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Accounting Policies of Subway Finance & Investment Co. Ltd. Company

Mar 31, 2014

A. Basis of preparation of Accounts

The financial statements are prepared on accrual basis, following the historical cost convention in accordance with the Generally Accepted Accounting Principles (GAAP) which are consistently adopted by the Company, and in compliance with the Accounting Standard issued by the Institute of Chartered Accountants of India and provisions of the Companies Act 1956, to the extent applicable.

B. Use of Estimates

The presentation of financial statements in conformity with the Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Any differences between the actual results and the estimates are recognized in the period in which the results are known / materialized.

C. Fixed Assets

Fixed Assets are stated at cost of acquisition including expenses incidental to their acquisition less accumulated depreciation & impairment.

D. Depreciation

Depreciation on Fixed Assets is provided on the Written Down Value Method, at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

E. Revenue Recognition

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

F. Foreign Exchange Transaction

Transaction in foreign currency is recorded at the original rate of exchange in force at the time of transaction were effected. Current assets & liabilities balances in foreign currencies at the balance sheet date are restated at the year end exchange rates and the resultant net gain or loss adjusted in the revenue account.

G. Inventories

Stock in trade is valued at cost or net realizable value whichever is lower

H. Employee Benefits

01. Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

02. Post employment and other long term employee benefits are recognised as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and loss in respect of post employment and other long term benefits are charged to the profit and loss account.

I. Retirement Benefits

Company has policy of making provision for retirement benefits as and when the liability arises.

J. Impairment Of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

K. Derivate Instruments :

Derivate financial instruments are recorded at fair value on the date of the derivative transaction and are re measured at their fair value at subsequent balance sheet date. Changes in the fair value of derivatives are recorded in the Profit & loss account.

L. Provision for Current and Deferred Tax.

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act,1961. Deferred tax resulting from "time differences" between taxable and accounting income is accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on balance sheet date. The effect of deferred tax asset & liabilities of a charge in tax rates is recognised in the profit & loss account in the year of change.


Mar 31, 2013

A. Basis of preparation of Accounts

The financial statements are prepared on accrual basis, following the historical cost convention in accordance with the Generally Accepted Accounting Principles iGAAP) which are consistently adopted by the Company, and In compliance with the Accounting Standard issued by the institute of Chartered Accountants of India and provisions of the Companies Act 1956, to the extent applicable.

B. Use of Estimates

The presentation of financial statements fn conformity with the Generally Accepted Accounting Principles requites estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Any differences between the actual results and the estimates are recognized In the period In which the results, are known / materialized.

C. Flxgd Assets

Fixed Assets are stated at cost of acquisition including expenses incidental to thetr acquisition less accumulated depreciation & impairment.

P. Depreciation

Depreciation on Fixed Assets is provided on the Written Down Value Method, at the rates and in the manner prescribed In Schedule XIV to the Companies Act, 1fl54.

E.Revenue Recognition

Revenue ts recognized to the extent It is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

F.Foreign Exchange Transaction

Transaction in foreign currency is recorded at the original rate of exchange In force at the lime of transaction were effected. Current assets & liabilities balances in foreign currencies at the balance sheet date are restated at the year end exchange rates and the resultant net gain or loss adjusted in the revenue account.

G.lnventortes

Stock in trade is valued at cost or net realizable value whichever is lower

H,Employee Benefits

01. Short-term employee benefits are recognized as an expense at the undlscounted amount in the profit and loss account of the year in which the related service Is rendered.

02. Post employment and other long term employee benefits are recognised as an expense in the profit and loss account for the year in which the employee has rendered services. The expense Is recognised at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and loss in respect of post employment and other long term benefits are charged to the profit and toss account

I .Retirement Benefits

Company has policy of making provision for retirement benefits as and when the (lability arises.

J .Impairment Of Assets

An asset is treated as Impaired when the carrying cost of the asset exceeds Its recoverable value. An Impairment loss Is charged to the profit and loss account in the year In which an asset Is Identified as impaired. The impairment loss recognized (n prior accounting period Is reversed tf there has been a change In the estimate of recoverable amount.

K-Oertvate Instruments:

Denvate financial instruments are recorded at fair value on the dale of the derivative transaction and are re measured at their fair value at subsequent balalnce sheet date. Changes In the fair value of derivatives are recorded in the Profit Et toss account.

L.Provision fur Current and Deferred Tax.

Provision for current tax is made after taking into consideration ben fits admissable under the provisions of the income tax Act, 1961. Deferred tax resulting from "time differences'' between taxable and accounting income is accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on balance sheet date, the effect of deferred tax asset Er. liabilities of a charge in tax rates is recognised in (he profit & loss account in the year of change,


Mar 31, 2012

A. Basis of Accounting: - The financial statements are prepared under Historical cost convention on an accrual basis and are consistent with generally accepted accounting principles.

B. Use of Estimates: - The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

C. Fixed Assets: - All fixed assets are valued at cost less depreciation.

D. Depreciation:- Depreciation on fixed assets is provided on written down value basis in accordance with section 205(2) (b) as per rate specified in schedule XIV of the companies act 1956

E. Revenue Recognition: - Sales are recognized on passing of property in goods based on agreement with the customers.

F. Impairment of Assets: - An asset is treated as impaired when the carrying cost of assets exceeds is its recoverable value An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired The impairment loss recognized m prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

G. Foreign Exchange Transactions: - Transaction in foreign currency is recorded at the original rates of exchange in force at the time of transaction were effected. Current assets & liabilities balances in foreign currencies at the balance sheet date are restated at the year end exchange rates and the resultant net gain or loss adjusted in the revenue account.

H. Investments: - Long term investments are reflected at cost.

I. Inventories: - Stock in trade is valued at cost or net realizable value whichever is lower.

J. Sales: - Sales is inclusive of sales tax and net of returns.

K. Custom Duties, Excise & Sales Tax: -

(i) The custom duties payable on imported material lying as at the end of the year in the custom bonded warehouse neither included in expenses nor considered in valuation of the inventories of such materials. Such duties are accounted for an actual payment on clearance of such materials. This accounting practice has no impact on profit of this company

ii) Excise duty is accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouse. Sales tax is charged to profit and loss account.

L. Employee Benefits: -

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the profit and loss account.

M. Employee Separation Cost:- Compensation to employees who have opted for retirement from the Company is charged to the profit and loss account in the year of retirement.

N. Borrowing Costs:- Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part assets. A qualifying asset is one of that necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

O. Provision for Current and Deferred Tax:- Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

P. Provision, Contingent Liabilities and Contingent Assets:- 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. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention, on an accrual basis and in accordance with the applicable accounting standards.

1.1) Fixed Assets:-

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

1.2) Depreciation:-

Depreciation on Fixed Assets is provided on Written Down Method at the rates and in the manner specified in the Schedule XIV of the Companies Act 1956.

1.3) Investments:-

Long term investments are stated at cost. No provision for diminution in the value of the investments are made as such diminution is viewed as diminution other than permanent in nature.

1.4) Revenue Recognition:-

Interest is recorded on time basis. Dividend income on investments is accounted for when the right to receive the payment is established.

1.5) Taxation :-

The provision for Current Tax is determined on the basis of taxable income for the current accounting year in accordance with the Income Tax Act, 1961. Deferred Tax resulting from timing difference" between book and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward to the extent that there is reasonable certainty that the asset will be realized in future.

1.6) Retirement Benefits:- The gratuity liability is provide on cash basis.

1.7) Segment Information :-

Since the company is dealing in only one segment, i.e. financing, there is no reportable segment as per AS-17 on "segment Reporting" issued by institute of Chartered Accountant of India.


Mar 31, 2010

Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention, on an accrual basis and in accordance with the applicable accounting standards.

1.1) Fixed Assets:-

Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

1.2) Depreciation:-

Depreciarion on Fixed Assets is provided on Written Down Method at the rates and in the manner specified in the Schedule XIV of the Companies Act 1956.

1.3) Investments:-

Long term investments are stated at cost. No provision for diminution in the value of the investments are made as such diminution is viewed as diminution other than permanent in nature.

1.4) Revenue Recognition:-

Interest is recorded on time basis. Dividend income on investments is accounted for when the right to receive the payment is established.

1.5) Taxation :-

The provision for Current Tax is determined on the basis of taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

Deferred Tax resulting from timing difference" between book and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward to the extent that there is reasonable certainty that the asset will be realized in future.

1.6) Retirement Benefits:-

The gratuity liability is provide on cash basis.

1.7) Segment Information :-

Since the company is dealing in only one segment, i.e. financing, there is no reportable segment as per AS-17 on "segment Reporting" issued by institute of Chartered Accountant of India.

 
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