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moneycontrol.com भारत | लेखांकन नीति > Auto - 2 & 3 Wheelers > लेखांकन नीति फॉलोड से स्कूटर्स इंडिया - बीएसई: 505141, NSE: N.A

स्कूटर्स इंडिया

बीएसई: 505141  |  NSE: N.A  |  ISIN: INE959E01011  |  Auto - 2 & 3 Wheelers

खोजें स्कूटर्स इंडिया कनेक्शन मार्च 16
लेखांकन नीति साल : मार्च '18

1. SYSTEM OF ACCOUNTING:

(i) Basic assumptions:

The accounts have been prepared under historical cost convention on accrual basis and as per applicable Mandatory Accounting Standards.

(ii) Going concern:

Accounts have been prepared on the principle applicable to a going concern.

The board of directors have taken actions to ensure that appropriate longterm cash resources are in place at the date of signing the accounts to fund the Company’s operations.

(iii) Use of Estimates:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statement and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

(iv) All assets & liabilities has been classified as current & non-current as per Company’s normal operating cycle & other criteria set out in the Schedule III of Companies Act 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operation cycle as twelve months for the purpose of current non-current classification of assets and liabilities.

2. a) FIXED ASSETS:

(i) Fixed Assets are stated at original cost and are inclusive of all expenses to bring them to a state of use.

(ii) Land is valued at original cost.

(iii) The cost of the leasehold land is amortized over the lease span.

(iv) The tools manufactured departmentally costing individually Rs.5000 and below and/ or having estimated average useful life of 5 years and below being of consumable nature are accounted for as revenue expenditure under relevant natural heads

(v) Construction period expenses exclusively attributable to projects are capitalized.

b) LEASE RENTALS:

Rental expenses in respect of Leased premises and equipment are charged to the Statement of Profit and Loss.

Rental incomes on assets given on operating lease on an accrual basis over the lease term are recognized in the Statement of Profit and Loss.

c) BORROWING COST:

Borrowing cost directly attributable in relation to acquisition, construction of assets that takes substantial period of time to get ready for its intended use are capitalised as part of the cost of such assets upto the date when such assets are ready for intended use. Other borrowing costs are charged as expenses in Profit & Loss Account in the year in which they are incurred.

d) INTANGIBLE ASSETS:

Intangible assets are stated at cost of acquisition less accumulated amortization. Technical Knowhow is amortised over the useful life of the underlying plant. Computer Software is amortised over a period of 5 years. Amortisation is done on straight line basis

e) IMPAIRMENT OF FIXED ASSET:

The carrying values of fixed assets of the identified cash generating units (CGU) are reviewed for impairment at each Balance Sheet date. When events or changes in circumstances indicate that the carrying values may not be recoverable and the carrying amount exceeds the estimated recoverable amount, the assets of the CGU are written down to the recoverable amount and the impairment loss is recognized in the profit and loss account.

3. DEPRECIATION:

Premium on leasehold land is amortised over the period of lease.

Depreciation on other tangible fixed assets is charged on straight-line method in accordance with Schedule II of Companies Act 2013, as amended from time to time, except

(a) Plant, Machinery, Equipment, and Jigs & Fixtures costing individually Rs. 5000 and below are depreciated fully in the year of purchase.

(b) In case of tools where average estimated useful life is greater than five years but less than ten years, depreciation is charged @ 20% as was being done prior to introduction of Schedule II.

Depreciation is not provided on assets which have been declared surplus and are not in use. These are distinctively shown under Fixed Assets at net realizable value.

4. INVESTMENTS:

(i) Current Investments are valued at cost or market value whichever is lower.

(ii) Non Current Investments are valued at cost. However, in case of permanent diminution in the value of investments, suitable provision is made in the books of accounts.

(iii) Income from dividend is recognized in books of accounts when the right to receive such dividend is established.

5. INVENTORIES:

(i) Raw materials, components, stores & spares, tools, consumables and other stocks are valued at cost (net of CENVAT) determined on FIFO Basis. Scrap and disposable goods are valued at estimated realizable value.

(ii) Stock-in-trade is valued at lower of cost or net realizable value.

(iii) Work-in-progress is valued at cost. Where the jobs are in progress their conversion cost is taken at 50% of the standard cost regardless of the stage of completion. Completed jobs including jobs pending inspection are valued at cost or realizable value whichever is less.

(iv) Customs duty on bonded material is allocated to the cost of goods and equipment.

(v) Expenditure on stationery, uniform, medicine etc. is charged off to revenue at the time of receipt. But the stock remaining at the year end are credited to the revenue account at cost and shown as closing stock.

6. DUTIES ON BONDED STOCK:

GST on finished stocks lying in bond is provided for, on the assessable value applicable for each product.

7. PROVISIONS

a) PROVISION FOR REDUNDANCY/OBSOLESCENCE:

A general provision for redundancy is made at 0.5% of the value of closing inventory of raw materials and components, stores and spares and loose tools and consumables. Wherever necessary, additional provision for redundancy/ Obsolescence of inventory is made in individual cases keeping in view estimated realizable value.

b) PROVISION FOR DOUBTFUL DEBTS:

As a measure of conservatism generally provision is being made for Debtors where there is no transaction for three years or where the company has initiated legal case against defaulting debtors.

c) PROVISION FOR WARRANTY CLAIMS:

The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise.

The Company accounts for the provision for warranty on the basis of the information available with the Management duly taking into account the current and post technical estimates.

8. CENVAT:

Cenvat credit on eligible Revenue / Capital purchase is taken on receipt of such materials.

9. SALES:

Sales are set up as per the Sale of Goods Act. They represent value of goods sold at the ex-factory price plus incidentals like freight, insurance etc. embedded in the sale price.

10. ACCOUNTING FOR INCOME AND EXPENDITURE:

Income and expenditure are accounted for in the current year on accrual basis under natural heads of account.

11. FOREIGN EXCHANGE VARIATION:

All transactions denominated in foreign currencies are translated at the rate of exchange on the day of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling on the balance sheet date. Exchange differences arising on foreign currency transactions at the time of translation or settlement are included in the profit and loss account.

12. RETIREMENT BENEFITS:

Contribution to Provident Fund is made to the company’s provident fund trust. The fund is compared to aggregate liability and shortfall if any is additionally contributed by the company and recognized as expenses.

Gratuity and Leave Encashment liability is ascertained on actuarial valuation. However, any excess/deficit in funds managed by LIC in case of Gratuity as compared to the actuarial liability is recognized as asset/liability immediately and the consequent gain/ loss arising from such valuation is charged to revenue in the year in which they arise.

Leave encashment for retiring employees is being settled by the Company through its own resources & the company does not maintain fund with LICI for the same. The excess/deficit in actuarial valuation is recognized as assets/liabilities immediately and consequent gain/loss arising from such valuation is charged to revenue in the year in which they arise.

13. RESEARCH AND DEVELOPMENT:

Expenditure relating to product approvals including type approvals, consistency of production approvals from testing agencies and materials specifically procured for development of products are charged as Research & Development Expenses and other expenditure of Research and Development are charged off to the Profit and Loss Account under natural heads of accounts. Expenditure which results in creation of capital asset is taken to fixed assets and depreciation is provided as applicable. Prototype vehicles submitted to testing agencies are booked under finished goods.

14. ACCOUNTING OF GOVERNMENT GRANT:

(i) Government Grant of revenue nature is accounted for in the Profit and Loss Account under the head other income to the extent the expenditure is charged to revenue as and when incurred.

(ii) In case of any specific Government grant the treatment in the books of accounts is made on the basis of specific stipulation for the same

15. JOBS DONE FOR INTERNAL USE:

Jobs done for internal use are valued on the basis of technical estimates of material and conversion cost and are distinctly shown as a consolidated deduction from expenditures included in Profit & Loss Account.

16. TAXES ON INCOME:

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax on account of timing difference between taxable income and accounting income is provided considering the tax laws enacted or substantively enacted up to the Balance Sheet date.

17. PROPOSED DIVIDEND

Dividend is provided in the books of accounts as proposed by the Board of Directors, pending approval at the Annual General Meeting.

18. CONTINGENT LIABILITIES AND COMMITMENTS:

A. Show Cause Notices issued by various Government Authorities are not considered as Obligation.

B. When the demand notices are raised against such show cause notices and are disputed by the Company, these are classified as disputed obligations.

C. The treatment in respect of disputed obligations, in each case ,are as under:

a) a provision is recognised in respect of present obligations where the outflow of resources is probable;

b) all other cases are disclosed as contingent liabilities unless the possibility of outflow of resources is remote.

D. Capital Commitments:

Estimated amount of contracts remaining to be executed on capital accounts are considered for disclosure.

19. ACTURIAL GAIN / LOSS ON DEFINED BENEFITS PLANS

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. There is no impact on the total equity.

20. FIRST TIME ADOPTION OF IND AS

These are the Company’s first financial statements prepared in accordance with Ind AS. The effect of the Company’s transition to Ind AS is summarised in the following notes :

(i) Transition elections

(ii) Reconciliation of equity, total comprehensive income and cash flows as reported as per Ind AS, in this statement with as reported in previous years as per previous Indian GAAP.

43.1 Transition election

The company has prepared the opening balance sheet as per Ind AS as of April 1, 2015 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company. The Company has applied the following transition exemptions apart from mandatory exceptions in Ind-AS 101 :

1. Deemed cost of property, plant and equipment and other intangible assets

2. Leases

3. Investments in subsidiaries, joint controlled entities and associates in separate financial statements

4. Designation of equity investments as FVTOCI.

Deemed cost of property, plant and equipment and other intangible assets

In accordance with Ind-AS transitional provisions, the Company opted to consider previous GAAP carrying value of property, plant and equipment and other intangible assets as deemed cost on transition date.

Leases

In accordance with Ind-AS transitional provisions, the company opted to determine whether an arrangement existing at the date of transition contains a lease on the basis of facts and circumstances existing at the date of transition rather than at the inception of the arrangement.

Investments in subsidiaries, joint controlled entities and associates in separate financial statements

In accordance with Ind-AS transitional provisions, the company opted to consider previous GAAP carrying value of investments as deemed cost on transition date for investments in subsidiaries, joint ventures and associates in separate financial statement.

स्रोत: रेलीगरे टेचनोवा

न्यूज़ फ़्लैश

  • MARKET CUES : FIIs ने कैश में `3044.94 Cr की बिकवाली की
  • MARKET CUES : DIIs ने कैश में `3576.23 Cr की खरीदारी की
  • MARKET CUES : FIIs ने F&O में `3083.41 Cr की खरीदारी की
  • MARKET CUES : इंडेक्स फ्यूचर्स में `1506.20 Cr की खरीदारी
  • MARKET CUES : इंडेक्स ऑप्शंस में `310.99 Cr की खरीदारी
  • MARKET CUES : स्टॉक फ्यूचर्स में `1256.31 Cr की खरीदारी
  • MARKET CUES : स्टॉक ऑप्शंस में `9.91 Cr की खरीदारी
  • LPG CYLINDER PRICES CUT : गैर-सब्सिडी LPG `61.50/सिलेंडर सस्ता
  • CHINA CAIXIN DATA : मार्च मैन्युफैक्चरिंग PMI 50.1(45.5 अनुमान)
  • CHINA CAIXIN DATA (MoM) : मार्च मैन्युफैक्चरिंग PMI 40.3 से बढ़कर 50.1

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