Himatsingka Auto Enterprises Ltd. कंपली की लेखा नीति

Mar 31, 2011

RECOGNITION OF INCOME AND EXPENSES

a) The Books of Account are maintained on Accrual Basis and according to the Principles of Double Entry System. As per advance calculation, accrual of Hire Purchase charges are included in the Hire Purchase Stock in advance and such accrued income for the relevant year are taken to the Profit & Loss Account. As regards Assets classification, the quantum of Non-performing Asset is Rs. 1,88,000/- for which necessary provision for Rs. 1,88,000/- has been made. Also provision has been made for Income De-recognition amounting to Rs.24,496/-. Provision for diminution in the value of Investment is not made during the year, as the same is not considered permanent nature by the Management.

FIXED ASSETS

b) The Gross Block of Fixed Assets is shown at the cost, which includes taxes, duties and other identifiable direct expenses and interest on borrowings attributable to the acquisition of Fixed Assets up to date of commissioning of the Assets.

c) The Company has provided depreciation during the year on written down value method at the rates prescribed in Schedule XIV of the Companies Act 1956 as amended from time to time.

INVENTORIES

d) Stock of traded goods is valued at cost or net realizable value whichever is lower on first in first out basis.

CONTIGENCIES

e) Un-provided contingent liabilities if any are disclosed in the accounts by way of notes.

EMPLOYEE BENIFITS

f) Gratuity is accounted on cash basis. Liability of the Company of Rs. 3,37,747/-(Rs. 2,67,728/-) as estimated in respect of future payment has not been provided for. The liability on account of gratuity in accordance with Accounting Standard 15 is not determined.

ACCOUNTING FOR LEASES

g) There was no leasing business during the year.

INVESTMENTS

h) Investments are long-term strategic investments and the inherent value of such investments does not indicate permanent diminution being higher compared to cost. Current investments are stated at lower of cost and fair value. Investments are capitalized at cost.

i) Deferred Tax is recognized, 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 assets, including assets arising from loss carried forward, are not recognized unless there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized

j) During the year Rs.3,70,000 /- has been transferred to RBI Reserve Fund in accordance with 45 1C of RBI Act 1984.