MARKET RADAR
SENSEX     NIFTY      Refresh
Moneycontrol.com India | Accounting Policy > Electric Equipment > Accounting Policy followed by Techno Electric and Engineering Company - BSE: 533281, NSE: TECHNO
YOU ARE HERE > MONEYCONTROL > MARKETS > ELECTRIC EQUIPMENT > ACCOUNTING POLICY - Techno Electric and Engineering Company
Techno Electric and Engineering Company
BSE: 533281|NSE: TECHNO|ISIN: INE286K01024|SECTOR: Electric Equipment
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
May 25, 17:00
178.90
2.3 (1.3%)
VOLUME 15,955
LIVE
NSE
May 25, 17:00
179.00
3.55 (2.02%)
VOLUME 11,250
« Mar 10
Accounting Policy Year : Mar '11
1.  Accounting Concept:
 
 The Accounts are prepared under the historical cost convention.
 Accounting Policies not referred to otherwise are consistent with
 Generally Accepted Accounting Principles and comply with the applicable
 Accounting Standards.
 
 2.  Recognition of Income & Expenditure:
 
 The Company follows Mercantile System of Accounting and recognises
 Income and Expenditure on accrual basis.  However, since it is not
 possible to ascertain with reasonable accuracy, the quantum to be
 provided in respect of Warranty and Liquidated Damages, Works Contract
 Tax, Marketing Commission, Bill Discounting Charges, Insurance Claims,
 Export benefits, the same are accounted for on cash basis.
 
 3.  Sales :
 
 The Company recognises Revenue for Supply Contracts on the basis of
 Bills raised against Supplies and for Erection & Construction Contracts
 on reaching reasonable stage of completion of respective Contracts.
 However, certain Escalation and other Claims, which are not
 ascertainable/acknowledged by the customers are not taken into account.
 
 Revenue from Sale of Energy (Power) is recognised on the basis of
 electrical units generated, net of wheeling and transmission loss as
 applicable, as stated in the Power Purchase agreement entered into
 between the Company and the State Utilities of Tamil Nadu and
 Karnataka.
 
 4.  Borrowing Costs:
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying assets are capitalised as part
 of the cost of such assets. A qualifying asset is one that necessarily
 takes substantial period of time to get ready for intended use. All
 other borrowing costs are charged to revenue.
 
 5.  Earning Per Share:
 
 Basic earning per share is calculated by dividing the net profit/(loss)
 for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 6.  Fixed Assets:
 
 (a) Fixed Assets are stated at their original cost, less accumulated
 depreciation. Cost includes all expenditure necessary to bring the
 asset to its working condition for its intended use.
 
 (b) Capital Work-in-progress comprises cost of fixed assets that are
 not yet ready for their intended use as at the Balance Sheet date.
 
 (c) Depreciation is calculated at the rates specified in Schedule XIV
 to the Companies Act,1956 and is provided for on Straight Line Method
 on all assets except Office Equipments, Furniture & Fixtures which is
 provided for on Written Down Value Method.
 
 (d) Lease hold Land is ammortised over the period of lease and the
 amortisation amount included under Depreciation.
 
 7.  Impairment of Assets:
 
 Impairment loss is recognized, where applicable, when the carrying
 value of the Fixed Assets of a cash generating unit exceeds its market
 value or value in use, whichever is higher.
 
 8.  Investments:
 
 Long Term Investments are carried at cost less provision for diminution
 other than temporary, in value of such investments determined
 individually. Short term investments are carried at lower of cost or
 fair value determined individually.
 
 9.  Inventories:
 
 Contract Work-in-Progress is stated at direct cost. However, materials
 purchased are charged to Profit and Loss Account as and when purchased.
 Process Stock is valued at cost or net realisable value, whichever is
 lower.
 
 10. Foreign Currency Transactions:
 
 Foreign Currency Transactions are normally recorded on the basis of
 exchange rates prevailing on the date of their occurrences. Foreign
 Currency Assets and Liabilities as on Balance Sheet date are revalued
 in the accounts on the basis of exchange rate prevailing at the close
 of the year and exchange difference arising therefrom is dealt in the
 Profit & Loss Account.
 
 11. Employee Benefits:
 
 Contributions to defined contribution scheme in the form of Provident
 and other funds are charged to the Profit and Loss account. In respect
 of certain employees, Provident Fund contributions are made to Trust
 administered by the trustees. The interest rate payable to the members
 of the Trust shall not be lower than the statutory rate of interest
 declared by the Central Government under the Employees Provident Fund
 and Miscellaneous Provisions Act,1952 and short fall, if any, shall be
 made good by the Company. The remaining contributions are made to a
 Government-administered Provident Fund towards which the Company has no
 further obligations beyond its monthly contribution.
 
 The Company has defined benefit plan for post-employment benefit in the
 form of gratuity for all employees, which are controlled by a Trust,
 administered by the Trustees, Liability for above defined benefit plan
 is provided on the basis of actuarial valuation as at the Balance Sheet
 Date, carried out by an independent actuary. The actuarial method used
 for measuring the liability is the projected unit credit method.
 
 In respect of compensated absences benefits to employees, liability is
 provided for on the basis of actuarial valuation as at the the Balance
 Sheet date, carried out by an independent actuary. The actuarial method
 used for measuring the liability is the projected unit credit method.
 
 12. Taxation:
 
 Current tax is determined on the basis of the amount payable for the
 year under Income Tax Act. Deferred tax is calculated at current/
 substantively enacted Income Tax rate and is recognised on timing
 differences between taxable income and accounting income. Deferred tax
 assets, subject to consideration of prudence, are recognised and
 carried forward only to the extent that there is reasonable certainty
 that sufficient future taxable income will be available against which
 such deferred tax assets can be realised.
 
 The Company''s business units, engaged in generation of electricity from
 Wind Mills at various locations, are eligible for 100 percent tax
 holiday for a period of 10 consecutive years out of 15 years, from the
 year in which the generation of power is started. Accordingly, the tax
 holiday period for the Units are likely to expire on various dates
 after financial year ending on 31.03.2023. Timing difference between
 the tax basis and the carrying values of assets and liabilities of the
 Units, which originate during the year but reverse during the tax
 holiday period are not recognised in the year in accordance with the
 requirements of Accounting Standard - 22: Accounting for Taxes of
 Income.
 
 13. Segment Reporting :
 
 The Accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company.  Segment revenue and expenses
 are directly attributable to the segment. Revenue and expenses like
 dividend, interest, profit/loss on sale of assets and investments etc.,
 which relate to the enterprise as a whole and are not allocable to
 segment on a reasonable basis, have not been included therein.
 
 All segment assets and liabilities are directly attributable to the
 segment. Segment assets include all operating assets used by the
 segment and consist principally of fixed assets, inventories, sundry
 debtors, loans and advances and operating cash and bank balances.
 Segment assets and liabilities do not include investments,
 miscellaneous expenditure not written off, share capital, reserves and
 surplus, unpaid dividend, deferred tax liability, provision for tax and
 proposed dividend.
 
 14. Provisions, Contingent Liabilities and Contingent Assets:
 
 A provision is recognised when the Company has a present obligation as
 a result of past events 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 their
 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.
 
 Contingent liabilities are disclosed by way of notes to the accounts.
 
 Contingent assets are not recognised.
Source : Dion Global Solutions Limited
Quick Links for technoelectricengineeringcompany
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.