Home  »  Company  »  Nidhi Granites L  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Nidhi Granites Ltd. Company

Mar 31, 2014

(a) Basis of Accounting

The financial statements of the Company have been prepared in accordence with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standered notified under the Companies (Accounting standard) Rules, (as amended), the relevent provisions of the Companies Act, 1956. The financial statements have been prepared on the accrual besis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in previous year.

(b) Use of Estimates

The preparation and presentation of financial statements requires estmates and assumption to be made that acffect the reported amount of assets and laibilities on the date of the financial statemen and the reported amount of revenues and expenses during the reported period. Difference between the actual result and estimates are recognised in the period in which the results are known/ materialised.

(c) Fixed Assets.

Fixed Assets are stated at cost less accumulated depreciation and amortisation. The cost of an assets comprises for purchase price and any directly attributable cost of bringing the assets to working condition for its inteded use.

There is no intangible asset.

(d) Depreciation on Tangible Assets

Depreciation on Fixed Assets provided on Straight Line Method at rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 .

(e) Investments

Non current investments are stated at cost. Investments are classified as long term and current investments. Long Term investments are carried individually at cost.

(f) Stock (Inventories) of Securities

Stock of securities is valued at lower of cost and net realisable value. Cost is determined on weighted average basis.

(g) Employee benefits.

(i) The Company follows the policy of "pay as you go" method for gratuity and hence no provision is made in the books of accounts.

(ii) No provision is made for leave encashment payments and same is accounted when paid.

Mar 31, 2010

(a) The Company follows the mercantile system of accounting both as to Income and Expenditure except those with significant uncertainities.

(b) Investments are accounted on actual cost basis.

(c) Inventories are valued at cost or market price whichever is lower.

(d) Fixed Assets are stated at cost less depreciation.

(e) Depreciation on all Assets is provided on Straight Line Method in accordance with provisions of section 205(2) of Companies Act, 1956.

(f) Retirement Benefits :

(i) The Company follows the policy of "pay as you go" method for gratuity and hence no provisions are made in the books of accounts.

(ii) No provision is made for leave encashment payments and same is accounted when paid.

(g) Taxation :

Tax expenses comprise both current tax and deferred tax at the applicable enacted or substantially enacted rates. Current tax represents the amount of income tax payable/recoverable in respect of the taxable income/loss for the reporting period.

Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originates in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are recognised only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realised. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Oct 28, 5:50 pm
Oct 28, 5:59 pm
Subscribe now to get personal finance updates in your inbox!