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Accounting Policies of Organic Coatings Ltd. Company

Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules,2014, and other provisions of the Act (to the extent applicable).

1.2 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. However, 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 are known / materialised.

1.3 Inventories

In terms of the Accounting Standard "Valuation of the Inventories" (Revised) (AS-2) issued by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Materials, Work in Progress and Finished Goods are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Work in Progress and Finished Goods include appropriate amount proportions of the overhead and where applicable excise duty. Imported raw materials, stock in transit are valued at cost and customs duty thereon.

1.4 Depreciation and Amortisation

Upto the year ended 31st March, 2014, Schedule XIV of the Companies Act 1956 was followed for depreciation on Fixed Assets. From the Current Year, Schedule XIV has been replaced by Schedule II to the Companies Act 2013. Accordingly the depreciation has been charged under straight-line method on the balance estimated useful life of the Asset as specified in Schedule II of the Companies Act 2013. The Written Down Value of Fixed Assets whose lives have expired as of 1st April 2014 have been adjusted in the General Reserve amountingto Rs.1,07,140.

1.5 Revenue recognition

Sales of goods 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 excise duty, sales taxand value added tax.

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive is established.

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

Other income is accounted for on accrual basis except where the receipt of income is uncertain in which case it is accounted for on receipt basis.

1.6 Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation except for certain fixed assets, which have been revalued.

Capital Work in Progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

1.7 Intangible Fixed Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs till the commencement of the commercial production are capitalised.

1.8 Foreign Currency

Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.

The monetary assets and liabilities item denominated in the foreign currencies at the year end are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement on translation is recognised in the statement of profit and loss except in the case the long term liabilities, where they relate to the acquisition of the fixed assets, in which case they are adjusted to the carrying amount of such assets.

1.9 Employees Benefits

Defined Contribution Plans

Provident Fund &ESIC are defined contribution schemes established under a State Plan. The contributions to the schemes are charged to the statement of profit and loss in the year when the contributions become due.

Defined Benefit Plans

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on post employment at 15 days salary (last drawn salary) for each completed year of services as per the rules of the company. The aforesaid liability is provided for on the basis of an actuarial valuation made using Project Unit Credit Method at the end of the financial year. The scheme is funded with an insurance company in the form of a qualifying insurance policy. Actuarial gains/losses are recognized in statement of profit and loss in the year in which they arise. Compensated Absences (Leave Encashment)

Employees are entitled to accumulate leave subject to certain limits for future encashment. The liability in respect of leave encashment is provided for on the basis of actuarial valuation made at the end of the financial year using Project Unit Credit Method. The said liability is not funded.

1.10 Borrowing Cost

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

1.11 Earnings per share

The company reports basic and diluted earnings per equity share in accordance with AS-20, on earnings per share. Basic earnings per equity share have been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the year. Diluted earnings per equity share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

1.12 Taxes on Income

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

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

1.13 Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

1.14 Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.15 Provisions and Contingent Liability

Provisions involving substantial degree of estimate in measurement are recognised when there is a present obligation as a result of the past events and it is probable that there will be an outflow resources. Contingent liabilities and commitments are not recognised but are disclosed in the notes. Contingents assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

A Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention except for certain fixed assets which are revaluated, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B Use of Estimates

The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of the revenues and expenses during the reporting period. The differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

C Inventories

In terms of the Accounting Standard "Valuation of the Inventories" (Revised) (AS-2) issue by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Materials, Work in Progress and Finished Goods are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Work in Progress and Finished Goods include appropriate amount proportions of the overhead and where applicable excise duty. Imported raw materials, stock in transit are valued at cost and custom duty thereon.

D Depreciation and Amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 w.e.f 1st April 1994 in accordance with the Accounting Standard on Depreciation (Revised) (AS-6) issued by the Institute of Chartered Accountant of India. Prior to 1st April, 1994, depreciation was charged on written down value method as per the rates prescribed under the Income Tax Act, 1961.

E Revenue recognition

Sales of goods 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 include excise duty but exclude sales tax and value added tax. Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established. Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

F Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation except for certain fixed assets, which have| been revalued.

Capital Work in Progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

G Intangible Fixed Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs till the commencement of the commercial production are capitalised.

H Foreign Currency Transactions

Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.

The assets and liabilities item denominated in the foreign currencies at the year end are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement on translation is recognised in the profit and loss account except in the case the long term liabilities, where they relate to the acquisition to the| fixed assets, in which case they are adjusted to the carrying amount of such assets.

I Employees Benefits

Short term employees benefits are recognised as an expenses in the statement of the profit and loss account of the year in which the related service are rendered.

Post employment and other long term employees benefits are recognised as an expenses in the statement of the profit and loss account for the year in which the employees has rendered the services. The expenses are recognised at the present value of the amounts payable determined using actuarial valuations actuarial gain and losses in respect of the post employment and other long term benefits are charged to the profit and loss account.

J Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to the profit and loss account

K Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

L Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product''s technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

M Provision of Current Tax and Deferred Tax

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

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

N Provisions and Contingents Liabilities and Contingent Assets

Provisions involving substantial degree of estimate in measurement are recognised when there is a present obligation as a result of the past events and it is probable that there will be an outflow resources. contingents liabilities and commitments are not recognised but are disclosed in the notes. Contingents assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

A Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention except for certain fixed assets which are revaluated, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B Use of Estimates

The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of the revenues and expenses during the reporting period. The differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

C Inventories

In terms of the Accounting Standard "Valuation of the Inventories" (Revised) (AS-2) issue by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Materials, Work in Progress and Finished Goods are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Work in Progress and Finished Goods include appropriate amount proportions of the overhead and where applicable excise duty. Imported raw materials, stock in transit are valued at cost and custom duty thereon.

D Depreciation and Amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 w.e.f 1st April 1994 in accordance with the Accounting Standard on Depreciation (Revised) (AS-6) issued by the Institute of Chartered Accountant of India. Prior to 1st April, 1994, depreciation was charged on written down value method as per the rates prescribed under the Income Tax Act, 1961.

E Revenue recognition

Sales of goods 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 include excise duty but exclude sales tax and value added tax.

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

F Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation except for certain fixed assets, which have been revalued.

Capital Work in Progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

G Intangible Fixed Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs till the commencement of the commercial production are capitalised.

H Foreign Currency Transactions

Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.

The assets and liabilities item denominated in the foreign currencies at the year end are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement on translation is recognised in the profit and loss account except in the case the long term liabilities, where they relate to the acquisition to the fixed assets, in which case they are adjusted to the carrying amount of such assets.

I Employees Benefits

Short term employees benefits are recognised as an expenses in the statement of the profit and loss account of the year in which the related service are rendered.

Post employment and other long term employees benefits are recognised as an expenses in the statement of the profit and loss account for the year in which the employees has rendered the services. The expenses are recognised at the present value of the amounts payable determined using actuarial valuations actuarial gain and losses in respect of the post employment and other long term benefits are charged to the profit and loss account.

J Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to the profit and loss account

K Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

L Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

M Provision of Current Tax and Deferred Tax

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

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

N Provisions and Contingents Liabilities and Contingent Assets

Provisions involving substantial degree of estimate in measurement are recognised when there is a present obligation as a result of the past events and it is probable that there will be an outflow resources, contingents liabilities and commitments are not recognised but are disclosed in the notes. Contingents assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

I) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost concept in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

b) The company follows mercantile system of accounting and recognises income and expenditure on acrual basis.

ii) Fixed Assets & Depreciation :

(A) Fixed Assets :

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation, except for certain fixed assets, which have been revalued.

(B) Depreciation :

Depreciation has been provided on Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act 1956 w.e.f. 1 st April 1994 in accordance with the Accounting Standard on Depreciation Accounting (Revised) (AS6) issued by the Institute of Chartered Accountants of India. Prior to 1 st April 1994 depreciation was charged on written down value method as per rates prescribed under the Income Tax Act, 1961.

(C) Impairement :

The carrying cost of assets is reviewed at each Balance Sheet date for any indication of impairement based on internal/external factors. An impairement loss is recognised whenever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value at the weighted average cost of capital.

Post impairement depreciation is provided on the revised carrying value of the assets over its remaining useful life.

iii) Valuation of Inventories:

In terms of Accounting Standard "Valuation of Inventories" (Revised) (AS2) issued by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Material, Work in Progress & Finished Goods are valued at lower of cost and net realizable value. Cost comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Work in progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty. Imported raw material, stock in transit are valued at cost and custom duty thereon.

iv) Research & Development:

Revenue Expenditure on Research and Development is charged off fully in the Profit and Loss Account of the year in which it is incurred. Capital Expenditure on Research and Development is added to Fixed Assets and depreciation provided as stated.

v) Foreign Currency Transactions:

Transaction in Foreign currency are recorded at the rate of exchange in force on the date of the transaction. Foreign currency Receivable/Liabilities are stated at the rate of exchange prevailing as on 31st March. All exchange differences arising on revenue transaction are charged to Profit & Loss Account. Exchange differences in respect of liability incurred to acquire fixed assets are adjusted in the carrying cost of such assets.

vi) Employee Benefit: In terms of Accounting Standard 15 "Accounting for Retirement Benefits in the financial statements of the employers issued by the Institute of Chartered Accountants of India;

Short term employee benefit obligations are estimated and provided for;

Post employment benefits and other long term employee benefits :

Define contribution plans :

Company's contribution to provident fund, employees state insurance and other funds are determined under relevant schemes and are charged to revenue.

Define benefit plans and compensated absences:

Company's liability towards gratuity and compensated absences are actuarially determined at each balance sheet date using the projected unit credit method. Actuarial gains and losses are recognised in revenue.

Terminal benefits are recognised as an expense as and when incurred.

vii) Provision for Taxation :

Income Tax is provided for as per the provisions of the Income Tax Act, 1961.


Mar 31, 2010

I) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost concept in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

b) The company follows mercantile system of accounting and recognises income and expenditure on acrual basis.

ii) Fixed Assets & Depreciation:

(A) Fixed Assets:

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation, except for certain fixed assets, which have been revalued.

(B) Depreciation:

Depreciation has been provided on Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act 1956 w.e.f. 1st April 1994 in accordance with the Accounting Standard on Depreciation Accounting (Revised) (AS-6) issued by the Institute of Chartered Accountants of India. Prior to 1st April 1994 depreciation was charged on written down value method as per rates prescribed under the Income Tax Act, 1961.

(C) Impairement:

The carrying cost of assets is reviewed at each Balance Sheet date for any indication of impairement based on internal/ external factors. An impairement loss is recognised whenever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value at the weighted average cost of capital.

Post impairement depreciation is provided on the revised carrying value of the assets over its remaining useful life.

iii) Valuation of Inventories:

In terms of Accounting Standard "Valuation of Inventories" (Revised) (AS-2) issued by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Material, Work in Progress & Finished Goods are valued at lower of cost and net realizable value. Cost comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition.

Work in progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty. Imported raw material, stock in transit are valued at cost and custom duty thereon.

iv) Research & Development:

Revenue Expenditure on Research and Development is charged off fully in the Profit and Loss Account of the year in which it is incurred. Capital Expenditure on Research and Development is added to Fixed Assets and depreciation provided as stated.

v) Foreign Currency Transactions:

Transaction in Foreign currency are recorded at the rate of exchange in force on the date of the transaction. Foreign currency Receivable/Liabilities are stated at the rate of exchange prevailing as on 31 st March. Ail exchange differences arising on revenue transaction are charged to Profit & Loss Account. Exchange differences in respect of liability incurred to acquire fixed assets are adjusted in the carrying cost of such assets.

vi) Employee Benefit: In terms of Accounting Standard 15 "Accounting for Retirement Benefits in the financial statements of the employers issued by the Institute of Chartered Accountants of India;

Short term employee benefit obligations are estimated and provided for;

Post employment benefits and other long term employee benefits :-

Define contribution plans:

Companys contribution to provident fund, employees state insurance and other funds are determined under relevant schemes ?, id are charged to revenue.

Define benefit plans and compensated absences:

Companys liability towards gratuity and compensated absences are actuarially determined at each balance sheet date using the projected unit credit method. Actuarial gains and losses are recognised in revenue.

Terminal benefits are recognised as an expense as and when incurred.

vii) Provision for Taxation:

Income Tax is provided for as per the provisions of the Income Tax Act,1961.

 
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