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Accounting Policies of Scope Industries (India) Ltd. Company

Mar 31, 2013

(a) Basis of Preparation of Financial Statements:

Financial statements have been prepared and presented under historical cost convention in accordance with the accounting principles generally accepted in India having due regard to fundamental accounting assumptions of going concern, consistency and accrual and comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act, 1956 as applicable and with the relevant provisions of the Companies Act, 1956.

(b) Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

(c) Revenue Recognition:

Revenue from construction contracts is recognized on the percentage of completion method as mentioned in accounting standard (AS) 7 " Construction contracts" notified by the companies accounting standard rules 2006. Percentage of completion method is determined on the basis of actual project cost incurred as compared to the total cost estimated to be incurred on the projects.

(d) Fixed Assets and Depreciation

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets includes purchase price, non-refundable taxes, duties, freight, and other incidental expenses related to the acquisition and installation of the respective assets.

Depreciation on fixed assets is provided using straight line method at the rates specified in Schedule XIV to the Companies Act, 1956.

(k) Tax Expense:

Income tax expense comprises current tax, deferred tax, Minimum alternative Tax.

Current tax

The current change for income tax is calculated in accordance with the relavent tax regulations applicable to the company.

Deferred tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the year. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have enacted or substantially enacted by 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.

(n) Provisions:

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.

(o) Earnings per Share:

The basic Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year.

(P) Employees Share Based Payments

Employees Stock Option Scheme 2011

The company provides Stock – option scheme to its employees. During the year 31st march 2013 an employee stock option scheme was an existence. The relevant details of scheme and grant date are given below

Pursuant to the resolutions approved by the members in the Extra Ordinary General Meeting held on 12th May , 2011, the Company has granted 30,00,000 Options to employees. The ESOS 2011 plan is administered by the remuneration Committee of the Board. The committee shall determine the employees eligible for receiving the options, the number of options to be granted, the exercise price, the vesting period and the exercise period.


Mar 31, 2012

(a) Basis of Preparation of Financial Statements:

Financial statements have been prepared and presented under historical cost convention in accordance with the accounting principles generally accepted in India having due regard to fundamental accounting assumptions of going concern, consistency and accrual and comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act, 1956 as applicable and with the relevant provisions of the Companies Act, 1956.

(b) Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

(c) Revenue Recognition:

Revenue from construction contracts is recognized on the percentage of completion method as mentioned in accounting standard (AS) 7 " Construction contracts" notified by the companies accounting standard rules 2006. Percentage of completion method is determined on the basis of actual project cost incurred as compared to the total cost estimated to be incurred on the projects.

(d) Fixed Assets and Depreciation

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets includes purchase price, non-refundable taxes, duties, freight, and other incidental expenses related to the acquisition and installation of the respective assets.

Depreciation on fixed assets is provided using straight line method at the rates specified in Schedule XIV to the Companies Act, 1956.

(k) Tax Expense:

Income tax expense comprises current tax, deferred tax, Minimum alternative Tax.

Current tax

The current change for income tax is calculated in accordance with the relavent tax regulations applicable to the company.

Deferred tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the year. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have enacted or substantially enacted by 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.

(n) Provisions:

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.

(o) Earnings per Share:

The basic Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year.


Mar 31, 2010

1. Financial Statements:

Financial Statements have been prepared under historical cost convention and as a going concern, on accrual basis and in accordance with the Generally Accepted Accounting Principles (GAAP) in India and in compliance with relevant requirements of the Companies Act, 1956 and the pronouncements of the Institute of Chartered Accountants of India (ICAI).

2. Expenses:

It is the policy of the Company to provide for all expenses on accrual basis.

3. Fixed Assets:

There are no fixed assets as per the books of accounts owned by the company during the year and hence no depreciation is provided for the current year.

4. Investments:

Investments held on the Balance Sheet date are valued at cost and at the rates reported in previous years. The Company has the policy to write off Permanent Diminution in the value of Investments to Revenue. However, the Company has not ascertained the value of Investments as at the Balance Sheet date and hence no provision has been made for the same.

5. Taxes on Income:

Current Tax: Income Taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed after considering tax allowances and exemptions. No provision has been made for Income Tax in view of accumulated losses during the current period.

Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified, and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and get reversed in another, based on the tax effect of the aggregate amount being considered. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The Company has brought forwarded losses carried over from Previous Years and the Company is of the opinion that it is unlikely that it will be able to realize the benefits of such carry forward of losses. Consequently, the Company has not made any provision for Deferred Taxes for the current period.

7. Capital Commitments:

Estimated amount of contracts to be executed on capital not provided for (net of advances)- NIL


Mar 31, 2009

1. Financial Statements:

Financial Statements are prepared under historical cost convention and as a going concern, on accrual basis and in accordance with the generally accepted accounting principles in India and relevant requirements of the Companies Act, 1956.

2. Revenue Recognition:

The Company recognizes Income on Accrual Basis.

3. Expenses:

It is the policy of the Company to provide for all expenses on accrual basis. Similarly, Provisions are made for all known losses and liabilities.

4. Fixed Assets:

There are no fixed assets as per the books of accounts owned by the company during the year and hence no depreciation is provided for the current year.

5. Investments:

Investments held on the Balance Sheet date are valued at cost and at the rates reported in previous years. The Company has the policy to write off Permanent Diminution in the value of Investments to Revenue. However, the Company has not ascertained the value of Investments as at the Balance Sheet date and hence no provision has been made for the same.

6. Taxes on Income:

Current Tax: Income Taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed after considering tax allowances and exemptions. No provision has been made for Income Tax in view of accumulated losses during the current period.

Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified, and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and get reversed in another, based on the tax effect of the aggregate amount being considered. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The Company has brought forwarded losses carried over from Previous Years and the Company is of the opinion that it is unlikely that it will be able to realize the benefits of such carry forward of losses. Consequently, the Company has not made any provision for Deferred Taxes for the current period.

8. Capital Commitments:

Estimated amount of contracts to be executed on capital not provided for (net of advances) - NIL

 
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