Northern Projects Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2014

A) SYSTEM OF ACCOUNTING :

The company follows accrual system of accounting in accordance with normally accepted accounting principles.

b) FIXED ASSETS :

(i) Fixed Assets are stated at cost including other expenses relating to acquisition and installation.

(ii) Depreciation has been provided on W.D.V. basis at the rates prescribed in Schedule - XIV of the Companies Act, 1956.

c) INVESTMENTS :

Current Investments are carried at the lower cost or fair value. Long Term Investments are stated at cost. Provision for diminution in the value of Long Term Investment is made only if such a decline is other than temporary.

d) TRANSACTION IN FOREIGN CURRENCY :

T ransactions in foreign currency are recorded for at the exchange rate prevailing on the date of transaction. Gain/Loss arising out of fluctuations in the exchange rates are recognized in the Statement of Profit & Loss in the period in which they arise & monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of year are recorded at year end rate.

e) INVENTORIES :

Raw Materials & Packing Materials :

At cost or market price whichever is lower. The cost method is determined on "First in First out" basis.

Finished Goods

On the basis of cost of convention including expenses incurred for bringing them in present location and condition or net realisable value whichever is lower.

f) EMPLOYEE BENEFIT :

i) Short term employee benefits are recognised as an expenses in the Statement of Profit & Loss for the year in which the related service is rendered.

ii) Post employment and other long term employee benefits are recognized as expenses in the Statement of Profit & Loss for the year in which the employee has rendered service. The expenses are recognized on estimated basis.

g) CONTINGENT LIABILITIES AND PROVISIONS :

Contingent Liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved. Provisions are recognized when the company has a legal/constructive obligation and on management discretion, as a result of past event, for which it is probable that cash outflow may be required and reliable estimate can be made for the amount of the obligation. Contingent Assets are neither recognized or disclosed by way of note.

h) TAXATION :

Tax expenses comprise of Current and Deferred Tax.Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred Income Taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

i) Deferred tax is measured based on the tax rates and tax laws enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2011

A) SYSTEM OF ACCOUNTING :

The Company follows accrual system of accounting in accordance with normally accepted, accounting principles.

b) FIXED ASSETS :

i) Fixed Assets are stated at cost.

ii) Depreciation has been provided on W.D.V. basis at the rates prescribed in schedule-XIV of the Companies Act, 1956. (as amended)

c) INVESTMENTS:

Current Investments are carried at the lower of cost or quoted/fair value. Long Term Investments are stated at cost. Provision for diminution in the value of Long Term Investment are made only if such a decline is other than temporary.

d) TRANSACTION IN FOREIGN CURRENCY :

Transactions in Foreign currency are recorded for at the exchange rate prevailing on the date of transaction, Gain/Losses arising out of fluctuations in the exchange rates are recognized in the Profit and Loss account in the period in which they arise & monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of year are recorded at year end rate.

e) RETIREMENT BENEFITS :

i) Short term employee Benefits are recognized as an expense in the Profit and Loss Account for the Year in which the related service is rendered.

ii) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account for the year in which the employee has rendered services. The expenses is recognized on estimated basis.

f) CONTINGENT LIABILITIES AND PROVISIONS :

Contingent Liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved. Provisions are recognized when the company has a legal/constructive obligation and on management discretion, as a result of past event, for which it is probable that a cash outflow may be required and a reliable estimate can be made for the amount of the obligation. Contingent Assets are either recognized or disclosed by way of note.

g) TAXATION:

Tax expenses comprises of current and deferred tax, Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred Income Taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

h) Deferred tax is measured based on the tax laws enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be Realized.