notes on accounts
This query is : Resolved
23 September 2010
can anybody plz forward me a specimen of accounting plicies and notes on accounts which are attached with annual report both for a pvt and a limited company.
23 September 2010
NAME OF THE COMPANY
Schedule: 7 Significant Accounting Policies and Notes thereon
(Forming an integral part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended as on that date)
1. Significant Accounting Policies:
(A) Basis of Accounting
The Company follows the Mercantile System of Accounting and recognizes Income & Expenditure on Accrual Basis except interest on Fixed Deposits, which are account for on as and when incurred. Accounts are prepared on Historical Cost convention and as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted principles.
(B) Inventories
Inventories are valued at cost price under FIFO basis.
(C) Revenue Recognition
i) Revenue from the sale of goods is recognized upon passes of title to the customer, which generally coincides with their delivery.
ii) Dividend income taken into account after its actual receipt to the company.
(D) Foreign Currency Transactions
i) All foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.
ii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account
(E) Deferred Taxation
The Company neither has unabsorbed depreciation nor has carried forward losses under Tax Laws. Hence Deferred Taxation does not arise in accordance with Accounting Standard As-22 “Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India.
(F) Miscellaneous Expenses
Preoperative expenses are written off over a period of five years.
2. Notes Forming part of the Accounts:
(A) Current Assets, Loans & Advances
In the opinion of Board of Directors the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the at which they are stated in the balance sheet and provisions for all known liabilities have been made as at the year end.
(B) Earning Per Shares
As at 31.03.2010 As at 31.03.2009
Profit for the Year After Tax 20,56,162 3,76,36,169
No. of Shares allotted during the year 1,00,000 1,00,000
Earning Per Shares 20.56 376.36
(C) Investment From foreign company: A Joint Venture agreement entered between three companies, i.e. X Private Limited, Y Private Limited, both are registered in India and M/s D S.A., a company registered at Spain to have business transactions in India. Afterwards the said Joint Venture was terminated and this company was formed. One representative each from the Indian Companies and Two representatives from the foreign Company were the first directors of the company.
(I) Disclosure of related parties and related party transactions
Related party disclosures as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India, are given below:
a) Key Management Personnel(KMP)
1) A
2) B
3) C
b) Associates Enterprise
1) X (P) Ltd
2) Y (P) Ltd.
3) D, S.A.,
(Rs. In Lakhs)
Transactions with Related Parties Year ended
31st March, 2010 Year ended
31st March, 2009
Purchase of goods 167.30
4743.99
(D) Foreign Currency Transaction: Rs. NIL
(E) Particulars in respect of Stock, Purchase, and Sales
Information pursuant to the provision of paragraph 3,4C and 4D of part of Schedule VI of the Companies Act, 1956.
Description As at 31.03.2009 As at 31.03.2008
Quantity Amount Quantity Amount
Trading Goods
TWS Switches and fittings for Railway (In Sets)
Purchases 25 167,29,808 708 47,43,98,598
Sales 25 156,19,433 708 53,40,53,610
(F) Previous year’s figures are regrouped, rearranged and reclassified wherever found necessary.
3. Balance Sheet abstract and Company’s general business profile
I. Registration Details
Registration No. 107247
State code 21
Balance Sheet Date 31.03.2010
II. Capital raised during the year (Amounts in INR ‘000)
Public Issue NIL
Right Issue NIL
Bonus Issue NIL
Private Placement NIL
III. Position of Mobilisation & Deployment of Funds (Amounts in INR ‘000)
Total Liabilities 90698
Total Assets 90698
Sources of funds
Paid up capital 1000
Reserve & Surplus 58746
Application of funds
Net Current Assets 59726
Pre Operative Expenses 21
IV. Performance of Company
Turnover & Other Income 20029
Total Expenditure 17051
Profit/Loss before Tax 2978
Provision for Taxation 920
Provision for FBT NIL
Profit/Loss after Tax 2056
Earning per share 20.56
Dividend Rate NIL
V Generic Names of Principal Products/Services of company (as per monetary terms)
Item Code no. NA
Service Description Dealings in TWS Switches
and fittings
Signature to Schedule 1 to 7
For G & CO.
Chartered Accountants
Firm Regn. No.
CA. G
PARTNER
Mem No.
Kolkata, The Day of 2010. For and on behalf of the board of directors
IF YOU NEED THIS FILE IN WORD FORMAT THEN GIVE YOUR EMAIL ID.
Schedule: 7 Significant Accounting Policies and Notes thereon
(Forming an integral part of Balance Sheet as at 31st March 2010 and Profit & Loss Account for the year ended as on that date)
1. Significant Accounting Policies:
(A) Basis of Accounting
The Company follows the Mercantile System of Accounting and recognizes Income & Expenditure on Accrual Basis except interest on Fixed Deposits, which are account for on as and when incurred. Accounts are prepared on Historical Cost convention and as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted principles.
(B) Inventories
Inventories are valued at cost price under FIFO basis.
(C) Revenue Recognition
i) Revenue from the sale of goods is recognized upon passes of title to the customer, which generally coincides with their delivery.
ii) Dividend income taken into account after its actual receipt to the company.
(D) Foreign Currency Transactions
i) All foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.
ii) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account
(E) Deferred Taxation
The Company neither has unabsorbed depreciation nor has carried forward losses under Tax Laws. Hence Deferred Taxation does not arise in accordance with Accounting Standard As-22 “Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India.
(F) Miscellaneous Expenses
Preoperative expenses are written off over a period of five years.
2. Notes Forming part of the Accounts:
(A) Current Assets, Loans & Advances
In the opinion of Board of Directors the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the at which they are stated in the balance sheet and provisions for all known liabilities have been made as at the year end.
(B) Earning Per Shares
As at 31.03.2010 As at 31.03.2009
Profit for the Year After Tax 20,56,162 3,76,36,169
No. of Shares allotted during the year 1,00,000 1,00,000
Earning Per Shares 20.56 376.36
(C) Investment From foreign company: A Joint Venture agreement entered between three companies, i.e. X Private Limited, Y Private Limited, both are registered in India and M/s D S.A., a company registered at Spain to have business transactions in India. Afterwards the said Joint Venture was terminated and this company was formed. One representative each from the Indian Companies and Two representatives from the foreign Company were the first directors of the company.
(I) Disclosure of related parties and related party transactions
Related party disclosures as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India, are given below:
a) Key Management Personnel(KMP)
1) A
2) B
3) C
b) Associates Enterprise
1) X (P) Ltd
2) Y (P) Ltd.
3) D, S.A.,
(Rs. In Lakhs)
Transactions with Related Parties Year ended
31st March, 2010 Year ended
31st March, 2009
Purchase of goods 167.30
4743.99
(D) Foreign Currency Transaction: Rs. NIL
(E) Particulars in respect of Stock, Purchase, and Sales
Information pursuant to the provision of paragraph 3,4C and 4D of part of Schedule VI of the Companies Act, 1956.
Description As at 31.03.2009 As at 31.03.2008
Quantity Amount Quantity Amount
Trading Goods
TWS Switches and fittings for Railway (In Sets)
Purchases 25 167,29,808 708 47,43,98,598
Sales 25 156,19,433 708 53,40,53,610
(F) Previous year’s figures are regrouped, rearranged and reclassified wherever found necessary.
3. Balance Sheet abstract and Company’s general business profile
I. Registration Details
Registration No. 107247
State code 21
Balance Sheet Date 31.03.2010
II. Capital raised during the year (Amounts in INR ‘000)
Public Issue NIL
Right Issue NIL
Bonus Issue NIL
Private Placement NIL
III. Position of Mobilisation & Deployment of Funds (Amounts in INR ‘000)
Total Liabilities 90698
Total Assets 90698
Sources of funds
Paid up capital 1000
Reserve & Surplus 58746
Application of funds
Net Current Assets 59726
Pre Operative Expenses 21
IV. Performance of Company
Turnover & Other Income 20029
Total Expenditure 17051
Profit/Loss before Tax 2978
Provision for Taxation 920
Provision for FBT NIL
Profit/Loss after Tax 2056
Earning per share 20.56
Dividend Rate NIL
V Generic Names of Principal Products/Services of company (as per monetary terms)
Item Code no. NA
Service Description Dealings in TWS Switches
and fittings
Signature to Schedule 1 to 7
For G & CO.
Chartered Accountants
Firm Regn. No.
CA. G
PARTNER
Mem No.
Kolkata, The Day of 2010. For and on behalf of the board of directors
IF YOU NEED THIS FILE IN WORD FORMAT THEN GIVE YOUR EMAIL ID.
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