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Accounting Policies of Inter State Oil Carrier Ltd. Company

Mar 31, 2015

I. Basis of Preparation :

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, 2013.

II. System of Accounting :

The financial statements have been prepared under the historical cost convention using accrual method of accounting.

III. Use of Estimates :

The preparation of the financial statements in conformity with the accounting standards generally accepted in India requires the management to make estimates that affect the reported amount of assets & liabilities disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenue and expenses for the year. Actual results could differ from these estimates.

IV. Investments:

Investments of Shares, being long term, are stated at cost, less permanent diminution in value, if any. Diminution in value of investment, if any, has been considered as temporary in nature.

V. Fixed Assets and Depreciation :

Fixed assets are carried at cost of acquisition inclusive of all direct expenses related to such assets up to the date the assets are put to useless accumulated depreciation.

Depreciation on Tangible Fixed Assets has been provided on written down value method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on Tangible Fixed Assets added / disposed of during the year is provided on prorate basis with reference to the date of addition / disposal.

The unamortised carrying value is being depreciated over the revised / remaining useful lives. The written down value of Tangible Fixed Assets whose lives have expired as at 1 *' April 2014 have been adjusted in the opening balance of Profit & Loss Statement.

Intangible assets have been amortized over the period of four financial years.

VI. Material Events :

Material events occurring after the Balance Sheet date are taken into cognizance.

VII. Recognition of Income & Expenditure :

The Revenue recognized for transport as and when the service has been rendered and dividend accounted on accrual basis.

VIII. Retirement Benefit

In respect of liability towards gratuity, company has entered into a group gratuity scheme with Life insurance Corporation of India.

Retirement Benefits in the form of Provident Fund & Pension Scheme whether in pursuance of any law or otherwise is accounted for on accrual basis and charged to the Statement of Profit & Loss.

The other retirement benefits are accounted for as and when the liability for payment arises.

IX) Impairment Assets

At each Balance Sheet date, an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e., the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.

X) Taxes on Income

Provision of current tax is made with reference to taxable income computed for the accounting period for which the financial statements are prepared by applying the tax rates as applicable.

Deferred Tax Liabilities is recognised on the basis of timing differences being the difference between taxable income that originate in one period and is capable of reversal in one or more subsequent years. The deferred tax charge is recognized using the enacted tax rate. Deferred Tax Assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred Tax Assets/Liabilities are reviewed as at balance sheet date based on the developments during the year and reassess assets/liabilities in terms of AS-22 issued by ICAI.

XI) Earning Per Share

Basic and diluted earnings per share are computed in accordance with Accounting Standard 20 "Earnings per Share".

Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year except where the results are anti-dilutive.

XII) Prior Period Item

Prior period expenses / income is accounted under the respective heads, material item if any, are disclosed separately by way of notes.


Mar 31, 2014

I. Basis of Preparation :

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 and the Companies Act, 2013.

II. System of Accounting :

The financial statements have been prepared under the historical cost convention using accrual method of accounting.

III. Investments:

Investments of Shares, being long term, are stated at cost, less permanent diminution in value, if any. Diminution in value of investment, if any, has been considered as temporary in nature.

IV. Fixed Assets and Depreciation :

- Fixed assets are carried at cost of acquisition inclusive of all direct expenses related to such assets up to the date the assets are put to use less accumulated depreciation.

- In case of revaluation of fixed assets of the company, increase in net book value is credited to owner''s interest under the head Revaluation Reserve and decrease in net book value is charged to Statement of Profit & Loss.

- Depreciation on Fixed Assets has been provided under straight line method as per rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis.

V. Material Events :

Material events occurring after the Balance Sheet date are taken into cognizance.

VI. Retirement Benefit

In respect of liability towards gratuity, company has made provision at the rate of one month current salary for each completed year of service instead of on actuarial basis as required under AS 15 "Employee Benefits". There is no defined contribution plan.

Retirement Benefits in the form of Provident Fund & Pension Scheme whether in pursuance of any law or otherwise is accounted for on accrual basis and charged to the Statement of Profit & Loss.

The other retirement benefits are accounted for as and when the liability for payment arises.

vii) Future Contract

In respect of Futures Contract, Mark to Market Debit and Credit balance on open contract as on 31.03.2014 has been recognized in the Statement of Profit & Loss.

viii) Impairment Assets

At each Balance Sheet date, an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e., the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.

ix) Taxes on Income

Provision of current tax is made with reference to taxable income computed for the accounting period for which the financial statements are prepared by applying the tax rates as applicable.

Deferred Tax Liabilities is recognised on the basis of timing differences being the difference between taxable income that originate in one period and is capable of reversal in one or more subsequent years. The deferred tax charge is recognized using the enacted tax rate. Deferred Tax Assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred Tax Assets/Liabilities are reviewed as at balance sheet date based on the developments during the year and reassess assets/liabilities in terms of AS-22 issued by ICAI.

x) The preparation of the financial statements in conformity with the accounting standards generally accepted in India requires the management to make estimates that affect the reported amount of assets & liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenue and expenses for the year. Actual results could differ from these estimates.

xi) Recognition of Income and Expenditure

The Revenue recognized for transport as and when the service has been rendered and dividend accounted on accrual basis.

xii) Change in Accounting Policy

The company has changed its accounting policy from cash basis to accrual basis in current financial year in respect of Bonus and Gratuity. The company has provided provision for bonus and gratuity on accrual basis in the financial statements. Due to change in method of accounting, the profit of the company during the year has been understated by Rs. 4,33,366/-.

xiii) Prior Period Item

Prior period expenses / income is accounted under the respective heads, material item if any, are disclosed separately by way of notes.

b) Terms attached to equity shares

The company has only one class of shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share.


Mar 31, 2013

I. Basis of Preparation :

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..

II. System of Accounting :

The financial statements have been prepared under the historical cost convention using accural method of accounting except bonus which is accounted for on cash basis.

III. Investments:

Investments of Shares, being long term, are stated at cost, less permanent diminution in value, if any. Diminution in value of investment, if any, has been considered as temporary in nature.

IV. Fixed Assets and Depreciation :

- Fixed Assets are carried at cost of acquisition inclusive of all direct expenses related to such assets up to the date the assets are put to use less accumulated depreciation.

- In case of revaluation of fixed assets of the company, increase in net book value is credited to owner''s interest under the head Revaluation Reserve and decrease in net book value is charged to Statement of Profit & Loss.

- Depreciation on Fixed Assets has been provided under straight line method as per rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis.

V. Material Events :

Material events occurring after the Balance Sheet date are taken into cognizance.

VI. Retirement Benefit

- The gratuity is accounted for as and when paid.

- Retirement Benefits in the form of Provident Fund & Pension Scheme whether in pursuance of any law or otherwise is accounted for on accural basis and charged to the statement of Profit & Loss.

- The other retirement benefits are accounted for as and when the liability for payment arises.

VII. Impairment of Assets:

At each Balance Sheet date, an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e., the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.

VIII. Taxes on Income :

- Provision of current tax is made with reference to taxable income computed for the accounting period for which the financial statements are prepared by applying the tax rates as applicable.

- Deferred Tax Liabilities is recognised on the basis of timing differences being the difference between taxable income that originate in one period and is capable of reversal in one or more subsequent years. The deferred tax charge is recognized using the enacted tax rate. Deferred Tax Assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred Tax Assets/Liabilities are reviewed as at balance sheet date based on the developments during the year and reassess assets/liabilities in terms of AS-22 issued by ICAI.

IX. Future Contract

In respect of Futures Contract, Mark to Market Debit and Credit balance on open contract as on 31.03.2013 has been recognized in the Profit & Loss Account.

X. The preparation of the financial statements in conformity with the accounting standards generally accepted in India requires the management to make estimates that affect the reported amount of assets & liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenue and expenses for the year. Actual results could differ from these estimates.

XI. Recognition of Income and Expenditure :

The Revenue Recognized for transport as and when the service has been rendered and dividend accounted on accrual basis.

XII. Prior Period Item:

Prior period expenses / income is accounted under the respective heads, material item if any, are disclosed separately by way on notes.


Mar 31, 2011

1. Basis of Preparation of Financial Statement:

The Financial Statements of the Company have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the Accounting Principal Generally accepted in India (GAAP) and comply with the mandatory Accounting Standard (AS) issued by the Institute of Chartered Accountants of India to the extent applicable and with the relevant provisions of the Companies Act, 1956.

2. Revenue Recognition:

The Revenue Recognized for transport as and when the service has been rendered and for shares when transfer take place, dividend accounted on accrual basis.

3. Material Events:

Material events occurring after the Balance Sheet date are taken into cognizance.

4. Prior Period Item:

Prior period expenses / income is accounted under the respective heads, material item if any, are disclosed separately by way on notes.

5. Investments:

Investments: Investments of Shares, being long term, are stated at cost, less permanent diminution in value, if any. Diminution in value of investment, if any, has been considered as pemporary in nature.

6. Fixed Assets:

i) Fixed assets are stated at cost of acquisition inclusive of all direct expenses related to such assets up to the date the assets are put to use.

ii) Depreciation is provided on pro-rata basis under Straight Line Method as per Schedule XIV of the Companies Act, 1956.

7. Retirement Benefit

As informed to us, no employee has completed five years of service as on the balance sheet date, so provision of gratuity has not been made.

8. Provision for Taxation

Provision for current tax is made after taking into consideration benefit admissible under provisions of the Income Tax Act, 1961. Deferred tax resulting from timing difference between taxable profits and book profit is accounted for using the tax rate and law, which have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets are recognized and carry forward only to the extent that there is reasonable certainty that the asset will be realized in future.

9. Related Party disclosure

Disclosure of transaction with related party as required by Accounting Standard 18 has been set out in a separate statement annexed to the Notes on Accounts. Related parties defined under clause 3 of Accounting Standard have been identified on the basis of representation made by key managerial personnel and information available with the company.

10. Impairment of Assets:

At each Balance Sheet date, an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e., the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account


Mar 31, 2010

1. Basis of Preparation of Financial Statement:

The Financial Statements of the Company have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the Accounting Principal Generally accepted in India (GAAP) and comply with the mandatory Accounting Standard (AS) issued by the Institute of Chartered Accountants of India to the extent applicable and with the relevant provisions of the Companies Act, 1956.

2. Revenue Recognition:

The Revenue Recognized for transport as and when the service has been rendered and for shares when transfer take place, dividend accounted on accrual basis.

3. Material Events:

Material events occurring after the Balance Sheet date are taken into cognizance.

4. Prior Period Item:

Prior period expenses / income is accounted under the respective heads, material item if any, are disclosed separately by way on notes.

5. Investments:

Investments: Investments of Shares, being long term, are stated at cost, less permanent diminution in value, if any.

6. Fixed Assets:

i) Fixed assets are stated at cost of acquisition inclusive of all direct expenses related to such assets up to the date the assets are put to use.

ii) Depreciation is provided on pro-rata basis under Straight Line Method as per Schedule XIV of the Companies Act, 1956.

7. Retirement Benefit

As informed to us, no employee has completed five years of service as on the balance sheet date, so provision of gratuity has not been made. As Company is not covered under P.F Act so provision are not applicable.

8. Provision for Taxation

Provision for current tax is made after taking into consideration benefit admissible under provisions of the Income Tax Act, 1961. Deferred tax resulting from timing difference between taxable profits and book profit is accounted for using the tax rate and law, which have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets are recognized and carry forward only to the extent that there is reasonable certainty that the asset will be realized in future.

9. Related Party disclosure

Disclosure of transaction with related party as required by Accounting Standard 18 has been set out in a separate statement annexed to the Notes on Accounts. Related parties defined under clause 3 of Accounting Standard have been identified on the basis of representation made by key managerial personnel and information available with the company.

10. Impairment of Assets:

At each Balance Sheet date, an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e., the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account


Mar 31, 2009

1. Basis of Preparation of Financial Statement:

The Financial Statements of the Company have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the Accounting Principal Generally accepted in India (GAAP) and comply with the mandatory Accounting Standard (AS) issued by the Institute of Chartered Accountants of India to the extent applicable and with the relevant provisions of the Companies Act, 1956.

2. Revenue Recognition:

The Revenue Recognized for transport as and when the service has been rendered and for shares when transfer take place, dividend accounted on accrual basis.

3. Material Events:

Material events occurring after the Balance Sheet date are taken into cognizance.

4. Prior Period Item:

Prior period expenses / income is accounted under the respective heads, material item if any, are disclosed separately by way on notes.

5. Investments:

Investments: Investments of Shares, being long term, are stated at cost, less permanent diminution in value, if any.

6. Fixed Assets:

i) Fixed assets are stated at cost of acquisition inclusive of all direct expenses related to such assets up to the date the assets are put to use.

ii) Depreciation is provided on pro-rata basis under Straight Line Method as per Schedule XIV of the Companies Act, 1956.

7. Retirement Benefit

As informed to us, no employee has completed five years of service as on the balance sheet date, so provision of gratuity has not been made. As Company is not covered under P.F Act so provision are not applicable.

8. Provision for Taxation

Provision for current tax is made after taking into consideration benefit admissible under provisions of the Income Tax Act, 1961. Deferred tax resulting from timing difference between taxable profits and book profit is accounted for using the tax rate and law, which have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets are recognized and carry forward only to the extent that there is reasonable certainty that the asset will be realized in future.

9. Related Party disclosure

Disclosure of transaction with related party as required by Accounting Standard 18 has been set out in a separate statement annexed to the Notes on Accounts. Related parties defined under clause 3 of Accounting Standard have been identified on the basis of representation made by key managerial personnel and information available with the company.

10. Impairment of Assets:

At each Balance Sheet date, an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e., the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.

 
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