Home  »  Company  »  Victoria Enterprises  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Victoria Enterprises Ltd. Company

Mar 31, 2013

(a) Basis of preparation

The financial statements have been prepared to comply, in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

(b) Employee Benefits :-

i. Gratuity liability is defined benefit obligations and is provided for on the basis of actuarial valuation made at the end of each financial year.

ii. The Provisions of the Provident Fund Act, 1952 are not applicable to the Company.

(c) Fixed Assets

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

(d) Depreciation

I. Depreciation has been provided on written down value method corresponding to the rates prescribed under schedule XIV of the Companies Act 1956.

H. Depreciation on additions is being provided on pro-rata basis from the date of such additions.

III. Leasehold Land is being amortised over the period of lease.

(e) Impairment

According to AS-28 on "Impairment of Assets"An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Impairment Loss is charged to Profit & Loss A/c in the year in which impairment is identified.

(f) Leases

Assets acquired under finance leases are recognised in accordance with the method recommended by the ICAI. Lease payments are apportioned between finance charge and reduction of outstanding liabilities. The finance charge is allocated to periods during lease term at a constant periodic rate of interest on the remaining balance of the liability.

(g) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

(h) Inventories

(i) Inventories of finished goods and materials at site are valued at lower of cost or net realisable value

(ii) All cost incurred for development of Real Estates are shown as work in progress till the completion / sale / recognition of revenues related to such property. This includes cost of land, development expenses, interest and other cost / expenses incidental to the projects undertaken by the company.

(iii) All cost incurred for movies under production, which has not been completed till date of Balance sheet has been shown as work in progress which also includes advances paid in relation to such production.

(i) Revenue recognition

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

Development of Real Estates

In case of Development of Real Estates revenue is recognised when significant risk and rewards incidental to transaction / property has been transferred to the buyer

Civil Construction *

In case of Civil Construction Contracts the Company follows the percentage of completion method to recognise the Revenue as per Accounting Standard - 7 relating to Construction contracts issued by ICAI as and when and wherever applicable. However company is not undertaking any contracts for others. The Revenue is recognised only on completion of projects above stipulated percentage.

Determination of revenues under the Percentage of Completion Method necessarily involves making estimates by the Company, some of which are of technical nature, concerning, where relevant, the percentage of completion, costs to completion, the expected revenues from the project / activity and the foreseeable losses to completion. The auditors have relied upon such estimates.

Dividend

Dividendnncluding Interim is accounted for when declared.

(j) Foreign currency translation

(i) Monetary Assets and Liability related to Foreign Currency transaction and outstanding at the close of the year are expressed in Indian rupees at the rate of exchange prevailing on the date of Balance Sheet.

(ii) Transactions in foreign currency are recorded in the books of Account in Indian rupees at the rate of exchange prevailing on the date of transaction.

(k) Taxes on Income

Income Tax expense comprises of Current Tax and Deferred Tax charge or credit. The current tax is determined as the amount of tax payable in respect of taxable income for the year, as per the provisions of Income Tax Act, 1961. The Company provides for Deferred Tax Liability based on the tax effect of Timing Differences resulting from the recognition of item in the financial statements and estimating its current income tax provision. Where there are brought forward fiscal allowances, deferred tax asset is recognized only if there is virtual certainty of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and restated as per current developments.

(I) Borrowing Costs

Borrowing Costs attributable to the fixed assets during their construction/renovation and modernization are capitalized in accordance with AS-16 issued by ICAI. Such borrowing costs are apportioned on the average balance of Capital Work-in-Progress for the year. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(m) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(n) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best 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. Provision for expenditure relating to voluntary retirement is made when the employee accepts the offer of early retirement.

(o) Segment Information

Revenue, operating results, assets and liabilities have been identified to represent separate segment. Assets, Liabilities Revenue and Expanses which are not allocable to separate segment on a reasonable basis, are included under Unallocated.


Mar 31, 2012

(a) Basis of preparation

The financial statements have been prepared to comply, in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

(b) Employee Benefits

i. Gratuity liability is defined benefit obligations and is provided for on the basis of actuarial valuation made at the end of each financial year.

ii. The Provisions of the Provident Fund Act, 1952 are not applicable to the Company.

(c) Fixed Assets

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

(d) Depreciation

I. Depreciation has been provided on written down value method corresponding to the rates prescribed under schedule XIV of the Companies Act 1956.

II. Depreciation on additions is being provided on pro-rata basis from the date of such additions.

III. Leasehold Land is being amortized over the period of lease.

(e) Impairment

According to AS-28 on "Impairment of Assets "An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Impairment Loss is charged to Profit & Loss A/c in the year in which impairment is identified.

(f) Leases

Assets acquired under finance leases are recognized in accordance with the method recommended by the ICAI. Lease payments are apportioned between finance charge and reduction of outstanding liabilities. The finance charge is allocated to periods during lease term at a constant periodic rate of interest on the remaining balance of the liability.

(g) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

(h) Inventories

(I) Inventories of finished goods and materials at site are valued at lower of cost or net realizable value

(ii) All cost incurred for development of Real Estates are shown as work in progress till the completion / sale / recognition of revenues related to such property. This includes cost of land, development expenses, interest and other cost / expenses incidental to the projects undertaken by the company.

(iii) All cost incurred for movies under production, which has not been completed till date of Balance sheet has been shown as work in progress which also includes advances paid in relation to such production.

(i) Revenue recognition

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

Development of Real Estates

In case of Development of Real Estates revenue is recognized when significant risk and rewards incidental to transaction / property has been transferred to the buyer

Civil Construction

In case of Civil Construction Contracts the Company follows the percentage of completion method to recognize the Revenue as per Accounting Standard - 7 relating to Construction contracts issued by ICAI as and when and wherever applicable. However company is not undertaking any contracts for others. The Revenue is recognized only on completion of projects above stipulated percentage.

Determination of revenues under the Percentage of Completion Method necessarily involves making estimates by the Company, some of which are of technical nature, concerning, where relevant, the percentage of completion, costs to completion, the expected revenues from the project / activity and the foreseeable losses to completion. The auditors have relied upon such estimates.

Dividend

Dividend including Interim is accounted for when declared.

(j) Foreign currency translation

(i) Monetary Assets and Liability related to Foreign Currency transaction and outstanding at the close of the year are expressed in Indian rupees at the rate of exchange prevailing on the date of Balance Sheet.

(ii) Transactions in foreign currency are recorded in the books of Account in Indian rupees at the rate of exchange prevailing on the date of transaction.

(k) Taxes on Income

Income Tax expense comprises of Current Tax and Deferred Tax charge or credit. The current tax is determined as the amount of tax payable in respect of taxable income for the year, as per the provisions of Income Tax Act, 1961. The Company provides for Deferred Tax Liability based on the tax effect of Timing Differences resulting from the recognition of item in the financial statements and estimating its current income tax provision. Where there are brought forward fiscal allowances, deferred tax asset is recognized only if there is virtual certainty of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and restated as per current developments.

(I) Borrowing Costs

Borrowing Costs attributable to the fixed assets during their construction/renovation and modernization are capitalized in accordance with AS-16 issued by ICAI. Such borrowing costs are apportioned on the average balance of Capital Work-in-Progress for the year. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(m) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(n) Provisions .

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best 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. Provision for expenditure relating to voluntary retirement is made when the employee accepts the offer of early retirement.

(o) Segment Information

Revenue, operating results, assets and liabilities have been identified to represent separate segment. Assets, Liabilities Revenue and Expanses which are not allocable to separate segment on a reasonable basis, are included under Unallocated.


Mar 31, 2010

(a) Basis of preparation

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

(b) Employee Benefits :-

i. Gratuity liability is defined benefit obligations and is provided for on the basis of an actuarial valuation made at the end of each financial year.

ii. The Provisions of the Provident Fund Act, 1952 are not applicable to the Company.

(c) 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.

(d) Depreciation

I. Depreciation has been provided on written down value method corresponding to the rates prescribed under schedule XIV of the Companies Act 1956.

II. Depreciation on additions is being provided on pro-rata basis from the date of such additions.

III. Leasehold Land is being amortised over the period of lease.

(e) Impairment

According to AS-28 on "Impairment of Assets" An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Impairment Loss is charged to Profit & Loss A/c in the year in which impairment is identified.

(f) Leases

Assets acquired under finance leases are recognised in accordance with the method recommended by the ICAI. Lease payments are apportioned between finance charge and reduction of outstanding liabilities. The finance charge is allocated to periods during lease term at a constant periodic rate of interest on the remaining balance of the liability.

(g) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are-earned at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

(h) Inventories

(i) Inventories of finished goods and materials at site are valued at lower of cost or net reusable value

(ii) All cost incurred for development of Real Estates are shown as work in progress till the completion / sale / recognition of revenues related to such property. This includes cost of land, development expenses, interest and other cost / expenses incidental to the projects undertaken. by the company.

(iii) All cost incurred for movies under production, which has not been completed till date of Balance sheet has been shown as work in progress which also includes advances paid in relation to such production.

(i) Revenue recognition

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

Development of Real Estates

In case of Development of Real Estates revenue is recognised when significant risk and rewards incidental to transaction / property has been transferred to the buyer

Civil Construction

In case of Civil Construction Contracts the Company follows the percentage of completion method to recognise the Revenue as per Accounting Standard - 7 relating to Construction contracts issued by ICAI as and when basis, wherever applicable, however company is not undertaking any contracts for others. The Revenue is recognised only on completion of projects above stipulation percentage.

Determination of revenues under the Percentage of Completion Method necessarily involves making estimates by the Company, some of which are of technical nature, concerning, where relevant, the percentage of completion, costs to completion, the expected revenues from the project / activity and the foreseeable losses to completion. The auditors have relied upon such estimates.

Dividend

Dividend including Interim is accounted for when declared.

G) Foreign currency translation

(i) Monetary Assets and Liability related to Foreign Currency transaction and outstanding at the close of the year are expressed in Indian rupees at the rate of exchange prevailing on the date of Balance Sheet.

(ii) Transactions in foreign currency are recorded in the books of Account in Indian rupees at the rate of exchange prevailing on the date of transaction.

(k) Taxes on Income

Income Tax expense comprise of Current Tax and Deferred Tax charge or credit. The current tax is determined as the amount of tax payable in respect of taxable income for the year, as per the provisions of Income Tax Act, 1961. The Company provides for Deferred Tax Liability based on the tax effect of Timing Differences resulting from the reorganization of item in the financial statements and estimating its current income tax provision. Where there are brought forward fiscal allowances, deferred tax asset is recognized only if there is virtual certainty of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and restated as per current developments.

(i) Borrowing Costs

Borrowing Costs attributable to the fixed assets during their construction/renovation and modernization are capitalized in accordance with AS-16 issued by ICAI. Such borrowing costs are apportioned on the average balance of Capital Work-in-Progress for the year. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(m) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(n) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best 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. Provision for expenditure relating to voluntary retirement is made when the employee accepts the offer of early retirement.

(o) Segment Information

Revenue, operating results, assets and liabilities have been identified to represent separate segment. Assets, Liabilities Revenue and Expanses which are not allocable to separate segment on a reasonable basis, are include under Unallocated.


Mar 31, 2009

(a) Basis of preparation

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

(b) Employee Benefits :-

i. Gratuity liability is defined benefit obligations and is provided for on the basis of an actuarial valuation made at the end of each financial year. ii. The Provisions of the Provident Fund Act, 1952 are not applicable to the Company.

(c) 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.

(d) Depreciation

I. Depreciation has been provided on written down value method corresponding to the rates prescribed under schedule XIV of the Companies Act 1956.

II. Depreciation on additions is being provided on pro-rata basis from the date of such additions.

III. Leasehold Land is being amortised over the period of lease



(e) Impairment

According to AS-28 on "Impairment of Assets" an Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Impairment Loss is charged to Profit & Loss A/c in the year in which impairment is identified.

(f) Leases

Assets acquired under finance leases are recognised in accordance with the method recommended by the ICAI. Lease payments are apportioned between finance charge and reduction of outstanding liabilities. The finance charge is allocated to periods during lease term at a constant periodic rate of interest on the remaining balance of the liability.

(g) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.

(h) Inventories

I. Inventories of finished goods are valued at lower of cost or net relisable value

II. All cost incurred for development of Real Estates are shown as work in progress till the completion / sale / recognition of revenues related to such property. This includes cost of land, development expenses, interest and other cost / expenses incidental to the projects undertaken by the company.

III. All cost incurred for movies under production, which has not been completed till date of Balance sheet has been shown as work in progress which also includes advances paid in relation to such production.

(i) Revenue recognition

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

Development of Real Estates

In case of Development of Real Estates revenue is recognised when significant risk and rewards incidental to transaction / property has been transferred to the buyer.

Civil Construction

In case of Civil Construction Contracts the Company follows the percentage of completion method to recognise the Revenue as per Accounting Standard - 7 relating to Construction contracts issued by ICAI. The Revenue is recognised only on completion of projects above stipulation percentage.

Determination of revenues under the Percentage of Completion Method necessarily involves making estimates by the Company, some of which are of technical nature, concerning, where relevant, the percentage of completion, costs to completion, the expected revenues from the project / activity and the foreseeable losses to completion. The auditors have relied upon such estimates.

Dividend

Dividend including Interim is accounted for when declared.

(J) Foreign currency translation

(i) Monetary Assets and Liability related to Foreign Currency transaction and outstanding at the close of the year are expressed in Indian rupees at the rate of exchange prevailing on the date of Balance Sheet.

(ii) Transactions in foreign currency are recorded in the books of Account in Indian rupees at the rate of exchange prevailing on the date of transaction.

(k) Taxes on Income

Income Tax expense comprise of Current Tax and Deferred Tax charge or credit. The current tax is determined as the amount of tax payable in respect of taxable income for the year, as per the provisions of Income Tax Act, 1961. The Company provides for Deferred Tax Liability based on the tax effect of Timing Differences resulting from the recognization of item in the financial statements and estimating its current income tax provision. Where there are brought forward fiscal allowances, deferred tax asset is recognized only if there is virtual certainty of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and restated as per current developments.

(l) Borrowing Costs

Borrowing Costs attributable to the fixed assets during their construction/renovation and modernization are capitalized in accordance with AS-16 issued by ICAI. Such borrowing costs are apportioned on the average balance of Capital Work-in-Progress for the year. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(m) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(n) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best 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. Provision for expenditure relating to voluntary retirement is made when the employee accepts the offer of early retirement.

(o) Segment Information

Revenue, operating results, assets and liabilities has been identified to represent separate segment. Assets, Liabilities Revenue and Expanses which are not allocable to separate segment on a reasonable basis, are include under Unallocated.

 
Subscribe now to get personal finance updates in your inbox!