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Accounting Policies of Vax Housing Finance Corporation Ltd. Company

Mar 31, 2015

(1) BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

(2) FIXED ASSETS:

Fixed assets are stated at cost of acquisition. Acquisition cost includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of modvat credits, where applicable. Revenue expenses incidental and related to projects are capitalized along with the related fixed assets, where appropriate.

(3) DEPRECIATION:

Depreciation on fixed assets is provided using the W.D.V. method. Depreciation is charged on a pro- rata basis for assets purchased/sold during the year. Individual assets costing less than Rs. 5,000 are depreciated in full in the year of purchase.

(4) REVENUE RECOGNITION:

Sales exclusive of Vat & WCT and exclusive of Service Tax are recognized on dispatch. Price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

(6) WARRANTY:

Product warranty costs are guaranteed by Performances Bank Guarantee.

(7) INVENTORIES:

Inventories are stated at the lower of cost and net realizable value except stores and spares and loose tools, which are stated at cost or under. 'Cost' is arrived at using FIFO/weighted average methods and includes appropriate overheads in case of work in progress and finished goods. Finished goods are stated inclusive of excise duty.

(8) RETIREMENT BENEFITS:

Liability of Leave Encasement is provided on the basis of actuarial valuation. Contribution towards the Company's gratuity liability (including for past services rendered) made to the Life Insurance Corporation of India (L.I.C.) on the basis of actuarial valuation, is charged to the Profit and Loss Account. As at the year-end, the Company's gratuity liability is got reassessed from an actuary and any shortfall is also charged to the Profit and Loss Account.

(9) RESEARCH AND DEVELOPMENT EXPENDITURE :

During the year, The Company has not made any expenditure towards Research and development expenditure.

(10) TAXATION :

Provision for Income Tax, comprising current tax and deferred tax is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax Liabilities arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future.

The accumulated deferred tax liability as on 31st March, 2013 has been recognized with a corresponding charge to the General Reserve.

(11) SEGMENTAL REPORTING :

The accounting policies applicable to the reportable segment are the same as those used in the preparation of the financial statements as set out above.

Segment revenue expenses include amounts which can be directly identifiable to the segment or allocable on a reasonable basis.

Segment assets include all operating assets used by the segment and consist primarily of debtors, inventories and fixed assets, segment liabilities include all operating liabilities and consist primarily of creditors and statutory liabilities.

(12) Debtors

Debtors are stated at book value after making provisions for doubtful debts.


Mar 31, 2014

(1) BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

(2) FIXED ASSETS:

Fixed assets are stated at cost of acquisition. Acquisition cost includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of modvat credits, where applicable. Revenue expenses incidental and related to projects are capitalized along with the related fixed assets, where appropriate.

(3) DEPRECIATION:

Depreciation on fixed assets is provided using the W.D.V. method. Depreciation is charged on a pro-rata basis for assets purchased/sold during the year. Individual assets costing less than Rs. 5,000 are depreciated in full in the year of purchase.

(4) REVENUE RECOGNITION:

Sales exclusive of Vat & WCT and exclusive of Service Tax are recognized on dispatch. Price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

(5) FOREIGN CURRENCY TRANSACTIONS:

The Company discloses earnings regarding foreign exchange transactions on accrual basis because these are accounted for after raising all invoices to the foreign clients who also confirm their balances after the close of the year and there is hardly any doubt left not receiving the amount in foreign exchange. However, it has not been found practicable to show the expenditure on accrual basis. Besides the word 'expenditure' in foreign exchange in its ordinary connotations implies actual outgo of foreign exchange.

(6) INVENTORIES:

Inventories are stated at the lower of cost and net realizable value except stores and spares and loose tools, which are stated at cost or under. 'Cost' is arrived at using FIFO/weighted average methods and includes appropriate overheads in case of work in progress and finished goods. Finished goods are stated inclusive of excise duty.

(7) RESEARCH AND DEVELOPMENT EXPENDITURE :

During the year, The Company has not made any expenditure towards Research and development expenditure.

(8) TAXATION :

Provision for Income Tax, comprising current tax and deferred tax is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the taxprofits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax Liabilities arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future.The accumulated deferred tax liability as on 31st March, 2015has been recognized with a corresponding charge to the General Reserve.

(9) SEGMENTAL REPORTING :

The accounting policies applicable to the reportable segment are the same as those used in the preparation of the financial statements as set out above.

Segment revenue expenses include amounts which can be directly identifiable to the segment or allocable on a reasonable basis.

Segment assets include all operating assets used by the segment and consist primarily of debtors, inventories and fixed assets, segment liabilities include all operating liabilities and consist primarily of creditors and statutory liabilities.

(10) Debtors

Debtors are stated at book value after making provisions for doubtful debts.


Mar 31, 2013

(1) BASIS OF ACCOUNTING :

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

(2) FIXED ASSETS :

Fixed assets are stated at cost of acquisition. Acquisition cost includes taxes, duties, freight, insurance and other incidental expenses related to acquisition and installation and are net of modvat credits, where applicable. Revenue expenses incidental and related to projects are capitalized along with the related fixed assets, where appropriate.

(3) DEPRECIATION :

Depreciation on fixed assets is provided using the W.D.V. method. Depreciation is charged on a pro-rata basis for assets purchased/sold during the year. Individual assets costing less than Rs. 5,000 are depreciated in full in the year of purchase.

(4) REVENUE RECOGNITION :

Sales exclusive of Vat & WCT and exclusive of Service Tax are recognized on dispatch. Price adjustments for sales made during a year are recorded upon receipt of confirmed customer orders.

(5) FOREIGN CURRENCY TRANSACTIONS :

During the year, the company has not entered any foreign transaction.

(6) WARRANTY :

Product warranty costs are guaranteed by Performances Bank Guarantee.

(7) INVENTORIES :

Inventories are stated at the lower of cost and net realizable value except stores and spares and loose tools, which are stated at cost or under. Cost'' is arrived at using FIFO/weighted average methods and includes appropriate overheads in case of work in progress and finished goods. Finished goods are stated inclusive of excise duty.

(8) RETIREMENT BENEFITS :

Liability of Leave Encasement is provided on the basis of actuarial valuation. Contribution towards the Company''s gratuity liability (including for past services rendered) made to the Life Insurance Corporation of India (L.I.C.) on the basis of actuarial valuation, is charged to the Profit and Loss Account. As at the year-end, the Company''s gratuity liability is got reassessed from an actuary and any shortfall is also charged to the Profit and Loss Account.

(9) CONTINGENCY LIABILITIES :

No Contingency liabilities as on 31st March'' 2013.

(10) RESEARCH AND DEVELOPMENT EXPENDITURE :

During the year, The Company has not made any expenditure towards Research and development expenditure.

(11) TAXATION :

Provision for Income Tax, comprising current tax and deferred tax is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax Liabilities arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future.

The accumulated deferred tax liability as on 31st March, 2013 has been recognized with a corresponding charge to the General Reserve.

(12) SEGMENTAL REPORTING :

The accounting policies applicable to the reportable segment are the same as those used in the preparation of the financial statements as set out above.

Segment revenue expenses include amounts which can be directly identifiable to the segment or allocable on a reasonable basis.

Segment assets include all operating assets used by the segment and consist primarily of debtors, inventories and fixed assets, segment liabilities include all operating liabilities and consist primarily of creditors and statutory liabilities.

(13) DEBTORS :

Debtors are stated at book value after making provisions for doubtful debts.


Mar 31, 2009

1. Financial Statements are prepared under historical cost in accordance with accounting standards applicable in India

2. Accounting policies not specified refferred to otherwise are insistent with generally accepted accounting principles.

3. There is no any type of contingent liabilities.

4. A preliminary expense are amortized in ten equal annual installment on yearly basis as provided under section 35D of the income tax Act, 1961.

5. Depreciation had been provided on the fixed assets on the S.L.M. method u/s 205(2)(a) of the Companies Act, 1956 at the rates prescribed in schedule added or sold during the year has been caculated at pro-rate basis from the date of such addition or up to date of sale if any.

6. Fixed assets are stated of cost of Acquisition and Installation, less accumulated Depreciation.

 
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