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Accounting Policies of SV Global Mill Ltd. Company

Mar 31, 2014

1. CORPORATE INFORMATION

S V Global Mill Limited was incorporated on 30th October 2007 under the Companies Act, 1956. The company is engaged in the business of property development.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention on accrual basis, in accordance with Generally Accepted Accounting Principles and the applicable Accounting Standards in the principles of a going concern.

3. USE OF ESTIMATES

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known or materialized.

4. INVENTORIES

Land and Buildings held as Stock-in-Trade for Property Development are stated at lower of cost and net realizable value.

5. REVENUE RECOGNITION

Sales and other income are accounted on accrual basis. Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customers. Dividend income is recognized when the right to receive the same is established.

6. FIXED ASSETS AND DEPRECIATION

i. Fixed Assets are stated at cost (net of CENVAT / TNVAT wherever applicable) inclusive of expenses directly relating to installation, less accumulated depreciation. Interest on borrowing utilized for acquisition of fixed assets is capitalized and considered as cost of the asset concerned.

ii. Depreciation is provided on Written Down Value method in accordance with Schedule XIV of the Companies Act, 1956.

7. INVESTMENTS

Long term investments are stated at cost. Diminution in the value of investments other than temporary in nature is provided for. Current investments are stated at cost or fair value, whichever is lower.

8. BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

9. SEGMENT REPORTING

By virtue of approved scheme of demerger by the High Court of Madras, the Property Division of Binny Limited got demerged and stands transferred to and vested in this company on a going concern basis. The entire operation is from the appointed date, i.e. 01 -01 -2010. Property Development is the main business of this company and this is the only reportable segment.

10. LEASES

Lease rental in respect of operating lease arrangements are credited to income in the Statement of Profit and Loss.

11. TAXES ON INCOME

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 difference" 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. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realised in the future.

12. IMPAIRMENT OF ASSETS

All assets other than inventories are reviewed for impairment at every balance sheet date for events or changes in circumstances that indicate that the carrying amount may not be recoverable. There is no impairment loss during the year.

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 disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

(i) SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP).The financial statements comply with the applicable mandatory Accounting Standards.

(ii) Revenue Recognition

Revenue is recognized on accrual basis with provision made for known losses and expenses. (iii) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation.

(iv) Depreciation

Depreciation is provided on Written Down Value Method at the rates specified in SCHEDULE XIV to the Companies act, 1956.

(v) Investments

Long Term Investment is stated at cost. The diminution in value of investment is not recognized unless it is considered permanent.

Land and Buildings held as Stock - in - Trade for Property Development are stated at the lower of cost and net realizable value.

(vi) Foreign Currency Transactions

There are no foreign currency transactions during the period.

(vii) Provision for Taxation

Provision for Current Income Tax is not made in view of the loss for the current period. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The Net Deferred Tax Asset is not recognized as a measure of prudence.

(viii) Cash Flow Statement

The Cash flow statement is prepared under the indirect method as per accounting standard 3- Cash Flow Statements.

(ix) Earnings per Share

The company reports basic and diluted earnings per share in accordance with the accounting standards 20- Earnings per share.

(x) Segment Reporting

By virtue of approved Scheme of the Demerger, by the High Court of Madras, the Property Division of the Binny Limited got demerged and stand transferred to and vested in this company on a going concern basis. The entire operation is from the date of appointed date that is with effect from 01 -01-2010. Property Division of Binny Limited is the main business of this company and this is the only reportable segment.

(xi) Provision and Contingencies

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.


Mar 31, 2012

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP).The financial statements comply with ,, / the applicable mandatory Accounting Standards.

2. Revenue Recognition

Revenue is recognized on accrual basis with" provision made for known losses and expenses.

3." Fixed Assets * -.

"Fixed assets are stated at cost less accumulated depreciation.

4. Depreciation

Depreciation is provided on Written Down Value Method at the rates specified in SCHEDULE XIV to the Companies- act, 1956. .

5. Investments

Long Term investment is stated at cost. The diminution in value of investment is not recognized unless it is considered permanent. ''

6. Inventories

Land and Buildings held as Stock - in - Trade for Property Development are stated at the lower of cost and net realizable value.

7. Foreign Currency Transactions

There are no foreign currency transactions during the year.

8. Provision for Taxation

Provision for Current Income Tax is pot made in view of the loss for the current period. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The Net Deferred Tax Asset is not recognized as a measure of prudence.

9. Cash Flow Statement

The Cash flow statement is prepared under the indirect method as per accounting standard 3 -Cash Flow Statements.

10. Earnings per Share

The company reports basic and diluted earnings per share in accordance with the accounting standards 20- Earnings per share.

11. Segment Reporting

By virtue of approved Scheme of the Demerger, by the High Court of Madras, the Property Division of .the Binny Limited got demerged and stand transferred to and vested in this company on a going concern basis.The entire operation is from the date of appointed date that is with effect from 01-01- 2010. Property Division of Binny Limited is the main business of this company and this is the only reportable segment.

12. Provision and Contingencies

The Company creates a provision when there is present obligation as a result of a past event that - probably requires an outflow of resources and -a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will npt require an odtflow of resources or where a reliable estimate of the obligation cannot be made.


Mar 31, 2011

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP). The financial statements comply with the applicable mandatory Accounting Standards.

2. REVENUE RECOGNITION

Revenue is recognized on accrual basis with provision made for known losses and expenses.

3. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

4. DEPRECIATION

Depreciation is provided on Written Down Value method at the rates specified in SCHEDULE XIV to the Companies Act, 1956.

5. INVESTMENTS

Long Term Investment is stated at cost. The diminution in value of investment is not recognized unless it is considered permanent.

6. INVENTORIES

Land and Buildings held as Stock-in-trade for Property Development are stated at the lower of cost and net realizable value.

7. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

8. PROVISION FOR TAXATION

Provision for Current Income Tax is not made in view of the loss for the current period. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The Net Deferred Tax Asset is not recognized as a measure of prudence.

9. CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".

10. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-''Earnings per Share''.

11. SEGMENT REPORTING

By virtue of approved Scheme of the Demerger, by the High Court of Madras, the Property Division of the Binny Limited got demerged and stand transferred to and vested in this company on a going concern basis. The entire operation is from the date of Appointed Date i.e. with effect from 01-01- 2010. Property Division of Binny Limited is the main business of this Company and this is the only reportable segment.

12. PROVISION AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.


Mar 31, 2010

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP). The financial statements comply with the applicable mandatory Accounting Standards.

2. REVENUE RECOGNITION

Revenue is recognized on accrual basis with provision made for known losses and expenses.

3. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

4. DEPRECIATION

Depreciation is provided on Written Down Value method at the rates specified in SCHEDULE XIV to the Companies Act, 1956.

5. INVESTMENTS

Long Term Investment is stated at cost. The diminution in value of investment is not recognized unless it is considered permanent.

6. INVENTORIES

Land and Buildings held as Stock-in-trade for Property Development are stated at the lower of cost and net realizable value.

7. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

8. PROVISION FOR TAXATION

Provision for Current Income Tax is not made in view of the loss for the current period. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The Net Deferred Tax Asset is not recognized as a measure of prudence.

9. CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".

10. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-''Earnings per Share''.

11. SEGMENT REPORTING

In terms of Sanctioned Scheme of the Demerger, by the High Court of Madras, the Property Division of the Binny Limited got demerged and stand transferred to and vested in this company on a going concern basis. The entire operation is from the date of Appointed Date i.e. with effect from 01-01- 2010. Presently property division is the only reportable segment.

12. PROVISION AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

 
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