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Accounting Policies of Roselabs Ltd. Company

Mar 31, 2015

The company has only one class of Equity shares having a per value of Rs, 10 per share Each Shareholders is entitled to one per share in the event of liquidation of the company the holders of equity shares will be entitled to receive remaining assets of the company after distributors of all preferential amounts the distribution will be in proportion to the

Deferred tax is recognized only on timing between the accounting income and taxable income which are capable of reversal in subsequent periods.

Deferred assets on carried forwards business loss and unabsorbed depreciation is recognized only if management certifies with virtual certainty & convincing evidence that there will be sufficient future taxable income.

Value of deferred tax is assessed on each balance sheet date and any change in value is recognized in the profit and loss appropriation account. During the year the company has recognized the Deferred Tax asset on the unabsorbed tax Depreciation and Unabsorbed losses at the being and same set off from appropriation and tax saving on the sett off unabsorbed depreciation and losses to the extant was reversed to profit and loss statements of the year.

The amount payable to Micro and small medium Enterprise as on the Balance Sheet date is not determined as such parties are not indentified the information with the company is not available.

The creditors balance of those confirmation not received are subject to conformation and reconciliation.

The provision for current taxes has been made in the account on the income computed as per provisions of income Tax ACt,1961.

Long term investments are started at cost provisions for diminution in the value long term investments is made only if such decline is other than temporary in the opinion of the management.

The long term loan advance includes the loan to employees of the company and other parties.

The quantities of inventory sales purchases are taken on the basis of detailed work out from the bills and the stock records maintained by the company and physically verified is on the date of balance sheet by the

The Debtors balance of those confirmation not received are subject to conformation and reconciliation.


Mar 31, 2014

1. System of Accounting:

The financial statements are prepared on historical cost convention and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards referred to in sub section (3c) of section 211 of the companies Act., 1956 and guidance notes, etc. issued by Institute of Chartered Accountants of India and the other provisions of the companies Act.

2. Revenue Recognition:

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

(a) Revenue from Operation:

Sales revenue is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price and excludes sales tax.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

Commission Income is recognized as and when the terms of contract are fulfilled.

(b) Other Operational Revenue:

Other operational revenue represent income earned from the activities incidental to the business and is recognized when the right to receive the income is established as per the terms of the contract.

(c) Other Income:

Interest income is accrued at applicable interest rate.

Dividend income is accounted in the period in which it is received.

Other items of income are accounted as and when the right to receive arises.

3. Fixed Asset:

(a) Tangible Asset:

Fixed assets are stated at cost less accumulated depreciation cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

(b) Intangible Asset:

Intangible assets are stated at cost of purchase/acquired less amortized during period.

4. Depreciation:

Depreciation on tangible assets provided on straight line method accordance with the provisions of section 205(2)(b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of the companies Act, 1956 on prorate basis with reference to the day of acquisition / installation.

Intangible assets are amortized on straight line basis over the five years from the year of procured and acquired.

5. impairment of Tangible and Intangible assets:

The carrying amount of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of any assets exceeds its recoverable amount.

During the year it has been reviewed there is no any impairment of fixed assets.

6. 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 other than temporary in the opinion of the management.

7. Valuation of Inventories:

Stock-in-trade - at cost or net realizable value whichever is less.

Net realizable value is the estimated current procurement price in the ordinary course of the business. The cost of inventory is determined net of taxes on FIFO or Weighted Average cost formula method on relevant categories of inventories on a consistent basis after providing for obsolete, slow moving and defective inventories wherever necessary.

8. Cenvat:

VAT credits: VAT Credit available on purchases input are reduced from purchases and balance at end of the stocks is carried forward under current asset to avail the credit in the succeeding year.

9. Provisions and Contingent liabilities:

Provisions are recognized when the present obligation of the past event gives rise to a probable outflow embodying economic benefits on settlement, and the amount of obligation can be reliably estimated.

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved.

Provisions and contingent liability are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

10. Retirement Benefits:

No provision for retirement's benefits viz. Gratuity, leave encashment, retrenchment etc for the employee has been made as there are no eligible employees on the muster roll entitle of these benefits.

11. Research & Development:

No research and development expenditure has been incurred during the year.

12. Miscellaneous Expenditure:

In accordance with the provisions of section 35D of Income Tax Act 1961, the company has one-tenth of expenses.

13. Provision for current and Deferred Tax:

Taxes on income are computed using tax deferral Assets or Liability method where taxes accrue in the time period the respective revenue and expenses arises. The differences that result between the proof offered income tax and the profit as per financial statements are identified and Deferred Tax Liabilities recognized for timing difference, that originate in one accounting period and reverse ,n another based on the tax effect of the prevailing enacted regulation in force.

Deferred Tax Assets are recognized subject to prudence, only, if there is reasonable certainty that they Separated and are subject to appropriate reviews at each balance sheet date for the purpose of measurement of Deferred Tax Liability or Assets, the applicable tax rates and enacted regulations expected apply in the year in which the temporary differences are expected to be recovered or settled are applied.

Minimum Alternative Tax credit is recognized as an asset only when and to the extent there is convincing e dinette the company will pay normal income tax furnishing the specified pending the year ,n which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of the said asset is created by way of credit to the profit and loss statement and shown as MAT Credit entitlement.

14. Borrowing Cost:

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of action of an asset that necessarily takes a substantial period of time to get ready for its intended use as capitalized at Is capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

15. Sundry Debtors:

No provision has been made for the bad and doubtful debts. The Bad debts are charged to revenue in the year of, as and when they arise.

16. Earning Per Share:

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

For the purpose of calculation diluted earning per share, the net profit or loss for the period attributable to shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential shares.

Cash and cash equivalents for the purpose of cash flow statement comprise of cash at bank, cash in hand and short term deposit in bank with in original maturity of 12 months or less.


Mar 31, 2013

(i) System of Accounting:

The Financial statements are prepared on historical cost convention and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards referred to in sub section (3c) of section 211 of the companies Act., 1956 and guidance notes, etc. issued by Institute of chartered Accountants of India and the other provisions of the companies Act.

(ii) Revenue Recognition:

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

(a) Revenue from Operation :

Sales revenue is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price and excludes sales tax.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

Commission Income is recognized as and when the terms of contract are fulfilled.

(b) Other operational revenue

Other operational revenue represent income earned from the activities incidental to the business and is recognized when the right to receive the income is established as per the terms of the contract.

(c) Other Income:

Interest income is accrued at applicable interest rate. Dividend income is accounted in the period in which it is received. Other items of income are accounted as and when the right to receive arises. (iii) Fixed Asset:

(i) Tangible Asset:

Fixed assets are stated at cost less accumulated depreciation Cost coiRs.uses the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

(ii) Intangible Assets:

Intangible assets are stated at cost of purchase/acquired less amortised during period. (iv) Depreciation:

Depreciation on tangible assets provided on straight line method accordance with the provision of section 205(2) (b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of the companies Act, 1956 on prorate basis with reference to the day of acquisition/ installation. Intangible assets are amortized on straight line basis over the five years from the year of procured and acquired.

(v) Impairment of Tangible and intangible assets

The carrying amount of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss is ecognized wherever the carrying amount of any assets exceeds its recoverable amount. During the year it has been reviewed there is no any impairment of ixed assets. (v) 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 other than temporary in the opinion of the management. (vi) Valuation of Inventories:

Stock-in-trade - at cost or net realizable value whichever is less.

Net realizable value is the estimated current procurement price in the ordinary course of eh

business. The cost of inventory is determined net of taxes on FIFO or Weighted Average cost formula method on relevant categories of inventories on a consistent basis after providing for obsolete, slow moving and defective inventories wherever necessary.

(vii)Cenvat:

VAT Credits: VAT Credit available on purchases input are reduced from purchases and balance at end of the stocks at end of the stocks is carried forward under current asset to avail the credit in the succeeding year.

(viii) Provisions and Contingent liabilities:

Provisions are recognized when the present obligation of the past event gives rise to a probable outflow embodying economic benefits on settlement, and the amount of obligation can be reliably estimated.

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved.

Provisions and contingent liability are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(ix) Retirement Benefits:

No provision for retirement''s benefits viz. Gratuity, leave encashment, retrenchment etc for the employee has been made as there are no eligible employees on the muster roll entitle of these benefits.

(x) Research & Development:

No research and development expenditure has been incurred during the year.

(xi) Miscellaneous Expenditure:

In accordance with the provisions of section 35D of Income Tax Act 1961, the company has written off one- tenth of expenses.

(xii) Provision for current and Deferred Tax:

Taxes on Income are computed using tax deferral Assets or Liability method where taxes accrue in the same period, the respective revenue and expenses arises. The differences that result between the profit offered for income tax and the profit as per financial statements are identified and Deferred Tax Liability is recognized for timing difference, that originate in one accounting period and reverse in another based on the tax effect of the prevailing enacted regulation in force.

Deferred Tax Assets are recognized subject to prudence, only, if there is reasonable certainty that they will be realized and are subject to appropriate reviews at each balance sheet date for the purpose of measurement of Deferred Tax Liability or Assets, the applicable tax rates and enacted regulations expected to apply in the year in which the temporary differences are expected to be recovered orsettled are applied.

Minimum Alternative Tax Credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax furnishing the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India the said asset is created by way of credit to the profit and loss statement and shown as MAT Credit entitlement.

Ixiii) Borrowing Cost:

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

(xiv) Sundry Debtors:

No provision has been made for the bad and doubtful debts. The Bad debts are charged to revenue in the year of, as and when they arise. (xv) Earning Per Share

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

For the purpose of calculation diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential shares.

(iv) Cash and cash equivalents for the propose of cash flow statement comprise of cash at bank, cash in hand and short term tern deposit in bank with in original maturity of 12 months or less

 
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