SENSEX NIFTY
Moneycontrol.com India | Accounting Policy > Trading > Accounting Policy followed by Singer India - BSE: 505729, NSE: SINGER
YOU ARE HERE > MONEYCONTROL > MARKETS > TRADING > ACCOUNTING POLICY - Singer India
Singer India
BSE: 505729|NSE: SINGER|ISIN: INE638A01027|SECTOR: Trading
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Aug 22, 16:20
142.10
-11.4 (-7.43%)
VOLUME 76,727
Singer India is not traded in the last 30 days
« Jun 12
Accounting Policy Year : Jun '13
(a) Basis of Preparation
 
 The financial statements of the Company have been prepared in
 accordance with generally accepted accounting principles in India
 (Indian GAAP). The Company has prepared these Financial Statements to
 comply in all material aspects with the Accounting Standards notified
 under the Companies (Accounting Standards) Rules, 2006 (as amended) and
 the relevant provisions of the Companies Act, 1956. The Financial
 Statements have been prepared on accrual basis and under the historical
 cost convention. The accounting policies have been consistently applied
 by the Company and are consistent with those used in the previous year.
 
 (b) Use of Estimates
 
 The preparation of the Financial Statements in conformity with
 generally accepted accounting principles requires the management to
 make estimates and assumptions that affect the reporting balances of
 assets and liabilities and disclosures relating to contingent
 liabilities as at the date of the financial statements and reporting
 amounts of income and expenditure during the year. Contingencies are
 recorded when it is probable that a liability will be incurred, and the
 amount can be reasonably estimated. Actual results could differ from
 such estimates. Any revision to accounting estimates is recognised in
 the period the same is determined.
 
 (c) Tangible Fixed Assets
 
 Fixed Assets are stated at cost (or revalued amount as the case may
 be), less accumulated depreciation and impairment losses, if any. Cost
 comprises the purchase price / cost of acquisition including taxes,
 duties, freight and other incidental expenses related to acquisition,
 construction and installation to bring the asset to its working
 condition for its intended use. Wherever assets are revalued, amount
 added on revaluation based on approved valuer''s report is disclosed
 separately as required by the Companies Act, 1956. Borrowing costs that
 are directly attributable to acquisition, construction or production of
 a qualifying asset are capitalized.
 
 (d) Intangible Fixed Assets
 
 Intangible fixed assets are stated at cost less accumulated
 amortization and net of impairments, if any. An intangible asset is
 recognized if it is probable that the expected future economic benefits
 that are attributable to the asset will flow to the Company and its
 cost can be measured reliably. Intangible assets having finite useful
 lives are amortized on straight line basis over their estimated useful
 lives. Computer Software is amortised over a period of thirty six
 months is done on the straight line method.
 
 (e) Impairment of Assets
 
 Regular review is done to determine whether there is any indication for
 impairment in carrying amount of the Company''s fixed assets. If any
 indication exists, an assets recoverable amount is estimated based on
 internal / external factors. An impairment loss is recognized if the
 carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the asset''s net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value at the weighted average
 cost of capital.
 
 (f) Investments
 
 Long term investments are stated at cost. Provision for diminution in
 value, other than temporary, is made in the accounts. Earnings on
 investments are accounted for when the right to receive payment is
 established.
 
 (g) Inventories
 
 Inventories (Finished Goods and Work-in- progress) are valued at lower
 of cost or net realisable value, on the basis of physical verification
 caried out by the management. Cost is arrived at on FIFO basis and
 includes appropriate portion of allocable overheads. Cost of finished
 goods includes excise duty. Net realizable value is the estimated
 selling price in ordinary course of business, less estimated cost
 necessary to make the sale. Raw Materials are valued at cost (FIFO
 basis). Goods in transit are valued at cost. Cost of inventories have
 been computed to include all costs of purchases, cost of conversion and
 other costs incurred in bringing the inventories to their present
 location and condition.
 
 (h) Warranties
 
 Product warranty costs are determined using reasonable estimates based
 on costs incurred in the past and are provided for in the year sale is
 made. Contractual obligations in respect of warranties includes
 estimates made for the products sold by the Company which are covered
 under free replacement warranty on manufacturing defects / breakages
 etc. in respect of sewing machines and household consumer durables /
 small appliances and are accrued at 1% of sales to cover future costs.
 
 (i) Excise Duty
 
 Excise duty is accounted for at the point of manufacture of goods and
 accordingly, is considered for valuation of finished goods stock lying
 in the factory and branches and as on the Balance Sheet date.
 
 (j) Revenue recognition
 
 i) Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the company and the revenue can be
 reliably measured. Revenue from sale of goods is recognized when all
 significant risk and rewards of the ownership are transferred to the
 buyer as per the terms of sales which coincides with the despatch of
 the goods. Revenue is recorded net of value added tax / sales tax,
 returns and gross of excise duty, if any.
 
 ii) Interest income is recognized on time proportionate basis taking
 into account the amount outstanding and the rate applicable and is
 stated at gross.
 
 (k) Depreciation Depreciation is provided on a straight-line basis at
 the per annum rates (with the corresponding useful life) specified
 below :
 
 Assets costing less than Rs. 5,000/- per unit are depreciated at the
 rate of 100%. Depreciation on additions is provided on prorata basis
 from the date of such additions. Similarly, depreciation on assets
 sold/disposed off during the year is provided up to the date on which
 such assets are sold/disposed off. Leasehold improvements represent
 renovation in new shops opened.
 
 The difference between depreciation calculated and provided on the
 revalued amount of fixed assets and depreciation calculated on the
 original cost of fixed assets is recouped from Revaluation Reserve.
 
 (l) Lease Leases where the lessor effectively retains substantially all
 the risks and benefits of ownership of the leased assets are classified
 as operating leases. Operating lease payments are recognized as an
 expense in the Statement of Profit & Loss on a straight-line basis over
 the lease term.
 
 (m) Foreign currency transactions
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items, which are carried in terms of historical cost
 denominated in a foreign currency, are reported using the exchange rate
 at the date of the transaction.
 
 Exchange differences arising on the settlement of monetary items or on
 reporting company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognised as income or as expenses
 in the year in which they arise.
 
 (n) Employees Benefits
 
 Short Term Employee Benefit is recognized as an expense in the
 Statement of Profit and Loss of the year in which related service is
 rendered. Post employment and other Long Term Employee Benefits are
 provided in the Accounts in the following manner:
 
 i) Gratuity: Maintained as a defined benefit retirement plan and
 contribution is made to the Life Insurance Corporation of India, as per
 the Company''s Scheme. Provision / write back, if any is made on the
 basis of the present value of the liability as at the Balance Sheet
 date determined by actuarial valuation following projected Unit Credit
 Method and is treated as liability.
 
 ii) Leave Encashment: As per independent actuarial valuation as at the
 Balance Sheet date following projected Unit Credit Method in accordance
 with the requirements of Accounting Standard AS-15 on ''Employee
 Benefit'' is included in provisions.
 
 iii) Provident Fund: Liability on account of Provident Fund (Pension)
 for employees is a defined contribution wherever contributions are made
 to a fund administered by Government Provident Fund Authority.
 
 For employees, Provident Fund administered by a Recognised Trust, is a
 Defined Benefit Plan (DBP) wherein the employee and the Company make
 monthly contributions. Pending the issuance of Guidance Note from the
 Actuarial Society of India, actuarial valuation is not carried out and
 the Company provides for required liability at year end, in respect of
 the shortfall, if any, upon confirmation from the Trustees of such
 fund.
 
 (o) Research and development
 
 Research and development expenses of revenue nature are charged to the
 Statement of Profit & Loss in the year in which they are incurred.
 
 (p) Taxes on Income
 
 Income Tax is accounted for in accordance with Accounting Standard on
 Accounting for Taxes on Income” notified pursuant to the Companies
 (Accounting Standards) Rules, 2006.
 
 Minimum Alternate Tax (MAT) is accounted for in accordance with tax
 laws which give rise to future economic benefits in the form of tax
 credits against which future income tax liability is adjusted and is
 recognized as an asset in the Balance Sheet.
 
 Deferred Tax is provided and recognized on timing differences between
 taxable income and accounting income subject to prudential
 consideration. Deferred Tax Asset on unabsorbed depreciation and carry
 forward of losses are recognized when there is virtual certainty about
 availability of future taxable income to realize such assets.
 
 (q) Provisions, Contingent Liabilities & Contingent
 
 Assets
 
 Provisions are recognized when there is a present legal or statutory
 obligation as a result of past events and where it is probable that
 there will be outflow of resources to settle the obligation and when a
 reliable estimate of the amount of the obligation can be made.
 
 Contingent Liabilities are recognized only when there is a possible
 obligation arising from past events due to occurrence or non-occurrence
 of one or more uncertain future events not wholly within the control of
 the Company or where any present obligation cannot be measured in terms
 of future outflow of resources or where a reliable estimate of the
 obligation cannot be made. Obligations are assessed on an ongoing basis
 and only those having a largely probable outflow or resources are
 provided for.
 
 Contingent Assets are not recognized in the Financial Statements.
 
 (r) Earnings per share
 
 Earning per share is calculated by dividing the net profit or loss for
 the year attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the year.
 
 (s) Events after the Balance Sheet date
 
 Events occurring after the date of the Balance Sheet which affect the
 financial position to a material extent are taken into cognizance.
Source : Dion Global Solutions Limited
Quick Links for singerindia
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.