Home  »  Company  »  Nu-Tech Corporate Se  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Nu-Tech Corporate Services Ltd. Company

Mar 31, 2014

1.1 Basis of accounting:

The financial statements are prepared under historical cost convention, on an accrual basis and are in accordance with the requirements of the Companies Act, 1956 and comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the said Act. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

1.2 Lease Accounting

(a) In respect of assets given on lease, the company accounts for lease income as per the recommendations of the Guidance Note on Accounting for Leases issued by the Institute of Chartered Accountants of India.

(b) Finance charges on hire purchase agreements are accounted for by applying the implicit rate of return in the transaction on the declining balance of the amount financed for the period of agreement.

1.3 Fixed Assets:

All fixed assets are stated at cost of acquisition less accumulated depreciation.

1.4 Depreciation:

(a) Fixed assets given on lease: In respect of assets acquired upto 31 st March, 1994 depreciation is provided on straight line method so as to write-off ninety-five percent of the original cost of the asset over the lease period which ranges from 3 to 5 years.

In respect of assets acquired after 31st March, 1994 depreciation is provided on the written down value method on the basis of rates specified in Schedule XIV to the Companies Act, 1956.

(b) Fixed assets acquired for own use : Depreciation has been computed on the straight line method at the rates applicable at the time of acquisition of the fixed assets as specified in Schedule XIV to the Companies Act, 1956.

(c) Depreciation on investment in immovable property is provided for on the basis of straight line method.

1.5 Investments:

Long term investments are stated at cost, less any diminution in value other than temporary. Current investments are stated at lower of cost and fair value.

There are no foreign currency transactions during the year under review.

1.6 Retirement benefits:

Retirement benefits in respect of gratuity and leave Encashment has been provided for during the year under consideration up to the time there were such employees in the company. Actuarial valuation as at the end of the financial year is not made as there are no employees in the company as at the year end.

1.7 Taxation:

a) Provision for taxation has been made in accordance with the Income Tax laws and rules prevailing at the time of the relevant assessment years. The company has unabsorbed depreciation and earned 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 recognised in these accounts on prudent basis.

b) Necessary provisions are made for present obligations that arise out of events prior to the balance sheet date entailing future outflow of economic resources. Such provision reflects best estimates based on available information.

c) Tax is deducted at source on payment of relevant expenditures.

1.8. The management believes that the company is a going concern and will continue to be so in the foreseeable future, notwithstanding the fact that the company has eroded its net worth. Considering the steps initiated by the company for its revival and recovery of its dues from its clients, including legal recourse, the company is confident that the outstandings will be reduced in due course of time.

1.9. The company does not have a full time company secretary though the same is requiring by the Companies Act 1956.

1.10. The Company''s bankers have initiated recovery proceedings in respect of dues against Bank Overdraft/Working Capital Demand Loans amounting to Rs. 78,920.893 in respect of Central Bank of India as at 20.03.2001 and amounting to Rs. 78,744,765 in respect of The Federal Bank Ltd. as at 02.01.2003. Together with interest thereon. The company has been consistently providing for interest on above loans @16.50% & @18.50% in respect of Central Bank of India and The Federal Bank Ltd. respectively. Accordingly as at the balance sheet date the total outstanding in respect of Central Bank of India is Rs.177,269,573 and in respect of The Federal Bank Ltd. is Rs.207,360,015. These matters are pending before The Debt Recovery Tribunal for hearing and final disposal. However, the Company is in dialogue for compromise settlement.

1.11. During the year under consideration the company has not recognised any income in respect of lease and hire purchase as in the opinion of the management no such income as accrued.


Mar 31, 2012

A Basis of accounting:

The financial statements are prepared under historical cost convention, on an accrual basis and are in accordance with the requirements of the Companies Act, 1956 and comply with the Accounting Standards referred to in sub section (3C) of section 211 of the said Act. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

B Lease Accounting

(a) In respect of assets given on lease, the company accounts for lease income as per the recommendations of the Guidance Note on Accounting for Leases issued by the Institute of Chartered Accountants of India.

(b) Finance charges on hire purchase agreements are accounted for by applying the implicit rate of return in the transaction on the declining balance of the amount financed for the period of agreement.

C Fixed Assets:

All fixed assets are stated at cost of acquisition less accumulated depreciation.

D Depreciation:

(a) Fixed assets given on lease: In respect of assets acquired upto 31st March, 1994 depreciation is provided on straight line method so as to write-off ninety-five percent of the original cost of the asset over the lease period which ranges from 3 to 5 years.

In respect of assets acquired after 31st March, 1994 depreciation is provided on the written down value method on the basis of rates specified in Schedule XIV to the Companies Act, 1956.

(b) Fixed assets acquired for own use : Depreciation has been computed on the straight line method at the rates applicable at the time of acquisition of the fixed assets as specified in Schedule XIV to the Companies Act, 1956.

(c) Depreciation on investment in immovable property is provided for on the basis of straight line method.

E Investments:

Long term investments are stated at cost, less any diminution in value other than temporary. Current investments are stated at lower of cost and fair value.

There are no foreign currency transactions during the year under review.

F Retirement benefits:

Retirement benefits in respect of gratuity and leave Encashment has been provided for during the year under consideration up to the time there were such employees in the company. Actuarial valuation as at the end of the financial year is not made as there are no employees in the company as at the year end.

G Taxation:

a) Provision for taxation has been made in accordance with the Income Tax laws and rules prevailing at the time of the relevant assessment years. 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 recognised in these accounts on prudent basis.

b) Necessary provisions are made for present obligations that arise out of events prior to the balance sheet date entailing future outflow of economic resources. Such provision reflects best estimates based on available information.

c) Tax is deducted at source on payment of relevant expenditures.

H The management believes that the company is a going concern and will continue to be so in the foreseeable future, notwithstanding the fact that the company has eroded its net worth. Considering the steps initiated by the company for its revival and recovery of its dues from its clients, including legal recourse, the company is confident that the outstandings will be reduced in due course of time.

I The company does not have a full time company secretary though the same is requiring by the Companies Act 1956.

J The Company''s bankers have initiated recovery proceedings in respect of dues against Bank Overdraft/Working Capital Demand Loans amounting to Rs. 78,920,893 in respect of Central Bank of India as at 20.03.2001 and amounting to Rs. 78,744,765 in respect of The Federal Bank Ltd. as at 02.01.2003. Together with interest thereon. The company has been consistently providing for interest on above loans @16.50% & @18.50% in respect of Central Bank of India and The Federal Bank Ltd. respectively. Accordingly as at the balance sheet date the total outstanding in respect of Central Bank of India is Rs.187,599,029 and in respect of The Federal Bank Ltd. is Rs.223,101,805. These matters are pending before The Debt Recovery Tribunal for hearing and final disposal. However, the Company is in dialogue for compromise settlement.

K During the year under consideration the company has not recognised any income in respect of lease and hire purchase as in the opinion of the management no such income as accrued.


Mar 31, 2010

(i) Basis of Accounting Preparation

The financial statements are prepared under historical cost convention on an accrual basis in accordance with the accounting principle, and are in accordance with the requirements of the Companies Act, 1956 referred to in sub-section (3C) of Section 211 of the said Act. And comply with notified accounting standards by Companies Accounting Standards Rules, 2006.

(ii) Lease Accounting

a) In respect of assets given on lease, the company accounts for lease income as per the recommendations of the Guidance Note on Accounting for Leases issued by the Institute of Chartered Accountants of India.

b) Finance charges on hire purchase agreements are accounted for by applying the implicit rate of return in the transaction on the declining balance of the amount financed for the period of agreement.

(iii) Fixed Assets

All fixed assets are stated at cost of acquisition less accumulated depreciation.

(iv) Depreciation/Amortisation

a) Fixed assets given on lease

In respect of assets acquired upto 31st March, 1994 depreciation is provided on straight line method so as to write-off ninety- five percent of the original cost of the asset over the lease period which ranges from 3 to 5 years.

In respect of assets acquired after 31st March, 1994 depreciation is provided on the written down value method on the basis of rates specified in Schedule XIV to the Companies Act, 1956.

b) Fixed assets acquired for own use

Depreciation has been computed on the straight line method at the rates applicable at the time of acquisition of the fixed assets as specified in Schedule XIV to the Companies Act, 1956.

c) Depreciation on investment in immovable property is provided for on the basis of straight line method.

(v) Investments

Long term investments are stated at cost, less any diminution in value other than temporary. Current investments are stated at lower of cost and fair value.

(vi) There are no foreign currency transactions during the year under review.

(vii) Retirement benefits

Retirement benefits in respect of gratuity and leave Encashment has been provided for during the year under consideration up to the time there were such employees in the company. Actuarial valuation as at the end of the financial year is not made as there are no employees in the company as at the year end.

(viii) Taxation

a) Provision for taxation has been made in accordance with the Income Tax laws and rules prevailing at the time of the relevant assessment years. 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 recognised in these accounts on prudent basis.

b) Necessary provisions are made for present obligations that arise out of events prior to the balance sheet date entailing future outflow of economic resources. Such provision reflects best estimates based on available information.

c) Tax is deducted at source on payment of relevant expenditures.

 
Subscribe now to get personal finance updates in your inbox!