Home  »  Company  »  Ojas Asset Reconst  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Ojas Asset Reconstruction Company Ltd. Company

Mar 31, 2015

(a) Corporate Information

Brief Business Activity: Dealing in Finance and Share Trading and Fabric Trading

(b) Basis of Preparation of Financial Statements

The financial statements have been prepared to comply in all material respects with the accounting standards notified by Companies (Accounting Standards) Rules 2006, (as amended) and the relevant provisions of the Companies Act, 2013 ("the Act"). The financial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in previous year.

(c) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

(d) Revenue recognition

All incomes and expenditure are recognized as per 'Accounting Standard- 9' accounted on accrual basis except where stated otherwise.

(e) Fixed Assets

(i) Tangible fixed assets

Tangible fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition price. Borrowing costs directly attributable to acquisition of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase be put to use.

(ii) Intangible fixed assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on a basis which is estimated to be the useful life of the asset.

(f) Depreciation

Depreciation has been provided on Straight line method at the rates and in the manner prescribed in Schedule II of the Companies Act, 2013 on pro-rata basis from the date assets have been put to use.

(g) Impairment of assets

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in accordance with Accounting Standard-28 "Impairment of Assets", for the amount by which the asset's carrying amount exceeds its recoverable amount as on the carrying date. The recoverable amount is higher of the asset's fair value less costs to sell vis-a-vis value in at the lowest levels for which there are separately identifiable cash flows.

(h) Investments

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such decline is of a permanent nature.

Current investments are carried individually, at the lower of cost and fair value. Costs of investments include acquisition charges such as brokerage, fees and duties.

(i) Inventories

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

(j) Taxation

Provision for current tax is made as per the provisions of the Income-tax Act, 1961.

Deferred tax for the year is recognized on timing difference, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is a reasonable certainty that the assets can be realized in future, however when there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

(k) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(l) Retirement Benefits

Liabilities in respect of bonus, gratuity, and retirement benefit & leave encashment is being accounted for on cash basis.

(m) Earnings per share

The earnings considered in ascertaining the company's EPS comprise of the net profit after tax as per Accounting Standard 20 on "Earnings Per Share", issued by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.

(n) Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.


Mar 31, 2014

17(i) Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules. 2CC6 (as amended) and the relevant provisions of the Companies Act. 1956 The financial statements have been prepared on accrual basis under the historical cost convention The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

17(ii) Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results areknown / materialise.

17(lli) Depreciation and amortisation

Deprecialion has been provided as per rates provided under the Income Tax Act 1961, Preliminary expenses have been written off over a period of 05 Years in accordance with the provisions of section 35-D of the Income Tax Act, 1961.

17(lv) Revanue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales exclude sales tax and value added tax,

17(v) Other income

Interest income is accounted on accrual basis.

17(vi) Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes inerest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date

17(vii) Foreign currency transactions and translations

Transactions in foreign currencies entered into by the Company arc accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction

Measurement of foreign currency monetary items at the Balance Sheet date

Foreign currency monetary items (ether than derivative contracts) of the Company and Its net investment in non-integral foreign operations outstanding at the Balance Sheet date are restated at the year-end rates.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of foreign currency monelary assets and liabilities of the Company arc recognised as income or expense in the Statement of Profit and Loss.

17(viil) Investments

Long-term investments, are carried individually at cost less provision for diminution, other than temporary in the value of such investments.

17(ix) Leases

Assets leased by the Company in its capacity as lessee where substantially all the risks and rewards of ownership vest in the Company are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the fair value and the present value of the minimum lease payments and a liability »s created for an equivalent amount. Each lease rental paid is allocated between the Lability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year

17(x) Earnings per share

Sasic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share Is computed by dividing the profit I (loss) after lax (including the post tax effect of extraordinary items, if any) as adjusted for dividend. interest and other charges to expense or income relating to the ditutive potential equity shares, by the -weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i e average market value of the outstanding chares). Dilutive potential equity shares arc determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

17(xi) Taxes on income

Current tax is the amount of tax payable on the taxable incomo for the year as determined in accordance with the provisions of the Income Tax Act. 1961.


Mar 31, 2013

(A) Accounting Conventions

The accounts have been prepared using historical cost convention and on the basis of a going concern with revenue; recognized and expenses accounted for on accrual basis. Certain items, viz. Interest from/to share lolders and insurance claims where there is no reasonable certainty regarding the amount or its realisabl ity are accounted for upon finalization.

(6) Use of Estimales

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

(C) Fixed Assets

Fixed assets are taken at acquisition and installation cost including other direct/indirect attributable costs.

(D) Depreciation

Depreciation on fixed assets is provided as per the rates prescribed under the Income Tax Act, 1961.

(E) Current Assets

Debtors, loans and advances are valued on net realization basis.

(F) Profit and Loss A/c

Preliminary expenses have been written off over a period of 05 Years in accordance with the provisions of section 35-D of the Income Tax Act, 1961.

(G) Investments ape valued at cost (inclusive of expenditure incurred exclusively in connection with such acquisition) and necessary provision for fluctuation in their market value (in case of permanent diminution) has been made in accordance with AS-13. "Accounting for Investments" issued by the ICAI.

(H) Employee Benefits

Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the Year. Contribu ion to Provident Fund and Employee State Insurance Fund is accounted on accrual basis.

(I) Borrowing Costs:

Borrowing cost attributable to acquisition, construction or production of qualifying assets is capitalized as part of the co^t of that asset till the asset is ready for use. Other borrowing costs are recognized as an expense In the period in which these are incurred.

(J) Provision, Contingent Liabilities and contingent assets

A provision is recognized when:

* the company has a present obligation as a result of a past event.

* 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 obligation

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

(K) Inventories

FINISHED GOODS: are valued at cost or market price whichever less is.

(L) Revenue recognition

Revenue Is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Goods.

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

interest

Revenue is recognized on a time proportion basis taking into account the amount outstanding end the rate applicable.

Dividends

Revenue is recognized when the shareholders* right to receive payment is established by the balance sheet date.

(M) Income taxes

Tax expense comprises both current and deferred taxes. Current income- tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax 1s measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that Sufficient future taxable income will be available against which such deferred tax assets can be realized, Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

(N) Segment Reporting Policies

The Company's operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.

The Company generally accounts for inter-segment sales and transfers as if the sales or transfers were to third parties at current market prices.

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

The Corporate and Other segment include general corporate income and expense items, which are not allocated to any business segment.


Mar 31, 2012

Not Available


Mar 31, 2011

(A) Accounting Conventions

The accounts have been prepared using historical cost convention and on the basis of a going concern with revenues recognized and expenses accounted for on accrual basis. Certain items, viz. Interest from/to shareholders and insurance claims where there is no reasonable certainty regarding the amount or its realisability are accounted for upon finalization.

(B) Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialise.

(C) Fixed Assets

Fixed assets are token at acquisition and installation cost including other direct/indirect attributable costs.

(D) Depreciation

Depreciation on fixed assets is provided as per the rates prescribed under the Income Tax Act, 1961.

(E) Current Assets

Debtors, loans and advances are valued on net realization basis.

(F) Profit and Loss A/C

Preliminary expenses have been written off over a period of 05 Years in accordance with the provisions of section 36-D of the Income Tax Act, 1961

(G) Investments are valued at cost (inclusive of expenditure incurred exclusively in connection with such acquisition) and necessary provision for fluctuation in their market value (in case of permanent diminution has been made in accordance with AS-13, "Accounting for Investments" issued by the ICAI,

(H) Employee Benefits

Provision for gratuity and Leave encashment is made on the basis of actuarial valuation at the end of the Year, Contribution to Provident Fund and Employee State Insurance Fund is accounted on access basis,

(I) Borrowing Costs

Borrowing cost attributable to acquisition, construction or production of qualifying assets is capitalized as part of the cost of that asset till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

(J) Provision, Contingent Liabilities and contingent assets

A provision is recognized when:

-the company has a present obligation as a result of a past event.

-it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation: and

-a reliable estimate can be made of the amount of obligation

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

(K) Inventories

(a) FINISHED GOODS: are valued at cost or market price whichever less is.

(L) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Goods

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

Interest

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividends

Revenue is recognized when the shareholders'' right to receive payment is established by the balance sheet date,

(M) Income taxes

Tax expense comprises both current and deferred taxes. Current income- tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has bcome reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

(N) Segment Reporting Policies

The Company''s operating businesses are organised and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.

The Company generally accounts for inter-segment sales and transfers as if the sales or transfers were to third parties at current market prices. Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

The Corporate and Other segment include general corporate income and expense items, which are not allocated to any business segment.

 
Subscribe now to get personal finance updates in your inbox!