Mar 31, 2016
1. SIGNIFICANT ACCOUNTING POLICES BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements of the Company are prepared in accordance with the Generally Accepted Accounting Principles in India (GAAP) under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as specified under Section 133 of the Companies Act, 2013 (âthe Actâ) read with rule 7 of Companies (Accounts) Rules, 2014. Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hereto in use.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP require Management to make estimates and assumptions that effects the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting periods. Examples of such estimates include estimates of useful life of assets and future obligations under employee retirement benefit plans and income tax. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and difference between the actual results and estimates are recognized in period in which the result is known/materialized.
REVENUE RECOGNITION
The Company follows the mercantile system of accounting and recognizes incomes and expenditures on accrual basis. The accounts are prepared on historical cost basis, as a going concern, and are consistent with accounting principles generally accepted in India. Dividend income is recognized for when the right to receive dividend is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.
FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises the purchases price and any attributable cost of bringing the assets to its working condition for its intended use. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use.
DEPRECIATION / AMORTISATION
Depreciation on the fixed assets is charged on Straight Line Method. Depreciations are charged over the estimated useful lives of the assets as specified in Schedule II of the Companies Act, 2013.
Depreciation in respect of additions to/and deletion from assets has been charged on pro-rata basis from/till the date they are put to commercial use.
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. Provision for diminution in the value of long term investment is made only if such a decline is other than temporary.
INVENTORIES
(i) Inventories of Raw materials and Work in progress are valued at cost.
(ii) Stocks in Trade and Stock of Finished Goods are valued at lower of cost and net realizable value.
FOREIGN CURRENCY TRANSACTIONS
Foreign Currency Transactions are recorded in the books by applying the exchange rates as on the date of the transaction. Foreign Currency Assets and Liabilities are converted at the exchange rate prevailing on the date of the Balance Sheet, the resultant exchange difference is adjusted to the profit & loss account except in the case of Foreign Currency Liabilities on account of acquisition of Fixed Assets, where such exchange difference is adjusted to the cost of the assets.
EMPLOYEE BENEFITS
Staff benefits arising out of retirement/death comprising contributions to Provident Fund, Gratuity Scheme and other post separation benefits are accounted for on the basis of the schemes or by an independent actuarial valuation at the year-end as the case may be.
TAXATION
Income Tax is computed in accordance with Accounting Standard 22, âAccounting for Taxation on Incomeâ issued by the ICAI. Provision for current income tax and fringe benefit tax is made in accordance with the provisions of Income tax Act, 1961. The difference between taxable income and net profit or loss before tax for the year as per the financial statements, is identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e., differences that originate in one accounting period and reversed in another.
Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.
EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Companyâs earnings per share comprise the net profit after tax (and include post tax effect of any extraordinary items.) The number of shares used in computing basic earnings per share is the weighed average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises of the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises of the weighted average shares considered for deriving basic earning per share, and also the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.
IMPAIRMENT OF ASSESTS
Tangible fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assetâs carrying amount exceeds its recoverable amount, which is the higher of the assetâs net selling price or its value in use.
EXTRA ORDINARY AND EXCEPTIONAL ITEMS
Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense is also treated as extraordinary item and disclosed as such.
On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure improves an understanding of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to the financial statements.
RELATED PARTY TRANSACTIONS
Related party transactions are transfer of resources or obligations between related parties, regardless of whether a price is charged. Parties are considered to be related, if one party has the ability, directly or indirectly, to control the other party of exercise significant influence over the other party in making financial or operating decisions. Parties are considered to be related if they are subject to common control or common significant influence.
PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not provided for in the books but are disclosed by way of notes in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.
Mar 31, 2015
"1 " Basis of Preparation of Financial Statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in Indie
(Indian GAAP) to comply with the Accounting Standards notified under
Section 211 (3C) of the Companies Act, 1956, ("the 1956 Act'1', (which
continues to be applicable in respect of Section 133 of the Companies
Act, 2013 ("the 2013 Act") in terms of General Circulai 15/2013 dated
September 13,2013 Act, as applicable.
Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities) as of the date of
the financial statements and the reported income and expenses during
the reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Actual results could differ from these estimates. Any change in such
estimates is recognized prospectively.
General
(I) Accounting policies not specifically referred to otherwise are in
consistence with earlier years and in consonance with generally
accepted accounting principles.
(ii) Expenses and Income considered payable and receivable respectively
are accounted for on accrual basis.
Sales
(i) Sales are accounted on mercantile basis, when the sale of goods is
complete.
(ii) Job charges are accounted when the goods are dispatched to the
customers.
(iii) Sales are stated exclusive of excise duty.
Valuation of Inventories
(i) Inventories of Raw materials and Work in progress are valued at
cost.
(ii) Stocks in Trade and Stock of Finished Goods are valued at lower of
cost and net realisable value.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchases price and any
attributable cost of bringing the assets to its working condition for
its intended use. Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalised as
part of the cost of such assets to the extent they relate to the period
till such assets are ready to be put to use.
Depreciation / Amortization
Depreciation on the fixed assets is charged on straight line method
over the estimated useful lives of the assets. Depreciation in respect
of additions to/and deletion from assets has been charged on pro-rata
basis with reference to the month of addition or deletion.
No amortization is made for leasehold land, which are under Perpetual
lease.
Fixed Assets costing Rs.5000/- or less are fully depreciated in the
year of purchase.
Investments
The Company investments are classified under two categories i.e.
Current and Long Term and are valued in accordance with the Accounting
Standards(AS) 13 on 'Accounting for Investments'. 'Long Term
Investments' are carried at acquisition amortized cost. A provision is
made for diminution, other that temporary, on an individual investment
basis. 'Current investments' are carried at lower of the cost or fair
value on an individual investment basis.
Foreign Currency Transactions
Foreign Currency Transactions are recorded in the books by applying the
exchange rates as on the date of the transaction.
Foreign Currency Assets and Liabilities are converted at the exchange
rate prevailing on the date of the Balance Sheet and the resultant
exchange difference is adjusted to the profit & loss account except in
the case of Foreign Currency Liabilities arising on account of
acquisition of Fixed Assets, where such exchange difference is adjusted
to the cost of the assets.
Retirement Benefits
Staff benefits arising out of retirement/death comprising contributions
to Provident Fund, Gratuity Scheme and other post separation benefits
are accounted for on the basis of the schemes or by an independent
actuarial valuation at the year-end as the case may be.
Taxes on Income
Income Tax is computed in accordance with Accounting Standard 22,
"Accounting for Taxation on Income" issued by the ICAI. Provision for
current income tax is made in accordance with the provisions of Income
tax Act, 1961.
The difference between taxable income and net profit or loss before tax
for the year as per the financial statements, is identified and the tax
effect of the deferred tax asset or deferred tax liability is recorded
for timing differences, i.e., differences that originate in one
accounting period and reversed in another.
Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not provided for in the books but are
disclosed by way of notes in the financial statements. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
Earning per share
Basic and diluted earnings per share are computed in accordance with
Accounting Standard-20 Basic earnings per share is calculated by
dividing the net profit or loss after tax for the year attributable to
equity shareholders by the weighted average number of equity shares
outstanding during the year. Diluted earnings per equity share are
computed using the weighted average number of equity shares and
dilutive potential equity shares outstanding during the year, except
where the results are anti-dilutive, impairment of Assets.
Tangible fixed assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which
the asset's carrying amount exceeds its recoverable amount, which is
the higher of the asset's net selling price or its value in use.
Extra ordinary and exceptional items
Income or expenses that arise from events or transactions that are
clearly distinct from the ordinary activities of the Company are
classified as extraordinary items. Specific disclosure of such
events/transactions is made in the financial statements. Similarly, any
external event beyond the control of the Company, significantly
impacting income or expense, is also treated as extraordinary item and
disclosed as such. On certain occasions, the size, type or incidence
of an item of income or expense, pertaining to the ordinary activities
of the Company, is such that its disclosure improves an understanding
of the performance of the Company. Such income or expense is classified
as an exceptional item and accordingly disclosed in the notes to the
financial statements.
Mar 31, 2014
A Basis of Preparation of Financial Statements
The financial statements are prepared under historical cost convention
in accordance with the generally accepted accounting principles in
India and comply with the Accounting Standards (AS) issued by the
Institute of Chartered Accountants of India (ICAI) referred to in
Section 211 (3C) of the Companies Act, 1956.
B General
(i) Accounting policies not specifically referred to otherwise are in
consistence with earlier years and in consonance with generally
accepted accounting principles
(ii) Expenses and Income considered payable and receivable respectively
are accounted for on accrual basis.
C Investments
Long Term Investments are stated at cost plus brokerage and stamp
charges. Provision for diminution in the value of long-term investments
is made only when such a decline is other than temporary in the opinion
of the management.
D Revenue Recognition
All expenses and incomes to the extent considered payable or receivable
respectively are accounted for on accrual basis. Dividends on
investments in equity shares are accounted for on receipt basis.
E Provision of Bad and Doubtful Debts
Bad and doubtful debts are written off/provided for on the basis of the
prudential guidelines for Non Banking Financial Companies issued by the
Reserve Bank of India. Additional amount is written off or provided for
if the management on a review of the debts considers it necessary.
F Retirement Benefits
a) Liability in respect of gratuity to employees is not provided for.
However, Gratuity is paid on the retirement/resignation Of the employee
as per the provisions of The Payment of Gratuity Act, 1972.
b) No provision for leave encashment is made. The same will be
accounted in the year in which the option of encashmentis exercised by
the employee.
c) The company contributes to the employee''s provident fund maintained
under the Employee''s Provident Fund Scheme of the Central Government
and the same is charged to the Profit and loss account.
G Taxes on Income
Income Tax is computed in accordance with Accounting Standard 22,
"Accounting for Taxation on Income" issued by the ICAI. Provision for
current income tax and fringe benefit tax is made in accordance with
the provisions of Income tax Act, 1961. The difference between taxable
income and net profit or loss before tax for the year as per the
financial statements, is identified effect of the deferred tax asset or
deferred tax liability is recorded for timing differences, i.e.,
differences that originate in one accounting period and reversed in
another.Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
H Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not provided for in by way of notes in the
financial statements. Contingent Assets are neither recognized nor
disclosed in the financial statements.
(i)Terms/rights attached to equity shares
The company has only one class of equity shares having a par value of
Rs. 10 per share. Each holder of equity shares is entitled to one vote
per share.
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
Mar 31, 2013
Basis of Preparation of Financial Statements
The financial statements are prepared under historical cost convention
in accordance with the generally accepted accounting principles in
india and comply with the Accounting Standards (AS) issued by the
Institute of Chartered Accountants of India (ICAI) referred to in
Section 211 (3C) of the Companies Act, 1956. General
(i) Accounting policies not specifically referred to otherwise are in
consistence with earlier years and in consonance with generally
accepted accounting principles. (ii) Expenses and Income considered
payable and receivable respectively are accounted for on accrual basis.
Sales
(i) Sales are accounted on mercantile basis, when the sale of goods is
complete. (ii) Job charges are accounted when the goods are dispatched
to the customers. (iii) Sales are stated exclusive of excise duty.
Valuation of Inventories
(i) Inventories of Raw materials and Work in progress are valued at
cost.
(ii) Stocks in Trade and Stock of Finished Goods are valued at lower of
cost and net realisable value. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchases price and any
attributable cost of bringing the assets to its working condition for
its intended use. Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalised as
part of the cost of such assets to the extent they relate to the period
till such assets are ready to be put to use. Depreciation /
Amortization
Depreciation on the fixed assets is charged on Straight Line Method at
the rates prescribed by Schedule XIV to the Companies Act, 1956, which
are based on the estimated useful lives of the assets.
Depreciation in respect of additions to/and deletion from assets has
been charged on pro-rata basis with reference to the month of addition
or deletion.
No amortization is made for leasehold land, which are under Perpetual
lease.
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 such investments.
Foreign Currency Transactions
Foreign Currency Transactions are recorded in the books by applying the
exchange rates as on the date of the transaction. Foreign Currency
Assets and Liabilities are converted at the exchange rate prevailing on
the date of the Balance Sheet and the resultant exchange difference is
adjusted to the profit & loss account except in the case of Foreign
Currency Liabilities arising on account of acquisition of Fixed Assets,
where such exchange difference is adjusted to the cost of the assets.
Retirement Benefits
Staff benefits arising out of retirement/death comprising contributions
to Provident Fund, Gratuity Scheme and other post separation benefits
are accounted for on the basis of the schemes or by an independent
actuarial valuation at the year-end as the case may be.
Taxes on Income
Income Tax is computed in accordance with Accounting Standard 22,
"Accounting for Taxation on Income" issued by the ICAI. Provision for
current income tax and fringe benefit tax is made in accordance with
the provisions of Income tax Act, 1961.
The difference between taxable income and net profit or loss before tax
for the year as per the financial statements, is identified and the tax
effect of the deferred tax asset or deferred tax liability is recorded
for timing differences, i.e., differences that originate in one
accounting period and reversed in another.
Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not provided for in the books but are
disclosed by way of notes in the financial statements. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2012
(i) Method of Accounting
(a) The financial statements are prepared on the historical cost
convention and in accordance with the generally accepted accounting
principles.
(b) The company follows accrual system of accounting in the preparation
of accounts except where otherwise stated Fixed Assets Leased fixed
assets are stated at actual cost less accumulated depreciation and
lease terminal adjustment. The actual cost capitalized includes
material cost, freight, installation cost, duties, taxes and other
incidental expenses.
(ii) Depreciation
Depreciation on fixed assets is computed on straight-line method at the
rates prescribed in the Schedule XIV of the Companies Act, 1956.
Depreciation on the assets added/disposed off during the year are
provided on pro rata basis with reference to the month of
addition/disposal'
(iii) Investments
(a) Long Term Investments are stated at cost plus brokerage and stamp
charges. Provision for diminution in the value of long term investments
is made only when such a decline is other than temporary in the opinion
of the management.
(b) Current Investments are valued at the lower of cost and market
value.
(iv) Revenue Recognition
All expenses and incomes to the extent considered payable or receivable
respectively are accounted for on accrual basis. Dividends on
investments in equity' shares are accounted for on receipt basis.
(v) Hire Purchase/Leasing
Lease income is net of Lease Equalization charges in accordance with
the guidelines issued by the Institute of Chartered Accountants of
India.
(vi) Provision for Bad and Doubtful Debts
Bad and doubtful debts are written off/provided for on the basis of the
prudential guidelines for Non Banking Financial Companies issued by the
Reserve Bank of India. Additional amount is written off or provided for
if the management on a review of the debts considers it necessary.
(vii) Retirement Benefits
(a) Liability in respect of gratuity to employees is not provided for.
However, gratuity is paid on the retirement/ resignation of the
employee as per the provisions of The Payment of Gratuity Act, 1972.
(b) No provision for leave encashment is made. The same will be
accounted in the year in which the option of encashment is exercised by
the employee.
(c) The company contributes to the employees' provident fund
maintained under the Employees' Provident Fund Scheme of the Central
Government and the same is charged to the profit and loss account.
(viii) Contingent Liabilities
No provision is made for liabilities which are contingent in nature but
if material, the same are disclosed by way of notes to the accounts.
(ix) Taxes on Income Current Tax
Provision for Income Tax is determined in accordance with the
provisions of Income tax Act, 1961.
Deferred Tax Provision
Deferred Tax is recognized, on timing differences, 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.
Mar 31, 2011
(i) Method of Accounting
(a) The financial statements are prepared on the historical cost
convention and in accordance with the generally accepted accounting
principles.
(b) The company follows accrual system of accounting in the preparation
of accounts except where otherwise stated.
(ii) Fixed Assets
Leased fixed assets are stated at actual cost less accumulated
depreciation and lease terminal adjustment. The actual cost capitalized
includes material cost, freight, installation cost, duties, taxes and
other incidental expenses.
(iii) Depreciation
Depreciation on fixed assets is are viewed on straight-line method at
the rates prescribed in the Schedule XIV of the Companies Act, 1956.
Depreciation the assets added/disposed off during the year are provided
on prorata basis with reference to the month of addition/disposal.
(iv) Investments
(a) Long Term Investments are stated at cost plus brokerage and stamp
charges. Provision for diminution in the value of long - term
investments is made only when such a decline is other than temporary in
the opinion of the management.
(b) Current Investments are valued at the lower of cost and market
value.
(v) Revenue Recognition
All expenses and incomes to the extent considered payable or receivable
respectively are accounted for on accrual basis. Dividends on
investments in equity shares are accounted for on receipt basis. (vi)
Hire Purchase/Leasing
(a) Lease income is net of Lease Equalization charges in accordance
with the guidelines issued by the Institute of Chartered Accountants of
India.
(b) No income has been accounted for in respect of Hire Purchase/Lease
contracts as the periods of Hire Purchase/ Lease Contracts have expired
and there is no secondary period and hire charges/lease rentals
therefore provided in the Agreement.
(vii) Provision for Bad and Doubtful Debts
Bad and doubtful debts are written off/provided for on the basis of the
prudential guidelines for Non Banking Financial Companies issued by the
Reserve Bank of India. Additional amount is written off or provided for
if the management on a review of the debts considers it necessary.
(viii) Retirement Benefits
(a) Liability in respect of gratuity to employees is not provided for.
However, gratuity is paid on the retirement/ resignation of the
employee as per the provisions of The Payment of Gratuity Act, 1972.
(b) No provision for leave encashment is made. The same will be
accounted in the year in which the option of encashment is exercised by
the employee.
(c) The company contributes to the employees' provident fund maintained
under the Employees' Provident Fund Scheme of the Central Government
and the same is charged to the profit and loss account.
(ix) Contingent Liabilities
No provision is made for liabilities which are contingent in nature but
if material, the same are disclosed by way of notes to the accounts.
(x) Taxes on Income
Current Tax
Provision for Income Tax is determined in accordance with the
provisions of Income tax Act, 1961.
Deferred Tax Provision
Deferred Tax is recognized, on timing differences, 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.
Mar 31, 2010
A) Basis of Preparation of Financial Statements
The financial statements are prepared under historical cost convention
in accordance with the generally accepted accounting principles in
India and comply with the Accounting Standards (AS) issued by the
Institute of Chartered Accountants of India (ICAI) referred to in
Section 211 (3C) of the Companies Act, 1956.
b) General
(i) Accounting policies not specificalfy referred to ofherwise are in
consistence with earlier years and in consonance with generally
accepted accounting principles.
(ii) Expenses and Income considered payable and receivable respectively
are accounted for on accrual basis.
c) Sales
(i) Sales are accounted on mercantile basis, when the sale of goods is
completed.
(ii) Job charges are accounted when the goods are dispatched to the
customers.
(iii) Sales are stated exclusive of excise duty.
d) Valuation of Inventories
(i) Inventories of Raw materials and Work in progress are valued at
cost.
{ii) Stocks in Trade and Stock of Finished Goods are valued at lower of
cost and net realizable value
e) Fixed Assets
Fixed assets are stated at cost less accumulated deprecation and
impairment losses, if any. Cost comprises the purchases price and any
attributable cost of bringing the assets to its working condition for
its intended use. Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalised as
part of the cost of such assets to the extent they relate to the period
till such assets are ready to be put to use.
f) Depreciation / Amortization
(i) Depreciation on the fixed assets is charged on Straight Line Method
at the rates prescribed by Schedule XIV to the Companies Act, 1956,
which are based on the estimated useful lives of the assets.
(ii) Depreciation in respect of additions to/and deletion from assets
has been charged on pro-rata basis with reference to the month of
addition or deletion.
(iii) No amortization is made for leasehold land, which are under
Perpetual lease.
g) Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All ofher
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, ofher than temporary, in the value of such investments. h)
Foreign Currency Transactions
Foreign Currency transactions are recorded in the books by applying the
exchange rates as on the date of the transaction. Foreign Currency
Assets & Liabilities are converted at the exchange rate prevailing on
the daje of the Balance Sheet and the resultant exchange difference is
adjusted to the profit & Loss account except in the case of Foreign
Currency Liabilities arising on account of acquisition of Fixed Assets,
where such exchange difference is adjusted to the cost of the assets.
i) Retirement Benefits
Staff benefits arising out of retirement/death comprising contributions
to Provident Fund, Gratuity Scheme and ofher post separation benefits
are accounted for on the basis of the schemes or by an independent
actuarial valuation at the year-end as the case may be.
j) Taxes on income
(i) Income Tax is computed in accordance with Accounting Standard 22,
thAccounting for Taxation on Incometh issued by the ICAI.
(ii) Provision for current income tax and fringe benefit tax is made in
accordance with the provisions of Income tax Act, 1961.
(iii) The difference between taxable income and net profit or loss
before tax for the year as per the financial statements, is identified
and the tax effect of the deferred tax asset or deferred tax liability
is recorded for timing differences, i.e., differences that originate in
one accounting period and reversed in another.
(iv) Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each Balance
Sheet date.
k) Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not provided for in the books but are
disclosed by way of notes in the financial statements. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
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