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Accounting Policies of Florence Investech Ltd. Company

Mar 31, 2015

1.1 BASIS OF ACCOUNTING:

The financial statements have been prepared under historical cost convention on accrual basis in compliance with applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 2013.

1.2. FIXED ASSETS AND DEPRECIATION:

(a) Fixed Assets are stated at cost. Cost includes all costs incurred to bring the assets to their present location and condition.

(b) Depreciation on Fixed Assets is provided on Straight Line Method as per useful life given in Part C of Schedule II to the Companies Act, 2013.

1.3. REVENUE RECOGNITION:

(a) Dividend Income is accounted for in the year in which it is declared.

(b) Overdue interest on Loans & Advances is accounted for on actual receipt basis.

1.4. INVESTMENTS:

Investments made by the Company in various shares / securities are primarily meant to be held over long term period and are stated at cost less diminution, if the same is other than temporary in nature. The current investments are stated at lower of cost or quoted / fair value.

1.5. TAXES ON INCOME:

Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions (proposed/enacted) of Income Tax Act, 1961. Deferred Tax Assets and Liabilities are recognized in respect of current year and prospective years. Deferred Tax Asset is recognized on the basis of reasonable/virtual certainty that sufficient future taxable income will be available against which the same can be realized.

1.6. Contingent Liabilities are not provided for and are disclosed by way of Notes to the Accounts.


Mar 31, 2014

1.1 BASIS OF ACCOUNTING:

The financial statements have been prepared under historical cost convention on accrual basis in compliance with applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

1.2. FIXED ASSETS AND DEPRECIATION:

(a) Fixed Assets are stated at cost. Cost includes all costs incurred to bring the assets to their present location and condition.

(b) Depreciation on Fixed Assets is calculated on straight-line method. Depreciation is provided at the rates in force as per Schedule XIV of the Companies Act, 1956.

1.3. REVENUE RECOGNITION:

(a) Dividend Income is accounted for in the year in which it is declared.

(b) Overdue interest on Loans & Advances is accounted for on actual receipt basis.

1.4. INVESTMENTS:

Investments made by the Company in various shares / securities are primarily meant to be held over long term period and are stated at cost less diminution, if the same is other than temporary in nature. The current investments are stated at lower of cost or quoted / fair value.

1.5. TAXES ON INCOME:

Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions (proposed/enacted) of Income Tax Act, 1961. Deferred Tax Assets and Liabilities are recognized in respect of current year and prospective years. Deferred Tax Asset is recognized on the basis of reasonable / virtual certainty that sufficient future taxable income will be available against which the same can be realized.

1.6. Contingent Liabilities are not provided for are disclosed by way of Notes to the Accounts.


Sep 30, 2012

1.1 The financial statements have been prepared under historical cost convention on accrual basis in compliance with applicable Accounting Standards notifed by the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

1.2 Fixed assets are stated at cost. Cost includes all costs incurred to bring the assets to their present location and condition.

1.3 a) Depreciation on fixed assets is calculated on straight-line method. Depreciation is provided at the rates in force as per Schedule XIV of the Companies Act, 1956.

b) Capital expenditures on lease hold premises are charged on straight line method (SLM) over the lease period or at the rates specifed in Schedule XIV of the Companies Act, 1956, whichever period is lower.

c) Leasehold Land is being amortized over the lease period.

1.4 Long Term Investments are stated at cost less diminution. Provision for diminution in the value of long-term investments is made only if, such a decline is other than temporary in the opinion of the management. Current investments are carried at lower of cost and quoted / fair value.

1.5 Assets & liabilities related to foreign currency transactions are translated at exchange rate prevailing at the end of the year. All exchange differences are recognized in the Statement of Proft and Loss Account.

1.6 Inventories are valued at the lower of cost and net realizable value. The cost is computed on weighted average basis. Finished Goods, Semi Finished goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

1.7 The carrying amount of Assets is reviewed at each Balance Sheet date to assess impairment, if any based on internal/external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value being higher of value in use and net selling price. An impairment loss is recognized as an expense in the Statement of & Loss in the year in which an asset is identifed as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

1.8 Intangible assets are recognized if future economic benefits are likely and cost of the asset can be measured reliably. The depreciable amount of an intangible asset is allocated on a systematic basis over the useful life of the asset.

1.9 Employees Benefits:

a) Defend Contribution Plan

Employee benefits in the form of Superannuation Fund, Provident Fund (PF) and ESI considered as defend contribution plan and the contributions are charged to the Statement of Proof and Loss Account of the year when the contribution to the respective funds are due.

b) Defend Benefit Plan

Retirement benefits in the form of Gratuity, Leave Encashment and PF (funded) are considered as defend benefit obligations and are provided for on the basis of an Actuarial Valuation, using the projected unit credit method, as at the date of the Balance Sheet.

c) Short term compensated absences are provided based on past experience of the leave availed. Actuarial gain/ Losses, if any, are immediately recognized in the Statement of Proft and Loss.

1.10 Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred Tax is recognized, for timing differences. However, deferred tax asset is recognized on the basis of reasonable/virtual certainty that sufficient future taxable income will be available against which the same can be realized.

1.11 Provision in respect of present obligation arising out of past events is made in Accounts when reliable estimates can be made of the amount of the obligation. Contingent Liabilities (if material) are disclosed by way of Notes to Accounts. Contingent Assets are not recognized or disclosed in Financial Statements and are included, if any, in the Directors'' Report.

1.12 Other Government grants are ded( FLORENCE INVESTECH LIMITED)


Sep 30, 2010

1. The financial statements have been prepared under historical cost convention on accrual basis in compliance with applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

2. Fixed assets are stated at cost. Cost includes all costs incurred to bring the assets to their present location and condition,

3. (a) Depreciation on fixed assets is calculated on straight-line method (SLM). Depreciation is provided at the rates in force as per Schedule XIV of the Companies Act, 1956,

(b) Capital expenditures on lease hold premises are charged on straight-line method (SLM) over the lease period or at the rates specified in Schedule XIV of the Companies Act, 1956, whichever period is lower.

(c) Leasehold Land is being amortized over the lease period,

4. Long Term Investments are stated at cost less diminution, Provision for diminution in the value of long-term investments is made only if, such a decline is other than temporary in the opinion of the management. Current investments are carried at lower of cost and quoted / fair value.

5. Assets & liabilities related to foreign currency transactions are translated at exchange rate prevailing at the end of the year. All exchange differences are recognised in the Profit and Loss Account.

6. Inventories are valued at the lower of cost and net realisable value. The cost is computed on weighted average basis. Finished Goods, Semi Finished goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. The carrying amount of Assets are reviewed at each Balance Sheet date to assess impairment, if any based on internal/external factors. An asset is treated as Impaired when the carrying cost of asset exceeds its recoverable value being higher of value in use and net selling price. An impairment loss is recognised as an expense in the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been an improvement in recoverable amount.

8. Intangible assets are recognised if future economic benefits are likely and cost of the asset can be measured reliably. The depreciable amount of an intangible asset is allocated on a systematic basis over the useful life of the asset.

9. Employees Benefits:

(a) Defined Contribution Plan

Employee benefits in the form of Superannuation Fund, Provident Fund (PF) and ESI considered as defined contribution plan and the contributions are charged to the Profit and Loss Account of the year when the contribution to the respective funds are due,

(b) Defined Benefit Plan

Retirement benefits in the form of Gratuity, Leave Encashment and PF (funded) are considered as defined benefit obligations and are provided for on the basis of an Actuarial Valuation, using the projected unit credit method, as at the date of the Balance Sheet,

(c) Short term compensated absences are provided based on past experience of the leave availed, Actuarial gain / Losses, if any, are immediately recognized in the Profit and Loss Account.

10. Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred Tax is recognized, for timing differences. However, deferred tax asset is recognized on the basis of reasonable/virtual certainty that sufficient future taxable income will be available against which the same can be realised.

11. Provision in respect of present oPIigation arising out of past events are made in Accounts when reliaPle estimates can Pe made of the amount of the oPIigation. Contingent Liabilities (if material) are disclosed by way of Notes to Accounts, Contingent Assets are not recognized or disclosed in Financial Statements and are included, if any, in the Directors Report.


Sep 30, 2009

1. Accounts are maintained on accrual basis. Claims/Refunds not ascertainable with reasonable certainty are accounted for on settlement basis.

2. Fixed assets are stated at cost.

a) Depreciation on fixed assets is calculated on straight-line method. Depreciation is provided at the rates in force as per Schedule XIV of the Companies Act, 1956.

b) Leasehold Land is being amortised over the lease period.

3. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if, such a decline is other than temporary in the opinion of the management. Current investments are carried at lower of cost and quoted / fair value computed category-wise.

4. Assets & Liabilities related to foreign currency transactions are translated at exchange rate prevailing at the end of the year. All exchange differences are recognised in the Profit and Loss Account.

5. Inventories are valued at the lower of cost and net realisable value. The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

6. The carrying amount of Assets are reviewed at each Balance Sheet date to assess impairment, if any based on internal/external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value being higher of value in use and net selling price. An impairment loss is recognised as an expense in the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been an improvement in recoverable amount.

7. Intangible assets are recognised if future economic benefits are likely and cost of the asset can be measured reliably. The depreciable amount of an intangible asset is allocated on a systematic basis over the useful life of the asset.

8. Employees Benefits:

a. Defined Contribution Plan

Employee benefits in the form of Superannuation Fund, Provident Fund (PF) and ESI are considered as defined contribution plan and the contributions are charged to the Profit and Loss Account of the year when the contribution to the respective funds are due.

b. Defined Benefit Plan

Retirement benefits in the form of Gratuity, Leave Encashment and PF (funded) are considered as defined benefit obligations and are provided for on the basis of an Actuarial Valuation, using the projected unit credit method, as at the date of the Balance Sheet.

c. Short term compensated absences are provided based on past experience of the leave availed. Actuarial gain/Losses, if any, are immediately recognised in the Profit and Loss Account.

9. Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred Tax is recognized, for timing differences. However, deferred tax asset is recognised on the basis of reasonable/virtual certainty that sufficient future taxable income will be available against which the same can be realised.

10. Provision in respect of present obligation arising out of past events are made in Accounts when reliable estimates can be made of the amount of the obligation. Contingent Liabilities (if material) are disclosed by way of Notes to Accounts. Contingent Assets are not recognized or disclosed in Financial Statements and are included, if any, in the Directors Report.

 
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