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Accounting Policies of Innoventive Venture Ltd. Company

Mar 31, 2014

Not Available.


Mar 31, 2013

1.1 Basis of preparation of financial statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

1.2 Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

1.3 Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.4 Provisions and Contingencies

A provision is recognised when the Company has present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date.

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

Contingent assets are neither recognized nor disclosed in the financial statements.

1.5 Income taxes

Provision for Income Tax is made on the basis of estimated taxable income for the year at current rates. Tax expenses comprise both current Tax & Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income tax payable/recoverable in respect of the taxable income/loss for the reporting year. Deferred tax represents the effect of timing difference between taxable income & accounting income for the reporting year that originate in one year and are capable of reversal in one or more subsequent years. Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961.

1.6 Earnings per Share

The Earning per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholder (after deducting attributable taxes) by the weighted average number of shares outstanding during the year. The Earning per Share is calculated only on the Equity Share Capital as Zero percent preference Shareholder has no right of conversion except redemption. For the purpose of calculating diluted Earning per share if any, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.7 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.8 Cash Flow Statement

The Cash Flow Statement is prepared by the Indirect Method set out in the Accounting standard -3 on Cash Flow Statement and presents the Cash Flow by operating, investing and financing activities of the company. Cash & Cash equivalents presented in the Cash Flow Statement consist if Cash on hand & Demand Deposit with Banks.

1.9 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year and are recorded inclusive of incentives received from State Government, excise duty, net of trade discounts, rebates, price adjustments, rejections and shortage in transit.

Dividends are recorded when the right to receive is established.


Mar 31, 2012

1.1 Basis of preparation of financial statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

1.2 Presentation and disclosure of financial statements

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

1.3 Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

1.4 Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.5 Provisions and Contingencies

A provision is recognised when the Company has present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date.

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

Contingent assets are neither recognized nor disclosed in the financial statements.

1.6 Income taxes

Provision for Income Tax is made on the basis of estimated taxable income for the year at current rates. Tax expenses comprise both current Tax & Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income tax payable/recoverable in respect of the taxable income/loss for the reporting year. Deferred tax represents the effect of timing difference between taxable income & accounting income for the reporting year that originate in one year and are capable of reversal in one or more subsequent years. Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961.

1.7 Earning Per Share

The Earning per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholder (after deducting attributable taxes) by the weighted average number of shares outstanding during the year. The Earning per Share is calculated only on the Equity Share Capital as Zero percent preference Shareholder has no right of conversion except redemption. For the purpose of calculating diluted Earning per share if any, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.8 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.9 Cash Flow Statement

The Cash Flow Statement is prepared by the Indirect Method set out in the Accounting standard -3 on Cash Flow Statement and presents the Cash Flow by operating, investing and financing activities of the company. Cash & Cash equivalents presented in the Cash Flow Statement consist if Cash on hand & Demand Deposit with Banks.

1.10 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Revenue means the gross inflow of cash, receivable or other consideration arising in the course of ordinary activities of an enterprise on sale of goods, from rendering of services and from the use by others of the resources of the enterprises yielding interest, royalties & dividend.

Dividends are recognised as and when it is proposed to be declared by the company.


Mar 31, 2011

1. Basis of preparation of Financial Statements

The financial Statements are prepared and presented under the historical cost convention, on accrual basis of accounting, in accordance with accounting principles generally accepted in India & comply with the applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956, except otherwise stated, the accounting principles have been consistently applied.

2. Use of Estimates

The preparation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of Financial Statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimated are recognized in the period in which the results are known / materialized.

3. Investments

Current Investments are carried at lower of cost and quoted/fair value, computed category wise. 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 nature.

4 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

4. Taxes on Income

Provision for Income Tax is made on the basis of estimated taxable income for the year at current rates. Tax expenses comprise both current Tax & Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income tax payable/recoverable in respect of the taxable income/loss for the reporting year. Deferred tax represents the effect of timing difference between taxable income & accounting income for the reporting year that originate in one year and are capable of reversal in one or more subsequent years.

5. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the financial statements.

6. Earning Per Share

The Earning per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholder (after deducting attributable taxes) by the weighted average number of shares outstanding during the year. The Earning per Share is calculated only on the Equity Share Capital as Zero percent preference Shareholder has no right of conversion except redemption. For the purpose of calculating diluted Earning per share if any, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

7. Cash Flow Statement

The Cash Flow Statement is prepared by the Indirect Method set out in the Accounting standard -3 on Cash Flow Statement and presents the Cash Flow by operating, investing and financing activities of the company. Cash & Cash equivalents presented in the Cash Flow Statement consist if Cash on hand & Demand Deposit with Banks.




Mar 31, 2010

Not Available

 
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