Home  »  Company  »  Jayavant Product  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Jayavant Products Ltd. Company

Mar 31, 2012

1. SYSTEM OF ACCOUNTING

(a) The company generally, except under uncertain circumstances, follows mercantile method of accounting and recognizes income and expenditure on accrual basis.

(b) Financial statements are based on historical cost.

(c) Accounting Policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles followed by the company.

(d) All assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956.

(e) In view of nature of business, the Company has ascertained, its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities, on item to item basis.

2. FIXED ASSETS

All fixed assets are stated at cost of acquisition less accumulated depreciation.

3. INVESTMENTS

(a) Long term investments are being valued at cost of acquisition. Provision is made to recognize a decline, other than temporary, in the carrying amount of long term investments.

(b) Short term investments are being valued at cost or market values whichever is lower.

4. EXPENDITURE FOR BENEFIT OF ENDURING NATURE

Miscellaneous expenditure, such as preliminary expenditure is amortized over a period of 5 years from the financial year in which it is incurred.

5. INCOME FROM INVESTMENTS

Income from investments, where appropriate, is taken into revenue in full on declaration or receipt and tax deducted at source thereon is treated as advance tax.

6. TREATMENT OF CONTINGENT LIABILITIES

Contingent liabilities are disclosed by way of note to the accounts. Disputed demands in respect of income tax, sales tax etc. are disclosed as contingent liabilities. Payments in respect of such demands, if any, are shown as advances till the final disposal of the matter.

7. TAXATION

Income tax expense comprises of current tax and deferred tax charge or credit. Provision for current tax is made on the assessable income at the rate applicable for the relevant assessment year. The deferred tax assets and deferred tax liabilities are calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets, arising mainly on account of unabsorbed depreciation and losses under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized, only to the extent there is a reasonable certainty of its realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed to reassure realization.

8. IMPAIRMENT LOSSES

Impairment loss is provided to the extent the carrying amount(s) of assets exceed their recoverable amounts(s). Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of the asset ancfTrsm its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in^an arm length transaction between knowledgeable, willing parties, less the cost of disposal.


Mar 31, 2010

1. SYSTEM OF ACCOUNTING

(a) The Company generally, except under uncertain circumstances, follows mercantile method of accounting and recognizes income and expenditure on accrual basis.

(b) Financial statements are based on historical cost.

(c) Accounting Policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles followed by the Company.

2. FIXED ASSETS

All fixed assets are stated at cost of acquisition less accumulated depreciation.

3. INVESTMENTS

(a) Long term investments are being valued at cost of acquisition. Provision is made to recognize a decline, other than temporary, in the carrying amount of long term investments.

(b) Short term investments are being valued at cost or market values whichever is lower.

4. EXPENDITURE FOR BENEFIT OF ENDURING NATURE

Miscellaneous expenditure, such as preliminary expenditure and share issue expenditure is amortized over a period of 5 years from the financial year in which it is incurred.

5. INCOME FROM INVESTMENTS

Income from investments, where appropriate, is taken into revenue in full on declaration or receipt and tax deducted at source thereon is treated as advance tax.

6. TREATMENT OF CONTINGENT LIABILITIES

Contingent liabilities are disclosed by way of note to the accounts. Disputed demands in respect of income tax, sales tax etc. are disclosed as contingent liabilities. Payments in respect of such demands, if any, are shown as advances till the final disposal of the matter.

7. TAXATION

Income tax expense comprises of current tax and deferred tax charge or credit. Provision for current tax is made on the assessable income at the rate applicable for the relevant assessment year. The deferred tax assets and deferred tax liabilities are calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets, arising mainly on account of unabsorbed depreciation and losses under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized, only to the extent there is a reasonable certainty of its/feSfcJization. At each balance sheet date the carrying amount of deferred tax-i assets are reviewed to reassure realization.

8. IMPAIRMENT LOSSES

Impairment loss is provided to the extent the carrying amount(s) of assets exceed their recoverable amounts(s). Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm length transaction between knowledgeable, willing parties, less the cost of disposal.

 
Subscribe now to get personal finance updates in your inbox!