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SENSEX NIFTY India | Accounting Policy > Miscellaneous > Accounting Policy followed by Choksi Labs - BSE: 526546, NSE: N.A

Choksi Labs

BSE: 526546|ISIN: INE493D01013|SECTOR: Miscellaneous
Nov 15, 16:00
0.19 (1.55%)
Choksi Labs is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
A) Basis of Preparation of Financial Statements:
 i) The financial statements are prepared under the historical cost
 convention and are prepared on accrual basis in accordance with the
 generally accepted accounting principles in India (Indian
 GAAP),applicable provisions of the Companies Act, 2013, the Accounting
 Standards specified under Section 133 of the Companies Act, 2013 read
 with Rule 7 of Companies (Accounts) Rules 2014. All incomes and
 expenditures, having a material bearing on the finanical statements,
 are recognized on an accrual basis.
 Use of Estimates
 ii) The preparation of financial statements in conformity with Indian
 GAAP requires judgements, estimates and assumptions to be made that
 affect the reported amount of assets and liabilities on the date of the
 financial statements and the reported amount of revenues and expenses
 during the reporting period. Difference between the actual results and
 estimates are recognised in the period in which the results are known/
 B) Fixed Assets :
 Tangible Assets
 i) Tangible Assets are stated at historical cost of acquisition /
 construction, net of cenvat less accumulated depreciation and
 impairment loss, if any. All costs including financial costs and
 revenue expenditure till commencement of services, net charges on
 foreign exchange contracts and adjustments arising from exchange rate
 variations attributable to the tangible assets are capitalized.
 Grants/ subsidies received, if any, from Government and others towards
 cost/ part of the cost fixed asset(s) are reduced from the cost of the
 respective asset(s) and the net cost incurred by the Company only is
 carried to the fixed assets block.
 Intangible assets
 Intangible Assets are stated at cost of acquisition net of recoverable
 taxes less accumulated amortisation/ depletion and impairment loss, if
 any. The cost comprises purchase price, borrowing costs, and any cost
 directly attributable to bringing the asset to its working condition
 for the intended use .
 ii) Capital Work-in-Progress: Amounts spent on expansion project are
 carried at cost under the head Capital Works in Progress. As and when
 the assets are put to commercial use, cost of the respective asset is
 capitalized. Besides the direct cost, indirect costs relating to the
 acquisition and installation of assets incurred till the assets are put
 to use are capitalized in the proportionate value of assets.
 Depreciation, Amortization and Depletion
 iii) Depreciation on tangible fixed assets is provided under straight
 line method (SLM) over the useful lives of assets estimated by the
 management in the manner prescribed in Schedule II to the Companies
 Act, 2013.
 iv) Amortisation of intangible assets is provided as per the useful
 lives of the same.
 v) Impairment of Assets : An asset is treated as impaired when the
 carrying cost exceeds its recoverable value. An impairment loss is
 charged to the Profit & Loss Account in the year in which an asset is
 identified as impaired. The impairment loss recognized in a prior
 accounting period is reversed if there has been a change in the
 estimate of recoverable amount.
 C) Revenue Recognition :
 Revenue is recognized to the extent it is probable that the economic
 benefits will flow to the company and the revenue can be reliably
 i) Revenue from Testing and Analysis Services is recognized as the
 service is performed in accordance with the methods prescribed in AS -
 9, Revenue Recognition.
 ii) Interest income is recognized on a time proportion basis taking
 into account the amount outstanding and the rate applicable.
 D) Employee Benefits :
 i) Short term employee benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss account of the year in which
 the related service is rendered.
 ii) Post employment and other long term employee benefits are
 recognized as an expense in the Profit and Loss account for the year in
 which the employee has rendered services. The expense is recognized at
 the present value of the amounts payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long term benefits are charged to the Profit and
 Loss account.
 E) Prior Period Expenses/ Income :
 The Company follows the practice of making adjustments through
 expenses/income under/over provided in previous years in respect of
 material transactions pertaining to that period prior to the current
 accounting year.
 F) Foreign Currency Transactions :
 Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of 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 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 recognized as income or expense in
 the year in which they arise.
 G) Borrowing Costs:
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to Profit and Loss account.
 H) Earnings per Share :
 The basic earnings per share is computed by dividing the net profit
 attributable to equity shareholders for the period by the weighted
 average number of equity shares outstanding during the period. The
 number of shares used in computing diluted earnings per share comprises
 the weighted average shares considered for deriving basic earnings per
 share, and also the weighted average number of equity shares which
 could have been issued on the conversion of all dilutive potential
 equity shares. In computing diluted earnings per share, only potential
 equity shares that are dilutive and that either reduce earnings per
 share or increase loss per share are included.
 I) Provision for Current and Deferred Tax :
 Provision for Current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 Deferred tax resulting from timing difference between taxable income
 and accounting income is accounted for using the tax rates and laws
 that are enacted or substantively enacted as on the balance sheet date.
 Deferred tax asset is recognized and carried forward only to the extent
 that there is virtual certainty that the asset will be realized in
 J) Provisions, Contingent Liabilities and Contingent Assets :
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 K) General :
 Accounting policies not specifically referred to above are consistent
 with the generally accepted accounting principles followed in India.
Source : Dion Global Solutions Limited
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