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Accounting Policies of OFS Technologies Ltd. Company

Mar 31, 2015

(i) Method of accounting

The company maintains its accounts on accrual basis following the historical cost conventions in compliance with the generally accepted accounting principles and accounting standards, specified to be mandatory under Section 133 of the Companies Act, 2013 read with the Rule 7 of the Companies (Accounts) Rules 2014 and relevant provisions of the Companies Act, 2013.

The Revised Schedule VI as notified by the companies act, 2103 for the preparation and presentation of financial statements has became applicable to the company for the year ended 31st March, 2015. The company has also reclassified the prior figures in accordance with the requirements applicable for the current year.

(ii) Fixed Assets and Depreciation

Fixed assets are normally stated at original cost and WDV method has been followed for providing Depreciation on fixed assets at the rate prescribed under the schedule IV of the companies act, 2013.

(iii) Inventories

There is no inventories, this is not applicable.

(iv) Foreign currency transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the dates of the transaction. Resultant gains and losses are included in the Statement of Profit and Loss.

As per the notification issued by the Ministry of Corporate Affairs, the Exchange Fluctuation arising on reporting of Long Term Foreign Currency Monetary items relating to Depreciable Assets is charged off to Profit & Loss account.

(v) Taxes on Income

Tax expenses comprises of current tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax Assets and Liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of exiting assets and liabilities and their respective tax bases and operating loss carry forward.

(vi) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

(vii) Inventories

Inventories are valued at cost or net realizable value whichever is lower.

(viii) Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise of cash at bank and in hand.

(ix) Provisions

A provision is recognized when the company has a present obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Oct 24, 12:00 am
Oct 24, 4:14 pm
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