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Accounting Policies of Consolidated Finvest & Holdings Ltd. Company

Mar 31, 2013

A) Basis of Accounting

The fnancial statements are prepared under the historical cost convention and in accordance with the requirement of the Companies Act, 1956 and Accounting Standards referred to in Section 211 (3C) of the Act.

B) Fixed Assets

Fixed assets are stated at cost less depreciation. Cost of acquisition and fabrication or construction are inclusive of freight,duties and other incidental expenses during construction period. Incidental expenses includes establishment expenses,interest on fund used for Capital expenditure and other Administrative expenses.

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fxed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

c) Depreciation

Depreciation on tangible assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of leased out assets, the cost of the same is being amortized fully during the primary period of lease.

D) Revenue Recognition

i) All revenues, costs, duties, assets & liabilities are accounted for on accrual basis.

ii) Income from investment is credited to revenue in the year in which it accrues. Income is stated in full with the tax thereon being accounted for under income Tax deducted at source. Dividend income when the owner''s right to receive its investments payment in shares established.

e) Borrowing costs

Borrowing costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue/deferred revenue expenditure as considered appropriate by the Management.

f) Investments

Investments are classifed as non-current or current, based on the Management intention at the time of purchase. Non-current investments are valued at their acquisition cost. Current investments are stated at lower of cost or net realiasble value. The provision for diminution in the value of non-current investments is made only if such a decline is other than temporary in the opinion of the management. Investment in the units of Mutual funds are valued at cost or market value which ever is lower, depreciation, if any is fully provided for and appreciation if any is ignored.

g) Employee Benefits

i) Short term Employees benefts

All employee benefts payable only within twelve months of render ing the ser vice are classifed as shor t term employee benefts. Benefts such as salaries, Wages etc,and the expected cost of bonus,exgratia,incentives are recognized in the period during which the employee renders the related service.

ii) Post employment and other long term employees benefts are recognised as an expense in the proft and loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable is determined using acturial valuation techniques. Acturial gains and losses in respect of post employment and other term benefts are charges to the proft and loss account.

h) taxation

The Current tax payable in respect of taxable income for the year has been charged to revenue. Deferred tax is recognised, subject to the consideration of prudence, on timing differences,being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent previous periods. Deferred tax assets are recognised on unabsorbed depreciation and carry forward of losses based on virtual certainty that suffcient future taxable income will be available against which such deferred tax assets can be realised.


Mar 31, 2012

A) Basis of Accounting

The financial statements are prepared under the historical cost convention and in accordance with the requirement of the Companies Act, 1956 and Accounting Standards referred to in Section 211(3C) of the Act.

B) Fixed Assets

Fixed assets are stated at cost less depreciation. Cost of acquisition and fabrication or construction are inclusive of freight, duties and other incidental expenses during construction period. Incidental expenses includes establishment expenses, interest on fund used for Capital expenditure and other Administrative expenses.

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

C) Depreciation

Depreciation on assets other than leased assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of leased out assets, the cost of the same is being amortized fully during the primary period of lease.

D) Revenue Recognition

i) All revenues, costs, duties, assets & liabilities are accounted for on accrual basis.

ii) Income from investment is credited to revenue in the year in which it accrues. Income is stated in full with the tax thereon being accounted for under income Tax deducted at source. Dividend income when the owner's right to receive its investments payment in shares is established.

E) Borrowing Costs

Borrowing costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue/deferred revenue expenditure as considered appropriate by the Management.

F) Investments

Investments are classified as non-current or current, based on the Management intention at the time of purchase. Non-current investments are valued at their acquisition cost. Current investments are stated at lower of cost or net realiasble value. The provision for diminution in the value of non-current investments is made only if such a decline is other than temporary in the opinion of the management. Investment in the units of Mutual funds are valued at cost or market value which ever is lower, depreciation, if any is fully provided for and appreciation if any is ignored.

G) Employee Benefits

i) Short term Employees benefits

All employee benefits payable only within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, Wages etc, and the expected cost of bonus, exgratia, incentives are recognized in the period during which the employee renders the related service.

ii) Post employment and other long term employees benefits are recognised as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using acturial valuation techniques. Acturial gains and losses in respect of post employment and other term benefits are charges to the profit and loss account.

H) Inventories

The Method of Inventories valuation has been adopted as follows:

Raw Material : At cost (FIFO Basis)

Finished Good : At Cost or Net Realisable Value whichever is lower.

Work-in-Process : At estimated cost

Trading Goods : At Cost or Net Realisable Value whichever is lower.

Stores & Spares : At Cost or Net Realisable Value whichever is lower.

Packing Material : At Cost or Net Realisable Value whichever is lower.

I) Taxation

The Current tax payable in respect of taxable income for the year has been charged to revenue. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent previous periods. Deferred tax assets are recognised on unabsorbed depreciation and carry forward of losses based on virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Fringe Benefit Tax has been provided for as per the applicable provisions of the Income Tax Act, 1961.


Mar 31, 2011

I) Basis of Accounting

The financial statements are prepared under the historical cost convention and in accordance with the requirement of the Companies Act, 1956 and Accounting Standards referred to in Section 211(3C) of the Act.

ii) Fixed Assets

Fixed assets are stated at cost less depreciation. Cost of acquisition and fabrication or construction are inclusive of freight, duties and other incidental expenses during construction period. Incidental expenses includes establishment expenses, interest on fund used for Capital expenditure and other Administrative expenses.

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

iii) Depreciation

Depreciation on assets other than leased assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of leased out assets, the cost of the same is being amortizedfully during the primary period of lease.

iv) Revenue Recognition

a) All revenues, costs, duties, assets & liabilities are accounted for on accrual basis.

b) Dividend on Equity & Preference shares of corporate bodies are taken into account on accrual basis when such dividend has been declared by the corporate body in its annual general meeting and the right to receive payment is established.

v) Borrowing Costs

Borrowing costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue/deferred revenue expenditure as considered appropriate by the Management.

vi) Investments

Investments are classified as long term or current, based on the Management intention at the time of purchase. Long term investments are valued at their acquisition cost. Current investments are stated at lower of cost or net realiasble value. The provision for dimintion in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. Investment in the units of Mutual funds are valued at cost or market value which ever is lower, depreciation, if any is fully provided for and appreciation if any is ignored.

vii) Retirement Benefits

a) Short term Employees benefits are recognised as an expense at the undiscounted amount in the profit and loss of the year in which the related services in rendered.

b) Post employment and other long term employees benefits are recognised as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognised at the present balue of the amount payable determined using acturial valuation techniques.Acturial gains and losses in respect of post employment and other term benefits are charges to the profit and loss account.

viii) Foreign Currency Transaction

Transactions in foreign currencies not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rates ruling at the date of transaction as increased or decreased by the proportionate difference based on life of the contract between the forward rate and exchange rate onthe date of transaction.

Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the profit or loss account except in cases where they relate to the acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

ix) Inventories

The Method of Inventories valuation has been adopted as follows:

Raw Material At cost (FIFO Basis)

Finished Goods At Cost or Net Realisable Value whichever is lower.

Work-in-Process At estimated cost

Trading Goods At Cost or Net Realisable Value whichever is lower.

Stores & Spares At Cost (FIFO Basis)

Packing Material At Cost (FIFO Basis)

x) Taxation

The Current tax payable in respect of taxable income for the year has been charged to revenue. Deferred tax is recognised, subject to the consideration of prudence, on timing differences,being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent previous periods, Deferred tax assets are recognised on unabsorbed depredation and carry forward of losses based on virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Fringe Benefit Tax has been provided for as per the applicable provisions of the Income Tax Act,1961.


Mar 31, 2010

I) Basis of Accounting

The fi nancial statements are prepared under the historical cost convention and in accordance with the requirement of the Companies Act, 1956 and Accounting Standards referred to in Section 211(3C) of the Act.

ii) Fixed Assets

Fixed assets are stated at cost less depreciation. Cost of acquisition and fabrication or construction are inclusive of freight, duties and other incidental expenses during construction period. Incidental expenses includes establishment expenses, interest on fund used for Capital expenditure and other Administrative expenses.

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fi xed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

iii) Depreciation

Depreciation on assets other than leased assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of leased out assets, the cost of the same is being amortizedfully during the primary period of lease.

iv) Treatment of expenditure during construction period

Incidental Expenditure during construction period is included under capital work in progress and the same is allocated to the respective fi xed assets on completion of construction.

v) Revenue Recognition

a) All revenues, costs, duties, assets & liabilities are accounted for on accrual basis.

b) Dividend on Equity & Preference shares of corporate bodies are taken into account on accrual basis when such dividend has been declared by the corporate body in its annual general meeting and the right to receive payment is established.

vi) Sales & Services

a) Sales,net of returns and trade discount, is inclusive of excise duty but excludes sales tax .

b) Sales are accounted when the sale of goods is completed on accrual basis.

vii) Research & Development Expenses

Research & development costs of revenue nature are charged to revenue when incurred. Expenditure of Capital nature is capitalised and depreciation is provided thereon as per applicable accounting standards.

viii) Borrowing Costs

Borrowing costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue/deferred revenue expenditure as considered appropriate by the Management.

ix) Investments

Investments are classifi ed as long term or current based on the Management intention at the time of purchase. Long term investments are valued at their acquisition cost. Current investments are stated at lower of cost or net realiasble value. The provision for dimintion in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. Investment in the units of Mutual funds are valued at cost or market value which ever is lower, depreciation, if any is fully provided for and appreciation if any is ignored.

x) Retirement Benefi ts

a) Short term Employees benefi ts are recognised as an expense at the undiscounted amount in the profi t and loss of the year in which the related services in rendered.

b) Post employment and other long term employees benefi ts are recognised as an expense in the profi t and loss account for the year in which the employee has rendered services. The expense is recognised at the present balue of the amount payable determined using acturial valuation techniques.Acturial gains and losses in respect of post employment and other term benefi ts are charges to the profi t and loss account.

xi) Foreign Currency Transaction

Transactions in foreign currencies not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rates ruling at the date of transaction as increased or decreased by the proportionate difference based on life of the contract between the forward rate and exchange rate on the date of transaction.

Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the profi t or loss account except in cases where they relate to the acquisition of fi xed assets in which case they are adjusted to the carrying cost of such assets.

xii) Inventories

The Method of Inventories valuation has been adopted as follows:

Raw Material : At cost (FIFO Basis)

Finished Goods : At Cost or Net Realisable Value whichever is lower.

Work-in-Process : At estimated cost

Trading Goods : At Cost or Net Realisable Value whichever is lower.

Stores & Spares : At Cost (FIFO Basis)

Packing Material: At Cost (FIFO Basis)

xiii) Taxation

The Current tax payable in respect of taxable income for the year has been charged to revenue. Deferred tax is recognised, subject to the consideration of prudence, on timing differences,being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent previous periods.Deferred tax assets are recognised on unabsorbed depreciation and carry forward of losses based on virtual certainty that suffi cient future taxable income will be available against which such deferred tax assets can be realised. Fringe Benefi t Tax has been provided for as per the applicable provisions of the Income Tax Act,1961.

 
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