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Accounting Policies of Vidarbha Iron & Steel Corporation Ltd. Company

Mar 31, 2015

(a) Corporate Information :

Vidarbha Iron & Steel Corporation Limited ('The Company") is a Public Limited Company incorporated in India under the Companies Act, 1956. The Company is listed at Bombay Stock Exchange . The Company, is engaged primarily in Leasing of Plant & Machinery.

(b) Basis of Preparation of Financial Statements :

These accounts have been prepared under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 2013, as adopted consistently by the Company.

(c) Fixed Assets and Depreciation :

Fixed Assets are stated at cost of acquisition including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation which is being provided on straight line method in the manner and at the rate specified in schedule II of Companies Act, 2013.

(d) Investments :

Investments are valued at cost.

(e) Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non current as per company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013.

(f) Revenue Recognition :

The Company is following accrual basis of accounting. Where there is no reasonable certainity regarding the amount or its collectability, recognition of revenue is postponed.

(g) Employee Benefits :

(i) Company's Contribution to Provident Fund is charged to Profit and Loss Account

(ii) No provision of Gratuity is considered necessary. Employees are entitled to accumulate their privilege leave within specified limits and can claim encashment thereof while in service or on retirement. This is not treated as specific retiral benefit and cost thereof shall be accounted for in the year in which the claims are settled.

(h) Provision for Current and Deferred Tax :

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 book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable / virtual certainity that asset will be realised in future.

(i) Contingent Liabilities are not recognised but are disclosed in the notes.


Mar 31, 2014

(a) Corporate Information:

Vidarbha Iron & Steel Corporation Limited ("The Company") is a Public Limited Company incorporated in India under the Companies Act, 1956. The Company is listed at Bombay Stock Exchange. The Company, is engaged primarily in two businesses, Leasing of Plant & Machinery and Trading.

(b) Basis of Preparation of Financial Statements:

These accounts have been prepared under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

(c) Fixed Assets and Depreciation:

Fixed Assets are stated at cost of acquisition including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation which is being provided on straight line method in the manner and at the rate specified in schedule XIV of Companies Act, 1956.

(d) Investments:

Investments are valued at cost.

(e) Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non current as per company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956.

(f) Revenue Recognition:

The Company is following accrual basis of accounting. Where there is no reasonable certainty regarding the amount or its collectability, recognition of revenue is postponed.

(g) Employee Benefits:

(i) Company''s Contribution to Provident Fund is charged to Profit and Loss Account

(ii) No provision of Gratuity is considered necessary. Employees are entitled to accumulate their privilege leave within specified limits and can claim encashment thereof while in service or on retirement. This is not treated as specific retired benefit and cost thereof shall be accounted for in the year in which the claims are settled.

(h) Provision for Current and Deferred Tax:

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 book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable/virtual certainty that asset will be realised in future.

(i) Contingent Liabilities are not recognised but are disclosed in the notes.


Mar 31, 2013

(a) Corporate Information :

Vidarbha Iron & Steel Corporation Limited (''The Company") is a Public Limited Company incorporated in India under the Companies Act, 1956. The Company is listed at Bombay Stock Exchange . The Company, is engaged primarily in two businesses, Leasing of Plant & Machinery and Trading.

(b) Basis of Preparation of Financial Statements :

These accounts have been prepared under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

(c) Fixed Assets and Depreciation :

Fixed Assets are stated at cost of acquisition including any attriburable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation which is being provided on straight line method in the manner and at the rate specified in schedule XIV of Companies Act, 1956.

(d) Investments : Investments are valued at cost.

(e) Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non current as per company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956.

(f) Revenue Recognition :

The Company is following accrual basis of accounting. Where there is no reasonable certainity regarding the amount or its collectability, recognition of revenue is postponed.

(g) Employee Benefits :

(i) Company''s Contribution to Provident Fund is charged to Profit and Loss Account

(ii) No provision of Gratuity is considered necessary. Employees are entitled to accumulate their privilege leave within specified limits and can claim encashment thereof while in service or on retirement. This is not treated as specific retiral benefit and cost thereof shall be accounted for in the year in which the claims are settled.

(h) Provision for Current and Deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Ta x Act, 1961. Deferred Ta x resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable / virtual certainity that asset will be realised in future.

(i) Contingent Liabilities are not recognised but are disclosed in the notes.


Mar 31, 2012

(a) Corporate Information:

Vidarbha Iron & Steel Corporation Limited ('The Company") is a Public Limited Company incorporated in India under the Companies Act, 1956. The Company is listed at Bombay Stock Exchange . The Company, is engaged primarily in two businesses, Leasing of Plant & Machinery and Trading.

(b) Basis of Preparation of Financial Statements:

These accounts have been prepared under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

(c) Fixed Assets and Depreciation:

Fixed Assets are stated at cost of acquisition including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation which is being provided on straight line method in the manner and at the rate specified in schedule XIV of Companies Act, 1956.

(d) Investments:

Investments are valued at cost.

(e) Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non current as per company's normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956

(f) Revenue Recognition:

The Company is following accrual basis of accounting. Where there is no reasonable certainity regarding the amount or its collectability, recognition of revenue is postponed.

(g) Employee Benefits:

(i) The services of all the employees except one employee has been transferred to MXs.Facor Steels Limited w.e.f 01.10.2011.

(ii) Company's Contribution to Provident Fund is charged to Profit and Loss Account net of reimbursement from MXs.Facor Steels Limited (FSL). Company has entered into an agreement with L.I.C of India to cover up the liability of gratuity of company. The premium payable to L.I.C is reimbursable to the company by FSL who has taken the assets and staff of our company on Leave and Licenses.

(iii)No provision of Gratuity is considered necessary. Employees are entitled to accumulate their privilege leave within specified limits and can claim encashment thereof while in service or on retirement. This is not treated as specific retrial benefit and cost thereof is accounted for in the year in which the claims are settled.

(h) Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred Tax Expenses on account of difference between depreciation as per books and as per Income Tax Act, 1961 isRs.38,375/-(Previous Year Rs. 79,739/-)

(i) Contingent Liabilities are not recognised but are disclosed in the notes.


Mar 31, 2010

A) The Financial Statements are prepared in accordance with the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant presentation requirements of the Companies Act, 1956 under the historical cost convention on an accrual basis.

b) Taxes on Income : Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized subject to the consideration of prudence in respect of tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversable in one or more subsequent periods.

c) Employees Retirement Benefits: Companys contribution to Provident Fund is charged to Profit and Loss Account net of reimbursement from M/s. Facor Steels Limited (FSL). Company has entered into an agreement with L.I.C. of India to cover up the liability of gratuity of the company. The premium payable to LIC would be reimbursable to the company by FSL who has taken the assets and staff of our Company on Leave and License.

d) Fixed Assets and Depreciation: Fixed Assets are stated at cost of acquisition including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation which is being provided on straight line method in the manner and at the rate specified in schedule XIV of Companies Act, 1956 as amended.

e) Investments: Investments are valued at cost.

f) Revenue Recognition : The company is following accrual basis of accounting. Where there is no reasonable certainity regarding the amount or its collectibility, recognition of revenue is postponed.

 
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