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Accounting Policies of South India Projects Ltd. Company

Mar 31, 2015

(a) Use of estimates

The preparation of financial statements in conformity with Indian Generally Accepted Accounting Principles ("IGAAP") requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(b) Cash and cash equivalents

Cash and cash equivalents for the purpose of the Cash Flow Statement comprise cash on hand and cash in bank.

(c) Cash flow statement

Cash flows are reported using the indirect method whereby cash flows from operating, investing and financing activities of the Company are segregated and profit before 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.

(d) Investments

Investments which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long- term investments. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.

Current investments are carried in the financial statements at fair value determined on an individual investment basis.

Unquoted investments in units of mutual funds are stated at net asset value.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss."

(e) Tangible fixed assets

Fixed assets are stated at cost of acquisition, including any cost attributable for bringing the asset to its working condition, less accumulated depreciation. Profit or loss arising from de-recognition of fixed assets are measured as difference between the net disposal proceeds and the cost of the assets less accumulated depreciation upto the date of disposal and are recognised in the Statement of Profit and Loss.

(f) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Internally generated intangible assets, excluding capitalised development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred. Intangible assets are amortized on a straight-line basis over the estimated useful economic life.

(g) Depreciation on Tangible asset/Amortization of Intangible asset

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management.

(h) Loans

Loans are stated at the amount advanced, as reduced by the amounts received up to the balance sheet date and loans assigned.

(i) Impairment of tangible and intangible assets

The carrying amounts 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 an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted at the pre tax discount rate reflecting current market assessment of time value of money and risks specific to asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(j) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(k) Borrowing costs

Borrowing costs consists of interest and other ancillary cost that an entity incurs in connection with borrowing of funds.

Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the tenor of borrowings.

(l) Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with applicable tax rates and the provisions of the Income-tax Act, 1961.

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 Balance Sheet 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. Current and deferred tax relating to items directly recognised in reserves are recognised in reserves and not in the Statement of Profit and Loss.

(m) Earnings per share

Basic earnings per share are calculated by dividing the net profit 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 for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(n) Provisions

A provision is recognized when the Company has a present obligation as a result of past event; it is probable that outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and 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.

(o) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.


Mar 31, 2014

I) Recognition of Income & Expenditure :

Income and Expenditure are generally accounted on accrual as they are earned or incurred.The financial statements have been prepared under the historical cost convention, in accordance with accounting principles generally accepted in India and comply the mandatory Accounting Standard (AS) notified by the Central Government and relevant provisions of the Companies Act,1956.

ii) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income Recognition, Accounting Standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

iii) Fixed Assets are stated at cost less Depreciation.

iv) Depreciation of Fixed Assets has been calculated on Written Down Value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

v) Investment is stated at Cost and classified as Long-term Investment.

vi) (i) Provision for Income-tax is made in accordance with the Income-tax Act, 1961. (ii) As per A.S.-22, Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realisation of such deferred assets.

vii) Impairment is ascertained at each Balance Sheet date and recognized accordingly, if any.


Mar 31, 2013

I) Recognition of Income & Expenditure :

Income and Expenditure are generally accounted on accrual as they are earned or incurred. The financial statements have been prepared under the historical cost convention, In accordance with accounting principles generally accepted in India and comply the mandatory Accounting Standard (AS) notified by the Central Government and relevant provisions of the Companies Act, 1956.

ii) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income Recognition, Accounting Standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

iii) Fixed Assets are stated at cost less Depreciation.

iv) Depreciation of Fixed Assets has been calculated on Written Down Value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956,

v) Investment is stated at Cost and classified as Long-term Investment.

vi) (i) Provision for Income-tax is made in accordance with the Income-tax Act, 1961.

(ii) As per A.S.-22, Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realisation of such deferred assets.

vii) Impairment is ascertained at each Balance Sheet date and recognized accordingly, if any.


Mar 31, 2012

I) Recognition of Income & Expenditure :

Income and Expenditure are generally accounted on accrual as they are earned or incurred. The financial statements have been prepared under the historical cost convention, in accordance with accounting principles generally accepted in India and comply the mandatory Accounting Standard (AS) notified by the Central Government and relevant provisions of the Companies Act, 1956.

ii) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income Recognition, Accounting Standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

iii) Fixed Assets are stated at cost less Depreciation.

iv) Depreciation of Fixed Assets has been calculated on Written Down Value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

v) Investment is stated at Cost and classified as Long-term Investment.

vi) (i) Provision for Income-tax is made in accordance with the Income-tax Act, 1961.

(ii) As per A.S.-22, Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realisation of such deferred assets,

vii) Impairment is ascertained at each Balance Sheet date and recognized accordingly, if any.


Mar 31, 2011

A) Recognition of Income & Expenditure :

Income and Expenditure are generally accounted on accrual as they are earned or incurred. The financial statements have been prepared under the historical cost convention, in accordance with accounting principles generally accepted in India and comply the mandatory Accounting Standard (AS) notified by the Central Government and relevant provisions of the Companies Act,1956.

b) The Company is a Non Banking Financial Company (NBFC) and has thus complied with the Prudential norms relating to the Income Recognition, Accounting Standards, Assets classification and Provisioning of Bad & Doubtful Debts as applicable to it.

c) Fixed Assets are stated at cost less Depreciation.

d) Depreciation of Fixed Assets has been calculated on Written Down Value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

e) Investment is stated at Cost and classified as Long-term Investment.

f) (i) Provision for Income-tax is made in accordance with the Income-tax Act, 1961.

(ii) As per A.S.-22, Deferred Tax is recognized on timing differences, being the differences between taxable and accounting income and capable of reversal in subsequent periods. Deferred Tax Assets subject to prudence are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available for realisation of such deferred assets.

g) Impairment is ascertained at each Balance Sheet date and recognized accordingly, if any.

 
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