Home  »  Company  »  Brahmaputra Infra  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Brahmaputra Infrastructure Ltd. Company

Mar 31, 2014

1. Basis of accounting

The financial statements have been prepared to comply with the requirements of the Companies Act, 1956, under the historical cost convention on the accrual basis of accounting except interest on Mobilization/Equipment Advances is being accounted for on actual recovery basis and Interest on Late / Non Payment of Term Loan Instalments of Financers accounted for as and when settled.

Also the financial statements have been prepared in accordance with the standards on accounting prescribed in Companies (Accounting Standard) Rule, 2006 referred to in section 211 (3C) of the Companies Act, 1956.

2. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported accounts of revenues and expenses for the years presented.

3. Revenue recognition

a. Income from construction contracts is recognized by reference to the stage of completion of the contract activity as certified by the client.

b. Revenue from real estate projects is recognized on the basis of percentage of completion method of accounting.

c. Income from industrial park project is recognized on the time of execution of registered sale deed / agreement to sale, in relation to sold areas only.

d. "Bill raised but unsettled" have been accounted for in the books at the value reasonably ascertained by the management on the date of raising the bill.

e. Claims in respect of civil contracts lodged/awarded with/by the respective Department which may pertains to earlier years have been accounted for in the books in the year of its certainty and at value/enhanced value reasonably ascertained by the management.

4. Joint Ventures

Revenues / Expenses from contracts executed by the Company in joint ventures on back-to-back arrangement basis are recognized on the same basis as similar contracts independently executed by the Company. Company''s share in the Profit / Loss from joint ventures is accounted as and when the same is determined by the joint venture.

5. Employee benefit

During the year under review the company has provided Bonus on accrual basis, Provident Fund and ESI contribution for eligible employees has been provided on actual liability basis and Gratuity and Leave Encashment has been provided based on actuarial valuation.

6. Investment

Long term and short term investments both are stated at cost. No provision for diminution in coated investment is made because of its Long Term Nature.

7. Inventory

All inventories consisting of Work in Progress (Contract), Materials & Stores in hand and Real-estate division has been valued at cost as determined by the Management. No Provision is being made for slow moving Work in Progress as the management is hopeful to recover at stated value.

8. Foreign currency transactions

a. Transactions in foreign currencies are accounted for at exchange rate prevailing as on date of transaction.

b. All assets and liabilities in foreign currencies existing at Balance Sheet date are translated at the rate of Balance Sheet date.

9. Misc. expenditure

a) Preliminary expenses are amortized over a period of 10 years.

b) Increase in share capital expenses are amortized over a period of 5 years.

c) Amalgamation expenses are amortized over a period of 5 years.

d) All expenditure exceeding Rs 5000/- incurred on any kind of software upto 31.03.2007, and its development termed as "Software Expenses" are amortized over a period of 5 years. However, w.e.f. 01.04.2007 expenditure on software were capitalized Computer and accessories and was amortised through depreciation as per the S.L.M. method rates prescribed under Schedule XIV of the Companies Act 1956.

10. Fixed assets

Fixed Assets mainly comprised of Earthmoving Machinery and Motor Lorries has been stated at cost less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the assets to working condition for intended use.

11. Depreciation

Depreciation is provided on straight line method as per rates specified in Schedule XIV to the Companies Act, 1956 subject to maximum of 95% of cost value.

12. Contingent liabilities

Contingent Liabilities not admitted by the company are not provided for in the accounts but are disclosed by way of other disclosures.

13. Taxation

Income Tax comprises current tax and deferred tax. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences subject to consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date.

14. Earning per share

The earnings considered in ascertaining company''s EPS comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year

15. Borrowing cost

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

16. Prior Period Income/Expenses

Income/Expenses related to Prior Period are shown separately in "Note" to financial Statement under their natural head and the impact of amounts is separately disclosed in other disclosures.

17. Impairment of assets

Pursuant to Accounting Standard (AS-28) on - Impairment of assets issued by the Institute of Chartered Accountant of India, the company assessed its fixed assets for impairment as at the year end and concluded that there has been no significant impaired fixed assets that needs to be recognized in the books of accounts.

18. Lease rental payments being operating lease is accounted for as an expenses on accrual basis.

19. Insurance claims lodged / Receivable with the respective departments has been accounted for in the books at the value either mutually settled or reasonably ascertained by the management.

20. Provision for Doubtful Debts is made at value estimated by the management.


Mar 31, 2013

1 Basis of accounting

The financial statements have been prepared to comply with the requirements of the Companies Act, 1956, under the historical cost convention on the accrual basis of accounting except interest on Mobilization/Equipment Advances is being accounted for on actual recovery basis.

Also the financial statements have been prepared in accordance with the standards on accounting prescribed in Companies (Accounting Standard) Rules, 2006 referred to in section 211(3C) of the Companies Act, 1956.

2 Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported accounts of revenues and expenses for the years presented.

3 Revenue recognition

a. Income from construction contracts is recognized by reference to the stage of completion of the contract activity as certified by the client.

b. Revenue from real estate projects is recognized on the basis of percentage of completion method of accounting

c. Income from industrial park project is recognized on the time of execution of registered sale deed / agreement to sale, in relation to sold areas only.

d. "Bill raised but unsettled" have been accounted for in the books at the value reasonably ascertained by the management on the date of raising the bill.

e. Claims in respect of civil contracts lodged/awarded with/by the respective Department which may pertains to earlier years have been accounted for in the books in the year of its certainty and at value /enhanced value reasonably ascertained by the management.

4. Joint Ventures

Revenues / Expenses from contracts executed by the Company in joint ventures on back-to-back arrangement basis are recognized on the same basis as similar contracts independently executed by the Company. Company''s share in the Profit / Loss from joint ventures is accounted as and when the same is determined by the joint venture.

5. Employee benefit

During the year under review the company has provided Bonus on accrual basis, Provident fund and ESI contribution for eligible employees has been provided on actual liability basis and Gratuity and Leave Encashment has been provided based on actuarial valuation.

6. Investment

Long term and short term investments both are stated at cost. No provision for diminution in coated investment is made because of its Long Term Nature.

7. Inventory

All inventories consisting of Work in Progress (Contract), Materials & Stores in hand and Real-estate division has been valued at cost as determined by the Management.

8. Foreign currency transactions

a. Transactions in foreign currencies are accounted for at exchange rate prevailing as on date of transaction.

b. All assets and liabilities in foreign currencies existing at balance sheet date are translated at the rate of balance sheet date.

9. Misc. expenditure

a) Preliminary expenses are amortized over a period of 10 years.

b) Increase in share capital expenses are amortized over a period of 5 years.

c) Amalgamation expenses are amortized over a period of 5 years.

d) All expenditure exceeding Rs 5,000/- incurred on any kind of software upto 31.03.2007, and its development termed as "Software Expenses" are amortized over a period of 5 years. However, w.e.f. 01.04.2007 expenditure on software were capitalized under Computer and accessories and was amortised through depreciation as per the S.L.M. method rates prescribed under Schedule XIV of the Companies Act 1956.

10. Fixed assets

Fixed Assets mainly comprised of Earthmoving Machinery and Motor Lorries has been stated at cost less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the assets to working condition for intended use.

11. Depreciation

Depreciation is provided on straight line method as per rates specified in Schedule XIV to the Companies Act, 1956 subject to maximum of 95% of cost value.

12. Contingent liabilities

Contingent Liabilities not admitted by the company are not provided for in the accounts but are disclosed by way of other disclosures.

13. Taxation

Income Tax comprises current tax and deferred tax. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences subject to consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date.

14. Earnings per share

The earnings considered in ascertaining company''s EPS comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year

15. Borrowing cost

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

16. Prior Period Income/Expenses

Income/Expenses related to Prior Period are shown separately in "Notes" to financial Statement under their natural head and the impact of amounts is separately disclosed in other disclosures.

17. Impairment of assets

Pursuant to Accounting Standard (AS-28) on - Impairment of assets issued by the Institute of Chartered Accountants of India, the company assessed its fixed assets for impairment as at the year end and concluded that there has been no significant impaired fixed assets that needs to be recognized in the books of accounts.

18. Lease rental payments being operating lease is accounted for as an expenses on accrual basis.

19. Insurance claims lodged / Receivable with the respective departments has been accounted for in the books at the value either mutually settled or reasonably ascertained by the management.

Find IFSC