Home  »  Company  »  Birla Pacific Medspa  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Birla Pacific Medspa Ltd. Company

Mar 31, 2013

1. Basis of Accounting :

The financial statements have been prepared under the historical cost convention, except where impairment is made and on accrual basis in accordance with accounting principles generally accepted in India and the provisions of the Companies Act, 1956. Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. 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.

3. Revenue Recognition :

Revenue are recognised on accrual basis on Completion of Service & in case of package service on booking of package.

Revenue on interest accrued on time basis. Dividend income is recognised on the basis of right to receive to established.

4. Tangible Assets / Intangible Assets :

Tangible and Intangible 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.

5. Depreciation /Amortisation :

Depreciation on Fixed assets has been provided on the Written down value method at the rates specified and the in the manner prescribed under Schedule XIV of Companies Act, 1956.

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

6. Impairment of Asset:

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.

7. Investments:

The investments(LongTerm) are stated at cost. Provision for diminution in value is made only if decline in the value of such Investments is other than temporary. Current investments are valued at lower of cost or market value.

8. InventoryValuation :

Inventories are valued at lower of cost or net realisable value. Cost is determined on FIFO basis.

9. Borrowing Cost:

Borrowing cost that is attributable to acquisition of qualifying asset are capitalized as part of total cost of such assets upto the date when such assets are ready for its intended use. Other borrowing cost are charged as expenses in the year in which these are incurred.

10. Taxation :

Income tax is accounted in accordance with AS-22 ''Accounting for taxes on income'', issued under Accounting Standard Rules 2006, which includes current taxes and deferred taxes. Deferred income taxes 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.

11. Employee Benefits :

A. Shot Term Employee Benefits : All employee benefits payable within 12 months of rendering of the service are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, exgratia, etc. and are recognized in the period in which the employee renders the related service.

B. Post Employment / Retirement Benefits : Gratuity is provided for based on actual valuation.

12. Cash and Cash Equivalent:

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, cash in hand (including cheques in hand) and short term investment with an original maturity of three months or less.

13. Contingencies / Provisions :

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.

14. Foreign Exchange transactions :

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of 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.


Mar 31, 2012

1. Basis of Accounting :

The financial statements have been prepared under the historical cost convention, except where impairment is made and on accrual basis in accordance with accounting principles generally accepted in India and the provisions of the Companies Act, 1956. Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

During the year ended 31 March 2012, the revised schedule VI notified under the Companies Act, 1956, has become applicable to company, for preparation and presentation of financial statement. 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 disclosure made in the 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.

2. 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.

3. Revenue Recognition :

revenue are recognised on accrual basis on Completion of Service & in case of package service on booking of package. revenue on interest accrued on time basis. Dividend income is recognised on the basis of right to receive to established.

4. Fixed Assets / intangible Assets

Tangible and Intangible 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.

5. Depreciation / Amortisation

Depreciation on Fixed assets has been provided on the Written down value method at the rates specified in the manner prescribed under Schedule XIV of Companies Act, 1956.

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

Expenditure on Brand Building will be amortised from the period beginning from F.Y 2013-2014 over a period of 5 years as decided by management.

6. impairment of Asset :

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 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 prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

7. investments :

The investments(Long Term) are stated at cost. Provision for diminution in value is made only if decline in the value of such investments is other than temporary. Current investments are valued at lower of cost or market value.

8. inventory Valuation :

Inventories are valued at lower of cost or net realisable value. Cost is determined on FIFO basis.

9. Borrowing Cost :

Borrowing cost that is attributable to acquisition of qualifying assets are capitalized as part of total cost of such assets upto the date when such assets are ready for its intended use. Other borrowing cost are charged as expenses in the year in which these are incurred.

10. taxation :

Income tax is accounted in accordance with AS-22 'Accounting for taxes on income', issued under Accounting Standard Rules 2006, which includes current taxes and deferred taxes. Deferred income taxes 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.

11. employee Benefits :

A. short term employee Benefits : All employee benefits payable within 12 months of rendering of the service are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, exgratia, etc. and are recognized in the period in which the employee renders the related service.

B. post employment / retirement Benefits : Gratuity is provided for based on actual valuation.

12. Cash and Cash equivalent :

Cash and cash equivalent for the purpose of Cash Flow Statement comprise cash at bank, cash in hand (including cheques in hand) and short term investment with an original maturity of three months or less.

13. Contingencies / provisions

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.

14. Foreign exchange transactions

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of 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.

 
Subscribe now to get personal finance updates in your inbox!