Lila World Wide Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Jul 31, 2012

1. BASIS OF ACCOUNTING

A. THE ACCOUNTS ARE PREPARED IN ACCORDANCE WITH THE MANDATORY ACCOUNTING STANDARDS ISSUED BY THE INSTITUTE OF CHARTERED ACCOUNTS OF INDIA AND RELEVANT PROVISIONS OF THE COMPANIES ACT, 1956.

B. THE ACCOUNTS HAVE BEEN PREPARED ON HISTORICAL COST BASIS.

C. THE COMPANY GENERALLY FOLLOWS THE MERCANTILE SYSTEM OF ACCOUNTING & RECOGNIZED INCOME AND EXPENDITURE ON AN ACTUAL BASIS.

2. FIXED ASSETS :

(I) FIXED ASSETS ARE STATED AT THE COST LESS ACCUMULATED DEPRECIATION, COST IS INCLUSIVE OF DIRECTLY ATTRIBUTABLE COST OF BRINGING THE ASSETS FOR THEIR WORKING CONDITION.

(II) AMOUNT PAID ON ACCOUNT OF PURCHASE OF AUDIO RIGHTS, WHICH HAS RELEASED DURING THE YEAR HAS BEEN TREATED AS FIXED ASSETS.

3. DEPRECIATION & AMORTISATION :

1. DEPRECIATION

DEPRECIATION ON FIXED ASSETS IS PROVIDED ON STRAIGHT LINE METHOD AT RATE PROVIDED BY SCHEDULE XIV OF THE COMPANIES ACT, 1956.

2. AMORTISATION

(I) OUTRIGHT & MINIMUM GUARANTEE BASIS

A. TITLE RELEASED

AMOUNT PAID ON ACCOUNT OF PURCHASE OF AUDIO RIGHTS AMORTIZED ON THE OF QUANTITY SOLD DURING THE PERIOD ON RELEASE OF THE SAID MUSIC TITLE.

THE BALANCE AMOUNT WILL BE WRITTEN OFF AFTER 15 MONTHS FROM THE DATE OF RELEASE OF TITLE..

4. INVENTORIES :

INVENTORIES ARE VALUED AT LOWER OF COST OR MARKET VALUE EXCEPT SHARES AND SECURITIES, WHICH ARE VALUED AT COST.

5. RETIREMENT BENEFITS :

GRATUITY SHALL BE ACCOUNTED AS AND WHEN THE LIABILITY TO PAY ARISE/CASH BASIS.

6. INCOME & EXPENDITURE :

(I) SALES OF MUSIC CASSETTES & COMPACT DISC TO WHOLESALERS & DEALERS IS RECORDED AT THE MAXIMUM RETAIL PRICE AND CORRESPONDING TRADE DISCOUNT & COMMISSION HAS BEEN DEBITED TO THE PROFIT & LOSS ACCOUNT

7. MISCELLANEOUS EXPENDITURE

PRELIMINARY EXPENSES AND SHARE ISSUE EXPENSES IS BEING WRITTEN OFF OVER A PERIOD OF 10 DAYS.

8. CONTINGENT LIABILITY :

CONTINGENT LIABILITIES ARE DETERMINED ON THE BASIS OF AVAILABLE INFORMATION.