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Accounting Policies of Servotech Engineering Industries Ltd. Company

Mar 31, 2015

1.1 Accounting Concepts

The Company follows the mercantile system of accounting and recognized Income and Expenditure on accrual basis. The accounts are prepared on historical cost convention and as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted Accounting Principles.

1.2 Fixed Assets

Fixed Assets are stated at cost (Including other expenses related to acquisition and installation).Less accumulated Depreciation

1.3 Depredation

Depreciation has been provided under W D V method at useful lives specified in the Schedule II of the Companies Act, 2013.

1.4 Revenue Recognition

Revenue from Sales represented invoice value of goods sold excluding of sales tax, insurance, packing & forwarding charges etc. Sales of goods is recognized on transfer of property of goods as per agreed terms

1.5 Retirement Benefits

These are accounted for as and when paid.

1.6 Investments

investments are valued at cost.

1.7 Earnings per Share

The earnings considered in ascertaining the company's EPS comprise the net profit or (loss) for the period after tax and extra ordinary items. The Basis EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The Number of Share for computation of diluted EPS comprise of weighted average number of equity shares considered for deriving basic EPS.

1.8 Taxes on Income

Tax expenses for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provision of the Income Tax Act, 1961. Deferred Tax Assets & Liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profit & the profit as per the financial statement. Deferred tax Assets & liabilities are measured using the tax rate and tax laws that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized on unabsorbed depreciation & carry forward losses under tax law to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized The effect of deferred tax assets & liabilities of a change in tax rate is recognized in the Profit & Loss account in the year of Change.

1.9 Contingent Liabilities

Contingent liabilities are determined on the basis of available information and are disclosed by way of Notes to Accounts.

1.10 All Balances of sundry Debtors, Creditors, Loan & Advances are subject to confirmations.

1.11 Auditors Remuneration consists of:

Current Year Previous Year Rs. Rs.

Audit Fees 20,000/- 20,000/-

Tax Audit Fees 10,000/- 10,000/-

Total 30,000/- 30,000/-

1.12 Provision has been made for Income tax as per the provisions of Income Tax Act 1961.

1.13 In order to comply with the requirement of the Micro, Small and Medium Enterprises Development Act 2006, the company has not received any memorandum (as required by to be filed by the suppliers with the notified authority under Micro, Small and Medium Enterprises Development Act 2006) claiming their status as micro or medium enterprises the information as required to be given above is considered to be NIL.

1.14 In accordance with the Accounting Standard on "Related Party Disclosure"(AS-18),the disclosure in respect of transactions with the company's related parties are: NA

1.15 In the opinion of. the Board of Directors all the current assets, Loans & Advances are approximately of the value stated in the balance sheet as at 31st March, 2015 if realized in the ordinary course of business. The provision for depreciation and all known liabilities has been made and is adequate and not in excess of amount reasonably required.

1.16 In view of Accounting Standard -22 " Accounting for Taxes on Income", deferred tax Assets has been considering lack of virtual certainty of its realization of losses.

I) Value of Imports : Rs. Nil (NIL)

II) Expenditure in foreign Currency : Rs. Nil (NIL)

III) Earnings in foreign Exchange : Rs. Nil (NIL)

IV) Amount remitted during the year in foreign : RS. Nil (NIL) Currencies on account of dividend

1.17. Previous year figures have been regrouped and rearranged, wherever necessary.


Mar 31, 2014

1.1 Accounting Concepts :

The Company follows the mercantile system of accounting and recognized Income and Expenditure on accrual basis. The accounts are prepared on historical cost convention and as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted Accounting Principles.

2.2 Fixed Assets

Fixed Assets are stated at cost (Including other expenses related to acquisition and installation).Less accumulated Depreciation

2.3 Depreciation

i. Depreciation has been provided under W D V method at the rates prescribed in Schedule XIV of the Companies Act, 1956 (as amended).

ii. Depreciation of fixed assets is provided on Pro-rata basis from the date of their purchase / acquisition / capitalization till the date of disposal.

2.4 Revenue Recognition

Revenue from Sales represented invoice value of goods sold excluding of sales tax, insurance, packing & forwarding charges etc. Sales of goods is recognized on transfer of property of goods as per agreed terms

2.5 Retirement Benefits

These are accounted for as and when paid.

2.6 Investments Investments are valued at cost.

2.7 Earning per Share

The earnings considered in ascertaining the company''s EPS comprise the net profit or (loss) for the period after tax and extra ordinary items. The Basis EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The Number of Share for computation of diluted EPS comprise of weighted average number of equity shares considered for deriving basic EPS.

NOTES FORMING PARTS OF FINANCIAL STATEMENT | Continued

2.8 Taxes on Income

Tax expenses for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provision of the Income Tax Act, 1961.

Deferred Tax Assets & Liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profit & the profit as per the financial statement. Deferred tax Assets & liabilities are measured using the tax rate and tax laws that have been enacted or substantively enacted at the Balance Sheet Date.

Deferred tax assets are recognized on unabsorbed depreciation & carry forward losses under tax law to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized The effect of deferred tax assets & liabilities of a change in tax rate is recognized in the Profit & Loss account in the year of Change.

2.9 Contingent Liabilities

Contingent liabilities are determined on the basis of available information and are disclosed by way of Notes to Accounts.


Mar 31, 2012

1.1 Accounting Concepts :

The Company follows the mercantile system of accounting and recognized Income and Expendi- ture on accrual basis. The accounts are prepared on historical cost convention and as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted Accounting Principles.

1.2 Fixed Assets

Fixed Assets are stated at cost (Including other expenses related to acquisition and installation).Less accumulated Depreciation

1.3 Depreciation

i. Depreciation has been provided under W D V method at the rates prescribed in Schedule XTV of the Companies Act, 1956 (as amended). ii. Depreciation of fixed assets is provided on Pro-rata basis from the date of their purchase / acquisition / capitalization till the date of disposal.

1.4 Revenue Recognition

Revenue from Sales represented invoice value of goods sold including of sales tax, insurance, packing & forwarding charges and Technical services etc. Sales of goods is recognized on transfer of property of goods as per agreed terms

1.5 Retirement Benefits

These are accounted for as and when paid.

1.6 Investments

Investments are valued at cost.

1.7 Earning per Share

The earnings considered in ascertaining the company's EPS comprise the net profit or (loss) for the period after tax and extra ordinary items. The Basis EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The Number of Share for computation of diluted EPS comprise of weighted average number of equity shares considered for deriving basic EPS.

1.8 Taxes on Income

Tax expenses for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provision of the Income Tax Act, 1961. Deferred Tax Assets & Liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profit &. the profit as per the financial statement. Deferred tax Assets & liabilities are measured using the tax rate and tax laws that have been enacted or substantively enacted at the Balance Sheet Date.

Deferred tax assets are recognized on unabsorbed depreciation & carry forward losses under tax law to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized The effect of deferred tax assets & liabilities of a change in tax rate is recognized in the Profit &. Loss account in the year of Change.

1.9 Contingent Liabilities

Contingent liabilities are determined on the basis of a vailable information and are disclosed by way of Notes to Accounts.


Mar 31, 2011

1. Accounting Concepts :

The Company follows the mercantile system of accounting and recognized Income and Expenditure on accrual basis. The accounts are prepared on historical cost convention and as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted Accounting Principles.

2. Fixed Assets

Fixed Assets are stated at cost (Including other expenses related to acquisition and installation).Less accumulated Depreciation

3. Depreciation

i. Depreciation has been provided under W D V method at the rates Prescribed in Schedule XIV of the Companies Act, 1956 (as amended). ii. Depreciation of fixed assets is provided on Pro-rata basis from the date of their purchase / acquisition / capitalization till the date of disposal.

4. Inventories

i. Raw materials and stores and spares are valued at Cost or net realizable value. whichever is Lower

ii. Work-in-Progress is valued at estimated value.

iii. Finished goods are valued at lower of cost or market price.

5. Turnover

Turnover represented invoice value of goods sold including of sales tax, insurance, packing & forwarding charges and Technical services etc. Sales of goods is recognized on transfer of property of goods as per agreed terms

6. Miscellaneous Expenditure

Miscellaneous Expenditure "consists of preliminary expenses and share issue expenses" which are amortized equally over ten years.

7. Retirement Benefits

These are accounted for as and when paid.

8. Investments

Investments are valued at cost.


Mar 31, 2010

1. Accounting Concepts :

The Company follows the mercantile system of accounting and recognized Income and Expenditure on accrual basis. The accounts are prepared on historical cost convention and as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted Accounting Principles.

2. Fixed Assets

Fixed Assets are stated at cost (Including other expenses related to acquisition and installation).Less accumulated Depreciation

3. Depreciation

i. Depreciation has been provided under W D V method at the rates prescribed in Schedule XIV of the Companies Act, 1956 (as amended).

ii. Depreciation of fixed assets is provided on Pro-rata basis from the date of their purchase / acquisition / capitalization till the date of disposal.

4. Inventories

i. Raw materials and stores and spares are valued at Cost or net realizable value. whichever is Lower ii. Work-in-Progress is valued at estimated value.

iii. Finished goods are valued at lower of cost or market price.

5. Turnover

Turnover represented invoice value of goods sold including of sales tax, insurance, packing & forwarding charges and Technical services etc. Sales of goods is recognized on transfer of property of goods as per agreed terms

6. Miscellaneous Expenditure

Miscellaneous Expenditure "consists of preliminary expenses and share issue expenses" which are amortized equally over ten years.

7. Retirement Benefits

These are accounted for as and when paid.

8. Investments Investments are valued at cost.

 
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