Oriental Industrial Investment Corporation Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2010

A) System of Accounting

i) Financial statements are based on historical cost, in accordance with applicable accounting principle, mandatory accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

ii) The Company follows mercantile system of accounting and recognizes income expenditure on accrual basis except those with significant uncertainties and stated otherwise.

b) Fixed Assets

Fixed assets are at stated at cost of acquisition / installations, net of accumulated depre- ciation / amortization, Cost is inclusive of duties (net of CENVAT), taxes, incidental ex- penses erection / commissioning expenses and finance charges upto the date the asset is ready for its intended use.

c) Depreciation & Amortization

i) Depreciation on all assets is being on " Straight Line Method" in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956

ii) Assets of value not exceeding Rs.5000/- are fully depreciated in the year of pur- chase.

d) Investments

Investments that are readily realizable and intended to be held for not more than one year are classified as current investments. All other investments are classified as long- term. Current investments are carried at cost. Long-term investment are carried at cost. Temporary diminution in the value of investment meant to be held for a long period is not recognized.

e) Revenue Recognition

i) Fund management & advice fees is accounted after services are rendered. Dividend on investment are accounted on receipt.