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

Accounting Policies of Nirav Commercials Ltd. Company

Mar 31, 2015

1. Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

2. Sales:

Sales excludes Sales Tax, includes Excise Duty, sales of scrap and is net of sales return.

3. Use of Estimates:

The preparation of Financial Statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

4. Fixed Assets and Depreciation :

i) All fixed assets are valued at cost less depreciation.The cost is inclusive of incidental expenses related to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalised. Interest on borrowings and financing costs during the period of construction is added to cost of fixed assets.

ii) Impairement loss, if any is recognised in the year in which impairement takes place.

iii) Pursuant to the enactment of Companies Act, 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated/ amortised on straight line basis so as to write off the cost of the assets over the revised/remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted, in the opening balance of Profit and Loss Account amounting to Rs. 4,09,612/-

iv) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

v) Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

5. Investments:

Investments are stated at cost.

6. Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

7. Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference 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 arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

8. Retirement Benefits:

i) Defined Benefit Plans:

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

ii) Leave Liability:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is not recognised.

9. Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/ contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to

i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets.

ii) the Profit & Loss account in other cases.

10. Excise Duty:

Excise Duty is accounted gross of Cenvat benefit availed on inputs, fixed assets and eligible services.

11. Expenditure during the Construction Period:

The expenditure incidental to the expansion / new projects are allocated to Fixed Assets in the year of commencement of the commercial production.

12. Revenue Recognition:

i) Revenue from Sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer.

ii) Service income is recognised as per the terms of contracts with the customers when the related services are performed or the agreed milestones are achieved and are net of service tax wherever applicable.

iii) Dividend income is recognised when the unconditional right to receive the income is established.

iv) Revenue in respect of other income is recognised when no significant uncertainty as to its determination or realisation exists.

13. Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognised when the company has a present obligation as a result of past events and it is probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision / disclosure is made. Contingent assets are notrecognised in the financial statements. Provisions and contingencies are reviewed at each balance sheet date and , adjusted to reflect the correct management estimates.


Mar 31, 2014

1 Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

2 Sales:

Sales excludes Sales Tax, includes Excise Duty, sales of scrap and is net of sales return.

3 Use of Estimates:

The preparation of Financial Statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

4 Fixed Assets and Depreciation:

i) All fixed assets are valued at cost less depreciation.The cost is inclusive of incidental expenses related to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalised. Interest on borrowings and financing costs during the period of construction is added to cost of fixed assets.

ii) Impairement loss, if any is recognised in the year in which impairement takes place.

iii) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate and in the manner specifiedinScheduleXIVoftheCompaniesAct, 1956.

iv) Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

5 Investments:

I nvestments are stated at cost.

6 Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

7 Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference 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 arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

8 Retirement Benefits:

i) Defined Benefit Plans:

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

ii) Leave Liability:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is not recognised.

9 Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets. ii) the Profit & Loss account in other cases.

10 Excise Duty:

Excise Duty is accounted gross of Cenvat benefit availed on inputs, fixed assets and eligible services.

11 Expenditure during the Construction Period:

The expenditure incidental to the expansion / new projects are allocated to Fixed Assets in the year of commencement of the commercial production.

12 Revenue Recognition:

i) Revenue from Sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer.

ii) Service income is recognised as per the terms of contracts with the customers when the related services are performed or the agreed milestones are achieved and are net of service tax wherever applicable.

iii) Dividend income is recognised when the unconditional rightto receive the income is established.

iv) Revenue in respect of other income is recognised when no significant uncertainty as to its determination or realisation exists.

13 Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognised when the company has a present obligation as a result of past events and it is probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision / disclosure is made. Contingent assets are not recognised in the financial statements. Provisions and contingencies are reviewed at each balance sheet date and adjusted to reflect the correct management estimates.

B The equity share holders of the Company are entitled to receive interim and/ or final dividend, if declared and approved by the Board of Directors and/or the share holders of the Company. The dividend so declared will be in proportion to the number of equity shares held by the share holders.

C In the event of the liquidation of the Company, equity share holders will be entitled to receive remaining assets of the company after distribution of all preference share holders. However, no such Preference share capital exist during the period. The distribution will in proportion to the number of equity shares held by the share holders.


Mar 31, 2013

1 Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

2 Sales:

Sales excludes Sales Tax, includes Excise Duty, sales of scrap and is net of sales return.

3 Use of Estimates:

The preparation of Financial Statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

4 Fixed Assets and Depreciation:

i) All fixed assets are valued at cost less depreciation.The cost is inclusive of incidental expenses related to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalised. Interest on borrowings and financing costs during the period of construction is added to cost of fixed assets.

ii) Impairement loss, if any is recognised in the year in which impairement takes place.

iii) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

iv) Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

5 Investments: Investments are stated at cost.

8 Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

7 Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference 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 arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

8 Retirement Benefits:

I) Defined Benefit Plans:

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

Ii) Leave Liability:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on

account of accumulated leave as on last day of the accounting year is not recognised.

9 Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets. ii) the Profit & Loss account in other cases.

10 Excise Duty:

Excise Duty Is accounted gross of Cenvat benefit availed on inputs, fixed assets and eligible services.

11 Expenditure during the Construction Period:

The expenditure incidental to the expansion / new projects are allocated to Fixed Assets in the year of commencement of the commercial production.

12 Revenue Recognition:

i) Revenue from Sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer. ii) Service income is recognised as per the terms of contracts with the customers when the related services are performed or the agreed milestones are achieved and are net of service tax wherever applicable. iii) Dividend income is recognised when the unconditional right to receive the income is established. iv) Revenue in respect of other income is recognised when no significant uncertainty as to its determination or realisation exists.

13 Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognised when the company has a present obligation as a result of past events and it is probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision / disclosure is made. Contingent assets are not recognised in the financial statements. Paovisions and contingencies are reviewed at each balance sheet date and adjusted to reflect the correct management estimates.


Mar 31, 2012

1 Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognized on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

2 Sales:

Sales excludes Sales Tax, includes Excise Duty, sales of scrap and is net of sales return.

3 Use of Estimates:

The preparation of Financial Statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

4 Fixed Assets and Depreciation:

i) All fixed assets are valued at cost less depreciation. The cost is inclusive of incidental expenses related to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalized. Interest on borrowings and financing costs during the period of construction is added to cost of fixed assets.

ii) Impairment loss, if any is recognized in the year in which impairment takes place.

iii) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

iv) Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

5 Investments:

Investments are stated at cost.

6 Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

7 Deferred Tax:

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference 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 arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future.

8 Retirement Benefits:

i) Defined Benefit Plans:

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

ii) Leave Liability:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is not recognized.

9 Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to

i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets.

ii) the Profit & Loss account in other cases.

10 Excise Duty:

Excise Duty is accounted gross of Convert benefit availed on inputs, fixed assets and eligible services.

11 Expenditure during the Construction Period:

The expenditure incidental to the expansion / new projects are allocated to Fixed Assets in the year of commencement of the commercial production.

12 Revenue Recognition:

i) Revenue from Sale of goods is recognized when significant risks and rewards of ownership of the goods have been passed to the buyer.

ii) Service income is recognized as per the terms of contracts with the customers when the related services are performed or the agreed milestones are achieved and are net of service tax wherever applicable.

iii) Dividend income is recognized when the unconditional right to receive the income is established.

iv) Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

13 Provisions, Contingent Liabilities and Contingent Assets :

Provision is recognized when the company has a present obligation as a result of past events and it is probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision / disclosure is made. Contingent assets are not recognized in the financial statements. Provisions and contingencies are reviewed at each balance sheet date and adjusted to reflect the correct management estimates.


Mar 31, 2011

A) Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

b) Sales:

Sales excludes Sales Tax, includes Excise Duty, goods sold on consignment, sales of scrap and is net of sales return.

c) Fixed Assets:

I) Fixed Assets are shown at cost less depreciation. The cost is inclusive of all direct incidental expenses related to acquisition.

ii) Impairment loss, if any is recognised in the year in which impairment takes place.

d) Depreciation:

Depreciation on Fixed Assets have been provided on Written Down Value method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

e) Inventories:

Inventories other than Consignment and Trading goods are valued at lower of cost or net realisable value. Consignment and Trading goods are valued at cost.

f) Investments: Investments are stated at cost.

g) Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

h) Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference 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 arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

i) Retirement Benefits:

Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

j) Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets.


Mar 31, 2010

A) Basis of Accounting :

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend,interest on investment and Compensation which are accounted on cash basis.

b) Sales:

Sales excludes Sales Tax,includes Excise Duty, goods sold on consignment.sales of scrap and is net of sales return.

c) Fixed Assets:

I) Fixed Assets are shown at cost less depreciation. The cost is inclusive of all direct incidental expenses related to acquisition.

ii) Impairement loos, if any is recognised in the year in which impairement takes place.

d) Depreciation:

Depreciation on Fixed Assets have been provided on Written Down Value method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

e) Inventories:

Inventories other than Consignment and Trading goods are valued at lower of cost or net realisable value. Consignment and Trading goods are valued at cost.

f) Investments:

Investments are stated at cost.

g) Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

h) Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference 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 arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

l)Retirement Benefits:

Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

j)Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to

l)Carrying cost of fixed assets, if foreign currency liability relates to fixed assets.

ii) the Profit & Loss account in other cases.

 
Subscribe now to get personal finance updates in your inbox!