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SENSEX NIFTY India | Accounting Policy > Domestic Appliances > Accounting Policy followed by Viaan Industries - BSE: 537524, NSE: N.A

Viaan Industries

BSE: 537524|ISIN: INE324N01027|SECTOR: Domestic Appliances
Oct 22, 16:00
0.01 (0.3%)
VOLUME 18,246
Viaan Industries is not listed on NSE
Mar 16
Accounting Policy Year : Mar '18


1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, on accrual basis of accounting and are in accordance with the Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 and including Accounting Standards notified under Companies (Accounting Standard), Rules 2014 as amended from time to time.

1.2 Use of estimates

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. Examples of such estimates includes future obligation with respect to employee benefits, income taxes, useful lives of fixed assets.

1.3 Fixed assets and depreciation Tangible assets

a. Fixed assets are stated at the cost of acquisition less accumulated depreciation and impairment loss ascertained, if any. The cost represents purchase price (net of recoverable taxes) and all other incidental expenses related to the acquisition and installation of the respective assets and also includes major improvements, if any. All costs, direct or indirect, relating to the acquisition and installation of fixed assets and bringing to its working condition for its intended use are capitalized and include borrowing costs and adjustment arising from foreign exchange rate variations directly attributable to construction or acquisition of fixed assets.

b. Depreciation on Fixed Assets has been provided on Written Down Method at the rates prescribed in Schedule II to the Companies Act, 2013, on useful life of the assets. In case the asset is acquired/ sold during the year or used part of the year the depreciation has been provided on a pro-rata basis with reference to the days of addition/ put to use or disposal.

Intangible assets

Intangible assets are stated at their cost of acquisition, less accumulated amortization and accumulated impairment losses thereon. An intangible assets is recognized where it is probable that future economic benefits attributable to the assets will flow to the enterprise and where its costs can be reliably measured. The Depreciable amount of intangible assets is allocated based on the estimates of the useful life of the assets not exceeding five years.

Impairment of assets

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss A/c in the year in which assets is identified as impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.4 Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as long term investment. Current investments are carried at lower of cost and fair value determined on an individual item basis. Long term investments are carried at cost. However provision for diminution in value is made to recognize a decline other than temporary in the value of the investment.

1.5 Revenue recognition

Income and expenditure is recognized and accounted for on accrual basis. Revenue is recognized to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue from the sale of goods is recognized on transfer of significant risks and rewards of ownership to the customer and when no significant uncertainty exists regarding realisaton of consideration. Sales are recorded net of sales returns, VAT, Cash and Trade discount. Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.

1.6 Foreign currency transactions

The transactions of foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated are translated at functional currency closing rates of exchange of reporting date.

1.7 Inventories:

a) Finished and semi-finished goods products and purchased by the company are carried at lower of cost and net realizable value after providing for obsolescence, if any.

b) Work-in-progress is carried at lower of cost plus conversion cost.

c) Stock of raw materials, stores, spare parts and packing materials are valued at lower of cost less CENVAT credit/VAT availed or net realizable value.

d) Cost of Inventories comprises all costs of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

1.8 Taxation

Income Tax expense comprises current tax and deferred tax charge/credit. Current tax is the amount of tax worked out on the taxable income for the year determined in accordance with the relevant provisions of the Income Tax Act, 1961 in force and is on an estimate basis.

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax asset if any is recognised, only when there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

1.9 - Leases

Finance lease

Leases which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased item are capitalised at the inception of the leased term at the lower of the fair value of the leased property and present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised as finance costs in the statement of profit and loss account.

Aleased asset is depreciated on a straight line basis over the useful life of the asset or the useful life is envisaged in SCH II of the companies Act, 2013 whichever is lower.

Operating lease

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as Operating Lease.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.

1.10 Provision for Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimates in measurement are recognised 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 recognised but are disclosed in the notes to accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.11 Retirement Benefits

Gratuity is payable to the employees who has completed five years of service at the time of resignation/ super-annuation. None of the employees have completed five years of service. The provision of gratuity is made on estimate basis.

1.12 Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowings costs are charged to revenue.

Source : Dion Global Solutions Limited
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