Vision Corporation Ltd. कंपली की लेखा नीति

Mar 31, 2014

Accounting Convention:

The financial statements are prepared under the Historical Cost Convention on a Going Concern basis.

The Company generally follows the Mercantile System of Accounting and recognizes Income and Expenditure on Accrual basis accepts those with significant uncertainties and is consistent with generally accepted accounting principles.

The significant accounting policies followed by the Company are stated below:

a) Use of Estimates:

The preparation of financial statements requires 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 reported period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

b) Fixed Assets:

1. Fixed Assets are stated at cost net of MODVAT / CENVAT / Value Added Tax less accumulated depreciation and impairment loss, if any. For this purpose, cost includes cost of acquisition and all costs directly attributable to bringing the assets for its present use and condition.

2. The advance payment of total Rs. 56.50 lac against purchase of Land has been made during 2011-12 & 2012-13 of Rs. 16.50 lac & Rs. 50.00 respectively, however this was wrongly shown under the head "Office-Building" but no depreciation has been charged on said amount during the respective years. Presently it is shown as Advance against Purchase of Land. Now the Land was under dispute due to death of one of the co-owner but the land is under possession of company as per court of the law.

c) Depreciation:

Depreciation of Fixed Assets is charged on ''Written down Value Method'' as per Schedule XIV to the Companies Act, 1956.

Leasehold land is amortized over the period of lease.

d) Impairment of Assets:

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

e) Investments:

Current investments are carried at the lower of cost and quoted / fair value, computed category wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

f) Inventories:

Inventories are valued at the lower of cost or estimated net realizable value. Cost of finished Goods includes cost of material; direct labor, direct expenses and production overheads except depreciation.

g) Debtors :

The company has written off an amount of Rs. 48,43,909/- in total vide there board resolution passed on 15th May 2014 at registered office of the company.

Sr. No. Particulars Amount

1. B B Corporation 13,65,000/-

2. Durga Udyog 12,60,000/-

3 Jansampark Sanchalaye, Madhya Pradesh 98,000/-

4. Dr. Anjali Pathak 78,000/-

5. Gayatri Media 60,000/-

6. Hemraj Awasthi 1,30,000/-

7. HS Gill 1,30,000/-

8. Indra Swarup Awasthi 1,30,000/-

9. Jaipal 1,55,000/-

10. Ravi Mishra 1,30,000/-

11. Sonali Dhantre 70,000/-

12. Vinod Pathak 1,30,000/-

13. Maxtell India Limited 11,07,909/-

As per explanation of the management the above mentioned companies have become insolvent.

h) Preliminary and Share Issue Expenses:

Preliminary and Share Issue Expenses are carried forward at cost. Preoperative expenses have been amortized over a period of 10 years.

i) Employee Benefits and Gratuity Provisions:

Retirements benefits and Gratuity provisions are not applicable to the Company as Company has less than 10 employees.

We) Taxes on Income:

Current taxes

Provision for Income Tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred taxes

Deferred tax assets and liabilities arising on account of timing differences, being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods, are recognized using the tax rates and tax laws that have been enacted.

TDS

It is observed that amount of TDS as per books of Account is of Rs 24,92,004/- but as per Form no 26 AS it shows the credit balance of Rs 29,54,527/- which is higher by an amount of Rs 4,62,523/- reconciliation for the same has to be made.

j) Segment Reporting:

The Company operates only in one segment viz. Media Business and hence there are no other reportable segments as per the Accounting Standard 17.

k) Borrowing Cost

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 intended use. All other borrowing costs are charged to revenue.

l) Financial Derivatives:

Financial derivatives contracts are accounted on the date of their settlement and realized gain / loss, if any, in respect of settled contract are recognized in the profit and loss account, along with the underlying transactions.

m) Foreign Currency Transactions:

Transactions in foreign currencies, to the extent not covered by forward contracts, are accounted at exchange rates prevailing at the time of the transactions are affected and expressed at the year-end exchange rates. Any other exchange differences except relating to Fixed Assets are dealt with in the Profit and Loss Account. Non-monetary foreign currency items, if any, are carried at cost.

n) Provisions, Contingent Liabilities and Contingent Assets:

Provisions, involving substantial degree of estimation in measurement, are recognized when there is present obligation as result of past events and it is probable that will be an outflow of resources. Contingent Liabilities are not recognized and estimated amount of contracts remaining to be executed have not been ascertained. Contingent Assets are neither recognized nor disclosed in the financial statements.

---

Mar 31, 2013

A) Use of Estimates:

The preparation of financial statements requires 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 reported period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

b) Fixed Assets:

Fixed Assets are stated at cost net of MODVAT / CENVAT / Value Added Tax less accumulated depreciation and impairment loss, if any. For this purpose, cost includes cost of acquisition and all costs directly attributable to bringing the assets for its present use and condition.

c) Depreciation:

Depreciation of Fixed Assets is charged on ''Written down Value Method'' as per Schedule XIV to the Companies Act, 1956.

Leasehold land is amortized over the period of lease.

d) Impairment of Assets:

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

e) Investments:

Current investments are carried at the lower of cost and quoted / fair value, computed category wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

f) Inventories:

Inventories are valued at the lower of cost or estimated net realizable value. Cost of finished Goods includes cost of material; direct labor, direct expenses and production overheads except depreciation.

h) Preliminary and Share Issue Expenses:

Preliminary and Share Issue Expenses are carried forward at cost. Preoperative expenses have been amortized over a period of 10 years.

i) Employee Benefits and Gratuity Provisions:

Retirements benefits and Gratuity provisions are not applicable to the Company as Company has less than 10 employees.

We) Taxes on Income:

Current taxes

Provision for Income Tax is determined in accordance with the provisions of the Income Tax Act, 1961. Deferred taxes

Deferred tax assets and liabilities arising on account of timing differences, being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods, are recognized using the tax rates and tax laws that have been enacted.

TDS

It is observed that amount of TDS as per books of Account is of Rs 26,07,930.00/- but as per Form no 26 AS it shows the credit balance of Rs 25,72,789.00/- which is higher by an amount of Rs 35,141.00/- reconciliation for the same has to be made.

j) Segment Reporting:

The Company operates only in one segment viz. Media Business and hence there are no other reportable segments as per the Accounting Standard 17.

k) Borrowing Cost

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 intended use. All other borrowing costs are charged to revenue.

l) Financial Derivatives:

Financial derivatives contracts are accounted on the date of their settlement and realized gain / loss, if any, in respect of settled contract are recognized in the profit and loss account, along with the underlying transactions.

n) Provisions, Contingent Liabilities and Contingent Assets:

Provisions, involving substantial degree of estimation in measurement, are recognized when there is present obligation as result of past events and it is probable that will be an outflow of resources. Contingent Liabilities are not recognized and estimated amount of contracts remaining to be executed have not been ascertained. Contingent Assets are neither recognized nor disclosed in the financial statements.

---

Mar 31, 2012

A) Use of Estimates:

The preparation of financial statements requires 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 reported period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

b) Fixed Assets:

Fixed Assets are stated at cost net of MODVAT / CENVAT / Value Added Tax less accumulated depreciation and impairment loss, if any. For this purpose, cost includes cost of acquisition and all costs directly attributable to bringing the assets for its present use and condition.

c) Depreciation:

Depreciation of Fixed Assets is charged on ‘Written down Value Method’ as per Schedule XIV to the Companies Act, 1956.

Leasehold land is amortized over the period of lease.

d) Impairment of Assets:

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

e) Investments:

Current investments are carried at the lower of cost and quoted / fair value, computed category wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

f) Inventories:

Inventories are valued at the lower of cost or estimated net realizable value. Cost of finished Goods includes cost of material; direct labor, direct expenses and production overheads except depreciation.

g) Debtors :

The company has written off an amount of Rs. 47,00,000/- in total vide there board resolution passed on 06th June 2012 at registered office of the company.

Name of the company amount of bad debts

Telestial Communication 7,00,000/-

B B Corporation 20,00,000/-

Durga Udyog 20,00,000/-

As per explanation of the management the above mentioned companies have become insolvent.

h) Preliminary and Share Issue Expenses:

Preliminary and Share Issue Expenses are carried forward at cost. Preoperative expenses have been amortized over a period of 10 years.

i) Employee Benefits and Gratuity Provisions:

Retirements benefits and Gratuity provisions are not applicable to the Company as Company has less than 10 employees.

We) Taxes on Income:

Current taxes

Provision for Income Tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred taxes

Deferred tax assets and liabilities arising on account of timing differences, being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods, are recognized using the tax rates and tax laws that have been enacted.

TDS

It is observed that amount of TDS as per books of Account is of Rs 25,05,846/- but as per Form no 26 AS it shows the credit balance of Rs 25,63,474/- which is higher by an amount of Rs 57,628/- reconciliation for the same has to be made.

j) Segment Reporting:

The Company operates only in one segment viz. Media Business and hence there are no other reportable segments as per the Accounting Standard 17.

k) Borrowing Cost

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 intended use. All other borrowing costs are charged to revenue.

l) Financial Derivatives:

Financial derivatives contracts are accounted on the date of their settlement and realized gain / loss, if any, in respect of settled contract are recognized in the profit and loss account, along with the underlying transactions.

m) Foreign Currency Transactions:

Transactions in foreign currencies, to the extent not covered by forward contracts, are accounted at exchange rates prevailing at the time of the transactions are affected and expressed at the year-end exchange rates. Any other exchange differences except relating to Fixed Assets are dealt with in the Profit and Loss Account. Non-monetary foreign currency items, if any, are carried at cost.

n) Provisions, Contingent Liabilities and Contingent Assets:

Provisions, involving substantial degree of estimation in measurement, are recognized when there is present obligation as result of past events and it is probable that will be an outflow of resources. Contingent Liabilities are not recognized and estimated amount of contracts remaining to be executed have not been ascertained. Contingent Assets are neither recognized nor disclosed in the financial statements.

---

Mar 31, 2011

1. Accounting Convention:

The financial statements are prepared under the Historical Cost Convention on a Going Concern basis.

The Company generally follows the Mercantile System of Accounting and recognizes Income and Expenditure on Accrual basis excepts those with significant uncertainties and is consistent with generally accepted accounting principles.

The significant accounting policies followed by the Company are stated below:

a) Use of Estimates:

The preparation of financial statements requires 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 reported period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

b) Fixed Assets:

Fixed Assets are stated at cost net of MODVAT / CENVAT / Value Added Tax less accumulated depreciation and impairment loss, if any. For this purpose, cost includes cost of acquisition and all costs directly attributable to bringing the assets for its present use and condition.

c) Depreciation:

Depreciation of Fixed Assets is charged on 'Written Down Value Method' as per Schedule XIV to the Companies Act, 1956. Leasehold land is amortized over the period of lease.

d) Impairment of Assets:

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

e) Investments:

Current investments are carried at the lower of cost and quoted / fair value, computed category wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

f) Inventories:

Inventories are valued at the lower of cost or estimated net realizable value. Cost of finished Goods includes cost of material; direct labor, direct expenses and production overheads except depreciation.

g) Preliminary and Share Issue Expenses:

Preliminary and Share Issue Expenses are carried forward at cost. Preoperative expenses have been amortized over a period of 10 years.

h) Employee Benefits and Gratuity Provisions:

Retirements benefits and Gratuity provisions are not applicable to the Company as Company has less than 10 employees.

i) Taxes on Income:

Current taxes

Provision for Income Tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred taxes

Deferred tax assets and liabilities arising on account of timing differences, being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods, are recognized using the tax rates and tax laws that have been enacted.

j) Segment Reporting:

The Company operates only in one segment viz. Media Business and hence there are no other reportable segments as per the Accounting Standard 17.

k) Borrowing Cost

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 intended use. All other borrowing costs are charged to revenue.

1) Financial Derivatives:

Financial derivatives contracts are accounted on the date of their settlement and realized gain / loss, if any, in respect of settled contract are recognized in the profit and loss account, along with the underlying transactions.

m) Foreign Currency Transactions:

Transactions in foreign currencies, to the extent not covered by forward contracts, are accounted at exchange rates prevailing at the time of the transactions are affected and expressed at the year-end exchange rates. Any other exchange differences except relating to Fixed Assets are dealt with in the Profit and Loss Account. Non-monetary foreign currency items, if any, are carried at cost

n) Provisions, Contingent Liabilities and Contingent Assets:

Provisions, involving substantial degree of estimation in measurement, are recognized when there is present obligation as result of past events and it is probable that will be an outflow of resources. Contingent Liabilities are not recognized and estimated amount of contracts remaining to be executed have not been ascertained. Contingent Assets are neither recognized nor disclosed in the financial statements.