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

Accounting Policies of MSR India Ltd. Company

Mar 31, 2015

Basis for preparation of accounts

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and the relevant provisions thereof. 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. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of Assets and Liabilities, revenues and expenses, and related disclosures of contingent liabilities in the financial statements and accompanying notes. Estimates are used for, but not limited to valuation of investments, collect ability of receivables, sales returns, incentive discount offers, valuation of inventory, depreciable lives of fixed assets and valuation of acquired intangibles and goodwill, income taxes, stock based compensation and contingencies. Actual results could differ materially from those estimates.

Fixed Assets and Depreciation

i) Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. 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. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their book value and net realizable value and are shown separately in the financial statements under Other Current Assets if any. Any expected loss is recognized immediately in the profit and loss account. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account if any.

ii) Depreciation has been provided under the written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956. In respect of assets added / assets sold during the year, pro- rata depreciation has been provided at the rates prescribed under Schedule XIV. Depreciation in respect of assets acquired during the year whose cost does not exceed Rs. 5,000/- has been provided at 100%.

Revenue Recognition

i. Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties.

ii. Income from services rendered is recognized as the service is performed and is booked based on agreements / arrangements with the concerned parties.

iii. Interest income on Deposits is recognized during the time proportion method, based on interest rates implicit in the transaction.

Expenditure

Expenses are accounted on accrual basis and the Provisions are made for all expected losses and liabilities.

Investments

Investments are classified into current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments. Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Employee benefits

Disclosure is made as per the requirements of the standard and the same is furnished below:

1. Defined Benefit Plan

The company doesn't have policy of contribution to Gratuity and Leave encashment.

Hence no provision is made in the books.

Foreign Exchange Transactions

C. Foreign Exchange Earnings and Out Go

Foreign Exchange Earnings : Nil

Foreign Exchange Outgo : 20,000 Euros INR Rs.14.56 lacs

a) Foreign currency transactions arising during the year are recorded as per the prescribed foreign exchange rates prevailing on the date of the transaction.

b) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are stated at the contract rates and / or at the transaction Schedule :

Earnings per share

A basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares if any.

Inventories

Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Impairment of Assets:

At each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a) The provision for impairment loss, if any, required or

b) The reversal, if any, required for impairment loss recognized in previous periods. Impairment loss is recognized if the carrying amount an asset exceeds its recoverable amount

Borrowing Costs:

Borrowing Costs that are directly attributable to long term project management and development activities are capitalized as part of the projects cost when the activities that are necessary to prepare the asset for its intended use or sale are in progress. Other borrowing costs are recognized as expenses in profit and loss account in the period in which they are occur.

Income Taxes

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized , subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized on unabsorbed depreciation and losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments under such leases are charged to profit and loss account on a straight line basis over the lease term.

Provisions and Contingent Liabilities

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

During the FY 2012-13 Auditors suggested to write off Loans and Advances to the extent of Rs.10,79,09,213/- since the advances are carrying balances more than one year. But after the vigourus trials and efforts made by the management it is reviwed that the above advances can be recoverable in due course and hence the bad debts written off entry made during the year 2012-13 is being reversed this year.


Mar 31, 2013

Basis for preparation of accounts

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211 (3c) of the Companies Act, 1956 and the relevant provisions thereof. 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. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

Revenue Recognition

Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties. Income from services rendered is recognized as the service is performed and is booked based on agreements / arrangements with the concerned parties. Interest on investments is booked on a time proportion basis taking into account the amounts invested and the rate of interest. Dividend income on investments is accounted for when the right to receive the payment is established.

Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. 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. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their book value and net realizable value and are shown separately in the financial statements under Other Current Assets if any. Any expected loss is recognized immediately in the profit and loss account. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account if any.

Depreciation accounting

Depreciation has been provided under the written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956. In respect of assets added / assets sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule XIV. Depreciation in respect of assets acquired during the year whose cost does not exceed Rs. 5,000/ - has been provided at 100%.

Inventories

Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Impairment of Assets:

At each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a) The provision for impairment loss, if any, required or

b) The reversal, if any, required for impairment loss recognized in previous periods.

Impairment loss is recognized if the carrying amount an asset exceeds its recoverable amount

Borrowing Costs:

Borrowing Costs that are directly attributable to long term project management and development activities are capitalized as part of the projects cost when the activities that are necessary to prepare the asset for its intended use or sale are in progress. Other borrowing costs are recognized as expenses in profit and loss account in the period in which they are occur.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of Assets and Liabilities, revenues and expenses, and related disclosures of contingent liabilities in the financial statements and accompanying notes. Estimates are used for, but not limited to valuation of investments, collectability of receivables, sales returns, incentive discount offers, valuation of inventory, depreciable lives of fixed assets and valuation of acquired intangibles and goodwill, income taxes, stock based compensation and contingencies. Actual results could differ materially from those estimates.

Investments

Investments are classified into current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments. Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Income Taxes

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized on unabsorbed depreciation and losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized

Cash and Cash Equivalents .

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

Accounting for effects of changes in foreign exchange rates

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions are recognized in the Profit and Loss account. Monetary and Non monetary Current Assets and liabilities are carried at fair value and other assets and liabilities are carried at historical cost.

Employee benefits

Disclosure is made as per the requirements of the standard and the same is furnished below:

1. Defined contribution plan

Contribution to provident fund is in the nature of defined contribution plan and is made to EPFO.

2. Defined Benefit Plan

The company doesn''t have policy of contribution to Gratuity and Leave encashment. Hence no provision is made in the books.

Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments under such leases are charged to profit and loss account on a straight line basis over the lease term.

Earnings per share

A Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other them the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares if any.

Provisions and Contingent Liabilities

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.


Mar 31, 2012

(a) AS-1 Disclosure of accounting policies

The accounts are maintained on accrual basis. The revenue and expenditure are accounted on a going concern basis.

(b) AS - 2 Valuation of inventories

Inventories are valued in accordance with the method of valuation prescribed by The 1CAI at weighted average cost or net realisable value, whichever is less.

(c) AS-3 Cash flow statements

The cash flow statement is prepared under "indirect method" and the same is annexed.

(d) AS - 4 Contingencies and events occurring after Balance Sheet date

Contingencies and events occurring after the Balance sheet date if any are recognized as per the standard issued bythelCAI.

(e) AS - 5 Net profit or loss for the period, prior period items and changes in accounting policies

Net profit or loss for the period, prior period items and changes in accounting policies if any are disclosed separately as per the AS-5

(f) AS-6 Depreciation accounting

Depreciation has been provided under the written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956 with the applicable shift allowance. In respect of assets added / assets sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule XIV. Depreciation in respect of assets acquired during the year whose cost does not exceed Rs. 5,000/- has been provided at 100%.

(9) AS-7 Construction contracts

This Accounting Standard is not applicable.

(h) AS-9 Revenue recognition

The income of the company is derived from sale (net of trade discounts). Sale of goods is recognised on despatch of goods to customers. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. When uncertainty in remittance is anticipated for interest, royalties and dividends, revenue recognition may need to be postponed as per the Standard issued by ICAI

(i) AS-10 Accounting for fixed assets

All the fixed assets are valued at cost including expenditure incurred in bringing them to usable conditioh less depreciation.

(j) AS -11 Accounting for effects of changes in foreign exchange rates

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions are recognised in the Profit and Loss account. Monetary and Non monetary Current Assets and liabilities are carried at fair value and other assets and liabilities are carried at historical cost.

(k) AS -12 Accounting for Government Grants

Company doesn't have any government grants.

(1) AS - 13 Accounting for Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Current investments are carried at lower of cost or realizable value determined on individual basis. Long term investments are carried at cost.

(m) AS -14 Accounting for amalgamations

During the year no entity is amalgamated with the company.

(n) AS -15 Accounting for Employee benefits

Disclosure is made as per the requirements of the standard and the same is furnished below:

Defined contribution plan

Contribution to provident fund is in the nature of defined contribution plan and is made to EPFO.

The company doesn't have policy of contribution to Gratuity and Leave encashment. Hence no provision is made in the books.

(o) AS -16 Borrowing costs

The borrowing costs have been treated in accordance with Accounting Standard issued by The Institute of Chartered Accountants of India.

(P) AS -17 Segment reporting

The Company operates in only one segment in one segment. Hence the Accounting Standard on segment reporting is not applicable.

(q) AS - 18 Related party disclosures

Disclosure is made as per the requirements of the standard and the same is furnished below:

List of Related Parties as per clause 3(a) of the standard where control exists.

(r) AS - 19 Accounting for Leases

Operating Leases are recognized as expense in Profit and Loss Account on Straight Line Basis over the lease term.

(s) AS - 20 Earnings per share

Earnings per share is calculated by dividing the profit attributable to the shareholders by the weighted average number of equity s hares outstanding as at the close of the year.

(t) AS - 21 Consolidated financial statements

Consolidated financial statements are not applicable.

(u) AS - 22 Accounting for taxes on income

Deferred tax liability and asset are recognised based on timing difference using the tax rates substantively enacted on the Balance Sheet date

(V) AS - 23 Accounting for investments in associates in consolidated financial Statements

Company doesn't have any associates to consolidate as per AS - 23 issued by The ICAI.

(w) AS - 24 Discontinuing operations

During the year, the Company has not discontinued any of its operations.

(x) AS - 25 Interim financial reporting

The Company has elected to publish quarterly financial results which were subject to limited review by the statutory auditors.

(y) AS - 26 Accounting for Intangible assets

The company doesn't have any Intangible assets.

(z) AS - 27 Financial Reporting of interests in joint venture

Company doesn't have any Joint venture as on 31.03.2012.


Mar 31, 2011

A. Basis of Accounting: The financial statements are prepared under the historical cost convention in accordance with Generally Accepted Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956. All income and expenditure having a material bearing on the financial statements are recognized on the accrual basis.

b. Fixed Assets: Fixed Assets are stated at the cost of acquisition less accumulated depreciation.

c. Depreciation: Depreciation on fixed assets is provided on straight-line-method and at the rates specified in the Schedule XIV of the Companies Act, 1956.

d. Miscellaneous Expenditure: Miscellaneous expenditure comprising of preliminary expenses is amortized over five years period.


Mar 31, 2010

A. Basis of Accounting: The financial statements are prepared under the historical cost convention in accordance with Generally Accepted Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956. All income and expenditure having a material bearing on the financial statements are recognized on the accrual basis.

b. Fixed Assets: Fixed Assets are stated at the cost of acquisition less accumulated depreciation.

c. Depreciation: Depreciation on fixed assets is provided on straight-line-method and at the rates specified in the Schedule XIV of the Companies Act, 1956.

d. Miscellaneous Expenditure: Miscellaneous expenditure comprising of preliminary expenses is amortized over five years period.

 
Subscribe now to get personal finance updates in your inbox!