Mar 31, 2018
1. ACCOUNTING POLICIES: -
Significant accounting policies adopted in the presentation of accounts are as under:
(a) Basis of Preparation
(i) Compliance with Ind AS
The financial statements have been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 as a going concern on an accrual basis.
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis
(iii) Use of estimates
In preparing the financial statements in conformity with accounting principles, management is required to make estimates and assumptions that may affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognized in the period the same is determined.
(b) Income
In respect of income, including interest income on loans and advances, the Company accounts for such income on an accrual basis save and except the items of revenue in regard to which there exists significant uncertainty about the ultimate realisation.
(c) Expenses
Expenses are accounted on accrual basis.
(d) Depreciation
The depreciation on owned assets is provided as per the provisions of Schedule II of the Companies Act, 2013, on written down value method.
(e) Property, Plant And Equipment
All items of property, plant and equipment are stated at historical cost less depreciation. Historical Cost represents direct expenses incurred on acquisition or construction of the assets and the share of indirect expenses relating to construction allocated in proportion to the direct cost involved.
Subsequent costs are included in the assetâs carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Capital work-in-progress comprises the cost of property, plant and equipment that are not yet ready for their intended use on the reporting date and materials at site.
(f) Investments
Long term investments are stated at cost less any permanent diminution, in value, if any.
(g) Inventories
Stock-in-trade is valued at cost or market value whichever is lower.
(h) Foreign Currency Transaction
Transactions in foreign currency are accounted at the rates of exchange prevailing on the date of transactions.
Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise. Monetary items denominated in foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the year-end.
Exchange differences related to liabilities against fixed assets are transferred to the Profit and Loss Account.
Exchange differences related to restatement of other foreign exchange assets / liabilities as at the date of the balance sheet date are transferred to the Profit and Loss Account.
(i) Employee Benefits
Short term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Companyâs has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably Post-Employment Employee Benefits Defined contribution plans
The Company makes specified monthly contributions towards employee provident fund directly to the Government under the Employees Provident Fund Act, 1952 and is not obliged to bear the shortfall, if any, between the return on investments made by the Government from the contributions and the notified interest rate.
Defined benefit plans
The Companyâs net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets, if any.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Companyâs, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Re-measurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in OCI. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss.
The Company''s recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Other long-term employee benefits
Long-term Compensated Absences are provided for on the basis of an actuarial valuation, using the Projected Unit Credit Method, as at the date of the Balance Sheet. Actuarial gains/losses comprising of experience adjustments and the effects of changes in actuarial assumptions are immediately recognized in the Statement of Profit and Loss.
(j) Taxes
a) Income tax: Current income tax is recognized based on the amount expected to be paid to the tax authorities, using tax rates and tax laws that have been enacted or substantially enacted on the date of balance sheet.
b) Deferred tax: Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the separate financial statements.
Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively
(k) Borrowing Costs
Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.
(l) Provisions, 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.
Mar 31, 2015
1. Tulip Star Hotels Limited was incorporated on 19th September 1987.
Currently the shares of Tulip Star Hotels Limited are listed on Bombay
Stock Exchange. Tulip Star Hotels Limited is in the business of Owning
and Managing hotels.
(a) Basis of Accounting
Accounts of the Company are prepared under the historical cost
convention on an accrual concept in accordance with applicable
accounting standards. Te Company prepares its accounts as per the
historical cost convention on going concern concept and on accrual
basis except where otherwise stated, in accordance with normally
accepted accounting principles, provisions of the Companies Act, 2013
and applicable Accounting Standards issued by the Institute of
Chartered Accountants of India.
(b) Income
In respect of income, including interest income on loans and advances,
the Company accounts for such income on an accrual basis save and
except the items of revenue in regard to which there exists significant
uncertainty about the ultimate realisation.
(c) Expenses
Expenses are accounted on accrual basis.
(d) Depreciation
Te depreciation on owned assets is provided as per the provisions of
Schedule II of the Companies Act, 2013, on written down value method.
(e) Fixed Assets
Fixed Assets are stated at cost less depreciation.
An asset is treated as impaired when the carrying amount exceeds its
recoverable value. An impairment loss is charged to the Profit & Loss
account in the year in which an asset is identified as impaired. Te
impairment loss recognized in the prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
(f ) Investments
Long term investments are stated at cost less any permanent diminution,
in value, if any.
(g) Inventories
Stock-in-trade is valued at cost or market value whichever is lower.
(h) Foreign Currency Transaction
Transactions in foreign currency are accounted at the rates of exchange
prevailing on the date of transactions.
Exchange differences arising on foreign currency transactions are
recognized as income or expense in the period in which they arise.
Monetary items denominated in foreign currency and outstanding at the
Balance Sheet date are translated at the exchange rate prevailing at
the year-end.
Exchange differences related to liabilities against fixed assets are
transferred to the Profit and Loss Account.
Exchange differences related to restatement of other foreign exchange
assets / liabilities as at the date of the balance sheet are
transferred to the Profit and Loss Account.
(i) Employee Benefits Provident Fund Company's contributions paid /
payable during the year to Provident Fund are recognized in the Profit
and Loss Account.
Gratuity
Te Company accounts for the net present value of its obligations for
gratuity benefit based on independent external actuarial valuation
determined on the basis of the projected unit credit method carried out
annually. Actuarial gains or losses are immediately recognised in the
Profit & Loss Account Compensated Absences Te Company has a scheme for
compensated absences for employees, the liability for which is
determined on the basis of an actuarial valuation carried out at the
end of the year.
(j) Assets taken on Lease
In respect of lease transactions entered into by the Company, all of
which are finance leases entered into prior to April 01, 2001, lease
rents paid are charged to Profit & Loss Account in accordance with the
terms of lease agreement, as permitted by Accounting Standard 19 Â
Leases, issued by the Institute of Chartered Accountants of India
(ICAI).
(k) Taxes
a) Current tax is determined in accordance with Income Tax Act, 1961.
b) Deferred tax is recognised for all the timing differences. Deferred
tax assets are recognised when considered prudent.
(m) Share Issue Expenses
Te expenses are charged to Profit & Loss in the year in which the
shares are issued.
(n) Borrowing Costs
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
(o) Provisions, 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 recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2014
1. Tulip Star Hotels Limited was incorporated on 19th September 1987.
Currently the shares of Tulip Star Hotels Limited are listed on Bombay
stock Exchange. Tulip Star Hotels Limited is in the business of Owning
and Managing hotels.
2. ACCOUNTING POLICIES: -
Significant accounting policies adopted in the presentation of accounts
are as under:
(a) Basis of Accounting
Accounts of the Company are prepared under the historical cost
convention on an accrual concept in accordance with applicable
accounting standards. The Company prepares its accounts as per the
historical cost convention on going concern concept and on accrual
basis except where otherwise stated, in accordance with normally
accepted accounting principles, provisions of the Companies Act, 1956
and applicable Accounting Standards issued by the Institute of
Chartered Accountants of India.
(b) Income
In respect of income, including interest income on loans and advances,
the Company accounts for such income on an accrual basis save and
except the items of revenue in regard to which there exists significant
uncertainty about the ultimate realisation.
(c) Expenses
Expenses are accounted on accrual basis.
(d) Depreciation
The depreciation on owned assets is provided as per the provisions of
Schedule XIV of the Companies Act, 1956, on written down value method.
(e) Fixed Assets
Fixed Assets are stated at cost less depreciation.
An asset is treated as impaired when the carrying amount exceeds its
recoverable value. An impairment loss is charged to the Profit & Loss
account in the year in which an asset is identified as impaired. The
impairment loss recognized in the prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
(f) Investments
Long term investments are stated at cost less any permanent diminution,
in value, if any.
(g) Inventories
Stock-in-trade is valued at cost or market value whichever is lower,
(h) Foreign Currency Transaction Transactions in foreign currency are
accounted at the rates of exchange prevailing on the date of
transactions.
Exchange differences arising on foreign currency transactions are
recognized as income or expense in the period in which they arise.
Monetary items denominated in foreign currency and outstanding at the
Balance Sheet date are translated at the exchange rate prevailing at
the year-end.
Exchange differences related to liabilities against fixed assets are
transferred to the Profit and Loss Account.
Exchange differences related to restatement of other foreign exchange
assets / liabilities as at the date of the balance sheet are
transferred to the Profit and Loss Account, (i) Employee Benefits
Provident Fund
Company''s contributions paid / payable during the year to Provident
Fund are recognized in the Profit and Loss Account.
Gratuity
The Company accounts for the net present value of its obligations for
gratuity benefit based on independent external actuarial valuation
determined on the basis of the projected unit credit method carried out
annually. Actuarial gains or losses are immediately recognised in the
Profit & Loss Account Compensated Absences
The Company has a scheme for compensated absences for employees, the
liability for which is determined on the basis of an actuarial
valuation carried out at the end of the year, (j) Assets taken on Lease
In respect of lease transactions entered into by the Company, all of
which are finance leases entered into prior to April 01, 2001, lease
rents paid are charged to Profit & Loss Account in accordance with the
terms of lease agreement, as permitted by Accounting Standard 19 Â
Leases, issued by the Institute of Chartered Accountants of India
(ICAI).
(k) Taxes
a) Current tax is determined in accordance with Income Tax Act, 1961.
b) Deferred tax is recognised for all the timing differences. Deferred
tax assets are recognised when considered prudent, (m) Share Issue
Expenses
The expenses are charged to Profit & Loss in the year in which the
shares are issued.
(n) Borrowing Costs
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
(o) Provisions, 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 recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2013
(a) Basis of Accounting Accounts of the Company are prepared under the
historical cost convention on an accrual concept in accordance with
applicable accounting standards. The Company prepares its accounts as
per the historical cost convention on going concern concept and on
accrual basis except where otherwise stated, in accordance with
normally accepted accounting principles, provisions of the Companies
Act, 1956 and applicable Accounting Standards issued by the Institute
of Chartered Accountants of India.
(b) Income In respect of income, including interest income on loans and
advances, the Company accounts for such income on an accrual basis save
and except the items of revenue in regard to which there exists signif
cant uncertainty about the ultimate realisation.
(c) Expenses Expenses are accounted on accrual basis.
(d) Depreciation The depreciation on owned assets is provided as per
the provisions of Schedule XIV of the Companies Act, 1956, on written
down value method.
(e) Fixed Assets Fixed Assets are stated at cost less depreciation.
An asset is treated as impaired when the carrying amounThexceeds its
recoverable value. An impairment loss is charged to the Prof t & Loss
account in the year in which an asset is identif ed as impaired. The
impairment loss recognized in the prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
(f ) Investments
Long term investments are stated at cost less any permanent diminution,
in value, if any. (g) Inventories
Stock-in-trade is valued at cost or market value whichever is lower.
(h) Foreign Currency Transaction
Transactions in foreign currency are accounted at the rates of exchange
prevailing on the date of transactions.
Exchange dif erences arising on foreign currency transactions are
recognized as income or expense in the period in which they arise.
Monetary items denominated in foreign currency and outstanding at the
Balance Sheet date are translated at the exchange rate prevailing at
the year-end.
Exchange dif erences related to liabilities against f xed assets are
transferred to the Prof t and Loss Account.
Exchange dif erences related to restatement of other foreign exchange
assets / liabilities as at the date of the balance sheet date are
transferred to the Prof t and Loss Account.
(i) Employee Benef ts
Provident Fund
Company''s contributions paid / payable during the year to Provident
Fund are recognized in the Prof t and Loss Account.
Gratuity
The Company accounts for the net present value of its obligations for
gratuity benef t based on independenThexternal actuarial valuation
determined on the basis of the projected unit credit method carried out
annually. Actuarial gains or losses are immediately recognised in the
Prof t & Loss Account Compensated Absences
The Company has a scheme for compensated absences for employees, the
liability for which is determined on the basis of an actuarial
valuation carried out at the end of the year.
(j) Assets taken on Lease In respect of lease transactions entered into
by the Company, all of which are f nance leases entered into prior to
April 01, 2001, lease rents paid are charged to Prof t & Loss Account
in accordance with the terms of lease agreement, as permitted by
Accounting Standard 19 Â Leases, issued by the Institute of Chartered
Accountants of India (ICAI).
(k) Taxes
a) Current tax is determined in accordance with Income Tax Act, 1961.
b) Deferred tax is recognised for all the timing dif erences. Deferred
tax assets are recognised when considered prudent. (m) Share Issue
Expenses
The expenses are charged to Prof t & Loss in the year in which the
shares are issued.
(n) Borrowing Costs
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
(o) Provisions, 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 outf ow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the f
nancial statements.
Mar 31, 2012
(a) Basis of Accounting
Accounts of the Company are prepared under the historical cost
convention on an accrual concept in accordance with applicable
accounting standards. The Company prepares its accounts as per the
historical cost convention on going concern concept and on accrual
basis except where otherwise stated, in accordance with normally
accepted accounting principles, provisions of the Companies Act, 1956
and applicable Accounting Standards issued by the Institute of
Chartered Accountants of India.
(b) Income
In respect of income, including interest income on loans and advances,
the Company accounts for such income on an accrual basis save and
except the items of revenue in regard to which there exists significant
uncertainty about the ultimate realisation.
(c) Expenses
Expenses are accounted on accrual basis.
(d) Depreciation
The depreciation on owned assets is provided as per the provisions of
Schedule XIV of the Companies Act, 1956, on written down value method.
(e) Fixed Assets
Fixed Assets are stated at cost less depreciation.
An asset is treated as impaired when the carrying amount exceeds its
recoverable value. An impairment loss is charged to the Profit & Loss
account in the year in which an asset is identified as impaired. The
impairment loss recognized in the prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
(f) Investments
Long term investments are stated at cost less any permanent diminution,
in value, if any.
(g) Inventories
Stock-in-trade is valued at cost or market value whichever is lower.
(h) Foreign Currency Transaction
Transactions in foreign currency are accounted at the rates of exchange
prevailing on the date of transactions.
Exchange differences arising on foreign currency transactions are
recognized as income or expense in the period in which they arise.
Monetary items denominated in foreign currency and outstanding at the
Balance Sheet date are translated at the exchange rate prevailing at
the year-end.
Exchange differences related to liabilities against fixed assets are
transferred to the Profit and Loss Account.
Exchange differences related to restatement of other foreign exchange
assets / liabilities as at the date of the balance sheet date are
transferred to the Profit and Loss Account.
(i) Employee Benefits Provident Fund
Company's contributions paid / payable during the year to Provident
Fund are recognized in the Profit and Loss Account. Gratuity
The Company accounts for the net present value of its obligations for
gratuity benefit based on independent external actuarial valuation
determined on the basis of the projected unit credit method carried out
annually. Actuarial gains or losses are immediately recognised in the
Profit & Loss Account Compensated Absences
The Company has a scheme for compensated absences for employees, the
liability for which is determined on the basis of an actuarial
valuation carried out at the end of the year.
(j) Assets taken on Lease
In respect of lease transactions entered into by the Company, all of
which are finance leases entered into prior to April 01, 2001, lease
rents paid are charged to Profit & Loss Account in accordance with the
terms of lease agreement, as permitted by Accounting Standard 19 Ã
Leases, issued by the Institute of Chartered Accountants of India
(ICAI).
(k) Taxes
a) Current tax is determined in accordance with Income Tax Act, 1961.
b) Deferred tax is recognised for all the timing differences. Deferred
tax assets are recognised when considered prudent.
(m) Share Issue Expenses
The expenses are charged to Profit & Loss in the year in which the
shares are issued.
(n) Borrowing Costs
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
(o) Provisions, 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 recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2011
(a) Basis of Accounting
Accounts of the Company are prepared under the historical cost
convention on an accrual concept in accordance with applicable
accounting standards.
(b) Income
In respect of income, including interest income on loans and advances,
the Company accounts for such income on an accrual basis save and
except the items of revenue in regard to which there exists significant
uncertainty about the ultimate realisation.
(c) Expenses
Expenses are accounted on accrual basis.
(d) Depreciation
The depreciation on owned assets is provided as per the provisions of
Schedule XIV of the Companies Act, 1956, on written down value method.
(e) Fixed Assets
Fixed Assets are stated at cost less depreciation.
An asset is treated as impaired when the carrying amount exceeds its
recoverable value. An impairment loss is charged to the Profit & Loss
account in the year in which an asset is identified as impaired. The
impairment loss recognized in the prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
(f ) Investments
Long term investments are stated at cost less any permanent diminution,
in value, if any.
(g) Inventories
Stock-in-trade is valued at cost or market value whichever is lower.
(h) Foreign Currency Transaction
Transactions in foreign currency are accounted at the rates of exchange
prevailing on the date of transactions.
Exchange differences arising on foreign currency transactions are
recognized as income or expense in the period in which they arise.
Monetary items denominated in foreign currency and outstanding at the
Balance Sheet date are translated at the exchange rate prevailing at
the year-end.
Exchange differences related to liabilities against fixed assets are
adjusted towards cost of the relevant assets.
Exchange differences related to restatement of other foreign exchange
assets / liabilities as at the date of the balance sheet date are
transferred to the Profit and Loss Account.
(i) Employee Benefits Provident Fund Company's contributions paid /
payable during the year to Provident Fund are recognized in the Profit
and Loss Account.
Gratuity
The Company accounts for the net present value of its obligations for
gratuity Benefit based on independent external actuarial valuation
determined on the basis of the projected unit credit method carried out
annually. Actuarial gains or losses are immediately recognised in the
Profit & Loss Account
Compensated Absences
The Company has a scheme for compensated absences for employees, the
liability for which is determined on the basis of an actuarial
valuation carried out at the end of the year.
(j) Assets taken on Lease
In respect of lease transactions entered into by the Company, all of
which are f nance leases entered into prior to April 01, 2001, lease
rents paid are charged to Profit & Loss Account in accordance with the
terms of lease agreement, as permitted by Accounting Standard 19 Ã
Leases, issued by the Institute of Chartered Accountants of India
(ICAI).
(k) Segment reporting
The accounting policies of Segment reporting are in line with the
accounting policies of the Company with the following additional
policies:- a) Inter-segment revenues are accounted on the basis of
prices charged to external customers. b) Revenue and expenses are
identified to segments on the basis of their relationship to the
operating activities of the Segment.
Expenditure, which relates to the enterprise as a whole and not
allocable to Segments on a reasonable basis, is included under
"Unallocated Expenditure."
(l) Taxes
a) Current tax is determined in accordance with Income Tax Act, 1961.
b) Deferred tax is recognised for all the timing differences. Deferred
tax assets are recognised when considered prudent.
(m) Share Issue Expenses
The expenses will be charged to Profit & Loss in a year in which the
shares are issued.
(n) Borrowing Costs
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying assets is one that necessarily takes a
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
(o) Provisions, 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 recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2010
(a) Basis of Accounting
Accounts of the Company are prepared under the historical cost
convention on an accrual concept in accordance with applicable
accounting standards.
(b) Income
In respect of income, including interest income on loans and advances,
the Company accounts for such income on an accrual basis save and
except the items of revenue in regard to which there exists significant
uncertainty about the ultimate realisation.
(c) Expenses
Expenses are accounted on accrual basis.
(d) Depreciation
The depreciation on owned assets is provided as per the provisions of
Schedule XIV of the Companies Act, 1956, on written down value method.
(e) Fixed Assets
Fixed Assets are stated at cost less depreciation.
An asset is treated as impaired when the carrying amount exceeds its
recoverable value. An impairment loss is charged to the Profit & Loss
account in the year in which an asset is identified as impaired. The
impairment loss recognized in the prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
(f) Investments
Long term investments are stated at cost less any permanent diminution,
in value, if any.
(g) Inventories
Stock-in-trade is valued at cost or market value whichever is lower.
(h) Foreign Currency Transaction
Transactions in foreign currency are accounted at the rates of exchange
prevailing on the date of transactions.
Exchange differences arising on foreign currency transactions are
recognized as income or expense in the period in which they arise.
Monetary items denominated in foreign currency and outstanding at the
Balance Sheet date are translated at the exchange rate prevailing at
the year-end.
Exchange differences related to liabilities against fixed assets are
adjusted towards cost of the relevant assets.
Exchange differences related to restatement of other foreign exchange
assets / liabilities as at the date of the balance sheet date are
transferred to the Profit and Loss Account.
(i) Employee Benefits Provident Fund
Companys contributions paid / payable during the year to Provident
Fund are recognized in the Profit and Loss Account.
Gratuity
The Company accounts for the net present value of its obligations for
gratuity benefit based on independent external actuarial
valuation determined on the basis of the projected unit credit method
carried out annually. Actuarial gains or losses are immediately
recognised in the Profit & Loss Account
Compensated Absences
The Company has a scheme for compensated absences for employees, the
liability for which is determined on the basis of an actuarial
valuation carried out at the end of the year. (j) Assets taken on
Lease
In respect of lease transactions entered into by the Company, all of
which are finance leases entered into prior to April 01, 2001, lease
rents paid are charged to Profit & Loss Account in accordance with the
terms of lease agreement, as permitted by Accounting Standard 19 -
Leases, issued by the Institute of Chartered Accountants of India
(ICAI).
(k) Segment reporting
The accounting policies of Segment reporting are in line with the
accounting policies of the Company with the following additional
policies:-
a) Inter-segment revenues are accounted on the basis of prices charged
to external customers.
b) Revenue and expenses are identified to segments on the basis of
their relationship to the operating activities of the Segment.
Expenditure, which relates to the enterprise as a whole and not
allocable to Segments on a reasonable basis, is included under
"Unallocated Expenditure."
(1) Taxes
a) Current tax is determined in accordance with Income Tax Act, 1961.
b) Deferred tax is recognised for all the timing differences. Deferred
tax assets are recognised when considered prudent. (m) Share Issue
Expenses
The expenses will be charged to Profit & Loss in a year in which the
shares are issued. (n) Borrowing Costs
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying assets is one that necessarily takes a
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
(o) Provisions, 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 recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.