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Moneycontrol.com India | Accounting Policy > Finance - Investments > Accounting Policy followed by Gemstone Investments - BSE: 531137, NSE: N.A
Gemstone Investments
BSE: 531137|ISIN: INE503D01027|SECTOR: Finance - Investments
Apr 16, 17:00
Gemstone Investments is not listed on NSE
Mar 10
Accounting Policy Year : Mar '12
A Basis of preparation of Financial Statements :

i. The financial statements have been prepared under historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and in compliance with the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies act, 1956 as adopted consistently by the company.

ii. Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.

iii. The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized

B Revenue recognition :

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

C Expenditure:

Expenses are accounted on accrual basis and the provisions are made for all known losses and liabilities.

D Fixed Assets and Depreciation :

(i) Fixed Assets

Fixed assets are stated at their original cost of acquisition including incidental expenses related to acquisition & installation of the concerned assets less accumulated depreciation and impairment losses, if any,.

(ii) Depreciation /Amortization.

Depreciation on fixed assets are provided on W.D.V basis at the rates prescribed under Companies Act

E Investments :

Investments are classified into Non current investment and long term investments. Current investments are stated at lower of cost or fair market value. Long Term Investments are stated at cost less provision for permanent diminution in value if any, of investments

F Deferred tax :

Deferred Income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty of their realization and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

G Provision for Tax:

Provision for current tax is determined on the basis of estimated taxable income for the period as per the provisions of Income Tax Act, 1961.

H Earnings per Share (EPS) :

The earnings considered in ascertaining the Company's EPS are computed as per Accounting Standard 20 on Earning per Share, issued by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti- dilutive.

I Provision and Contingent Liabilities

Provisions are recognized and computed in accordance with Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets issued by the Institute of Chartered Accountants of India i.e. they are recognized if the following conditions are satisfied:

(a) The Company has a present obligation as a result of past event;

(b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(c) A reliable estimate can be made of the amount of the obligation.

Similarly, the Contingent liabilities are disclosed in Accordance with the Accounting Standard 29 i.e. they are disclosed when the Company has a possible obligation or a present obligation and it is probable that a Cash Outflow will not be required to settle the obligation

Source : Dion Global Solutions Limited
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