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Accounting Policies of Redex Protech Ltd. Company

Mar 31, 2015

A) Basis of preparation of Financial statements

The financial statement of the company have been prepared in accordance with generally accepted accounting principle of India The company has prepared these financial statements to comply in all material respects with the accounting standard under section 133 of the companies Act,2013 read with rule 7 (1) & (2) of companies (Account) Rules 2014 the relevant provisions of the company's Act,1956 (the Act) The financial statement have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

The financial statements are presented in Indian rupees and rounded off to retest Rupee unless otherwise stated.

b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires managements to make estimates and assumptions that affect the reported amount of assets liabilities revenues and expense and disclosure of contingent liabilities on the date of the financial statements the estimates and assumptions used and circumstances as of the date of financial statements which in managements opinion are prudent and reasonable Actual results may differ the estimates used in preparing the accompanying financial statement Any revision to accounting estimates is recognition prospectively in current and future periods.

c) Fixed Assets/Intangible Assets.

Fixed Assets are stated on cost less accumulated depreciation depreciation the total cost of assets companies its purchase price freight duties taxes and any other incident expenses directly attributable to bringing the assets to the working condition for its intended.

- Assets costing less than or equal to Rs, 5,000 are depreciated fully in the year of purchase.

- Additionally assets whose useful life as per schedule II is lapsed are fully depreciated during the current financial year.

Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that on exists group of assets cash genera rig unit may be impaired. It any .such indication exists, the Company estimates the recoverable amount of the asset or a group of assets The recoverable amount of the asset or where applicable, that of the cash generating unit to which the asset belong) is estimated as the higher of its net selling pace and its net selling price and its value in use. If such recoverable amount of the asset one the recoverable amount of the cash generating to which the belong is less than its carrying amount the earning amount is reduced to its recoverable amount. The reduction is treated an impairment Loss and is recognized in the Statement of Profit and Loss. Alter impairment, diffraction is provided on the revised carrying amount of the assert over its remaining useful life.

Value in use is the present value of estimated, future cash flow expected to arise from the continuing use of the assets and from its disposal at the end of its useful. Life.

If At the Balance Sheet date there is an indication that a previously Unsaved Impairment loss- no longer execs, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

e) 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.

- Service Income

Service income is recognized as per the terms of the contract when the related services are rendered. It is stated net of service tax.

- Interest Income

Interest income is recognized on time proportion basis.

- Other Income

Income from investment and other service income are accounted on accrual basis,

f) Taxation

Income-tax expense comprises current tax, deferred tax charge or credit, minimum alternative tax (MAT).

Current tax

Provision for current tax is made for the tax liability payable on taxable income after considering tax allowances. deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax

Deferred tax liability or asset is recognized for timing differences between the profits/ losses offered for income tax and profits/losses as per date finance statements Deferred are assets and Liabilities are measured using the tax rates and tax laws that have been enacted at the Balance Sheet date

Deferred tax asset is recognized only to the extent there is reasonable certainty that. the assets can be realized in future; however, where there Is unabsortect depreciation or carried forward loss under taxation Laws, deferred tax assets is recognized only if there is a vital certainty of realization of such asset Deferred tax asset is reviewed is at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized,

Minimum alternative tax.

Minimum alternative tax (MAT) obligation in accordance with the tax laws, which give rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if if there is convincing evidence that the Company will pay normal tax during the specified period, Accordingly it is recognized as on asset in the Balance Sheet when it is probable that The future economic benefit associated Will it will flow to the Company and the asset can be measured reliably.

g) Bottoming cost

Borrowing Costs to the extent related/attributable to The acquisition/construction of assets that takes substantial period of time to get ready for their intended use are capitalized along with the respective fixed asset up to the date such asset is ready for use. Other borrowing costs are charged to the Statement of Profit and loss.

h) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss For the period attributable to equity shareholders by the weighted average number no enquiry shares outstanding during the period,

Diluted earrings per share are calculated after adjusting effects of potential equity shares (PES) PES are those shares which will convert in to equity shares at a later stage. Profit / loss if adjusted by the expenses incurred on such PES. Adjusted profit/loss is divided by the weighted average number of ordinary plus potential equity shires.

i) Provisions and Contingencies

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that in outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be Trade, Provisions are cost discounted to their present values and are determined based on management estimate required to settle the obligation at the Balance sheet date These are reviewed at each Balance Sheet date and adjusted or reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that have arisen from past event. and the existence of which will tax' confirmed only by the occurrence or non-occurrence of future events not wholly within the control of the Company.


Mar 31, 2014

A) Basis of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles of India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 (''the Act"). The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting polices adopted in the preparation of financial statements are consistent with those of previous year.

The financial statements are presented in Indian rupees and rounded off to nearest Rupee unless otherwise stated.

b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements which in management''s Opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

c) Fixed Assets / Intangible Assets

Fixed Assets are stated on cost less accumulated depredation. The total cost of assets comprises its purchase price, freight, duties, taxes and any other incidental expenses directly attributable to bringing the asset to the working condition for its intended use.

d) Depreciation

* Depreciation on other fixed assets is provided on Straight Line Method on a pro rata basis over its economic useful lives, estimated by the management or at the rates prescribed under Schedule XIV of the Act whichever is higher.

Fixed Assets Rates adoptcd(SLM) Schedule XIV Rates (SLM)

Office Building 1.63% 1.63%

Factory Building 3.34% 3.34%

.Air Condirioner 4.75% 4.75%

Electric Installation 4.75% 4.759/o

Furniture & Fixture 6.33% 6.33% * Assets costing less than or equal to Rs. 5,000 are depreciated fully in the year of purchase.

Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that an asset or a group of assets (cash generating unit) may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset or a group of assets. The recoverable amount of the asset (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its earning amount, the earning amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

Value in use is the present value of estimated future cash flow expected to arise from the continuing use of the assets and from is disposal at the end of its useful life.

If at the Balance Sheet date there is an indicanon that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

e) 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.

* Sanicr Intome

Service income is recognised as per the terms of the contract when the related services are rendered. It is slated net of service tax.

* Interest income

Interest income is recognized on time proportion basis.

* Other Income

Income from investment and other service income arc accounted on accrual basis.

f) Taxation

Income-tax expense comprises current tax, deferred tax charge or credit, minimum alternative tax (MAT).

Current tax

Provision for current tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax

Deferred tax liability or asset is recognized for timing differences between the profits/losses offered for income tax and profits/losses as per the financial statements. Deferred tax assets and liabilities arc measured using the tax rates and tax laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax asset is recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax asset is recognized only if there is a virtual certainty of realization of such asset. Deferred tax asset is reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtuallv certain to be realized.

Minimam alternation tax

Minimum alternative tax (MAT) obligation in accordance with the tax law''s, which give rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax during the specified period. Accordingly, it is recognized as an asset in the Balance Sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

g) Borrowing Cost

Borrowing costs to the extent related/attributable to the acquisition/construction of assets that takes substantial period of from to get ready for their intended use are capitalized along with the respective fixed asset up to the date such asset is ready for use. Other borrowing costs are charged to the Statement of Profit and Loss.

h) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share are calculated after adjusting effects of potential equity shares (PES).PES are those shares which will convert into equity shares at a later stage. Profit / loss is adjusted by the expenses incurred on such PES. Adjusted profit/loss is divided by the weighted average number of ordinary plus potential equity shares.

i) Provisions and Contingencies

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present values and arc determined based on management estimate required to settle the obligation at the Balance Sheet date. These arc reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of future events not wholly within the control of the Company.

When there is an obligation in respect of which the likelihood of outflow- of resources is remote, no provision or disclosure is made.


Mar 31, 2013

A) Basis of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles of India (Indian GAAP), The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 (''the. Act''). The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

The financial statements are presented in Indian rupees and rounded off to nearest Rupee unless otherwise stated.

b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. The estimates: and assumptions vised in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements which in management''s opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

c) Fixed Assets / Intangible Assets

Fixed Assets are stated on cost less accumulated depreciation. The total cost of assets comprises its purchase price, freight, duties, taxes and any other incidental expenses directly attributable to bringing the asset to the working condition for its intended use.

d) Depreciation

- Depreciation on other fixed assets is provided on Straight Line Method on a pro rata basis over its economic useful lives, estimated by the management or at the rates prescribed under Schedule XIV of the Act whichever is higher.

- Assets costing less than or equal to Rs. 5,000 are depreciated fully in the year of purchase.

e) Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that an asset or a group of assets (cash generating unit) may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset or a group of assets. The recoverable amount of the asset (or where applicable, that of the cash generating unit to which the asset belongs) is estimated asj the higher of its net selling price and its value in use. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment Joss and is recognized in the Statement of Profit and Loss. After impairment, depreciation is'' provided on the revised carrying amount of the asset over its remaining useful life.

Value in use is the present value of estimated future cash flow expected to arise from the continuing use of the assets and from its disposal at the end of its uselul life.

If at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

f) 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.

- Smke Income

Service income is recognised as per the terms of the contract when the related services are rendered-. It is stated net of service tax.

- Interest income

Interest income is recognized on time proportion basis.

- Other Income

Income from investment and other service income are accounted on accrual basis.

g) Taxation

Income-tax expense comprises current tax, deferred tax charge or credit, minimum alternative tax

(MAI).

«

Current tax

Provision for current tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws.

Deferred tax

Deferred tax liability or asset is recognized for timing differences between the profits/losses offered for income tax and profits/losses as per the financial statements. Deferred tax assets and liabilities ave measured using the tax rates and tax laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax asset is recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax asset is recognized only if there is a virtual certainty of realization of such asset. Deferred tax asset is reviewed as at each Balance Sheet date and written down or written up to ''reflect the amount that is reasonably/virtually certain to be realized.

Mimrntmaltemxtke tax

Minimum alternative tax (MAT) obligation in accordance with the tax laws, which give rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax during the specified period. Accordingly, it is recognized as an asset in the Balance Sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

h) Borrowing Cost

Borrowing costs to the extent related/attributable to the acquisition/construction of assets that takes substantial period of time to get ready for their intended use are capitalized along with the respective fixed asset up to the date such asset is ready for use. Other borrowing costs are charged to the Statement of Profit and Loss.

i) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share are calculated after adjusting effects of potential equity shares (PES).PES are those shares which will convert into equity shares at a later stage. Profit / loss is adjusted by the expenses incurred on such PES. Adjusted profit/loss is divided by the weighted average number of ordinary plus potential equity shares.

j) Provisions and Contingencies

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present values and are determined based on management estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of future events not wholly within the control of .the Company.

When there is an obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2009

A. ACCOUNTING CONVENTION :

The financial statements are prepared on accrual basis, under the historical cost convention, in accordance with the generally accepted accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the requirements of the Companies Act, 1956.

B. FIXED ASSETS :

Fixed Assets are stated at cost less depreciation.

C. DEPRECIATION :

Depreciation is provided on Straight Line. Method at the rate and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on assets added/disposed off during the year is provided on pro rata basis with reference to the date of addition / disposal.

D. FOREIGN CURRENCY :

There are no transactions involving foreign currency.

E. TAXATION :

Income tax comprises the current tax provisions and the net change in the deferred tax asset or liability in the year. The deferred, tax assets and liabilities are calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted tax rates. Deferred tax assets are riot recognised on unabsorbed depreciation and carry forward of losses unless there is virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realised.

F. The company has to pay an outstanding due of over Rs. 2.34 crores to Charotar nagarik sahakari bank ltd. However, the company has stopped providing for the interest on the outstanding loan amount. Despite this fact, and accumulated losses, the company is carrying its activities and expects to recoup these losses during subsequent years. Accordingly, the accounts of the company have beenprepared on a going concern basis.

 
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