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Binny
BSE: 514215|ISIN: INE118K01011|SECTOR: Textiles - Spinning - Cotton Blended
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« Mar 12
Accounting Policy Year : Mar '13
(a) Fixed assets
 
 (i) Fixed assets are stated at cost of acquisition inclusive of the
 cost of installation/erection and interest on borrowings for qualifying
 fixed assets, upto the date the asset is put to use, as applicable.
 
 (ii) Depreciation is provided on straight line method in accordance
 with Schedule XIV of the Companies Act 1956.
 
 (iii) Depreciation is provided on pro-rata basis from the day on which
 the assets have been put to use and up to the day on which assets have
 been disposed off.
 
 (b) Inventories
 
 Inventories consisting of Land and Building are valued at lower of cost
 and net realizable value. Cost is arrived at weighted average cost.
 
 (c) Revenue Recognition
 
 Financial statements are prepared under the historical cost convention.
 Revenue is recognized on accrual basis with provision made for known
 losses and expenses.
 
 Services - Agency commission is recognized on accrual basis. Rental
 income from properties is recognised on accrual basis as per the
 agreements entered. Interest income is recognized on time proportion
 method and dividend income is recognized when the right to receive is
 established.
 
 (d) Investments
 
 Investments meant to be held for long term are accounted at cost.
 Diminution in value, if any, is recognized in the Statement of Profit &
 Loss account.
 
 (e) Retirement Benefits
 
 (i) Contribution to Provident Fund is as per Rules of the own funds.
 
 (ii) Provision for gratuity is based on the calculations made as per
 the provisions of Payment of Gratuity Act,1972 and not funded. The
 company estimates its liability on actuarial valuation basis as of each
 year-end balance sheet date carried out, and is charged to Statement of
 Profit and Loss Account in accordance with AS-15 (revised).
 
 (iii) Leave encashment benefits is provided on accrual basis and is not
 funded.
 
 (f) Segment reporting
 
 The company operates under a single segment viz., services & related
 leasing activity.
 
 (g) Lease Rentals
 
 Lease rental in respect of operating lease arrangements are charged to
 expense on a straight line basis over the term of the related lease
 agreement.
 
 (h) Foreign Currency Transaction
 
 There are no foreign currency transactions.
 
 (i) Borrowing Costs
 
 Borrowing costs attributable to the acquisition, construction or
 production of qualifying assets are capitalized as a part of the cost
 of such assets up-to the date when such assets are ready for intended
 use. Other borrowing costs are charged as an expense in the year in
 which they are incurred.
 
 (j) Cash Flow Statement
 
 The Cash Flow statement is prepared under the indirect method as per
 Accounting Standard 3 Cash Flow Statements.
 
 (k) Earnings Per Share
 
 The company reports basic and diluted earnings per share in accordance
 with the Accounting Standard -20-Earnings Per Share.
 
 (l) Provision for Taxation
 
 Provision for Current Income Tax is made in accordance with the
 provisions of Income Tax Act, 1961. Deferred tax assets and liabilities
 are measured using substantially enacted tax rates as on the Balance
 Sheet date. The effect of deferred tax assets and liabilities of a
 change in tax rates is recognized in the income statement.
 
 (m) Impairment of Assets
 
 All assets other than inventories and deferred tax asset, are reviewed
 for impairment, wherever events or changes in circumstances indicate
 that the carrying amount may not be recoverable. Assets whose carrying
 value exceeds their recoverable amount are written down to the
 recoverable amount.
 
 (n) Provision and Contingencies
 
 The company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that probably will not require an
 outflow of resources or where a reliable estimate of the obligation
 cannot be made.
Source : Dion Global Solutions Limited
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