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Accounting Policies of ISF Ltd. Company

Mar 31, 2014

A. Basis of Preparation of Financial Statements

The Financial Statements are prepared under historical cost convention and comply in all material aspects with the applicable accounting principles in India, Accounting Standards notified under Sub Section 3 (C) of Section 211 of the Companies Act 1956 read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. and other relevant provisions of the Companies Act ,1956.

b. Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realization/collection. Prudential norms prescribed by Reserve Bank of India for revenue recognition are followed.

i) Lease Rentals

Lease rentals received/receivable under lease agreements are accounted as income net of Lease Equalisation to ensure recognition of Net Income at a constant periodic rate of return on the Net Investment outstanding in the lease as per (A3)-19 on leases. Against the lease rentals a matching annual charge (which represents recovery of the net investment in the leased assets over the lease term) is made to the Profit and Loss Account.

ii) Hire-Purchase

Income from Hire Purchase financing is recognised on equated instalment basis.

iii) Dividend Income is accounted when the right to receive the same is established.

iv) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

c. Fixed Assets

The fixed assets are stated at cost less accumulated depreciation. The cost of fixed assets includes taxes and other identifiable direct expenses.

d. Depreciation

Depreciation on Fixed Assets is provided on Straight line Method at the rates and in the manner given in Schedule-XIV (as amended by the Department of Companies Affairs, Government of India on December 16,1993) to the Companies Act, 1956. In respect of Fixed Assets acquired prior to December 16,1993 depreciation is provided at the rates applicable prior to the amendment. Assets costing upto Rs. 5000/ - each are depreciated fully in the year of purchase. In respect of assets given on lease the company has followed the recommendations of the Institute of Chartered Accountants of India on accounting for leases. No depreciation is provided in respect of assets leased after 01.04.2001 as per Accounting Standard-19 on "Leases".

e. Stock on Hire

Stock on hire is valued at cost plus total finance charges and is reduced by the instalments which have matured during the relevant period.

f. Investments

Investments are classified into current and long term investments. Long Term Investments are valued at cost. Current Investments are valued at lower of cost and fair value. However, diminution other than temporary is provided. The Profit/Loss arising on account of Sales is recognised in the Profit & Loss Account.

g. Employee Benefits

Contribution to Defined Contribution Schemes such as Provident Fund is charged to Profit & Loss Account. Gratuity liability for employees who have completed five years of service is provided for on the basis of actual liability determined by the company. Liability on account of short term employee benefits such as bonus is recognized on an undiscounted accrual basis.

h. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets, if any, 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.

I. Taxation

Provision for current tax is made based on the liability computed in accordance with relevant tax rates and tax laws. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

j. Foreign currency Transactions

(a) Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction.

(b) Monetary items denominated in foreign currencies at the year end are translated at the rates prevailing as on the date of Balance Sheet and resultant exchange loss/gain, if any, is dealt in the Profit & Loss Account.

(c) In respect of transactions covered by forward exchange contracts, the difference between exchange rate on the date of the contract and the year end rate/settlement rate is recognized in the profit & loss account. Any premium/discount on forward contract is amortised over the life of the contract. Any profit/loss arising on cancellation or renewal of such a contract is recognized as income or expense for the period.

k. Provisions & Contingent Liabilities

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources would be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are reviewed at each balance sheet date and are adjusted to effect the current best estimation.

A contingent Liability is disclosed after a careful evaluation of the facts and legal aspects of the matter involved where the possibility of an outflow of resources embodying the economic benefits is remote.

l. Impairment of Assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment of assets. If any such indication exists, impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in books of accounts. In case there is '' any indication that an impairment loss recognised for an asset in prior accounting periods no longer exists or may have decreased, the recoverable value is reassessed and the reversal of impairment loss is recognised as income in the profit and loss account

m. Other Accounting Policies

These are consistent with generally accepted accounting practices.


Mar 31, 2013

A. Basis of Preparation of Financial Statements

The Financial Statements are prepared under historical cost convention and comply in all material aspects with the applicable accounting principles in India , Accounting Standards notified under Sub Section 3 (C) of Section 211 of the Companies Act 1956 and other relevant provisions of the Companies Act ,1956.

b. Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realization/collection. Prudential norms prescribed by Reserve Bank of India for revenue recognition are followed.

i) Lease Rentals

Lease rentals received/receivable under lease agreements are accounted as income net of Lease Equalisation to ensure recognition of Net Income at a constant periodic rate of return on the Net Investment outstanding in the lease as per (AS)-19 on leases. Against the lease rentals a matching annual charge (which represents recovery of the net investment in the leased assets over the lease term) is made to the Profit and Loss Account.

ii) Hire-Purchase

Income from Hire Purchase financing is recognised on equated instalment basis.

iii) Dividend Income is accounted when the right to receive the same is established.

iv) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

c. Fixed Assets

The fixed assets are stated at cost less accumulated depreciation. The cost of fixed assets includes taxes and other identifiable direct expenses.

d. Depreciation

Depreciation on Fixed Assets is provided on Straight line Method at the rates and in the manner given in Schedule-XIV (as amended by the Department of Companies Affairs, Government of India on December 16, 1993) to the Companies Act, 1956. In respect of Fixed Assets acquired prior to December 16, 1993 depreciation is provided at the rates applicable prior to the amendment. Assets costing upto Rs. 5000/- each are depreciated fully in the year of purchase. In respect of assets given on lease the company has followed the recommendations of the Institute of Chartered Accountants of India on accounting for leases. No depreciation is provided in respect of assets leased after 01.04.2001 as per Accounting Standard-19 on "Leases".

e. Stock on Hire

Stock on hire is valued at cost plus total finance charges and is reduced by the instalments which have matured during the relevant period.

f. Investments

Investments are classified into current and long term investments. Long Term Investments are valued at cost. Current Investments are valued at lower of cost and fair value. However, diminution other than temporary is provided. The Profit/Loss arising on account of Sales is recognised in the Profit & Loss Account.

g. Employee Benefits

Contribution to Defined Contribution Schemes such as Provident Fund is charged to Profit & Loss Account. Gratuity liability for employees who have completed five years of service is provided for on the basis of actual liability determined by the company. Liability on account of short term employee benefits such as bonus is recognized on an undiscounted accrual basis.

h. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets, if any, 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.

i. Taxation

Provision for current tax is made based on the liability computed in accordance with relevant tax rates and tax laws. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

j. Foreign currency Transactions

(a) Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction.

(b) (b) Monetary items denominated in foreign currencies at the year end are translated at the rates prevailing as on the date of Balance Sheet and resultant exchange loss/gain, if any, is dealt in the Profit & Loss Account.

(c) (c) In respect of transactions covered by forward exchange contracts, the difference between exchange rate on the date of the contract and the year end rate/settlement rate is recognized in the profit & loss account. Any premium/discount on forward contract is amortised over the life of the contract. Any profit/loss arising on cancellation or renewal of such a contract is recognized as income or expense for the period.

k. Provisions & Contingent Liabilities

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources would be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are reviewed at each balance sheet date and are adjusted to effect the current best estimation.

A contingent Liability is disclosed after a careful evaluation of the facts and legal aspects of the matter involved where the possibility of an outflow of resources embodying the economic benefits is remote.

I. Impairment of Assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment of assets. If any such indication exists , impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in books of accounts. In case there is any indication that an impairment loss recognised for an asset in prior accounting periods no longer exists or may have decreased, the recoverable value is reassessed and the reversal of impairment loss is recognised as income in the profit and loss account.

m. Other Accounting Policies

These are consistent with generally accepted accounting practices.


Mar 31, 2011

A. Basis of Preparation of Financial Statements

The Financial Statements are prepared under historical cost convention and comply in all material aspects with the applicable accounting principles in India , Accounting Standards notified under Sub Section 3 (C) of Section 211 of the Companies Act 1956 and other relevant provisions of the Companies Act ,1956.

b. Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realization/collection. Prudential norms prescribed by Reserve Bank of India for revenue recognition are followed.

i) Lease Rentals

Lease rentals received/receivable under lease agreements are accounted as income net of Lease Equalisation to ensure recognition of Net Income at a constant periodic rate of return on the Net Investment outstanding in the lease as per (AS)-19 on leases. Against the lease rentals a matching annual charge (which represents recovery of the net investment in the leased assets over the lease term) is made to the Profit and Loss Account.

ii) Hire-Purchase

Income from Hire Purchase financing is recognised on equated instalment basis.

iii) Dividend Income is accounted when the right to receive the same is established.

iv) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

c. Fixed Assets

The fixed assets are stated at cost less accumulated depreciation. The cost of fixed assets includes taxes and other identifiable direct expenses.

d. Depreciation

Depreciation on Fixed Assets is provided on Straight line Method at the rates and in the manner given in Schedule-XIV (as amended by the Department of Companies Affairs, Government of India on December 16, 1993) to the Companies Act, 1956. In respect of Fixed Assets acquired prior to December 16, 1993 depreciation is provided at the rates applicable prior to the amendment. Assets costing upto Rs. 5000/- each are depreciated fully in the year of purchase. In respect of assets given on lease the company has followed the recommendations of the Institute of Chartered Accountants of India on accounting for leases. No depreciation is provided in respect of assets leased after 01.04.2001 as per Accounting Standard-19 on "Leases".

e. Stock on Hire

Stock on hire is valued at cost plus total finance charges and is reduced by the installments which have matured during the relevant period.

f. Investments

Investments are classified into current and long term investments. Long Term Investments are valued at cost. Current Investments are valued at lower of cost and fair value. However, diminution other than temporary is provided. The Profit/Loss arising on account of Sales is recognised in the Profit & Loss Account.

g. Employee Benefits

Contribution to Defined Contribution Schemes such as Provident Fund is charged to Profit & Loss Account. Gratuity liability for employees who have completed five years of service is provided for on the basis of actual liability determined by the company. Liability on account of short term employee benefits such as bonus is recognized on an undiscounted accrual basis.

h. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets, if any, 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.

i. Taxation

Provision for current tax is made based on the liability computed in accordance with relevant tax rates and tax laws. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

j. Foreign currency Transactions

(a) Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction.

(b) Loans denominated in foreign currencies at the year end are translated at the rates prevailing as on the date of Balance Sheet and resultant exchange loss/gain, if any, is dealt in the Profit & Loss Account.

(c) In respect of transactions covered by forward exchange contracts, the difference between exchange rate on the date of the contract and the year end rate/settlement rate is recognized in the profit & loss account. Any premium/discount on forward contract is amortised over the life of the contract. Any profit/loss arising on cancellation or renewal of such a contract is recognized as income or expense for the period.

k. Provisions & Contingent Liabilities

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources would be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are reviewed at each balance sheet date and are adjusted to effect the current best estimation.

A contingent Liability is disclosed after a careful evaluation of the facts and legal aspects of the matter involved where the possibility of an outflow of resources embodying the economic benefits is remote.

l. The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment of assets. If any such indication exists , impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in books of accounts. In case there is any indication that an impairment loss recognised for an asset in prior accounting periods no longer exists or may have decreased , the recoverable value is reassessed and the reversal of impairment loss is recognised as income in the profit and loss account.

m. Other Accounting Policies

These are consistent with generally accepted accounting practices.

 
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