Home  »  Company  »  Sika Interplant  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Sika Interplant Systems Ltd. Company

Mar 31, 2015

A. Accounting Convention:

The financial statements are prepared under the historical cost convention on an accrual basis, in accordance with the Generally Accepted Accounting Principles in India ("Indian GAAP") and mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and the provisions of the act to the extent notified.

b. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation and impairment (if any). All costs relating to the acquisition and installation of fixed assets have been capitalized.

Capital work in progress represents expenditure incurred in respect of capital projects under development and are carried at cost. Cost includes land, related acquisition expenses, development/construction costs, borrowing costs and other direct expenditure including advances to contractors and others.

Leasehold land on a lease-cum-sale basis are capitalized at the allotment rates charged by the concerned allotting Authorities.

Intangibles having the characteristic of assets, capable of generating future economic benefits and are reliably measurable are stated at cost.

c. Depreciation/Amortization

In respect of fixed assets acquired during the period, depreciation/ amortisation is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1,2014, the carrying amount as on April 1,2014 is depreciated over the remaining useful life based on an evaluation.

SI Asset Useful Life No

1 Building (other than RCC Frame 30 Years

Structure & Factory Building)

2 Building (RCC Frame Structure) 60 Years

3 Plant and Machinery 15 Years

4 Office Equipments 5 Years

5 Furniture and Fixtures 10 Years

6 Vehicles 8 Years

7 Computers 3 Years

8 Servers 6 Years

9 Computer Software 6 Years

d. Valuation of Inventories:

Stock of spare parts, raw materials and stock in trade are valued at lower of cost and net realizable value. Work-in progress is valued at cost.

e. Valuation of Investments:

Current investments are valued at the lower of cost and market value. Long Term Investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in carrying value of each investment..

f. Retirement Benefits:

Company has Group Gratuity policy with Life Insurance Corporation of India and the premiums determined there at is charged to revenue. The Company has provided for Leave Encashment based on accumulated un-availed leave by the employees as on the date of Balance Sheet.

g. Revenue Recognition:

i. Revenue from sale of goods is recognized on passing of the property in goods.

ii. Services - Revenue from services is recognized on completion of service.

iii. Profit on sale of investments: Profit / loss on sale of investments are recognized on the date of redemption.

h. Foreign Currency Transactions:

Transactions in foreign currency are recorded using the spot rate at the transaction date and exchange differences resulting from settled transactions are adjusted in the profit and loss account. At the balance sheet date, monetary items denominated in foreign currencies are converted into rupee equivalents at exchange rates as at the balance sheet date. Those relating to acquisition of fixed assets are adjusted to the cost of assets.

i. Provisions:

A provision is recognized when outflow of resources will be required to settle a present obligation as a result of past events. Accordingly provisions are determined based on best 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 best estimates.

j. Provision for Warranty:

The estimated liability for the product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective action on product failures. The timing of outflows will vary as and when warranty claim will arise -being typically up to three years.

As per the terms of contracts, the company provides post contract services/ warranty support to some of its customers. The company accounts for the post-contract support / provision for warranty on the basis of the information available with the management duly taking into account the current and past technical estimates.

k. Segment Reporting Policies:

Primary Business Segments

The Company is primarily engaged in the business of manufacturing and rendering of services in engineering products and designs. For all purposes the company is organized into one operating activity of Engineering products and services. Accordingly the Company is of the view that it has only one business segment. The Company has no activity outside India except for export of Engineering Services. Thereby there is no geographical segment.

l. Impairment of Assets

At each Balance Sheet date the company assesses whether there is any indication that an asset may be impaired. If such an indication exists, the Company estimates the recoverable amount and if this is lower than the carrying amount of the asset, an impairment loss is recognized in the Profit and Loss account to the extent the carrying amount exceeds the recoverable amount.

m. Taxation

Current Taxation and Deferred Taxation:

Provision for current income tax is made on the assessable income at the rates applicable to the relevant assessment year.

Deferred Tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognized only to the extent there is a virtual certainty of its realization.

n. Research & Development Expenditure

Research & Development Expenditure is charged to Revenue under the natural heads of account in the year in which it is incurred. However, Expenditure incurred at development phase, where it is reasonably certain that outcome of research will be commercially exploited to yield economic benefits to the company, is considered as an intangible asset.

o. Earning Per Share

Basic earnings per share is 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. For the Purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares are outstanding during the period are adjusted for events including a bonus issue, bonus element in a rights issue to existing share holders, share split and reverse share split.


Mar 31, 2014

1. Accounting Convention:

The Financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principles, the mandatory accounting standards prescribed by the Institute of Chartered Accountants of India and the provisions of the Companies Act.

2. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation and impairment (if any). All costs relating to the acquisition and installation of fixed assets have been capitalized.

Capital work in progress represents expenditure incurred in respect of capital projects under development and are carried at cost. Cost includes land, related acquisition expenses, development/construction costs, borrowing costs and other direct expenditure including advances to contractors and others.

Leasehold land on a lease-cum-sale basis are capitalized at the allotment rates charged by the concerned allotting Authorities. Intangibles having the characteristic of assets, capable of generating future economic benefits and are reliably measurable are stated at cost.

Depreciation/Amortization

Depreciation on assets has been provided at the rates specified in Schedule XIV of the Companies Act, 1956 on straight-line method. Amortization of Intangibles is done based on the benefits derived. Amortization is not being done in respect of intangibles which are available for use to the company in perpetuity.

3. Valuation of Inventories:

Stock of spare parts, raw materials and stock in trade are valued at lower of cost and net realizable value. Work-in-progress is valued at cost.

4. Valuation of Investments:

Current investments are valued at the lower of cost and market value.

5. Retirement Benefits:

Company has Group Gratuity policy with Life Insurance Corporation of India and the premiums determined there at is charged to revenue. The Company has provided for Leave Encashment based on accumulated un-availed leave by the employees as on the date of Balance Sheet.

6. Revenue Recognition:

1. Revenue from sale of goods is recognized on passing of the property in goods.

2. Services - Revenue from services is recognized on completion of service.

3. Warranties -Revenue from warranties in connection with post sale services is recognized on pro-rata basis over the warranty period.

4. Profit on sale of investments - Profit / loss on sale of investments are recognized on the date of redemption.

7 Foreign Currency Transactions:

Transactions in foreign currency are recorded using the spot rate at the transaction date and exchange differences resulting from settled transactions are adjusted in the profit and loss account. At the balance sheet date, monetary items denominated in foreign currencies are converted into rupee equivalents at exchange rates as at the balance sheet date. Those relating to acquisition of fixed assets are adjusted to the cost of assets.

8. Provisions:

A provision is recognized when outflow of resources will be required to settle a present obligation as a result of past events. Accordingly provisions are determined based on best 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 best estimates.

9. Segment Reporting Policies

Primary Business Segments:

The Company is primarily engaged in the business of manufacturing and rendering of services in engineering products and designs. For all purposes the company is organized into one operating activity of Engineering products and services. Accordingly the Company is of the view that it has only one business segment. The Company has no activity outside India except for export of Engineering Services. Thereby there is no geographical segment.

10. Impairment of Assets

At each Balance Sheet date the company assesses whether there is any indication that an asset may be impaired. If such an indication exists, the Company estimates the recoverable amount and if this is lower than the carrying amount of the asset, an impairment loss is recognized in the Profit and Loss account to the extent the carrying amount exceeds the recoverable amount.

11. Taxation

Current Taxation and Deferred Taxation: Provision for current income tax is made on the assessable income at the rates applicable to the relevant assessment year.

Deferred Tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognized only to the extent there is a virtual certainty of its realization.

12. Earning 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. The weighted average number of equity shares is outstanding during the period adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split.


Mar 31, 2013

A. Accounting Convention:

The Financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principals, the mandatory accounting standards prescribed by the Institute of Chartered Accountants of India and the provisions of the Companies Act.

b. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation and impairment (if any). All costs relating to the acquisition and installation of fixed assets have been capitalized.

Capital work in progress represents expenditure incurred in respect of capital projects under development and are carried at cost. Cost includes land, related acquisition expenses, development/construction costs, borrowing costs and other direct expenditure including advances to contractors and others.

Intangibles having the characteristic of assets, capable of generating future economic benefits and are reliably measurable are stated at cost.

Depreciation/Amortisation

Depreciation on assets has been provided at the rates specified in Schedule XIV of the Companies Act, 1956 on straight-line method.

Amortisation of Intangibles is done based on the benefits derived. Amortization is not being done in respect of intangibles which are available for use to the company in perpetuity.

c. Valuation of Inventories:

Stock of spare parts, raw materials and stock in trade are valued at lower of cost and net realizable value. Work-in-progress is valued at cost.

d. Valuation of Investments:

Current investments, are valued at the lower of cost and market value.

e. Retirement Benefits:

Company has Group Gratuity policy with Life Insurance Corporation of India and the premiums determined there at is charged to revenue. The Company has provided for Leave Encashment based on accumulated un-availed leave by the employees as on the date of Balance Sheet.

f. Revenue Recognition:

1. Revenue from sale of goods is recognized on passing of the property in goods.

2. Services - Revenue from services is recognized on completion of service.

3. Warranties -Revenue from warranties in connection with post sale services is recognized on pro-rata basis over the warranty period.

4. Profit on sale of investments: Profit / loss on sale of investments are recognized on the date of redemption.

g. Foreign Currency Transactions:

Transactions in foreign currency are recorded using the spot rate at the transaction date and exchange differences resulting from settled transactions are adjusted in the profit and loss account. At the balance sheet date, monetary items denominated in foreign currencies are converted into rupee equivalents at exchange rates as at the balance sheet date. Those relating to acquisition of fixed assets are adjusted to the cost of assets.

h. Provisions:

A provision is recognized when outflow of resources will be required to settle a present obligation as a result of past events. Accordingly provisions are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewedateachBalanceSheetdateandadjustedtoreflectthecurrentbestestimates.

i. Segment Reporting Policies Primary Business Segments:

The Company is primarily engaged in the business of manufacturing and rendering of services in engineering products and designs. For all purposes the company is organized into one operating activity of Engineering products and services. Accordingly the Company is of the view that it has only one business segment. The Company has no activity outside India except for export of Engineering Services. Thereby there is no geographical segment.

j. Impairment of Assets

At each Balance Sheet date the company assesses whether there is any indication that an asset may be impaired. If such an indication exists, the Company estimates the recoverable amount and if this is lower than the carrying amount of the asset, an impairment loss is recognized in the Profit and Loss account to the extent the carrying amount exceeds the recoverable amount.

k. Taxation

Current Taxation and Deferred Taxation:

Provision for current income tax is made on the assessable income at the rates applicable totherelevantassessmentyear.

Deferred Tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognized only to the extent there is a virtual certainty of its realization.

1. Earning Per Share

Basic earnings per share is 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. The weighted average number of equity shares are outstanding during the period adjusted for events including a bonus issue, bonus element in a rights issue to existing share holders, share split and reverse share split.


Mar 31, 2012

1. Accounting Convention:

The Financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principals, the mandatory accounting standards prescribed by the Institute of Chartered Accountants of India and the provisions of the Companies Act.

2. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation and impairment (if any). All costs relating to the acquisition and installation of fixed assets have been capitalized.

Capital work in progress represents expenditure incurred in respect of capital projects under development and are carried at cost. Cost includes land, related acquisition expenses, development/construction costs, borrowing costs and other direct expenditure including advances to contractors and others.

Intangibles having the characteristic of assets, capable of generating future economic benefits and are reliably measurable are stated at cost.

Depreciation/Amortization

Depreciation on assets has been provided at the rates specified in Schedule XIV of the Companies Act, 1956 on straight-line method.

Amortization of Intangibles is done based on the benefits derived. Amortization is not being done in respect of intangibles which are available for use to the company in perpetuity.

3. Valuation of Inventories:

Stock of spare parts, raw materials and stock in trade are valued at lower of cost and net realizable value. Work-in-progress is valued at cost.

4. Valuation of Investments:

Current investments, are valued at the lower of cost and market value.

5. Retirement Benefits:

Company has Group Gratuity policy with Life Insurance Corporation of India and the premiums determined there at is charged to revenue. The Company has provided for Leave Encashment based on accumulated un-availed leave by the employees as on the date of Balance Sheet.

6. Revenue Recognition:

1. Revenue from sale of goods is recognized on passing of the property in goods.

2. Services - Revenue from services is recognized on completion of service.

3. Warranties -Revenue from warranties in connection with post sale services is recognized on pro- rata basis over the warranty period.

4. Profit on sale of investments: Profit / loss on sale of investments are recognized on the date of redemption.

7. Foreign Currency Transactions:

Transactions in foreign currency are recorded using the spot rate at the transaction date and exchange differences resulting from settled transactions are adjusted in the profit and loss account. At the balance sheet date, monetary items denominated in foreign currencies are converted into rupee equivalents at exchange rates as at the balance sheet date. Those relating to acquisition of fixed assets are adjusted to the cost of assets.

8. Provisions:

A provision is recognized when outflow of resources will be required to settle a present obligation as a result of past events. Accordingly provisions are determined based on best 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 best estimates.

9. Segment Reporting Policies Primary Business Segments:

The Company is primarily engaged in the business of manufacturing and rendering of services in engineering products and designs. For all purposes the company is organized into one operating activity of Engineering products and services. Accordingly the Company is of the view that it has only one business segment. The Company has no activity outside India except for export of Engineering Services. Thereby there is no geographical segment.

10. Impairment of Assets

At each Balance Sheet date the company assesses whether there is any indication that an asset may be impaired. If such an indication exists, the Company estimates the recoverable amount and if this is lower than the carrying amount of the asset, an impairment loss is recognized in the Profit and Loss account to the extent the carrying amount exceeds the recoverable amount.

11. Income Tax

a) Current Taxation:

Provision for current income tax is made on the assessable income at the rates applicable to the relevant assessment year. Deferred Tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

b) Deferred Taxation

Deferred tax assets on unabsorbed depreciation and carry forward of losses are recognized only to the extent there is a virtual certainty of its realization.

12. Earning Per Share

Basic earnings per share is 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. The weighted average number of equity shares are outstanding during the period adjusted for events including a bonus issue, bonus element in a rights issue to existing share holders, share split and reverse share split.


Mar 31, 2010

1. The Financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principals, the mandatory accounting standards prescribed by the Institute of Chartered Accountants of India and the provisions of the Companies Act.

2 Fixed Assets and Depreciation: a Fixed Assets are stated at cost less depreciation. All costs relating to the acquisition and installation of fixedj assets have been capitalized. B Depreciation on assets has been provided at the rates specified in Schedule XIV of the Companies Act, 1956 on straight-line method.

3 Valuation of Inventories:

Stock of spare parts, raw materials and stock in trade are valued at lower of cost and net realizable value. Work-in-progress is valued at cost.

4 Valuation of Investments:

Investments, being current investments, are valued at the lower of cost and market value. Investment in thl equity capital of companies registered outside India is carried in the Balance Sheet at the rates prevailing or| the date of transaction.

5 Retirement Benefits:

Company has Group Gratuity policy with Life Insurance Corporation of India and the premiums determine! there at is charged to revenue. The Company has provided for Leave Encashment based on accumulate^ un-availed leave by the employees as on the date of Balance Sheet.

6 Revenue Recognition:

1. Revenue from sale of goods is recognized on passing of the property in goods.

2. Services - Revenue from services is recognized on completion of service.

3. Warranties -Revenue from warranties in connection with post sale services is recognized on pro-rata basis over the warranty period.

4. Profit on sale of investments: Profit / loss on sale of investments are recognized on the date o| redemption.

7 Foreign Currency Transactions:

Transactions in foreign currency are recorded using the spot rate at the transaction date and exchange differ! ences resulting from settled transactions are adjusted in the profit and loss account. At the balance sheet date J monetary items denominated in foreign currencies are converted into rupee equivalents at exchange rates as at| the balance sheet date. Those relating to acquisition of fixed assets are adjusted to the cost of assets.

8 Provisions: _ A provision is recognized when outflow of resources will be required to settle a present obligation as a result ofj past events. Accordingly provisions are determined based on best 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 best estimates.

9 Segment Reporting Policies

Primary Business Segments:

The Company is primarily engaged in the business of manufacturing and rendering of services in engineer] ing products and designs. For all purposes the company is organized into one operating activity of Engi neering products and services. Accordingly the Company is of the view that it has only one business segment. The Company has no activity outside India except for export of Engineering Services. Thereby. there is no geographical segment.

10 Impairment of Assets

At each Balance Sheet date the company assesses whether there is any indication that an asset may be im paired. If such an indication exists, the Company estimates the recoverable amount and if this is lower than the carrying amount of the asset, an impairment loss is recognized in the Profit and Loss account to the extent the carrying amount exceeds the recoverable amount.

 
Subscribe now to get personal finance updates in your inbox!