Home  »  Company  »  Wisec Global Ltd  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Wisec Global Ltd. Company

Mar 31, 2015

A) Basis Of Preparation

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with the Generally Accepted" Accounting Principles ('GAAP'). These financial statements comply with the Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006, pronouncements of Institute of Chartered Accountants of India and presentation requirements of relevant provisions of the Companies Act, 2013 as adopted consistently by the company.

B) Preparation and disclosure of financial statements

During the previous year ended 31 march 2014, the Company had adopted Schedule III to the Companies Act, 2013 for the preparation of the financial statements of the Company. The Schedule III introduced some conceptual changes as well as new disclosures. These included classification of all assets and liabilities into current and non- current.

C) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates. Any changes in the accounting estimate is adjusted prospectively in the current and future periods.

D) Revenue Recognition

Revenue from sale of services is recognized on transfer of all the significant risk and rewards of ownership to the recipient of service.

E) Tangible fixed assets and intangible fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises original cost of acquisition and any directly attributable cost of bringing the asset to its working condition for the intended use. Intangible assets are stated at cost of acquisition including costs related to acquisition and installation, less accumulated amortization and impairment losses, if any.

F) Depreciation and amortization

Depreciation is provided on written down value basis at the rates specified in Schedule II to the Companies Act, 2013. Depreciation is charged on pro-rata basis for assets purchased/sold during the year. Assets costing less than Rs 5,000/- are fully depreciated in the year of purchase. The rates adopted reflect the estimate of useful lives of the fixed assets as provided in schedule II of the Companies Act, 2013.

Further the company had not amortized its intangible asset namely Technical Know How.

G) Impairment

The carrying values of assets are reviewed at each reporting date to determine if there is indication of any impairment. If any indication exists, the assets recoverable amount is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each reporting date. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the Statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization, if no impairment loss had been recognized.

The company has not provided for such impairment losses, if any, relating to Intangible asset (Technology Know How), the resultant impact, if any, is not recognized in the Statement of Profit & Loss account.

H) Foreign Currency Transactions

Monetary assets and liabilities denominated in foreign currency are not translated at the yearend rates and the resultant gain/losses on foreign exchange translations are not recognized in the Statement of Profit and Loss.

I) Retirements benefits

Gratuity and leave encashment are defined benefit schemes. The charge in the profit & loss account for gratuity and leave encashment is not based on the actuarial valuation by an independent actuary. The calculation of the same has been done by the management at their own.

J) Taxation

Income tax expense comprises current tax (i.e amount of tax for the year determined in accordance with the Income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax assets and liabilities are recognized using the tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is a reasonable certainty that the assets can be realized in future; however where there are unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognised only to the extent there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at the Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

In view of the continued losses of the company, deferred tax assest/liability has not been recognized in the books of accounts.

K) Earning Per Share

Basic earning/(loss) per share is computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end, except where the results would be anti-dilutive.

L) Provisions. Contingent liabilities and contingent assets

A provision arising from claims, litigation, assessment, fines, penalties,'etc is recognized when the company has a present obligation as a result of a past event and is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.

M) Operating Lease

Lease payments under operating lease arrangements are recognized as an expense in the Statement of Profit & Loss account on a straight line basis over the lease term.




Mar 31, 2014

A) Basis Of Preparation

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with the Generally Accepted Accounting Principles ("GAAP"). These financial statements comply with the Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006, pronouncements of Institute of Chartered Accountants of India and presentation requirements of relevant provisions of the Companies Act, 1956, to the extent applicable, as adopted consistently by the company.

B) Preparation and disclosure of financial statements

During the previous year ended 31 march ''2014, the Company had adopted revised Schedule VI to the Companies Act, 1956 for the preparation of the financial statements of the Company. The revised Schedule VI introduced some conceptual changes as well as new disclosures. These included classification of all assets and liabilities into current and non-current.

C) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates. Any changes in the accounting estimate is adjusted prospectively in the current and future periods.

D) Revenue Recognition

Revenue from sale of services is recognized on transfer of all the significant risk and

rewards of ownership to the recipient of service.

E) Tangible fixed assets and intangible fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises original cost of acquisition and any directly attributable cost of bringing the asset to its working condition for the intended use. Intangible assets are stated at cost of acquisition including costs related to acquisition and installation, less accumulated amortization and impairment losses, if any.

F) Depreciation and amortization

Depreciation is provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation is charged on pro-rata basis for assets purchased/sold during the year. Assets costing less than Rs 5,000/- are fully depreciated in the year of purchase. The rates adopted reflect the estimate of useful lives of the fixed assets.

Further the company had not amortized its intangible asset namely Technical Know How.

G) Impairment

The carrying values of assets are reviewed at each reporting date to determine if there is indication of any impairment. If any indication exists, the assets recoverable amount is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each reporting date. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the Statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization, if no impairment loss had been recognized.

The company has not provided for such impairment losses, if any, relating to Intangible asset (Technology Know How), the resultant impact, if any, is not recognized in the Statement of Profit & Loss account.

H) Foreign Currency Transactions

Monetary assets and liabilities denominated in foreign currency are not translated at the yearend rates and the resultant gain/losses on foreign exchange translations are not recognized in the Statement of Profit and Loss.

I) Retirements benefits

Gratuity and leave encashment are defined benefit schemes. The charge in the profit & loss account for gratuity and leave encashment is not based on the actuarial valuation by an independent actuary. The calculation of the same has been done by the management at their own.

J) Taxation

Income tax expense comprises current tax (i.e amount of tax for the year determined in accordance with the Income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax assets and liabilities are recognized using the tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is a reasonable certainty that the assets can be realized in future; however where there are unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognised only to the extent there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at the Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

K) Earning Per Share

Basic earning/(loss) per share is computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end, except where the results would be anti-dilutive.

L) Provisions. Contingent liabilities and contingent assets

A provision arising from claims, litigation, assessment, fines, penalties, etc is recognized when the company has a present obligation as a result of a past event and is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.

M) Operating Lease

Lease payments under operating lease arrangements are recognized as an expense in the Statement of Profit & Loss account on a straight line basis over the lease term.


Mar 31, 2013

1 System of Accounting:

The accounts and financial statements have been prepared on historical cost basis of accounting and on the basis of going concern.

2 Fixed Assets and Depreciation

a) AH fixed assets are carried at cost of construction or acquisition less depreciation. All expenses including financing costs on borrowed funds up to the date the assets is ready for use and attributable to the construction or acquisition of fixed assets are capitalized.

When an assets is scrapped, or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit (Including capital profit) or loss, if any, is reflected in Profit and Loss Account.

b) Depreciation on all the fixed assets is provided on Straight Line Method, pro - rata monthly rest, at the rates prescribed in Schedule XIV of the Companies Act, 1956

c) Assets individually costing up to Rs.5000/- are depreciated at 100% in the year of purchase.

3. Investment

All long - term investments are valued at cost less provisions as considered necessary Current investments are valued at the lower of cost and fair value, determined by category of investment, Investment have been reconciled during the year.

4 Stock In Trade

Stock in trade is valued at the cost or realizable value whichever_is less. The cost is computed on FIFO Basis.

5 Retirement Benefits

Contributions are made under the relevant rules for Provident Fund etc., which are charged to Profit & Loss Account on accrual basis. Liability on account of gratuity is as per actuarial valuation.

6 Income

(a) In respect of heads of income, the company follows the practice of accounting for such income on accrual basis.

7 Expenses

(a) Fine/penalty on late deposit of statutory dues have been accounted for on levied/paid basis.

(b) Interest expenses on unsecured loan have been accounted for on payment basis.

(c) All other expenses are accounted for on accrual basis.

8 Preliminary Expenses/Deferred Jlevenue Expenditure

Preliminary Expenses/Deferred Revenue Expenditure are amortized over a period of ten years or over the period of contract / agreement.

9 Taxes on Income

Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. In view of the continuing losses deferred assets has not been recognized during the year.


Mar 31, 2009

1 System of Accounting:

The accounts and financial statements have been prepared on historical cost basis of accounting and on the basis of going concern.

2 Fixed Assets and Depreciation

a) All fixed assets are carried at cost of construction or acquisition less depreciation. All expenses including financing costs on borrowed funds up to the date the assets is ready for use and attributable to the construction or acquisition of fixed assets are capitalized.

When an assets is scrapped, or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit (Including capital profit) or loss, if any, is reflected in Profit and Loss Account.

b) Depreciation on all the fixed assets is provided on Straight Line Method, pro - rata monthly rest, at the rates prescribed in Schedule XIV of the Companies Act, 1956

c) Assets individually costing up to Rs.5000/- are depreciated at 100% in the year of purchase.

3. Investment

All long - term investments are valued at cost. Current investments are valued at the lower of cost and fair value, determined by category of investment

4 Stock In Trade

Stock in trade is valued at the cost or realizable value whichever is less. The cost is computed on FIFO Basis.

5 Foreign currency transactions

Foreign currency transactions are recorded at rates of exchange prevailing on the date of transaction. All exchange differences during the year are accounted for in the Profit and Loss account

6 Retirement Benefits

Contributions are made under the relevant rules for Provident Fund etc., which are charged to Profit & Loss Account on accrual basis. Liability on account of gratuity is provided for the person who is covered under the payment of Gratuity Act. Leave encashment is provided on accrual basis. Retirement benefit cost for the period has been determined by the management on the basis of mere estimation and is not as per Actuarial valuation.

7 Income

(a) Sales are net of Sales Tax. Material relumed / rejected are accounted for in the year of return i rejection. Sales are recognized at the time of dispatches to customers.

(b) Dividends on investments are accounted for on receipt basis.

(c) In respect of other heads of income, the company follows the practice of accounting for such income on accrual basis.

8 Expenses

(a) Fine/penalty on late deposit of statutory dues have been accounted for on levied/paid basis.

(b) Interest expenses on unsecured loan have been accounted for on payment basis.

(c) All other expenses are accounted for on accrual basis.

9 Preliminary Expenses/Deferred Revenue Expenditure

Preliminary Expenses/Deferred Revenue Expenditure are amortized over a period of ten years or over the period of contract / agreement.

10. Taxes on Income

Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

 
Subscribe now to get personal finance updates in your inbox!