Hartron Communications Ltd. कंपली की लेखा नीति

Mar 31, 2014

1.1 Basis of Accounts

The financial statements have been prepared in accordance with applicable accounting standards, except as stated in the notes and relevant presentational requirements of the Companies Act, 1956. The financial statements are based on the historical convention & have been prepared on the basis of going concern.

1.2 Fixed Assets

Fixed assets are stated at the original cost including taxes duties freight and other incidental expenses relating to the acquisition and installation of Fixed Assets less accumulated depreciation.

1.3 Depreciation

Depreciation on fixed assets has been provided on straight line method on prorate basis at rates as prescribed in Schedule "XIV" of the Companies Act, 1956.

1.4 Inventories

Stock of goods/land has been valued at cost.

1.5 Investments

The company has not made any investments during the year.

1.6 Recognition of Income/Expenditures

All revenues and expenses are accounted for on accrual basis except for processing charges (Export income), interest on calls in arrears, listing fee and leave encashment which are accounted for on cash basis.

1.7 Retirement Benefits

The provision for Gratuity has been made as per the Payment of Gratuity Act in respect of only those employees who have put in continuous minimum five years of service.

1.8 Taxation

Provision for Income Tax comprises of current tax and deferred tax charge. Current year''s provision for Income Tax has been made as per the provisions of Income Tax Act, at the prevailing rates applicable for the year. Deferred tax is recognised subject to consideration of prudence, on timing differences being difference between taxable and accounting income/expenditure that originate in the period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are not recognized unless there is ''Virtual Certainty'' that sufficient future taxable income will be available against which such deferred tax assets will be realised.

1.9 Foreign CurrencyTransactions

Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence in case of expenditure and on the date of realization in the case of BPO Income.

1.10 Earning per Share

Basic earning per share are calculated by dividing net profit or loss for the period attributable to equity shareholders.

1.11 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying asset are capitalised as part of cost of such asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.12 Segment Reporting

Segments are identified in line with the accounting standard on Segment reporting (AS-17) taking into account the organization structure as well as differential risk and returns of the segment. The unallowable items include income and expense items which are not directly identifiable to any segment and therefore not allocated to any business segment.

1.13 Impairment of Assets

Management periodically assesses using external and internal sources where there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuous use of the assets and its eventual disposal. The impairment loss to be accounted for is determined as the excess of the carrying amount over the higher of the asset''s net sales price or present value.

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Mar 31, 2010

The significant accounting policies followed are stated below: -

a) Basis of Accounts

The financial statements have been prepared in accordance with applicable accounting standards, except as stated in the notes and relevant presentational requirements of the Companies Act, 1956. The financial statements are based on the historical convention & has been prepared on the basis of going concern.

b) Fixed Assets

Fixed assets are stated at the original cost including taxes duties freight and other incidental expenses relating to the acquisition and installation of Fixed Assets less accumulated deprecation.

c) Depreciation

Depreciation on fixed assets has been provided on straight line method on prorata basis at rates as prescribed in Schedule "XIV" of the companies Act, 1956. No depreciation is provided for assets purchased & sold if any in the same financial year.

d) Inventories

Stock of Raw material, work in progress and finished goods has been valued at estimated realisable value which is contrary to the accounting Standard-2 on Valuation of Inventories.

e) Investments

The company has not made any investments during the year.

f) Recognition of Income/Expenditures

All revenues and expenses are accounted for on accrual basis interest on calls in arrears, listing fee and leave encashement which are accounted for on cash basis.

Further no depreciation is provided on the assets sold during the year, for the year in which asset is disposed off and loss/profit on sale of asset is calculated on the basis of written down value as on first day of the financial year in which asset is disposed off.

No liability for excise duty payable on finished goods have been provided since the same will be accounted for on removal of goods from factory. However there will be no effect on the profit/(loss) of the company since the finished goods are valued excluding excise duty.

The value of eligible modvat benefit is being reduced from the cost of raw material for the purpose of booking of purchase & stock valuation.

Sales if any are exclusive of excise duty and VAT.

g) Retirement Benefits

The provision for Gratuity has been made as per the Payment of Gratuity Act in respect of only those employees who have put in continuous minimum five years of service.

However no provision for other retirement benefits has been made. The same are accounted for on cash basis.

h) Taxation

Provision for Income Tax comprises of current tax and deferred tax charge. Current years provision for Income Tax has been made as per the provisions of Income Tax Act, at the prevailing rates applicable for the year.

Deferred tax is recognised subject to consideration of prudence, on timing differences being difference between taxable and accounting income/expenditure that originate in the period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are not recognized unless there is Virtual Certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised.

i. Foreign Currency Transactions

Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence in case of expenditure and on the date of realization in the case of BPO Income.

j. Earning per Share

Basic earning per share are calculated by dividing net profit or loss for the period attributable to equity shareholders.