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Notes To Accounts Company
Notes To Accounts Company
Notes To Accounts Company
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the
end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of
3. Revenue Recognition: -
Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured.
Associate is disclosed in the consolidated financial statements as Goodwill or Capital Reserve, as the case may be.
OR
In case of Subsidiary*The financial statements of the company and its subsidiary are combined on a line by line basis by
adding together like items of assets, liabilities, equity, incomes, expenses and cash flows, after fully eliminating intra-group
d. As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like transactions and
other events in similar circumstances and are presented in the same manner as the Company’s separate financial statements.
e. Entities controlled by the company are consolidated from the date control commences until the
date control ceases.
f. In case of associates* If, under the equity method, an investor’s share of losses of an associate equals or exceeds the carrying
amount of the investment, the investor ordinarily discontinues recognising its share of further losses and the investment is
reported at nil value. Additional losses are provided for to the extent that the investor has incurred obligations or made payments
on behalf of the associate to satisfy obligations of the associate that the investor has guaranteed or to which the investor is
otherwise committed. If the associate subsequently reports profits, the investor resumes including its share of those profits only
after its share of the profits equals the share of net losses that have not been recognised.
OR
In case of Subsidiary*The difference between the cost of investment in the subsidiaries, over
the net assets at the time of acquisition of shares in the subsidiaries is recognised in the financial
statements as Goodwill or Capital Reserve, as the case may be.
incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.
Company has adopted cost model for all class of items of Property Plant and Equipment.
OR
____________ is revalued by independent professional valuers on a triennial basis and whenever their
carrying amounts are likely to differ materially from their revalued amounts. When an asset is revalued,
any accumulated depreciation at the date of revaluation is eliminated against the gross carrying
amount of the asset. The net amount is then restated to the revalued amount of the asset.
Increases in carrying amounts arising from revaluation, including currency translation differences, are
recognised in the asset revaluation reserve, unless they offset previous decreases in the carrying
amounts of the same asset, in which case, they are recognised in profit or loss. Decreases in carrying
amounts that offset previous increases of the same asset are recognized against the asset revaluation
reserve. All other decreases in carrying amounts are recognised as a loss in the statement of Profit &
Loss.
6. Depreciation :-
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method/SLM method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
All fixed assets individually costing Rs. _______/- or less are fully depreciated in the year of installation/purchase.
Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit and loss till the date of
acquisition/sale.
The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external
factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable
amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
8. Investments :-
Investments, which are readily realizable and intended to be held for not more than one year
from the date on which such investments are made, are classified as current investments. All other investments are classified as non-
current investments.
OR
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for diminutions in value is made to recognize a decline other than
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement
9. Inventories :-
Inventories are valued as under:-
1. Inventories : Lower of cost(FIFO/specific cost/Weighted avg) or net realizable value
2. Scrap : At net realizable value.
10. Borrowing cost:-
Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized as part of the cost of such
assets. A qualifying assets is one that necessarily takes a substantial period of time to get ready for its intended uses or sale. All other
borrowing costs are charged to revenue in the year of incurrence. The amount of borrowing cost capitalized during the year is
________________.
books on accrual basis. The leave encashment is accounted for as and when the liability for it becomes due for payment.
Or
The retirement benefits are accounted for as and when liability becomes due for payment.
Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates
and laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising from timing differences are
recognized to the extent there is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet
Or
The effect of Accounting Standard – 22 relating to accounting for taxes on income issued by the
Institute of Chartered Accountants of India is not being considered as there is no timing difference
between book and taxable profits under the head ‘Income from Business or Profession’ of the assessee.
Or
No provision of tax as required by AS-22 issued by the Institute of Chartered Accountants of India has
been made due to uncertainty that sufficient taxable income against which such deferred tax assets can
be realized. The impact of same has also not been determined.
13. Provisions, Contingent Liabilities and Contingent Assets:- (AS-29)
Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of
1. The SSI status of the creditors is not known to the Company; hence the information is not given.
2. Salaries includes directors remuneration on account of salary Rs. /- (Previous Year Rs. /-)
3. Trade receivables, Trade payables, Loans & Advances and Unsecured Loans have been taken at their book value subject to confirmation
and reconciliation.
4. Payments to Auditors:
Auditors Remuneration «FinYear» «PYFinYear»
Audit Fees
GST
Total
5. Loans and Advances are considered good in respect of which company does not hold any security other than the personal guarantee of
persons.
6. No provision for retirement benefits has been made, in view of accounting policy No. 11. The impact of the same on Profit & Loss is not
determined.
1.
2.
(II) Relative of Key Management Personnel
1.
(III) Enterprises owned or significantly influenced by Key Management personnel or their relatives
1.
Outstanding Balances
Loans Taken
Loans Repaid
9. Company has made no provision in respect of penalty of Rs. _______ imposed by ________department in respect of assessment for AY
_______ as the company has filed an appeal before the ___________ and the company quite hopeful of getting relief.
% Amount % Amount
Imp» Imp»
Ind» Ind»
Sd/-
(«SignPer») Sd/- Sd/-
«DesiSign» «Dir1» «Dir2»
Membership No. «MemNo» Director Director
Registration No. «RegNo»
Place:- «AudPlace» DIN : «din1» DIN : «din2»
Date: - «BsDate»
UDIN: