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Accounting Policies of Vedavaag Systems Ltd. Company

Mar 31, 2015

1. Basis of Accounting:

a) The financial statements have been prepared under the Historical convention and in accordance with applicable Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets:

Fixed Assets are stated at cost including related incidental expenditure.

3. Capital Work in Progress

Advance paid towards acquisition of Fixed Assets and the cost of Assets not put to use before the year end are disclosed under this head.

4 Depreciation

Depreciation on fixed assets has been provided on Straight Line method and Depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

Effective 1st April2014,the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciation at the rates prescribed in Schedule XIV of the Companies Act,1956.

Depreciation on additions to assets or on sale/discardment of assets, is calculated prorata from the month of such addition or upto the month of such sale/discardment as the case may be.

5 Revenue Recognition

Revenue from technical services is recognised on a prorata basis over the period in which services are rendered.

6 Inventory

Inventories are valued at cost or net realisable value whichever is lower.

7 Misc.Expenditure

Preliminary expenses are amortised over a period of 5(Five) years

8 Provision for Taxation

Provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions.

9 Foreign Exchange Policy

Fixed Assets and Long Term Liabilties are accounted at the rates prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rates prevaling on the date of the Balance Sheet.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that approximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10 Retirement Benefits

Contributions to Provident and Superanuation Funds are recognised as expense when incurred.

Liability for gratuity and encashble leave are actuarially determined at the Balance Sheet date.

11 Deferred Tax Liability/Asset

To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12 Impairment of assets

The carrying amount of assets are reviewed at each Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.


Mar 31, 2014

1. Basis of Accounting:

a) The financial statements have been prepared under the Historical convention and in accordance with applicable Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets:

Fixed Assets are stated at cost including related incidental expenditure.

3. Capital Work in Progress

Advance paid towards acquisitioin of Fixed Assets and the cost of Assets not put to use before the year end are disclosed under this head.

4 Depreciatiion

Depreciation on fixed assets has been provided on Straight Line method and Depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

5 Revenue Recognition

Revenue from technical services is recognised on a prorata basis over the period in which services are rendered.

6 Inventory

Inventories are valued at cost or net realisable value whichever is lower.

7 Misc.Expenditure

Preliminary expenses are amortised over a period of 5 (Five) years.

8 Provision for Taxation

Provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions.

9 Foreign Exchange Policy

Fixed Assets and Long Term Liabilties are accounted at the rates prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rate prevaling on the date of the Balance Sheets.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that aproximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10 Retirment Benefits

Contributions to Provident and Superanuation Funds are recognised as expense when incurred.

Liability for gratuity and encashble leave are actuarially determined at the Balance Sheet date.

11 Deferred Tax Liability/Asset

To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12 Impairment of assets

The carrying amount of assets are reviewed at each Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.


Mar 31, 2013

1. Basis of Accounting: a) The financial statements have been prepared under the Historical convention and in accordance with applicable Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets: Fixed Assets are stated at cost including related incidental expenditure.

3. Capital Work in Progress Advance paid towards acquisitioin of Fixed Assets and the cost of Assets not put to use before the year end are disclosed under this head.

4 Depreciatiion Depreciation on fixed assets has been provided on Straight Line

method and Depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

5 Revenue Recognition Revenue from technical services is recognised on a prorata basis over the period in which services are rendered.

6 Inventory Inventories are valued at cost or net realisable value whichever is lower.

7 Misc.Expenditure Preliminary expenses are amortised over a period of 5(Five) years

8 Provision for Taxation Provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions.

9 Foreign Exchange Policy Fixed Assets and Long Term Liabilties are accounted at the rates

prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rate prevaling on the date of the Balance Sheets.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that aproximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10 Retirment Benefits Contributions to Provident and Superanuation Funds are recognised as expense when incurred.

Liability for gratuity and encashble leave are actuarially determined at the Balance Sheet date.

11 Deferred Tax Liability/Asset To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12 Impairment of assets The carrying amount of assets are reviewed at each Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.


Mar 31, 2012

1. Basis of Accounting:

a) The financial statements have been prepared under the Historical convention and in accordance with applicable. Accounting Standards issued by the Institute of Chartered Accountants of India and relevent presentational requirements of the Companies Act., 1956.

b) Accounting policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets: Fixed Assets are stated at cost including related incidental

expenditure.

3. Capital Work in Progress: Advances paid towards acquisitioin of Fixed Assets and

the cost of Assets not put to use before the year end are disclosed under capital working progress.

4 Depreciatiion: Depreciation on fixed assets has been provided on Straight

Line method.

5 Revenue Recognition Revenue from technical services is recognised on a prorata

basis over the period in which services are rendered.

6 Inventory Inventories are valued at cost or net realisable value

whichever is lower.

7 Misc.Expenditure Preliminary expenses are amortised over a period of

5(Five) years

8 Provision for Taxation Provision is made for Income Tax annually based on the

tax liability computed after considering tax allowances and exemptions.

9 Foreign Currency Transactions Fixed Assets and Long Term Liabilties are accounted at

the rates prevailing on the dates of transactions Current Assets and Current Liabilities are accounted at Rate prevaling on the date ofthe Balance Sheets.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of Exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that aproximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the Rates prevailing on the date of receipt.

Net Foreign Exchange difference on Foreign Currency Transactions is recognised in the Profit and Loss account during the year.

10 Retirement Benefits Contributions to Provident and Superanuation Funds are

recognised as expense when incurred.

11 Deferred Tax Liability/Asset To provide and recognise deferred tax on timing differences

between taxable income and accounting income subject to consideration of prudence.

12 Impairment of assets The carrying amount of assets are reviewed at each

Balance Sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.


Mar 31, 2010

1. Basis of Accounting

a) The financial statements have been prepared under the Historical Cost convention and in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant presentational requirements of the Companies Act, 1956.

b) Accounting Policies not specifically referred to otherwise are in accordance with prudent accounting principles.

c) All Income and Expenditure items having material bearing on the financial statements are recognised on accrual basis.

2. Fixed Assets

Fixed assets are stated at cost including related incidental expenditure.

3. Capital work in progress

Advance paid towards acquisition of fixed assets and the cost of assets not put to use before the year end are disclosed under this head.

4. Depreciation

Depreciation on fixed assets has been provided on Straight Line method and depreciation is provided on pro-rata basis as per Schedule VI of Companies Act, 1956.

5. Revenue Recognition

Revenue from technical services is recognised on a prorata basis over the period in which services are rendered.

Income is recognised fully in case of supply and maintenance contracts where delivery is complete.

6. Inventory

Inventories are valued at cost or net realisable value whichever is lower.

7. Misc. Expenditure

Preliminary expenses and Public issue expenses are amortised over a period of 10 years.

8. Provision for taxation

Provision is made for income tax annually based on the tax liability computed after considering tax allowances and exemptions.

9. Foreign Exchange Policy

Fixed Assets and Long Term Liabilities are accounted at the rates prevailing on the date of transactions. Current assets and current liabilities are accounted at rate prevailing on the date of Balance Sheet.

All the Income items other than those pertaining to the Foreign Branches are accounted on the basis of exchange rate prevailing on the dates of transactions.

All the expenditure items during a month other than those pertaining to the Foreign Branch are reported at a rate that approximates the actual rate during that month.

Sale proceeds are converted into Indian Rupees at the rates prevailing on the date of receipt

Net foreign exchange difference on foreign currency transactions is recognised in the profit & loss account during the year.

10. Retirement Benefits

Contributions to Provident and Superannuation Funds are recognised as expense when incurred.

Liability for gratuity and encashable leave are actuarially determined at the Balance sheet date.

11. Deferred Tax Liability/Asset

To provide and recognise deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

12. Impairment of assets

The carrying amount of assets are reviewed at each Balance sheet date to assess whether they are recorded in excess of their recoverable amounts. Where carrying values exceed the estimated recoverable amount, impairment loss is recognised and assets are written down to their recoverable amount.

 
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