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Accounting Policies of FGP Ltd. Company

Mar 31, 2015

A) Accounting Convention

The financial statements have been prepared on historical cost convention and on accrual basis. The financial statements have been prepared in accordance with the Accounting Standards as prescribed in section 129 and 133 of Companies Act, 2013.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act, 2013 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could defer from those Estimates.

c) Fixed Assets

All fixed assets are stated at cost of acquisition, including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation.

d) Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on straight line method as per the rates prescribed under Schedule II to the Companies Act, 2013 except that depreciation on fixed assets at the Business Centre at the rate of 33'A per cent on the straight line method.

Impairment of assets is ascertained at each balance sheet date in respect of the Company's fixed assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

e) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

f) Investments

Long term investments are stated at cost. Provision for diminution is made to recognise a decline, other than temporary, in value of long term investments where applicable.

Current investments are stated at lower of cost or Net Asset Value.

g) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank, cheques on hand, cash in hand and demand deposits with an original maturity of three months or less.

h) Revenue Recognition

Revenue from the Services to Occupants are accounted on accrual basis per terms of contract (Excluding Service tax). Revenue in respect of insurance / other claims, interest, commission etc. are recognised only when there is reasonably certainty on accrual.

i) Employee Benefits

1. Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2. Long -Term benefit

(i) Defined Contribution Plan: a. Provident Fund :

The eligible employee of the Company is entitled to receive post employment benefits in respect of provident fund, in which both employee and the Company make monthly contribution at a specified percentage of the employee's eligible salary. (Currently 12% of employee's eligible salary) The contribution is made to Employees Provident Fund Organisation. Provident Fund is classified as Defined Contribution Plan as the Company has no further obligation beyond making the contribution. The Company contribution to Defined Contribution Plan is charged to statement of Profit and Loss account.

j) Taxes on Income

a) Current Tax

Provision for Income Tax is determined in accordance with the provisions the Income Tax Act, 1961.

b) Deferred Tax

Deferred tax is recognised on timing difference being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s).

k) Provisions and Contingent Liabilities

a) A provision is recognised when there is present obligation as a result of past event and it is obligation probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

b) A disclosure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of out flow of resources is remote, no provision or disclosure is made.


Mar 31, 2014

A) Accounting Convention

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of realisability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year, except for the change in accounting policy explained herein below.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could defer from those Estimates.

c) Inflation

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

d) Fixed Assets

All fixed assets are stated at cost of acquisition, including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation.

e) Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on straight line method at the rates prescribed under Schedule XIV to the Companies Act,1956 except that depreciation on fixed assets at the Business Centre at the rate of 33 1/3 percent on the Straight Line method. Impairment of assets is ascertained at each balance sheet date in respect of the Company''s fixed assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Provision for diminution is made to recognise a decline, other than temporary, in value of long term investments where applicable.

Current Investments are stated at lower of cost and fair value.

h) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank,cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

i) Revenue Recognition

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

j) Contingent Liabilities

These are disclosed by way of notes to the accounts . Provision is made in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

k) Employee Benefits

The Company has only one employee who has attained the age of superannuation.

1. Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2. Long - Term benefit

(i) Defined Contribution Plan:

a. Provident Fund :

The eligible employee of the Company is entitled to receive post employment beneits in respect of provident fund, in which both employee and the Company make monthly contribution at a specified percentage of the employee''s eligible salary (currently 12 % of employee''s eligible salary). The contribution is made to Employees Provident Fund Organisation. Provident Fund is classified as Defined Contribution Plan as the Company has no further obligation beyond making the contribution.

The Company''s contribution to Defined Contribution Plan is charged to statement of Profit and Loss as incurred.

b. Superannuation:

The Company has made provision @ 15% of employee''s eligible salary every year and no contribution is presently made since the employee has crossed the age of superannuation. The same has been paid during the year.

(ii) Defined Benefit Plan:

a. Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employee. The plan provides a lumpsum payment to vested employee at retirement/seperation, death while in employment or on termination of employment of an amount equivalanet to 15 days salary payable for each completed year of service. The Gratuity Fund benefits are administered by a trust formed for this purpose through Group Schemes of the Life Insurance Corporation of India (LIC).

The Company has made provision on arithmetical basis considering funds lying which LIC for this purpose.

b. Compensated absences:

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employee is entitled to accumulate leave for future encashment / availment. The liability is recognised based on the number of unutilized leave at each balance sheet date on an arithmetic basis.

l) Taxation

The Company has substantial carry forward of business losses under Income-tax Act, 1961. However, as the availability of sufficient future taxable income against which such depreciation and losses can be set-off cannot be stated to be virtually certain, the deferred tax asset has not been recognised.


Mar 31, 2013

A) Accounting Convention

The fnancial statements have been prepared to comply in all material respects with the notifed accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The fnancial statements have been prepared under the historical cost convention, on an accrual basis of accounting. The classifcation of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifcations are done based on the status of realisability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act 1956.

The accounting policies adopted in the preparation of fnancial statements are consistent with those used in the previous year, except for the change in accounting policy explained herein below.

b) Use of Estimates

The preparation of the fnancial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could defer from those Estimates.

c) Infation

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

d) Fixed Assets

i) All fxed assets are stated at cost of acquisition, including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation.

e) Depreciation , Amortisation and Impairment

Depreciation on fxed assets is charged on straight line method at the rates prescribed under Schedule XIV to the Companies Act,1956 except that depreciation on fxed assets at the Business Centre at the rate of 33 1/3 per cent on the Straight Line method.

Impairment of assets is ascertained at each balance sheet date in respect of the Company''s Fixed Assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash fows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Provision for diminution is made to recognise a decline, other than temporary, in value of long term investments where applicable. Current Investments are stated at lower of cost and fair value.

h) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank,cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

i) Revenue Recognition

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

j) Contingent Liabilities

These are disclosed by way of notes to the accounts . Provision is made in respect of those liabilities which are likely to materialise after the year end, till the fnalisation of accounts and have material effect on the position stated in the Balance Sheet.

k) Employee Benefts

The Company has only one employee who has attained the age of superannuation.


Mar 31, 2012

A) Accounting Convention

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of realisability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year, except for the change in accounting policy explained herein below.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could defer from those Estimates.

c) Inflation

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

d) Fixed Assets

i) All fixed assets are stated at cost of acquisition, including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation.

e) Depreciation , Amortisation and Impairment

Depreciation on fixed assets is charged on straight line method at the rates prescribed under Schedule XIV to the Companies Act,1956 except that depreciation on fixed assets at the Business Centre at the rate of 33 1/3 per cent on the Straight line method.

Impairment of assets is ascertained at each balance sheet date in respect of the Company's Fixed Assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets.All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Provision for diminution is made to recognise a decline, other than temporary, in value of long term investments where applicable.

Current Investments are stated at lower of cost and fair value

h) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank,cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

i) Revenue Recognition

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

j) Contingent Liabilities

These are disclosed by way of notes to the accounts . Provision is made in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

k) Employee Benefits

The Company has only one employee who has attained the age of superannuation.

1. Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2. Long - Term benefit

(i) Defined Contribution Plan :

a. Provident Fund :

The eligible employee of the Company is entitled to receive post employment benefits in respect of provident fund, in which both employee and the Company make monthly contribution at a specified percentage of the employee's eligible salary (currently 12 % of employee's eligible salary). The contribution is made to Employees Provident Fund Organisation. Provident Fund is classified as Defined Contribution Plan as the Company has no further obligation beyond making the contribution. The Company's contribution to Defined Contribution Plan is charged to statement of Profit and Loss as incurred.

b. Superannuation :

The Company has made provision @ 15 % of employee's eligible salary every year and no contribution is presently made since the employee has crossed the age of superannuation. The same will be paid to the employee on his separation.

(ii) Defined Benefit Plan :

a. Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employee. The plan provides a lump-sum payment to vested employee at retirement/separation, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. The Gratuity Fund benefits are administered by a trust formed for this purpose through Group Schemes of the Life Insurance Corporation of India (LIC). The Company has made provision on arithmetical basis considering funds lying which LIC for this purpose.

b. Compensated absences :

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employee is entitled to accumulate leave for future encashment / availment. The liability is recognised based on the number of unutilized leave at each balance sheet date on an arithmetic basis.

l) Taxation

The Company has substantial carry forward of business losses under Income-tax Act, 1961. However , as the availability of sufficient future taxable income against which such depreciation and losses can be set-off cannot be stated to be virtually certain, the deferred tax asset has not been recognised.


Mar 31, 2010

(a) Basis of Accounting:

The financial statements are prepared under the historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956, and comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the said Act.

(b) Fixed Assets and depreciation:

All fixed assets are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation.

Depreciation is provided on the straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 except that depreciation on fixed assets at the Business Centre is provided at the rate of 33 1/3 per cent on the straight line method.

(c) Investments:

i) Long term investments are stated at cost. Provision for diminution is made to recognise a decline, other than temporary, in value of long term investments where applicable.

ii) Current investments are stated at lower of cost and fair value.

(d) Employee Benefits:

The "Company has only one employee who has attained the age of superannuation.

1. Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

2. Long -term benefit

i) Defined Contribution Plan:

(a) Provident Fund:

The eligible employee of the Company is entitled to receive post employment benefits in respect of provident fund, in which both employee and the Company make monthly contribution at a specified percentage of the employees eligible salary (currently 12% of employees eligible salary). The contribution is made to Employees Provident Fund Organisation. Provident Fund is classified as Defined Contribution Plan as the Company has no further obligation beyond making the contribution. The Companys contribution to Defined Contribution Plan is charged to profit and loss as incurred.

(b) Superannuation:

The Company has made provision @ 15% of employees eligible salary every year and no contribution is presently made since the employee has crossed the age of superannuation. The same will be paid to the employee on his separation.

(ii) Defined Benefit Plan:

(a) Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employee. The plan provides a lump sum payment to vested employee at retirement/separation, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. The Gratuity Fund benefits are administered by a trust formed for this purpose through the Group Schemes of the Life Insurance Corporation of India (LIC). The Company has made provision on arithmetical basis considering funds lying with LIC for this purpose.

(b) Compensated absences:

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employee is entitled to accumulate leave for future encashment/availment. The liability is recognized based on the number of unutilized leave at each balance sheet date on an arithmetic basis,

 
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