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Accounting Policies of Mercury Metals Ltd. Company

Mar 31, 2014

I) Basis Of Prepration :

The Financial Statements are prepared as per historical cost convention and in accordance with the Generally Accepted Accounting Principles (GAAP) in India, the provisions of the Companies Act 1956, read with General Circular No:15/2013 dated 13th September, 2013, issued by the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and the applicable Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006. The company follows mercantile systems of accounting and recognised income and expenditures on accrual basis except in case of significant uncertainties relating to income.

ii) Use of Estimates :

The preparation of financial statements in conformity with generally accepted principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

iii) Fixed assets & Depreciation :

There is not fixed assets held by the company.

Depreciation

There is no Fixed assets held by company hence no Depreciation is provided.

Amortization

No Amortization of preliminary or preoperative expenses as there are no balance in these Accounts.

iv) Inventories :

Inventories of shares & securities are valued at cost.

Other Traded inventories Valued at lower of the cost or Net realisable value.

Cost of Inventories comprises of cost of purchase and other cost incurred in the bringing the inventories to their present location and condition.

v) Revenue Recognition :

Sales are recognized on completion of sale of goods and are recorded net of VAT.

Dividend income is recognized when the right to receive the same is established.

vi) Employee Benefits :

Liabilities in respect of Gratuity & other retirement benefits is not provided in the Books of Account.

vii) Impairment of Assets :

There is no fixed assets held by the company. And hence company is not required to provide for any impairment loss in the financial statements.

viii) Taxes on Income :

As company has incurred loss during the year. Hence no tax provision is made. Due to loss in current year no MAT provision is required to be made by the company. Further in view of loss carry forward of the previous year no deferred tax provision is made by the company.

ix) Earning per Share :

The company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on Earnings Per Share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity shares outstanding during the year.

x) Investments :

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non current investments. All Investments are stated at cost. A provision for diminution is made only in case of permanent diminution in value of such securities.

xi) Provisions, Contingent Liabilities and Contingent Assets :

Provisions involving a 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 accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

xii) Borrowing Costs

As there is no Term Loan, Secured or unsecured loan taken for expansion or for addition of Fixed Assets, disclosure under the accounting statdard - 18 for borrowing cost not provided.


Mar 31, 2013

A. BASIS OF ACCOUNTING:-

Financial statement is prepared under the historical cost conversion. The company follows mercantile systems of accounting and recognized income & expenditure on accrual basis except in case of significant uncertainties relating to income.

B. REVENUE RECOGNITION :-

Sales are recognized on completion of sale of goods and are recorded net of vat.

C. FIXED ASSETS :-

There is not fixed assets held by the company.

D. DEPRECIATION & AMORTIZATION:- i) DEPRECIATION:-

There is no Fixed assets held by company hence no Depreciation is provided.

ii) AMORTIZATION:-

No Amortization of preliminary or preoperative expenses as there are no balance in these Accounts.

E. INVESTMENT:-

Investment are stated at cost.

F. INVENTORIES :-

Inventories of shares & securities are valued at cost.

G. RETIREMENT BENEFITS :-

Liabilities in respects of Gratuity & other retirement benefits is not provided in the Books of Account.

H. CONVERSION OF TRANSACTION IN FOREIGN CURRENCY:-

No Foreign currency transaction done during the year.

I. BORROWING COST:-

No Term Loan , Secured or unsecured loan taken for expansion and addition of Fixed Assets

J. DIVIDEND :-

Dividend income is recognized when the right to receive the same is established. During the year there is no receipt of Dividend income.

K. TAX PROVISION:-

As company has incurred loss during the year. Hence no tax provision is made. Due to loss in current year no MAT provision is required to be made by the company. Further in view of loss carry forward of the previous year no deferred tax provision is made by the company.

During The Previous Year Company Has Availed OTS Scheme As Prescribed By GOG With The Charotar Nagrik Bank Ltd H.P A/C 72 Vide Their Letter Dated 13/12/2011 Company Has To Pay Rs.33014386 Is Payable On Rs. 1375600 Monthly 24 Installment And Simple Interest @ 7% Thereon. But The Company Has Not Paid Any Installment And Interest Due Against The Above Scheme During The Year 2012-13 During The Previous Year Company Has Availed OTS Scheme As Prescribed By GOG With The Charotar Nagrik Bank Ltd. B/P. A/C No.2 Vide Their Letter Dated 13/12/2011 Company Has To Pay Amount Of Rs.73,84,451 Is Payable on Rs. 309768 Instalment And Simple Interst @7% Thereon. But The Company Has Not Paid Any Installment And Interest Due Against The Above Scheme During The Year 2012-13.

The Above Balances Are Subject To Completion Of OTS Scheme By The Company In Prescribed Time Period.


Mar 31, 2012

A. BASIS OF ACCOUNTING:-

Financial statement is prepared under the historical cost conversion. The company follows mercantile systems of accounting and recognized income & expenditure on accrual basis except in case of significant uncertainties relating to income.

B. REVENUE RECOGNITION :-

Sales are recognized on completion of sale of goods and are recorded net of vat.

C. FIXED ASSETS :-

Fixed assets are stated at cost. Cost of acquisition in inclusive of freight, duties, taxes and other directly attributable cost incurred to bring the assets to their working condition for intended use. During the year Company has disposed off Fixed Assets held by the co.

D. DEPRECIATION & AMORTIZATION:-

i) DEPRECIATION:-

Depreciation is provided up to the date of sold on Written Down Value Method on fixed Assets at the rate specified in Schedule XIV to the companies Act, 1956.

ii) AMORTIZATION:-

No Amortization of preliminary or preoperative expenses as there are no balance in these Accounts.

E. INVESTMENT:- Investment are stated at cost.

F. INVENTORIES :-

Inventories of shares & securities are valued at cost.

G. RETIREMENT BENEFITS :-

Liabilities in respects of Gratuity & other retirement benefits is not provided in the Books of Account.

H. CONVERSION OF TRANSACTION IN FOREIGN CURRENCY:- No Foreign currency transaction done during the year.

I. BORROWING COST:-

No Term Loan , Secured or unsecured loan taken for expansion and addition of Fixed Assets J. DIVIDEND :-

Dividend income is recognized when the right to receive the same is established. During the year there is no receipt of Dividend income.

K. INTEREST:-

During the year company has provided interest ' 2,03,69,965.51 i.e. difference of excess liabilities raised for amount payable on OTS Scheme with Charotar Nagrik Sahkari Bank Ltd. After adjusting FD and FD Interest accured there on.

L. TAX PROVISION:-

As company has incurred loss during the year. Hence no tax provision is made. Due to loss in current year no MAT provision is required to be made by the company. Further in view of loss carry forward of the previous year no deferred tax provision is made by the company.

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