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Accounting Policies of SER Industries Ltd. Company

Mar 31, 2014

The Financial Statements have been prepared under the historical cost convention on the accrual basis of accounting and on the accounting principles of going concern, in accordance with all the applicable accounting principles generally accepted in India and .comply with the mandatory applicable accounting standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956 and the rules, regulations and guidelines made thereunder.

1. Fixed Assets: Fixed assets have been capitalized at its acquisition cost and all other costs attributable to bring the assets to its working conditions for their intended use as reduced by the accumulated depreciation and impairment loss, if any.

2. Depreciation: Depreciation on fixed assets is provided on straight line basis at the rates provided in Schedule XIV to the Companies Act, 1956. Depreciation on assets acquired during the year has been provided on Pro-rata basis including the month during which the asset is capitalized.

3. Inventory: Stocks of Stores and Truck spares have been valued at lower of cost or realizable value. The Company is following first in first out method for valuation of inventories.

4. 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.

5. Recognition of Income & Expenditure Income and expenditure are generally accounted on accrual basis in accordance with the applicable accounting standards. Freight income is accounted when goods are delivered by the Company to customers. Freight expenses are accounted when the goods are delivered to the intended customers.

6. Investments: Long Term Investments are stated at cost. Reduction in market value of quoted investments due to temporary market fluctuations is not provided for in the books of accounts. Current investments are stated at lower of cost and fair value.

7. Expenditure on Research and Development: The Company has not incurred any expenditure, on research and development, during the year.

8. Segmental Revenue and Expenditure: The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

9. Employee Benefits: Defined contribution plans- are post-employment benefit plans under which the Company pays fixed contributions into separate entities (Provident Fund Authority). The Company has no further payment obligations once the contributions have been paid. The Company''s contributions to the defined contribution plans are recognised as an expense when they are due. Defined benefit plans- The Gratuity and leave encashment liability of the Company is not funded. Valuations for gratuity and leave encashment liability have been carried out by independent actuary as on the date of Balance Sheet.

Provision for Taxation: 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.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as art asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

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 and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

10. Provisions: Provisions are recognized I terms of Accounting Standard 29 notified under the Companies (Accounting Standards) Rules, 2006. When there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligations and reliable estimate of the amount of the obligation can be made. Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation can not be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

11. Leases: The Company''s significant leasing agreements are in respect of operating leases for premises.

These leasing arrangements which are not non- cancellable ranging between 9 months to one year generally or longer and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in the statement of profit & loss.

12. Earnings Per Share: The Basic earnings per share is calculated on the net profit or loss for the period attributable to- equity share holders considering weighted average shares outstanding during the period. Diluted earnings per share is worked out on the net profit or loss for the period attributable to the equity shareholders and weighte average number of shares outstanding during the period after adjusting for effects of all dilutive potential equity shares, if any. ''


Mar 31, 2011

Financial Statements have been prepared under historical cost and on accrual basis of accounting and materially comply with the applicable Accounting Standards specified under section 211(3C) of the Companies Act, 1956 read with Companies (Accounting Standards) Rules, 2006. The significant accounting policies followed by the Company are :

1. Revenue Recognition: Revenue from transportation of goods and related activities are recognizee and accounted as and when the services are rendered. Interest income and other income are recognized on accrual basis. All expenditure are accounted on accrual basis.

2. Fixed Assets: Fixed assets have been capitalized at its acquisition cost and other costs attributable to bring the assets to its working conditions for their intended use as reduced by the accumulated depreciation and impairment loss, if any.

3. Depreciation: Depreciation on fixed assets is provided on straight line basis at the rates provided in Schedule XIV to the Companies Act, 1956.Depreciation on assets acquired during the year has been provided on Pro-rata basis including the month during which the asset is capitalized.

4. Inventory: Stocks of Stores and Truck spares have been valued at lower of cost or realizable value. The Company is following first in first out method for valuation of inventories.

5. Investments: Long Term Investments are stated at cost. Reduction in market value of long term investments due to temporary market fluctuations is not provided for in the books of accounts. Current investments are stated at lower of cost and fair value.

6. Expenditure on Research and Development: The Company has not incurred any expenditure on research and development during the year.

7. Segmental Revenue and Expenditure: The Company operates under only one segment of transportation and related services.

8. Employee Benefits: Defined contribution plans- are post-employment benefit plans under which the Company pays fixed contributions into separate entities (Provident Fund Authority). The Company has no further payment obligations once the contributions have been paid. The Company's contributions to the defined contribution plans are recognised as an expense when they are due. Defined benefit plans- Valuations for gratuity and leave encashment have been carried out by independent actuary as on the date of Balance Sheet.

9. Provision for Taxation: Provision for current taxes is made on the profits of the Company as adjusted in accordance with the provisions of Income Tax Act, at the rates applicable for the current financial year.

Deferred tax is recognised on timing difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as on the balance sheet date,

Deferred tax assets in respect of unabsorbed depreciation and carried forward losses are recognised only if there is virtual certainty thai such deferred tax asset can be realized against future taxable profits.

10. Provisions: The Company recognises provisions when there is a present obligation, as a result of past events, for which it is probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made for the amount of obligation.

11. Leases: The Company has not acquired any assets on financial lease basis nor has entered into any non-cancelable operating lease or sublease.

12. impairment Losses: The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the assets 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 and reduction is treated as an impairment loss and is recognized in the profit & loss account.

13. Earnings Per Share: The Basic earnings per share is calculated on the net profit or loss tor i the period attributable to equity snare holders considering weighted average shares outstanding during the period. Diluted earnings per share is worked out on the net profit or loss for the period attributable to the equity shareholders and weighted average number of shares outstanding during : the period after adjusting for effects of all dilutive potential equity shares if any.


Mar 31, 2010

Financial Statements have been prepared under historical cost and on accrual basis of accounting and materially comply with the applicable Accounting Standards specified under section 211 ^3C) of the Companies Act, 1956 read with Companies (Accounting Standards) Rules, 2006 The significant accounting policies followed by the Company are :

1. Revenue Recognition: Revenue from transportation of goods and related activities are recognized and accounted as and when the services are rendered. Interest income and other income are recognized on accrual basis.

2. Fixed Assets: Fixed assets have been capitalized at its acquisition cost and other costs attributable to bring the assets to its working conditions for their intended use as reduced by the accumulated depreciation and impairment loss, if any.

3. Depreciation: Depreciation on fixed assets is provided on straight line basis at the rates provided in Schedule XIV to the Companies Act, 1956.Depreciation on assets acquired during the year has been provided on Pro-rata basis.

4. Inventory: Stocks of Stores and Truck spares have been valued at lower of cost or realizable value. The Company is following first in first out method for valuation of inventories.

5. Investments: Long Term Investments are stated at cost. Reduction in market value of quoted investments due to temporary market fluctuations is not provided for in the books of accounts. Current investments are stated at lower of cost and fair value.

6. Expenditure on Research and Development: The Company has not incurred any expenditure, on research and development, during the year.

7. Segmental Revenue and Expenditure: The Company operates under only one segment of transportation and related services.

8. Employee Benefits: Defined contribution plans- are post-employment benefit plans under which the Company pays fixed contributions into separate entities (Provident Fund Authority). The Company has no further payment obligations once the contributions have been paid. The Companys contributions to the defined contribution plans are recognised as an expense when they are due. Defined benefit plans- Valuations for gratuity and leave encashment have been carried out by independent actuary as on the date of Balance Sheet.

9. Provision for Taxation: Provision for current taxes is made on the profits of the Company as adjusted in accordance with the provisions of Income Tax Act, at the rates applicable for the current financial year.

Deferred tax is recognised on timing difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as on the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carried forward losses are recognised only if there is virtual certainty that such deferred tax asset can be realized against future taxable profits.

10. Provisions: The Company recognises provisions when there is a present obligation, as a result of past events, for which it is probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made for the amount of obligation.

11. Leases: The Company has not acquired any assets on financial lease basis nor has entered into any non-cancelable operating lease or sublease.

12. Earnings Per Share: The Basic earnings per share is calculated on the net profit or loss for the period attributable to equity share holders considering weighted average shares outstanding during the period. Diluted earnings per share is worked out on the net profit or loss for the period attributable to the equity shareholders and weighted average number of shares outstanding during the period after adjusting for effects of all dilutive potential equity shares, if anv.



 
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