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Accounting Policies of Veer Energy & Infrastructure Ltd. Company

Mar 31, 2014

(a) Basis of Accounting:

The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accruals basis.Except in respecr of assets classified as Non Performing Assets (NP)

(b) Use of Estimates

The presentation of financial statements in confirmity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those of estimated.

(c) Revenue Recognition:

(i) Sale of goods:

Reveune from the sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales Order.

(ii) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable

(iii) Dividend

Dividend Income from investments are recognized when the right to receive payment established.

(d) Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

(e) Depreciation and Amortisation

Depreciation is provided on the straight line method based as per the rate specified in Schedules XIV of the Companies Act, 1956.

(f) Investments

Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments.

Current Investments are carried at lower of cost and fair values, determined on individual basis.

(g) Inventories

Inventories are at lower of cost and net realizable value.

Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis, net realizable value is determined by management using technical estimates.

(h) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qulity asset is one that necessarily takes substantial period of time to get readly for intended use. All other borrowing costs are changed to revenue.

(i) Retirment and other employee benefits

The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. Acturial Valuation report has been obtained for the liabilities for gratuity and leave encashment benefits and provision has been made accordingly.

(j) Provisions. Contingent liabilities and contingent Assets.

A Provision is recognized when the Company has a Present obligation as a result of past events and it is probable that an out flow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to their present value and are determined based on 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.

Contingent liablities are disclosed by way of Notes to the account. Contingent assets are not recognized.

(k) Provision for current and deferred tax

Provision for current income tax is made in accordance with the Income Tax Act,1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the differnce between taxable income and accouonting income that original in oone period arecapable of reversal in one or more subsequently period.

(l) Foreign Currency Transaction

a) Transaction denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currency at the year end are restated at year end rates.

c) Non monetary foreign currency items are carried at cost.

(m) Impairments

Impairment loss is recognizede wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

(n) Earning 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. The weighted average number of equity shares oustanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings per share, the net profit for period attributed to equity shareholders and the weight average number of share outstanding during the period adjusted for the effects of all dilaative potenial equity shares. The number of equity shares and potenial dilative equity shares are adjusted for bonus as appropriate.

(o) Share Issue Expenses

Share issue expenses are redemption premium are adjusted against the Securities Premium Account as permissble under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years


Mar 31, 2013

(a) Basis of Accounting: The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accruals basis.Except in respecr of assets classified as Non Performing Assets (NP)

(b) Use of Estimates The presentation of financial statements in confirmity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those of estimated.

(c ) Revenue Recognition: (i) Sale of goods:

Reveune from the sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales Order. (ii) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable (iii) Dividend Dividend Income from investments are recognized when the right to receive payment established.

(d) Fixed Assets Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

(e) Depreciation and Amortisation Depreciation is provided on the straight line method based as per the rate specified in Schedules XIV of the Companies Act, 1956.

(f) Investments Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments. Current Investments are carried at lower of cost and fair values, determined on individual basis.

(g) Inventories Inventories are at lower of cost and net realizable value.

Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis, net realizable value is determined by management using technical estimates.

(h) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qulity asset is one that necessarily takes substantial period of time to get readly for intended use. All other borrow ing costs are changed to revenue.

(i) Retirment and other employee benefits

The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. A c turial V aluation r eport has been obtained f or the liabilities f or gratuity and leav e enc as hment benef its and provision has been made accordingly.

(j) Provisions, Contingent liabilities and contingent Assets.

A Provision is recognized w hen the Company has a Present obligation as a result of past events and it is probable that an out f low of resources w ill be r equired to s ettle the obligation, in respec t of w hic h reliable estimate c an be made. Prov is ions ar e not discounted to their present value and are determined based on estimate required to settle the obligation at the balance sheet date. These are review ed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liablities are disclosed by w ay of Notes to the account. Contingent assets are not recognized.

(k ) Provision for current and deferred tax

Prov is ion f or c ur rent income tax is made in accordance w ith the Inc ome Tax A ct,1961. Def err ed tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the differnce betw een taxable income and accouonting income that original in oone period arecapable of reversal in one or more subsequently period.

(l) Foreign Currency Transaction

a) Transaction denominated in f oreign currenc y are recorded at the ex c hange rate prev ailing on the date of the trans action.

b) Monetary items denominated in foreign currency at the year end are restated at year end rates.

c) Non monetary f oreign currency items are carried at cost.

(m) Impairments

Impairment loss is recognizede w herever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

(n) Earning Per Share

Basic earnings per Share are calculated by dividing the net profit for the period attributable to equity shareholders by the w eighted average number of equity shares outstanding during the period. The w eighted average number of equity shares oustanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings per share, the net profit for period attributed to equity shareholders and the w eight average number of share outstanding during the period adjusted for the eff ects of all dilaative potenial equity shares. The number of equity shares and potenial dilative equity shares are adjusted for bonus as appropriate.

(o) Share Issue Expenses

Share issue expenses are redemption premium are adjusted against the Securities Premium Account as permissble under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years


Mar 31, 2012

(a) Basis of Accounting: The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accruals basis.Except in respecr of assets classified as Non Performing Assets (NP)

(b) Use of Estimates The presentation of financial statements in confirmity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those of estimated.

(c) Revenue Recognition:

(i) Sale of goods:

Reveune from the sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales Order.

(ii) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

(iii) Dividend

Dividend Income from investments are recognized when the right to receive payment established.

(d) Fixed Assets Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

(e) Depreciation and Amortisation Depreciation is provided on the straight line method based as per the rate specified in Schedules XIV of the Companies Act, 1956.

(f) Investments Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments. Current Investments are carried at lower of cost and fair values, determined on individual basis.

(g) Inventories Inventories are at lower of cost and net realizable value.

Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis, net realizable value is determined by management using technical estimates.

(h) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qulity asset is one that necessarily takes substantial period of time to get readly for intended use. All other borrowing costs are changed to revenue.

(i) Retirment and other employee benefits

The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. Acturial Valuation report has been obtained for the liabilities for gratuity and leave encashment benefits and provision has been made accordingly.

(j) Provisions, Contingent liabilities and contingent Assets.

A Provision is recognized when the Company has a Present obligation as a result of past events and it is probable that an out flow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to their present value and are determined based on 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. Contingent liablities are disclosed by way of Notes to the account. Contingent assets are not recognized.

(k) Provision for current and deferred tax

Provision for current income tax is made in accordance with the Income Tax Act, 1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the differnce between taxable income and accouonting income that original in oone period arecapable of reversal in one or more subsequently period.

(l) Foreign Currency Transaction

a) Transaction denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currency at the year end are restated at year end rates.

c) Non monetary foreign currency items are carried at cost.

(m) Impairments

Impairment loss is recognizede wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

(n) 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. The weighted average number of equity shares oustanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings per share, the net profit for period attributed to equity shareholders and the weight average number of share outstanding during the period adjusted for the effects of all dilaative potenial equity shares. The number of equity shares and potenial dilative equity shares are adjusted for bonus as appropriate.

(o) Share Issue Expenses

Share issue expenses are redemption premium are adjusted against the Securities Premium Account as permissble under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years


Mar 31, 2010

1) BASIS OF ACCOUNTING: The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accruals basis.

2) USE OF ESTIMATES:

The Presentation of Financial statements in conformity with the generally accepted accounting Principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

3) REVENUE RECOGNITION:

(i) Sale of goods: Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales order.

(ii) Interest: Interest income is recognized on a time proportion basis taking in to account the amount outstanding and the rate applicable.

(iii) Dividend: Dividend Income from investments is recognized when the right to receive payment is established.

4) FIXED ASSETS:

Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

5) DEPRECIATION:

Depreciation is provided on the straight line method based as per the rate specified in the schedules XIV of the companies Act, 1956 except for the WTG, on useful lives of assets as estimated by the management.

6) INVESTMENTS:

Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments. Current investments are carried at lower of cost and fair values, determined on individual basis

7) INVENTORIES:

Inventories are at lower of cost and net realizable value. Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis; net realizable value is determined by management using technical estimates.

8) BORROWING COSTS.

Borrowing lists that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A quality asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

9) RETIREMENT AND OTHER EMPLOYEE BENEFITS:

The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. Actuarial valuation report has been obtained for the liabilities for gratuity and leave encashment benefits and provision has been made accordingly.

10) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

A Provision is recognized when the Company has a Present obligation as a result of past events and it is probable that an out flow of resources will be required to settle the obligation, in respect of which are reliable estimate can be made. Provisions are not discounted to their present value and are determined based on 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. Contingent liabilities are disclosed by way of Notes to the account. Contingent assets are not recognized.

11) TAXATION:

Provision for current income tax is made in accordance with the Income Tax Act, 1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that original in one period and are capable of reversal in one or more subsequently period.

12) IMPAIRMENT:

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

13) EARNING PER SHARE:

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. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board Of Directors. For the purpose of calculating diluted earnings per share, the net profit for the period attributed to equity shareholders and the weight average number of share outstanding during the period adjusted for the effects of all dilative potential equity shares. The number of equity shares and potential dilative equity shares are adjusted for bonus as appropriate.

 
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