Election 2014
SENSEX NIFTY
Moneycontrol.com India | Accounting Policy > Mining/Minerals > Accounting Policy followed by Indsil Hydro Power and Manganese - BSE: 522165, NSE: N.A
YOU ARE HERE > MONEYCONTROL > MARKETS > MINING/MINERALS > ACCOUNTING POLICY - Indsil Hydro Power and Manganese
Indsil Hydro Power and Manganese
BSE: 522165|ISIN: INE867D01018|SECTOR: Mining/Minerals
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Apr 23, 17:00
25.30
0.8 (3.27%)
VOLUME 38,592
Indsil Hydro Power and Manganese is not listed on NSE
Jun 12
Accounting Policy Year : Jun '13
a) Basis of Preparation
 
 i) The financial statements have been prepared to comply in all
 material respects with the accounting standards notified under the
 Companies (Accounting Standards) Rules, 2006 and the relevant
 provisions of the Companies Act 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 The accounting policies are consistent with those used in the previous
 year.
 
 b) Use of Estimates
 
 i) The preparation of financial statements requires the management of
 the Company to make estimates and assumptions that affect the reported
 balances of Assets and Liabilities and disclosures relating to the
 contingent liabilities as at the date of the financial statements and
 reported amounts of Income and expenses during the year. Examples of
 such estimates include provision for doubtful debts, Employees''
 retirement benefit plan, provision for Income and other taxes, useful
 life of fixed assets, etc. Actual results could differ from the
 estimates made. Any revision to accounting estimates is recognized
 prospectively in the year in which the events are materialized.
 
 c) Fixed assets and Depreciation
 
 i) Fixed assets are stated at original cost net of tax / duty credits
 availed if any, less accumulated depreciation.  Cost include
 pre-operative expenses and all expenses related to acquisition and
 installation of the concerned assets.
 
 ii) Depreciation on Fixed assets is provided on straight line method in
 accordance with the rates specified under Schedule XIV of the Companies
 Act, 1956. Individual assets costing Rs.5,000/- or less are depreciated
 fully in the year of purchase.
 
 d) Investments
 
 Long term investments held by the Company are stated at cost. Provision
 for diminution, if any, in the value of long- term investments is made,
 if the diminution is other than temporary. Current investments are
 stated at lower of cost or net realisable value.
 
 e) Inventories
 
 Raw Materials and Stores & Spares are valued at cost on FIFO basis.
 Finished goods and Work-in-Progress are valued at lower of the cost
 including related overheads and estimated net realisable value.
 
 f) Foreign Currency Transactions
 
 i) Foreign currency transactions are recorded at exchange rates
 prevailing on the date of such transaction.
 
 ii) Foreign Currency assets and liabilities at the year end are
 realigned at the exchange rate prevailing at the year end and
 difference on realignment is recognised in the Statement of Profit &
 Loss.
 
 g) Revenue Recognition:
 
 i) The Company generally follows the mercantile system of accounting
 and recognises income and expenditure on an accrual basis except those
 with significant uncertainities.
 
 ii) Sale of goods is recognised when the risk and rewards of ownership
 are passed on to the customers, which is generally on despatch of
 goods.
 
 iii) Dividend, interest, export incentives and other income are
 accounted on accrual basis except those items with significant
 uncertainities.
 
 h) Taxes on Income
 
 a) Current tax on income for the period is determined on the basis of
 taxable income and tax credits computed in accordance with the
 provisions of the Income Tax Act, 1961 and based on the expected
 outcome of assessment/appeals.
 
 b) Deferred tax is recognised on timing differences between the
 accounting income and the taxable income for the year, and quantififed
 using the tax rates and laws enacted or substantively enacted as on the
 Balance Sheet date.
 
 c) Deferred tax assets are recognised and carried forward to the extent
 that there is a reasonable certainity that sufficient future income
 will be available against which such deferred tax assets can be
 realised.
 
 i) Retirement Benefits
 
 i) Defined Contribution Plans:
 
 The Company''s defined contribution plans are Employees'' Provident Fund
 (under the provisions of the Employees'' Provident Funds and
 Miscellaneous Provisions Act, 1952) & ESI (under the provisions of
 Employees State Insurance Act, 1948). Hence, the Company has no further
 obligation beyond making the contributions. The Company''s contributions
 to Provident Fund and Employer''s State Insurance are made at a
 pre-determined rates and are charged to the Statement of Profit and
 Loss. Hence, the Company has no further obligation beyond making the
 contributions.
 
 ii) Defined Benefit Plans:
 
 The Company is required to pay gratuity under The Payment of Gratuity
 Act 1972. The liability for gratuity, being a defined benefit plan, is
 determined by an independent actuary at each balance sheet date and
 actuarial gains / losses are charged to the statement of profit & loss.
 The difference between the actuarial liability and the fund balance, if
 any, is shown as Liability or an Asset as the case may be.
 
 iii) Short term employee benefits:
 
 All employee benefits falling due wholly within twelve months of
 rendering the services are classified as short term employee benefits,
 which include benefits like salaries, wages, short term compensated
 absences and performances incentive and are recognized as expenses in
 the period in which the employee renders the related service.
 
 j) Employee Stock Option Plan
 
 In respect of Employees stock Options the excess of market price on the
 date of grant over the exercise price is recognised as deferred
 compensation cost and amortised over the vesting period.
 
 k) Impairment of Fixed assets
 
 As at each balance sheet date, the carrying amount of assets is tested
 for impairment so as to determine;
 
 i) the provision for impairment loss, if any, required or;
 
 ii) the reversal, if any, required of impairment loss recognised in
 previous periods.
 
 Impairment loss is recognised when the carrying amount of an asset
 exceeds its recoverable amount.
 
 l) Borrowing Cost
 
 i) Borrowing costs attributable to acquisition and construction of
 qualifying assets are capitalized as part of the asset up to the date
 when such asset is ready for its intended use. Other borrowing costs
 are charged to the statement of profit and loss.
 
 m) Cash and Cash Equivalents
 
 Cash flow are reported using the indirect method, where by net profit
 before tax is adjusted for the effects of transaction of a non cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flow comprises regular revenue generating, investing
 and financing activities of the Company. Cash and cash equivalents in
 the balance sheet comprise of cash at bank and in hand and short term,
 highly liquid investments that are readily convertible into known
 amounts of cash and which are subject to an insignificant risk of
 changes in value.
 
 n)       Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made.  Provisions are not discounted
 to its present value and are determined based on best estimate required
 to settle the obligation at the balance sheet date. These are reviewed
 at each balance sheet date and adjusted to reflect the current best
 estimates.
 
 o) Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity share (after deducting
 preference dividends and attributable taxes if any) by the weighted
 average number of equity shares outstanding during the period. The
 weighted average number of equity shares outstanding during the period
 are adjusted for events of bonus issue; bonus element in a rights issue
 to existing shareholders; share split; and consolidation of shares if
 any. For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 p) MAT Credit Entitlement
 
 MAT credit is recognized as an asset only when and to the extent there
 is convincing evidence that the Company will pay normal income tax
 during the specified period. In the year in which the Minimum
 Alternative Tax (MAT) credit becomes eligible to be recognized as an
 asset in accordance with the recommendations contained in guidance note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the statement of Profit and Loss
 and shown as MAT Credit entitlement. The Company reviews the same at
 each balance sheet date and writes down the carrying amount of MAT
 Credit entitlement to the extent there is no longer convincing evidence
 to the effect that Company will pay normal Income Tax during the
 specified period.
 
 q) Leases
 
 Finance leases, where substantially all the risks and benefits
 incidental to ownership of the leased item, are transferred to the
 Company, are capitalized at the lower of the fair value and present
 value of the minimum lease payments at the inception of the lease term
 and disclosed as leased assets. Lease payments are apportioned between
 finance charges and reduction of the lease liability based on the
 implicit rate of return. Finance charges are charged to income. Lease
 management fees, legal charges and other initial direct costs are
 capitalized. Leases where the lessor effectively retains substantially
 all the risks and benefits of ownership of the leased term, are
 classified as operating leases. Operating lease payments are recognized
 as an expense in the statement of Profit and Loss on a straight-line
 basis over the lease term.
Source : Dion Global Solutions Limited
Quick Links for indsilhydropowermanganese
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.