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Accounting Policies of International Pumps & Projects Ltd. Company

Mar 31, 2015

A. Basis of preparation of financial statements

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles (Indian GAAP). including Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods.

B. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and Liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

C. Fixed assets

Fixed Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any, The cost of Fixed Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use. net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of Fixed Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.

D. Depreciation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. However, no Depreciation is being charged on asset depreciated upto 95% of its historical cost.

E. Revenue recognition

Fee collection from the users of facility is recognized when the rendering of facility is completed and to the extent that it is probable that the economic benefits will flow to the Company and the revenue from such services can be reliably measured. Interest income is accrued at applicable rates. Other items of income are accounted for as and when the right to receive arises.

F. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. Borrowing costs are capitalized as part of the cost of a qualifying asset when it is probable that they will result in future economic benefits to the enterprise and the costs can be measured reliably. Other borrowing costs are recognized as an expense in the period in which they are incurred.

G. Employee Benefits:

Employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and are recognized in the period in which the employee renders the related service,

H. Income Taxes

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period.

I. Provisions and contingencies

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

J. Earnings Per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.


Mar 31, 2014

A) Basis of Accounting

i) The Financial Statements have been prepared under the historical cost convention in accordance with the mandatory Accounting Standards on an accrual basis notified in the Companies (Accounting Standard) Rules 2006 and relevant provisions of the Companies Act, 1956.

ii) The Company follows the accrual system of accounting in the preparation of accounts except where otherwise stated.

b) Fixed Assets

I. Fixed Assets are stated at their cost of acquisition or construction less accumulated depreciation.

II. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

III. Depreciation has been provided on Straight Line Basis(SLM) at the rates and in the manner as prescribed in Schedule IV of the Companies Act,1956

c) Investments

During the Period under Review no Investment were being made by the company.

d) Inventories

During the Period under Review no there was no Inventory.

e) Revenue Recognition

(i) Share Trading Income is recognized as an when it occurs.

(ii) Interest Income is recognized on the basis of accrual and on time proportion basis.

f) Foreign Currency Transactions

There are no foreign currency transactions in the company.

g) Prior Period Items

Prior period Expenses/lncome is accounted for under respective heads. Material item, if any, are disclosed separately by way of notes

h) Employee Benefits

Gratuity and leave encashment benefits are provided on actual payment basis. All other employee benefits such as salary, wages, other employee benefits etc. are accounted for as and when incurred.

i) Earnings per Share

The earning considered in ascertaining the company's EPS comprise the Net Profit & Los'S for the period after tax and extra ordinary items. The Basic EPS is computed on the basis of weighted average number of Equity Shares Outstanding during the year.

j) Taxes on Income

Tax expenses for the year comprise of current tax. Current taxes are measured at the current rate of tax in accordance with provision of the Income Tax Act, 1961.

K) Segment Information

The accounting policies adopted for the segment reporting are in line with accounting policies of the Company. Revenue, expenses, assets and liabilities which relate to Company as a whole do not relate to any segment, are not allocated.

k) Provisions

A provision is recognized when an enterprise has a 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 a reliable estimate can be made. Provision are not discounted to the present value and are determined based on the best estimate require to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

l) Depreciation

Depreciation has been provided on Straight Line Basis (SLM) at the rates and in the manner as prescribed in Schedule IV of the Companies Act, 1956

m) Accounting policies not specifically referred to are consistent with generally accepted accounting principles.




Mar 31, 2012

1 Accounting Convention

The accounts have been prepared on historical cost convention on accural basis, in accordance with the requirements of the Companies Act, 1956 and applicable statutes and comply with the Accounting Standards referred to Section 211 (3C) of the Companies Act, 1956

2 Fixed Assets

a. Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets.

b. Depreciation has been provided on Straight Line Method (SLM) at the rates and in the manner as prescribed in Schedule SIV of the Companies Act, 1956.

3 Investment.

Investments are long term and stated at cost.

4 Inventories

The Stocks of Finished Goods have been valued at lower of cost and net realizable value. Cost of Work in progress is estimated and valued by the mangement on the basis of work done for which no bill is raised.

5 Prior period items

Prior period Expenses/lncome is accounted for under the respective heads.

Material item, if any, are disclosed separately by way of note.

6 Miscellaneous Expenditure

Pre-operative expenses are being amortized over a period of ten years.

7 Employees Retirement benefits

Gratituty and Leave encashment benefits are provided on actual payment basis.

8 Taxes on Income

Current tax is determined on the amount of the tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to consideration of prudence or timing differences being difference between table and accounting income/expenditure that originate in or period and capable of reversal in one or more subsequent period(s). The deferred tax assets/liability arising out of timing differences on on 1.4.2001 is adjusted from General Reserves. Deferred tax assets has not been created in view of continuing losses during previous years and the management is not expecting profits in forthcoming years.

9 Segment Information -Basis of Information

The accounting policies adopted for segment reporting are in line with accounting policies of the company. Revenue, expenses, assets and liabilities which relate the company as a whole do not relate to any segment, are not allocated.


Mar 31, 2011

1 Accounting Convention

The accounts have been prepared on historical cost convention on accural basis, In accordance with the requirements of the Companies Act. 1956 and applicable statutes and comply with the Accounting Standards referred to Section 211 (3C) of the Companies Act. 1956

2 Fixed Assets

a Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets

b Depreciation has been provided on Straight Line Method (SLM) at the rates and in the manner as prescribed in Schedule SIV of the Companies Act, 1956.

3 Investment

Investments are long term and stated at cost.

4 Inventories

The Stocks of Finished Goods have been valued at lower of cost and net realizable value. Cost of Work in progress is estimated and valued by the mangement on the basis of work done for which no bill is raised

5 Prior period items

Prior period Expenses/lncome is accounted for under the respective heads.

Material item, if any. are disclosed separately by way of note.

6 Miscellaneous Expenditure

Pre-operative expenses are being amortized over a period of ten years.

7 Employees Retirement benefits

Gratituty and Leave encashment benefits are provided on actual payment basis.

8 Taxes on Income

Current tax is determined on the amount of the tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to consideration of prudence or timing differences being difference between table and accounting income/expenditure that originate in or period and capable of reversal in one or more subsequent period(s). The deferred tax assets/liabiiity arising out of timing differences on on 1.4.2001 is adjusted from General Reserves. Deferred tax assets has not been created in view of continuing losses during previous years and the management is not expecting profits in forthcoming years.

9 Segment Information -Basis of Information

The accounting policies adopted for segment reporting are in line with accounting policies of the company Revenue, expenses, assets and liabilities which relate the company as a whole do not relate to any segment, are not allocated



 
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