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

Accounting Policies of Nicco Corporation Ltd. Company

Mar 31, 2015

The Accounts of the company have been prepared in accordance with the historical cost convention (except specifically excluded treatment) under accrual basis of accounting as per Indian GAAP. Accounts and disclosures thereon comply with the Accounting Standards referred to under section 133 of Companies Act, 2013, other pronouncement of ICAI, provisions of the Companies Act, 2013 and guidelines issued by SEBI as applicable.

Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue, expenses and contingent liabilities pertaining to years, the financial statement relate to Actual result could differ from such estimates. Any revision in accounting estimates is recognised prospectively from current year and material revision, including its impact on financial statement, is reported in notes to accounts in the year of incorporation of revision.

All assets and liabilities have been classified as current or non-current as per the company's nonnal operating cycle and other criteria set out in Revised Schedule III of Companies Act, 2013.

(a) (i) FIXED ASSETS : (Tangible)

(i) Fixed Assets (except free hold Land) are valued at cost (net of CENVAT) less depreciation/amortisation and impairment loss, if any. except for those revalued which are presented in terms of revalued figures—net of depreciation thereon and impairment loss if any. Land is valued at cost which includes expense on account of development.

(ii) Assets acquired under Hire Purchase are shown under fixed assets and are depreciated at the rate specified under schedule II of the Companies Act, 2013.

iii) Cost includes purchase price. finance charges in case of major expansion or modernisation and other attributable expenses for bringing the Assets to their working condition for the intended use, duly certified by the engineers of the concerned departments.

(ii) FIXED ASSETS : (Intangible)

Intangible fixed assets i.e.: software is carried at actual cost of acquision including cost incidental thereon—net of amortisation.

(b) DEPRECIATION

1. Depreciation is considered on Straight Line Method in terms of life span of different assets specified under schedule II of Companies Act, 2013.

2. Depreciation on additions/deletion during the year is charged on pro rata basis from/upto the date of such addition/deletion.

3. In respect of revalued depreciable assets, the differential depreciation on the amounts added on revaluation is set off against Revaluation Reserve forming part of Capital Reserve.

4. Depreciation on increase in value of assets arising out of variations in the exchange rates, is charged prospectively over the remaining life of the assets.

5. Leasehold land is amortised over the period of lease.

6. Intangible fixed assets i.e; software is amortised over a period of 5 years on straight line basis since the date of bringing the same in use.

(c) IMPAIRMENT OF FIXED ASSETS

Exigency of provisions, if any, for impairment loss has been assessed in the context of cash generating units (CGU) in due cognizance of indications thereof based on external/internal sources of information. Impairment loss is provided against Short fall of recoverable value of CGU's vis-a-vis written down value of conesponding fixed assets. Recoverable value is the higher of value in use and net selling price of the fixed assets relevant to a CGU.

(d) INVENTORIES

All items of inventories are valued at lower of cost and net realisable value except for scrap which is considered at estimated net realisable value.

Cost includes all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition. The basis of determining cost for different categories of inventories:

(a) Stores, Raw materials and Packing Materials—Weighted average basis.

(b) Work in Progress and Finished goods—Material cost and appropriate share of production overhead.

(c) Purchased goods—purchase price.

(e) INVESTMENTS

Long term investments are stated at cost less provision, if any, against permanent diminution in carrying cost of investment. Current investments are carried at lower of cost and Net Asset Value/market price.

(f) REVENUE RECOGNITION

1. Sales and services are accounted for when the sale of goods or services are completed on accrual basis. Sales is net of sales tax / VAT but gross of excise duty.

2. All items of income and expenses are recognized on accrual basis unless stated otherwise.

3. Export benefits are accounted for on the basis of realization.

(g) RECOGNITION OF PROFIT ON LONG TERM CONTRACTS

Contract revenue and Contract costs are recognized as revenue and expenses respectively by reference to the stage of completion of contract activity up to the date of balance sheet when construction contract stage can be estimated reliably. Expected loss on construction contract, based on possibility of total cost of construction exceeds contract revenue, is recognized as an expense. Stage of completion is arrived at on the basis of agreed billing schedule vis-a-vis total contract value.

(h) TRANSACTIONS IN FOREIGN CURRENCIES

Foreign currency assets and outside liabilities (other than fixed assets and those covered by forward contracts) as on the Balance Sheet date are converted at the year end exchange rates and loss or gain arising thereon, is adjusted in the carrying amount of fixed assets or charged to Profit & Loss Account, as the case may be.

Transactions in foreign currencies other than those covered by forward contracts, are recorded at the rate prevailing on the date of transaction. Impact of exchange fluctuation between the date of the transaction and that of payment is accounted for separately as exchange gain or loss.

(i) RETIREMENT BENEFITS

(i) Defined Contribution Plan—

Provident Fund, Employees Pension and Employees State Insurance are provided on accrual basis. The accrued amount being deposited to the respective Trust / Authority.

(ii) Defined Benefit Plan—

Gratuity, Leave salary and Superannuation benefit form part of defined benefit plan schemes existing in the company.

The above benefits have been accounted for on the basis of acturial computation under unit projected cost method in terms of AS-15 mandated by Ministry of Corporate Affairs (MCA) at year end. Interim liabilities are provided for in this regard on estimated basis.

(iii) Short term benefit Plan—

Benefits payable within a year has been accounted for on accrual basis in terms of non discounted value.

(j) GOVERNMENT GRANTS

Revenue grants are recognised in the Profit and Loss Account. Capjtal grants are credited to Capital Reserves.

(k) RESEARCH & DEVELOPMENT EXPENSES

Research and Development Expenditure is charged to profit and loss account in the year of incurrence.

(l) CONTINGENT LIABILITIES

Where there is reliably estimable amount of present obligation that warrant to be settled as a result of past event with possible outflow of resources embodying economic benefit, provision is recognised in account therefore.

Otherwise no provision is made against contingent liabilities which are disclosed in notes to accounts.

(m) MISCELLANEOUS EXPENDITURE

Preliminary expenses are written off in the year in which they are incurred.

Share issue expenses and payment made towards Voluntary Retirement Scheme are written off over a period of 60 months in equal installments.

(n) TAXATION

Income Tax is provided as per provisions of Income Tax Act, 1961. Deferred tax is recognized only at year end subject to consideration of prudence on timing difference being the difference between the taxable income and accounting income that originate in one year and capable of reversal in one or more subsequent period/periods.

(o) INTEREST IN JOINT VENTURE

Income, Expenses & stake in venture the company has undertaken with a third party have been accounted for in terms of AS-27 mandated by MCA.

(p) GENERAL

Items of income, expenses, assets and liabilities not being specifically referred to herein are accounted for consistently in terms of generally accepted accounting practices in due adherence of Accounting Standards mandated under act and in it's absence those issued under International Accounting Standards.


Mar 31, 2014

Basis of preparation of Accounts

The Accounts of the company have been prepared in accordance with the historical cost convention (except specifically excluded treatment) under accrual basis of accounting as per Indian GAAP.Accounts and disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules, other pronouncement of ICAI, provisions of the Companies Act, 1956 and guidelines issued by S''EBI as applicable.

Indian GAAP enjoins management to make estimates and assurhptlons that affect reported amount of assets, liabilities, revenue, expenses and cflntlngent liabilities pertaining to years, the financial statement relate to Actual result could differ from such estimates. Any revision in accounting estimates Is recognised prospectively from current year and material revision, Including its impact on financial statement is reported in notes to accounts In the year of incorporation of revision. .

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

(a) (i) FIXED ASSETS : (Tangible)

(i) Fixed Assets (except free hold Land) are valued at cost (net of CENVAT) less depreciation/amortisation and impairment loss, if any. except tor those revalued which are presented in terms of revalued figures—net of depreciation thereon and Impairment loss if any. Land is valued at cost which includes expense on account of development.

(ii) Assets acquired under Hire Purchase are shown under fixed assets and are depreciated at the rate specified under schedule XIV of

the Companies Act, 1956.

iii) Cost includes purchase price, finance charges in case of major expansion or modernisation and other attributable expenses for bringing the Assets to their working condition for the intended use, duly certified by the engineers of the concerned departments.

(ii) FIXED ASSETS: (Intangible)

Intangible fixed assets i.e.: software is carried at actual cost of acquision including cost incidental thereon—net of amortisation.

(b) DEPRECIATION

1. Depreciation is considered at the rates and in the manner specified under schedule XIV of the Companies Act, 1956 as under:

(i) Straight Line Method at Baripada division and Plant & Machinery in other divisions.

(ii) Written Down Value Method at other divisions in case of other assets.

2. Depreciation on additions/deletion during the year is charged on pro rata basis from/upfo the date of such addition/deletion.

3. In^ respect of revalued depreciable assets, the differential depreciation on the amounts added on revaluation is set off against

Revaluation Reserve forming part of Capital Reserve.

4. Depreciation on increase in value of assets arising out of variations in the exchange rates, is charged prospectively over the remaining life of the assets.

5. Leasehold land is amortised over the period of lease.

6. Ihtangible fixed assets i.e; software is amortised over a period of 5 years on straight line basis since the date of bringing the same in use.

(c) IMPAIRMENT OF FIXED ASSETS ''

Exigency of provisions, if any, for impairment loss has been assessed in the context of cash generating units (CGU) in due cognizance of indications thereof based on exfernal/lnternal sources of Information. Impairment loss is provided against Short fall of recoverable value ofCGU''s vis- a- vis written down volue of conesponding fixed assets. Recoverable value is the higher of value in use and net selling price of the fixed assets relevant to a CGU. Value In use when found to exceed the written down value of fixed assets of CGU, the exercise of further ascertaining net selling price therefor has been done away with. ,

(d) INVENTORIES

All Items of Inventories are valued at lower of cost and net realisable value except for scrap which Is considered at estimated net realisable value. " ; .

Cost Includes all costs of purchase, conversion and other costs Incurred in bringing the Inventories to their present location and condition. The basis of determining cost for different categories of Inventories: -

(a) Stores, Raw materials and Packing Materials—Weighted average basics

(b) Work in Progress and Finished goods—Material cost and appropriate share of production overhead.

(c) Purchased goods''purchase price.

(e) INVESTMENTS

Long term investments are stated at cost less provision, if any, against permanent diminution In carrying cost of Investment. Current Investments are carried at lower of cost and Net Asset Value/market price.

(f) REVENUE RECOGNITION

1. Sales and services are accounted for when the sale of goods or seivices are completed on accrual basis. Sales is net of sales tax /

VAT but gross ofexcise duty. ,

2. All Items of income and expenses are recognized on accrual basis unless stated otherwise.

3. Export benefits-are accounted for on the basis of realization.

(g) RECOGNITION OF PROFIT ON LONG TERM CONTRACTS

Contract revenue and Contract costs are recognized as revenue and expenses respectively by reference to the stage of completion of contract activity up to the date of balance sheet when construction contract stage can be estimated reliably. Expected loss on construction contract, based on possibility of total cost of construction exceeds contract revenue, Is recognized as an expense. Stage of completion is arrived at on the basis of agreed billing schedule vis-a-vis total contract value.

(h) TRANSACTIONS IN FOREIGN CURRENCIES

Foreign currency assets and outside lidbilities (other than fixed assets and those covered by forwdrd contracts) as on the Balance Sheet date are convelted at the year end exchange rates and loss or gdin arising thereon, is adjusted in the carrying amount of fixed assets or charged to Profit & Loss Account, as the case may be.

Transactions in foreign currencies other than those covered by forward contracts, are recorded at the rate prevailing on the date of transaction. Impact of exchange fluctuation between the date of the transaction and that of payment is accounted for separately as exchange gain or loss.

(i) RETIREMENT BENEFITS

(i) Defined Contribution Plan

Provident Fund, Employees Pension and Employees State Insurance are provided on accrual basis. The accrued amount being deposited to the respective Trust / Authority.

(il) Defined Benefit Plan

Gratuity, Leave salary and Superannuation benefit form part of defined benefit plan schemes existing in the company.

The above benefits have been accounted for on the basis of acturlal computation under unit projected cost method in terms of AS-15 as revised by ICAI.

(Ill) Short term benefit-Plan

Benefits payable within a year has been accounted for on accrual basis in terms of non discounted value.

(j) GOVERNMENT GRANTS .

Revenue grants are recognised in the Profit and Loss Account. Capital grants are credited to Capital Reseives. . .

(kj RESEARCH & DEVELOPMENT EXPENSES

Research and Development Expenditure is charged to profit and loss account in the year of incurrence.

(l) CUSTOM DUTY

Custom duty payable on imported goods landed but not cleared are accounted for at the time of clearance of Imported goods through customs.

(m) CONTINGENT LIABILITIES

Where there is reliably estimable amount of present obligation that warrant to be settled as a result of past event with possible outflow of resources embodying economic benefit, provision is recognised In account therefore,

Otherwise no provision Is made against contingent liabilities which are disclosed in notes to accounts.

(n) MISCELLANEOUS EXPENDITURE

Preliminary expenses are written off In the year In which they are Incurred. -

Share Issue expenses and payment made towards Voluntary Retirement Scheme are written off over a period of 60 months in equal installments.

(o) TAXATION

Income Tax is provided as per provisions of Income Tax Act, 1961. Deferred tax is recognized only at year end subject to consideration of prudence on timing difference being the difference between the taxable income and accounting income that originate In one year and capable of reversal in one or more subsequent period/periods.

(p) INTEREST IN JOINT VENTURE

income, Expenses & stake In venture the company has undertaken with a third party have been accounted for In terms of AS-27 issued by ICAI.

(q) GENERAL

Items of Income, expenses, assets and liabilities not being specifically referred to herein are accounted for consistently In terms of generally accepted accounting practices in due adherence of Accounting Standards Issued by ICAI and in It''s absence those issued under International Accounting Standards.


Mar 31, 2013

A. ACCOUNTING POLICIES

The Accounts of the company are prepared on going concern assumption under the historical cost convention (modified from time to time for revaluation of assets) and on accrual basis, in accordance with the applicable Accounting Standards except where otherwise stated.

The preparation of financial statements require estimates and assumptions to be made that effects the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialise.

(a) (i) FIXED ASSETS: (Tangible)

(i) Fixed Assets (except free hold Land) are valued at cost (net of CENVAT) less depreciation/amortization and impairment loss, if any, except for those revalued which are presented in terms of revalued figures—net of depreciation thereon and impairment loss, if any. Land is valued at cost which Includes expense on account of development.

(ii) Assets acquired under Hire Purchase are shown under fixed assets and are depreciated at the rate specified under Schedule XIV of the Companies Act, 1956.

(iii) Cost includes purchase price, finance charges in case of major expansion or modernisation and other attributable expenses for bringing the Assets to their working condition for the intended use, duly certified by the engineers of the concerned departments.

(ii) FIXED ASSETS : (Intangible)

Intangible fixed assets i.e.; software is carried at actual cost of acauision including cost incidental thereon—net of amortisation.

(b) DEPRECIATION

1. Depreciation is considered at the rates and in the manner specified under schedule XIV of the Companies Act, 1956 as under:

(i) Straight Line Method at Kalyanl, Baripada divisions and Plant & Machinery in other divisions. (ii) Written down Value Method at other divisions in case of other assets.

2. Depreciation on addition/deletion during the year is charged on pro rata basis from the date of such addition/deletion.

3. In respect of revalued depreciable assets, the differential depreciation on the amounts added on revaluation is set off against Revaluation Reserve forming part of Capital Reserve.

4. Depreciation on increase in value of assets arising out of variations in the exchange rates, is charged prospectively over the remaining life of the assets.

5. Leasehold land is amortised over the period of lease.

6. Intangible fixed assets i.e.; software is amortised over a period of 5 years on straight line basis since the date of bringing the same in use.

(c) IMPAIRMENT OF FIXED ASSETS

Exigency of provisions, if any, for impairment loss has been assessed in the context of Cash Generating Units (CGU) in due cognizance of indications thereof based on external/internal sources of information. Impairment loss is provided against short fall of recoverable value of CGU''s vis-a-vis written down value of corresponding fixed assets. Recoverable value is the higher of value in use and net selling price of the fixed assets relevant to a CGU. Value in use when found to exceed the written down value of fixed assets of CGU, the exercise of further ascertaining net selling price therefor has been done away with.

(d) INVENTORIES

All items of inventories are valued at lower of cost and net realisable value except for scrap which is considered at estimated net reliasable value.

Cost includes all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

The basis of determining cost for different categories of inventories:

(a) Stores, Raw Materials and Packaging Materials—Weighted average basis.

(b) Work-in-Progress and Finished Goods—Material cost and appropriate share of-production overhead.

(c) Purchased Goods—Purchase price.

(e) INVESTMENTS

Long term investments are stated at cost less provision, if any, against permanent diminution in carrying cost of investment. Current investments are carried at lower of cost and Net Asset Value/market price.

(f) REVENUE RECOGNITION

1. Sales and services are accounted for when the sale of goods or services are completed on accrual basis. Sales is net of Sales Tax/VAT but gross of excise duty. »

2. All items of income and expenses are recognized on accrual basis unless stated otherwise.

3. Export benefits are accounted for on the basis of realization.

(g) RECOGNITION OF PROFIT ON

LONG TERM CONTRACTS:

Contract revenue and Contract costs are recognized as revenue and expenses respectively by reference to the stage of completion of contract activity up to the date of balance sheet when construction contract stage can be estimated reliably. Expected loss on construction contract, based on possibility of total cost of construction exceeds contract revenue, is recognized as an expense. Stage of completion is arrived at on the basis of agreed billing schedule vis-a-vis total contract value. (H) TRANSACTIONS IN FOREIGN CURRENCIES

¦ Foreign currency assets and outside liabilities (other than fixed assets and those covered by forward contracts) as on the Balance Sheet date are converted at the year end exchange rates and loss or gain arising thereon, is adjusted in the carrying amount of fixed assets or charged to Profit & Loss Account, as the case may be.''

Transactions in foreign curriencies other than those covered by forward contracts, are recorded at the rate prevailing on the date of transaction, Impact of exchange fluctuation between the date of the transaction and that of payment is accounted for separately as exchange gain or loss.

(i) RETIREMENT BENEFITS

(i) Defined Contribution Plan- Provident Fund, Employees Pension and Employees State Insurance are provided on accrual basis. The accrued amount being deposited to the respective Trust/Authority.

(ii) Defined Benefit Plan- Gratuity, Leave Salary and Superannuation benefit form part of defined benefit plan schemes existing in the company. The above benefits have been accounted for on the basis of- actuarial computation under unit projected cost method in terms of AS-15 as revised by ICAI.

(iii) Short Term Benefit Plan- Benefits payable within a year has been accounted for on accrual basis in terms of non discounted value.

(j) GOVERNMENT GRANTS

Revenue grants are recognised in the Profit and Loss Account. Capital grants are credited to Capital Reserves.

(k) RESEARCH AND DEVELOPMENT EXPENSES

Research and Development Expenditure is charged to Profit & Loss Account in the year of incurrence.

(I) CUSTOM DUTY

Custom duty payable on imported goods landed but not cleared are accounted for at the time of clearance of imported goods through customs.

(m) CONTINGENT LIABILITIES

Where there is reliably estimable amount of present obligation that warrant to be settled as a result of past event with possible outflow of resources embodying economic benefit, provision is recognised in account therefore. Otherwise no provision is made against contingent liabilities which are disclosed in notes to accounts.

(n) MISCELLANEOUS EXPENDITURE

Preliminary expenses are written off in the year in which they are incurred.

Share issue expenses and payment made towards Voluntary Retirement Scheme are written off over a period of 60 months in equal installments.

(o) TAXATION

Income Tax is provided as per provisions of Income Tax Act, 1961. Deferred tax is recognized only at year end subject to consideration of prudence on timing difference being the difference between the taxable income and accounting income that originate in one year and capable of reversal in one or more subsequent period/periods.

(p) '' INTEREST IN JOINT VENTURE

Income, Expenses and stake in venture of the Company has undertaken with a third party have been accounted for in terms of AS-27 issued by ICAI.

(q) GENERAL

Items of income, expenses, assets and liabilities not being specifically referred to herein are accounted for consistently in terms of generally accepted accounting practices in due adherence of Accounting Standards issued by ICAI and in it''s absence those issued under International Accounting Standards,

 
Subscribe now to get personal finance updates in your inbox!