward contracts (non speculative), the premium / discount are dealt with in the Statement of Profit and Loss over the period of contracts.

Exchange differences arising on long term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Item Translation Difference Account" and amortized over the remaining life of the concerned Monetary item.

Exchange differences arising on a monetary item, that in substance forms part of the Company''s net investment in a non-integral foreign operation are accumulated in a "Foreign Currency Translation Reserve Account" until the disposal of the net investment, at which time these would be transferred to the Statement of Profit and Loss.

EMPLOYEE BENEFITS

i) Short Term Employee Benefits - All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employees render the related services.

ii) Post Employment/Retirement Benefits - Defined Contribution Plans such as Provident Fund etc. are charged to the Statement of Profit and Loss, as incurred.

Defined Benefit Obligation Plans - The present value of the obligation under such plans, is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss . In case of gratuity, which is funded with the Life Insurance Corporation of India, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on net basis.

EARNINGS PER SHARE

Basic Earning per Share are calculated by dividing Net Profit After Tax attributable to Equity Shareholders by the weighted average number of Equity Shares outstanding during the Year. The Company has not issued any potential dilutive Equity Shares, and accordingly the basic and diluted Earnings Per Share are the same.

BORROWING COSTS

Borrowing costs directly attributable to acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset. Other borrowing costs are recognized as expenses in the period in which they are incurred.

Borrowing costs directly attributable to the construction or production of qualifying assets are capitalized as part of the cost.

SEGMENT REPORTING Identification of Segments

The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

Allocation of Common Costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Transactions between segments are primarily for materials which are transferred at market determined prices and common costs are apportioned on a reasonable basis.

Unallocated Items

The Corporate and Other segment includes general corporate income and expense items which are not directly identifiable to any segment and, therefore, not allocated to any business segment.

INCOME TAX

Income Tax is accounted in accordance with AS-22 ''Accounting for taxes on income'', issued under Accounting Standards Rules 2006, which includes current tax and deferred tax. Deferred income tax reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred Tax Assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.


Mar 31, 2015

1 CORPORATE INFORMATION

Binani Industries Limited is a public limited company (herein after called 'Company') domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is listed on the Bombay Stock Exchange(BSE), National Stock Exchange(NSE) and the Calcutta Stock Exchange (CSE).

BASIS OF ACCOUNTING

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Companies has prepared these financial statements to comply in all material respects with the Accounting Standards specified under section 133 of the Companies Act 2013 (' the 2013 Act") read with Rule 7 of the Companies ( Accounts) Rules 2014. 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.

All assets and liabilities have been classified as current or non-current as per the Group's normal operating cycle and other criteria set out in the Revised Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as up to twelve months for the purpose of current - non-current classification of assets and liabilities.

USE OF ESTIMATES

The preparation of the financial statements, in conformity with the generally accepted accounting principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainties about these assumptions and estimates could result in the outcomes requiring adjustment to the carrying amount of assets or liabilities in future periods.

REVENUE RECOGNITION

Income from Services

Management Services fees and royalty income are recognised on accrual basis (net of Service Tax).

Interest income

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Sale of investments

Income from sale of investments is recognised on transfer of underlying instruments.

Dividend income

Income from Dividend is recognised when the right to receive payment is established.

FIXED ASSETS

Fixed Assets are stated at cost, net of accumulated depreciation / amortization and accumulated impairment loss, if any. Interest and Finance costs, if any in respect of loan for financing Fixed Assets, are capitalised till the date the assets are ready for use. However tangible assets having individual value below Rs. 5,000/- are depreciated @ 100% except mobile phones, which are charged to revenue, considering their useful life to be less than one year. Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits arising from the existing assets beyond its previously assessed standard of performance.

DEPRECIATION AND AMORTISATION

Depreciation on plant and machinery (except office equipments and transport equipment) is provided on Straight Line Method on the basis of the useful life in the manner prescribed as per Schedule II of The Companies Act, 2013.

Depreciation on other fixed assets, office equipments and transport equipments is provided on Written Down Value Method on the basis of the useful life in the manner prescribed as per Schedule II of The Companies Act, 2013.

Intangible assets are amortised on a straight line basis over the estimated useful economic life. Expenditure on major computer software is amortised over the period of expected benefit not exceeding fve years.

IMPAIRMENT OF FIXED ASSETS

At the end of each reporting period, the Company determines whether a provision should be made for impairment loss on assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the ICAI. An impairment loss is charged to the Statement of Profit and Loss in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the earlier accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

INVESTMENTS

Investments that are readily realisable and intended to be held for not more than a year from the date of investment made are classified as Current investments. All other investments are classified as Non Current investments. Current investments are carried at lower of cost or fair value determined on an individual investment basis. Hitherto, non current investments were carried at cost, however pursuant to a Scheme of Amalgamation approved by the Hon'ble High Court of Calcutta, from 31st March 2014 onwards, the Company shall be stating its non current investments at their fair value and classify the same as "investments available for sale as financial assets". Provision is made to recognize any diminution other than temporary in the value of such investments.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of each transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognized in the Statement of Profit and Loss. In case of forward contracts (non speculative), the premium / discount are dealt with in the Statement of Profit and Loss over the period of contracts.

Exchange differences arising on long term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Item Translation Difference Account" and amortised over the remaining life of the concerned Monetary item.

Exchange differences arising on a monetary item, that in substance forms part of the Company's net investment in a non-integral foreign operation are accumulated in a "Foreign Currency Translation Reserve Account" until the disposal of the net investment, at which time these would be transferred to the Statement of Profit and Loss.

EMPLOYEE BENEFITS

i) Short Term Employee Benefits – All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employees render the related services.

ii) Post Employment/Retirement Benefits – Defined Contribution Plans such as Provident Fund etc. are charged to the Statement of Profit and Loss, as incurred.

Defined Benefit Obligation Plans – The present value of the obligation under such plans, is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss . In case of gratuity, which is funded with the Life Insurance Corporation of India, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on net basis.

BORROWING COSTS

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

INCOME TAX

Income tax is accounted in accordance with AS-22 'Accounting for taxes on income', issued under Accounting Standards Rules 2006, which includes current tax and deferred tax. Deferred income tax reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

CONTINGENT LIABILITY

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit is remote.


Mar 31, 2014

BASIS OF ACCOUNTING

The financial statements of the company have been prepared under the historical cost convention and on accrual basis in accordance with accounting principles generally accepted in India and in compliance with all material aspects of the Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 read with General Circular 15/2013 dated 13th September 2013, issued by the Ministry of Corporate Affairs, in respect of section 133 of the Companies Act, 2013.

All assets and liabilities have been classified as current or non-current as per the Group''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as upto twelve months for the purpose of current - non-current classification of assets and liabilities.

USE OF ESTIMATES

The preparation of the financial statements, in conformity with the generally accepted accounting principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainties about these assumptions and estimates could result in the outcomes requiring adjustment to the carrying amount of assets or liabilities in future periods.

REVENUE RECOGNITION

Income from Services

Management Services fees and royalty income are recognised on accrual basis (net of Service Tax).

Interest income

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Sale of investments

Income from sale of investments is recognised on transfer of underlying instruments.

Dividend income

Income from Dividend is recognised when the right to receive payment is established.

FIXED ASSETS

Fixed Assets are stated at cost, net of accumulated depreciation / amortization and accumulated impairment loss, if any. Interest and finance costs, if any in respect of loan for financing fixed assets, are capitalised till the date the assets are ready for use. However tangible assets having individual value below Rs. 5,000/- are depreciated 0 100% except mobile phones, which are charged to revenue, considering their useful life to be less than one year. Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits arising from the existing assets beyond its previously assessed standard of performance.

DEPRECIATION AND AMORTISATION

Depreciation on Plant and Machinery is provided on Straight Line Method (SLM) , at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 which includes Computers and Air Conditioners. Depreciation on other Fixed Assets, Office Equipments and Transport Equipments is provided on Written Down Value Method at the rates and in the manner prescribed as per Schedule XIV of the Companies Act, 1956.

Intangible assets are amortised on a straight line basis over the estimated useful economic life. Expenditure on major computer software is amortised over the period of expected benefit not exceeding five years.

IMPAIRMENT OF FIXED ASSETS

At the end of each reporting period, the Company determines whether a provision should be made for impairment loss on assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the ICAI. An impairment loss is charged to the Statement of Profit and Loss in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the earlier accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

INVESTMENTS

Investments that are readily realisable and intended to be held for not more than a year from the date of investment made are classified as Current investments. All other investments are classified as Non Current investments.Current investments are carried at lower of cost or fair value determined on an individual investment basis. Hitherto, non current investments were carried at cost, however pursuant to a Scheme of Amalgamation approved by the Hon''ble High Court of Calcutta, from 31st March 2014 onwards, the Company shall be stating its non current investments at their fair value and classify the same as "investments available for sale as financial assets". Provision is made to recognize any diminution other than temporary in the value of such investments.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of each transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognized in the Statement of Profit and Loss. In case of forward contracts (non speculative), the premium / discount are dealt with in the Statement of Profit and Loss over the period of contracts.

Exchange differences arising on long term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Item Translation Difference Account" and amortised over the remaining life of the concerned Monetary item.

Exchange differences arising on a monetary item, that in substance forms part of the Company''s net investment in a non-integral foreign operation are accumulated in a "Foreign Currency Translation Reserve Account" until the disposal of the net investment, at which time these would be transferred to the Statement of Profit and Loss.

EMPLOYEE BENEFITS

i) Short Term Employee Benefits - All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employees render the related services.

ii) Post Employment/Retirement Benefits - Defined Contribution Plans such as Provident Fund etc. are charged to the Statement of Profit and Loss, as incurred.

Defined Benefit Obligation Plans - The present value of the obligation under such plans, is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss . In case of gratuity, which is funded with the Life Insurance Corporation of India, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on net basis.

BORROWING COSTS

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

INCOME TAX

Income tax is accounted in accordance with AS-22 ''Accounting for taxes on income'', issued under Accounting Standards Rules 2006, which includes current tax and deferred tax. Deferred income tax reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

CONTINGENT LIABILITY

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit is remote .


Mar 31, 2013

BASIS OF ACCOUNTING

The fnancial statements of the Company have been prepared under the historical cost convention and on accrual basis in accordance with accounting principles generally accepted in India and in compliance with all material aspects of the Accounting Standards as notifed by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classifed as current or non-current as per the Group''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as upto twelve months for the purpose of current - non-current classifcation of assets and liabilities.

USE OF ESTIMATES

The preparation of the fnancial statements, in conformity with the generally accepted accounting principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the fnancial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainties about these assumptions and estimates could result in the outcomes requiring adjustment to the carrying amount of assets or liabilities in future periods.

REVENUE RECOGNITION

Income from Services

Management Services fees and royalty income are recognised on accrual basis (net of Service Tax).

Interest income

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Sale of investments

Income from sale of investments is recognised on transfer of underlying instruments.

Dividend income

Income from Dividend is recognised when the right to receive payment is established.

FIXED ASSETS

Fixed Assets are stated at cost, net of accumulated depreciation / amortization and accumulated impairment loss, if any. Interest and Finance costs, if any in respect of loan for fnancing Fixed Assets, are capitalised till the date the assets are ready for use. However tangible assets having individual value below Rs.5,000/- are depreciated @ 100% except mobile phones, which are charged to revenue, considering their useful life to be less than one year. Subsequent expenditure related to an item of fxed assets is added to its book value only if it increases the future benefts arising from the existing assets beyond its previously assessed standard of performance.

DEPRECIATION AND AMORTISATION

Depreciation on Plant and Machinery is provided on Straight Line Method (SLM) , at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 which includes Computers and Air Conditioners. Depreciation on other Fixed Assets, Offce Equipments and Transport Equipments is provided on Written Down Value Method at the rates and in the manner prescribed as per Schedule XIV of the Companies Act, 1956.

Intangible assets are amortised on a straight line basis over the estimated useful economic life. Expenditure on major computer software is amortised over the period of expected beneft not exceeding fve years.

IMPAIRMENT OF FIXED ASSETS

At the end of each reporting period, the Company determines whether a provision should be made for impairment loss on assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the ICAI. An impairment loss is charged to the Proft and Loss account in the period in which, an asset is identifed as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the earlier accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

INVESTMENTS

Investments classifed as long term investments are stated at cost. Provision is made to recognize any diminution other than temporary in the value of such investments. Current Investments are carried at lower of cost and fair value.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of each transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognized in the Statement of Proft and Loss. In case of forward contracts (non speculative), the premium / discount are dealt with in the Statement of Proft and Loss over the period of contracts.

Exchange differences arising on long term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Item Translation Difference Account" and amortised over the remaining life of the concerned Monetary item.

EMPLOYEE BENEFITS

i) Short Term Employee Benefts – All employee benefts payable within twelve months of rendering the service are recognized in the period in which the employees render the related services.

ii) Post Employment/Retirement Benefts – Defned Contribution Plans such as Provident Fund etc. are charged to the Statement of Proft and Loss, as incurred.

Defned Beneft Obligation Plans – The present value of the obligation under such plans, is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Proft and Loss . In case of gratuity, which is funded with the Life Insurance Corporation of India, the fair value of the plan assets is reduced from the gross obligation under the defned beneft plans, to recognize the obligation on net basis.

BORROWING COSTS

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

INCOME TAX

Income tax is accounted in accordance with AS-22 ''Accounting for taxes on income'', issued under Accounting Standards Rules 2006, which includes current tax and deferred tax. Deferred income tax refect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable certainty that suffcient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that suffcient future taxable income will be available to realise the same.

CONTINGENT LIABILITY

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outfow of resources embodying economic beneft will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to refect the current best estimates. A contingent liability is disclosed, unless the possibility of an outfow of resources embodying the economic beneft is remote.


Mar 31, 2012

PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENT

For the year ended March 31, 2012, the revised Schedule VI format as notified under the Companies Act 1956, has become applicable to the Company for preparation and presentation of its financial statements. The Company has therefore reclassified / regrouped the previous year figures in accordance with the requirements applicable for the current year.

USE OF ESTIMATES

The preparation of the financial statements, in conformity with the generally accepted accounting principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainties about these assumptions and estimates could result in the outcomes requiring adjustment to the carrying amount of assets or liabilities in future periods.

REVENUE RECOGNITION Income from Services

Management Services Fees and Royalty Income are recognized on accrual basis. The Company collects service tax on behalf of the government and, therefore, it is not an economic benefit flowing to the Company. Hence, it is excluded from revenue.

Interest income

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Sale of investment

Income from sale of long term investments is recognized on transfer of underlying instruments.

Dividend income

Income from Dividend is recognized when the right to receive payment is established.

TANGIBLE FIXED ASSETS

Tangible Fixed Assets are stated at cost net of accumulated depreciation and accumulated impairment loss, if any. Interest and Finance costs, if any in respect of loan for financing Fixed Assets, are capitalized till the date the assets are ready for use. However assets having individual value below Rs.5,000/- are depreciated @ 100% except mobile phones which are charged to revenue considering their useful life to be less than one year. Subsequent expenditure related to an item of tangible fixed assets is added to its book value only if it increases the future benefits arising from the existing assets beyond its previously assessed standard of performance.

DEPRECIATION AND AMORTISATION

Depreciation on Plant and Machinery is provided on Straight Line Method (SLM) , at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956, which includes Computer and Air Conditioners. Depreciation on other Fixed Assets, Office Equipments and Transport Equipments has been provided on Written Down Value Method at the rates and in the manner prescribed as per Schedule XIV of the Companies Act, 1956.

INTANGIBLE ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets are amortized on a straight line basis over the estimated useful economic life. Expenditure on major computer software is amortized over the period of expected benefit not exceeding five years.

IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS

At the end of each reporting period, the Company determines whether a provision should be made for impairment loss on tangible and intangible assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued under Accounting Standard Rules, 2006. An impairment loss is charged to the Statement of Profit and Loss in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in the prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

INVESTMENTS

Investments classified as long term investments are stated at cost. Provision is made to recognize any diminution other than temporary in the value of such investments. Current Investments are carried at lower of cost and fair value.

CASH AND CASH EQUIVALENTS

Cash and cash equivalent for the purpose of Cash Flow Statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of each transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognized in the Statement of Profit and Loss. In case of forward contracts, the exchange differences are dealt with in the Statement of Profit and Loss over the period of contracts.

Exchange differences arising on long term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Item Translation Difference Account" and amortized over the remaining life of the concerned monetary item.

EMPLOYEE BENEFITS

i) Short Term Employee Benefits - All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

ii) Post Employment/Retirement Benefits - Defined Contribution Plans such as Provident Fund etc, are charged to the Profit and Loss statement as incurred.

DEFINED BENEFIT OBLIGATION PLANS - i) The present value of the obligation under such plans, is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss. In case of gratuity, which is funded with the Life Insurance Corporation of India, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on net basis.

ii) Other Long Term Employee Benefits are recognized in the same manner as Defined Benefit Plans. (refer note 37)

BORROWING COSTS

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset. Other borrowing costs are recognized as expenses in the period in which they are incurred.

INCOME TAX

Income tax is accounted in accordance with AS-22 Accounting for taxes on income', issued under Accounting Standards Rules 2006, which includes current tax and deferred tax. Deferred income tax reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realize the same.

CONTINGENT LIABILITY

Contingent Liabilities are possible but not probable obligations as on Balance Sheet date, based on the available evidence. Provision is made in the accounts if it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation.


Mar 31, 2011

BASIS OF ACCOUNTING

The financial statements have been prepared on accrual basis and under the historical cost convention in accordance with accounting principles generally accepted in India and the provisions of the Companies Act, 1956.

USE OF ESTIMATES

The preparation of the financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known / materialise.

CASH & CASH EQUIVALENTS

Cash & cash equivalent for the purpose of Cash Flow Statement comprise cash at bank and current Accounts.

REVENUE RECOGNITION

Management Services fees are recognised on accrual basis. Income from Dividend is recognised when the right to receive payment is established. Income from sale of long term investments is recognised on transfer of shares. Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

FIXED ASSETS

Fixed Assets are stated at cost net of impairment loss, if any. Interest and Finance costs, if any in respect of loan for fnancing Fixed Assets, are capitalised till the date the assets are ready for use. However assets having individual value below Rs.5,000/- are depreciated @ 100% except mobile phones which are charged to revenue considering their useful life to be less than one year.

DEPRECIATION AND AMORTISATION

Depreciation on Plant and Machinery which include Computer and Air Conditioner is provided on Straight Line Method, at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

Depreciation on other Fixed Assets, office Equipments and Transport Equipments has been provided on Written Down Value Method at the rates and in the manner prescribed as per Schedule XIV of the Companies Act, 1956.

Expenditure on major computer sofitware is amortised over the period of expected benefit not exceeding fve years.

IMPAIRMENT OF ASSETS

At the end of each accounting period, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued under Accounting Standard Rules 2006. An impairment loss is charged to the Profit and Loss account in the period in which, an asset is identifed as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

INVESTMENTS

Long-term investments are stated at cost less provision for diminution in value, which is other than temporary.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of each transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognized in the profit and loss account. In case of forward contracts, the exchange differences are dealt with in the profit and loss account over the period of contracts.

EMPLOYEE BENEFIT

i) Short Term Employee Benefits – All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

ii ) Post Employment/Retirement Benefits – Defned Contribution Plans such as Provident Fund etc. are charged to the Profit and Loss Account as incurred.

Defned Benefit Obligation Plans – The present value of the obligation under such plans, is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. In case of gratuity, which is funded with the Life Insurance Corporation of India, the fair value of the plan assets is reduced from the gross obligation under the defned benefit plans, to recognize the obligation on net basis.

Employee Benefit in form of contribution to Provident Fund managed by a Trust set up by the Company is charged to Profit & Loss Account as and when the contribution is due. The defcit, if any, in the accumulated corpus of the Trust at the period end for which the Company is liable, is recognised as a provision in the Profit & Loss Account.

iii) Other Long Term Employee Benefits are recognized in the same manner as Defned Benefit Plans. (Refer Note 15)

BORROWING COSTS

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

INCOME TAX

Income tax is accounted in accordance with AS-22 ‘Accounting for taxes on income, issued under Accounting Standards Rules 2006, which includes current tax and deferred tax. Deferred income tax refect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable certainty that suffcient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that suffcient future taxable income will be available to realise the same.

CONTINGENT LIABILITY

These, if any, are disclosed in the notes on accounts. Provision is made in the accounts if it becomes probable that an out flow of resources embodying economic benefits will be required to settle the obligation.


Mar 31, 2010

BASIS OF ACCOUNTING

The financial statements have been prepared on accrual basis (except dividend income) and under the historical cost convention in accordance with accounting principles generally accepted in India and the provisions of the Companies Act, 1956.

USE OF ESTIMATES

The preparation of the financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known / materialise.

REVENUE RECOGNITION

Management Services dees are recognised on accrual basis. Income from Dividend is recognised as and when received. Income from sale of long term investments is recognised on transfer of shares.

FIXED ASSETS

Fixed Assets are stated at cost. Interest and Finance costs, if any in respect of loan for financing Fixed Assets, are capitalised till the date the assets are ready for use. However assets having individual value below Rs.5000/- are depreciated @ 100% except mobile phones which are charged to revenue considering their useful life to be less than one year.

DEPRECIATION AND AMORTISATION

Depreciation on Plant and Machinery which include Computer and Air Conditioner is provided on Straight Line Method , at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

Depreciation on other Fixed Assets, Office Equipments and Transport Equipments has been provided on Written Down Value Method at the rates and in the manner prescribed as per Schedule XIV of the Companies Act, 1956.

Expenditure on major computer software is amortised over the period of expected benefit not exceeding five years.

IMPAIRMENT OF ASSETS

At the end of each accounting period, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on “Impairment of Assets” issued under Accounting Standard Rules 2006. An impairment loss is charged to the Profit and Loss account in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

INVESTMENTS

Long-term investments are stated at cost less provision for diminution in value, which is other than temporary.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of each transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognized in the profit and loss account. In case of forward contracts, the exchange differences are dealt with in the profit and loss account over the period of contracts.

EMPLOYEE BENEFIT

i) Short Term Employee Benefits – All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

ii) Post Employment/Retirement Benefits – Defined Contribution Plans such as Provident Fund etc. are charged to the Profit and Loss Account as incurred.

Defined Benefit Obligation Plans – The present value of the obligation under such plans, is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. In case of gratuity, which is funded with the Life Insurance Corporation of India, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on net basis.

Employee Benefit in form of contribution to Provident Fund managed by a Trust set up by the Company is charged to Profit & Loss Account as and when the contribution is due. The deficit, if any, in the accumulated corpus of the Trust at the period end for which the Company is liable, is recognised as a provision in the Profit & Loss Account.

iii) Other Long Term Employee Benefits - are recognized in the same manner as Defined Benefit Plans. (refer note 17)

BORROWING COSTS

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of that asset. Other borrowing costs are recognised as expenses in the period in which they are incurred.

INCOME TAX

Income tax is accounted in accordance with AS-22 ‘Accounting for taxes on income’, issued under Accounting Standards Rules 2006, which includes current tax and deferred tax. Deferred income tax reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

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