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Mirch Technologies Ltd. Accounting Policies | Accounting Policy of Mirch Technologies Ltd.
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Accounting Policies of Mirch Technologies Ltd. Company

Mar 31, 2014

The significant accounting policies have been predominantly presents below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

The Company is a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) ‘ Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India* (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements are consistent with (hose followed in the previous year.

1.2 Use of estimates

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

1.3 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents am short-term balances (with an original maturity of three months or less from the date of acquisition).

1.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss'' before extraordinary Items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available

1.5 Depreciation and amortisation

Depreciation has been provided on the written down value method as the rates prescribed in Schedule XIV to the Companies Act. 1956.

1.6 Revenue recognition

Sate of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sates include excise duty but exclude sales tax and value added tax.

1.7 Other income

Interest income is accounted on accrual basis.

1.8 Tangible fixed assets

Fixed assets are carried at cost less accumulated depredation an impairment losses, if any. The Office premises purchased is yet to be transferred in company''s Name by the society. However the company ha: claimed depredation on the same.

1.9 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after ta (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Dilutee earnings per share is computed by dividing the profit I (loss) after ta (including the post lax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to th< dilutive potential equity shares, by the weighted average number of ©quit Shares considered for derising basic earnings per share and the weights average number of equity shares which could have been issued on tin conversion of ail dilutive potential equity shares. Potential equity shares an deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at s later date, The dilutive potential equity shares are adjusted lor the proceeds receivable ha< the shares been actually issued at fair value (i.e. average market value o the outstanding shares). Dilutive potential equity shares are determiner independently for each period presented. The number of equity shares ant potentially dilutive equity shares are adjusted for share splits / reverse shan splits and bonus shares, as appropriate.

1.10 Taxes on income

Deferred tax is recognised on timing differences, being the difference: between the taxable Income and the accounting Income that originate in on< period and are capable of reversal in one or more subsequent periods Deferred tax Is measured using the lax rates and the tax laws enacted o substantially enacted as at the reporting date. Deferred tax liabilities an recognised for all timing difference. Deferred tax assets in respect a unabsorbed depredation and carry forward of fosses are recognised only I there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised fo timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be -available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws am the Company has a legally enforceable right for such set off. Deferred ta: assets are reviewed at each Balance Sheet date for their realisability.

1.11 Impairment of assets

There is no impairment of assets during the year.

1.12 Provisions and contingencies.

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources writ b€ required to settle the obligation in respect of which a reliable estimate car be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed ai each Balance Sheet date and adjusted to retied the current best estimates.


Mar 31, 2013

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

The Company is a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

1.3 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition).

1.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available

Depreciation and amortisation

Depreciation has been provided on the written down value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

1.5 Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exdude sales tax and value added tax.

1.6 Other income

Interest income is accounted on accrual basis.

1.7 Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The Office premises purchased is yet to be transferred in company''s Name by the society. However the company has claimed depreciation on the same.

1.8 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 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. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

1.9 Taxes on income

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantJaBy enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward off osses are recognised only if there is virtual certainty that there wiU be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and labilities are offset if such

1.10 Impairment of assets

There is no impairment of assets during the year

1.11 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events 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. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required 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. Contingent liabilities are disclosed in the Notes.


Mar 31, 2012

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended}.

The Company is a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention that are carried at revalued amounts, The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous vear.

1.2 Use of estimates

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

1.3 Cash and cash equivalents

Tash comprises cash on hand and demand deposits with banks. Cash equivalents are short- term balances (with an original maturity of three months or less from the date of acquisition).

1.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary terns and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information,

1.5 Depreciation and amortisation

Depreciation has been provided on the written down value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

1.6 Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

1.7 Other income

Interest income is accounted on accrual basis.

1.8 Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The Office premises purchased is yet to be transferred in company's Name by the society. However the company has claimed depreciation on the same.

1.9 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 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. Potential equity shares are deemed to be dilutive only If their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

1.10 Taxes on income

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset If such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their rpalisabilifv.

1.11 Impairment of assets

There is no impairment of assets during the year.

1.12 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events 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. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required 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. Contingent liabilities are disclosed in the


Mar 31, 2011

A) Basis of Accounting :

Financial Statements are prepared under historical cost convention on Accrual basis and in accordance with the Companies Act, 1956 .

b) Revenue Recognition :

All revenue and expenses are accounted for on accrual basis.

c) Fixed Assets :

Fixed Assets have been stated at cost of acquisition as reduced by the accumulated depreciation.

d) Depreciation :

Depreciation on Fixed Assets has been provided as per schedule XIV of the Companies Act 1956 on W.D.V. basis.

e) Inventories :

Usually Company Follows the following method :

i) Raw material - At cost

ii) Finished goods - At cost or market value whichever is lower

f) Sales :

Sales excludes Excise duty and Sales Taxes.

g) Liability in respect of gratuity is accounted on cash basis.

h) Contingent Liabilities :

Contingent liabilities are not provided and are disclosed in Notes on Accounts.


Mar 31, 2010

A) Basis of Accounting ; Financial statements are prepared under historical cost convention on Accrual basis and in accordance with the companies Act, 1956 accordance with the Companies Act, 1956 .

b) Revenue Recognition ;

All revenue and expenses are accounted for on accrual basis.

c) Fixed Assets :

Fixed Assets have been stated at cost of acquisition as reduced by the accumulated depreciation.

d) Depreciation :

Depreciation on Fixed Assets has been provided as per schedule XIV of the companies Act, 1956 W.D.V basis

e) Inventories ;

Usually Company Follows the following method -

i) Raw material -At cost

n) Finished goods - At cost or market value whichever is lower

f) Sales ;

Sales excludes Excise duty and Sales Taxes.

g) Liability in respect of gratuity is accounted on cash basis. h) Contingent Liabilities :

Contingent liabilities are not provided and Un Notes on Accounts

1. The Company do not have any information with regard to creditors whether they possesses any S.S.I Units.

2. As per the terms and conditions , the company had to redeemed the Returnable Preference Shares at par after 12 years, that is in the year 1985 - 86 subject to three months notice , but not later than 15 years from the date of allotment that is 27.09.1973 but the company has not redeemed the same so far . As the maturity period of same shares is over, the company is liable to pay dividend on these shares @ 9.50% p.a., that is Rs.95,000/- p.a. and aggregate to honorable to be paid to the shareholders of those shares , however , Rs 14,25,000/- as not been provided in the Balance sheet . Hence the debit balance of profit & Loss Account has appearing m the Balance Sheet would have been higher to the extent of Rs. 14,25,000/- and the loss for the current year would have been higher to the same extent,

3. Segment Reporting ;

The Company has one segment of activity namely « Engineering goods " during the year .

4. Deferred Tax ;

The Company has unabsorbed depreciation and carried forward losses available for set - off under the Income Tax Act,1961 . However in view of present uncertainty regarding generation of sufficient future taxable income , net deferred tax assets at the year end including related credit For the year have not been recognized in these accounts on prudent basis.

5. Discloser of related parties / related party transactions :

 
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