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Accounting Policies of Adarsh Mercantile Ltd. Company

Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

The Financial Statements have been prepared under the historical cost convention and in accordance with the provisions of the Companies act, 1956 Accounting policies not referred to otherwise are consistent and are in consonance with the generally accepted accounting principles in India.

1.2 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be mace that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period In which the results are known / materialized.

1.3 Fixed Assets & Depreciation

(i) Fixed assets stated at cost of acquisition and subsequent improvements thereto; less accumulated depreciation, and impairment loss if any.

(ii) Depreciation is provide on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act. 1956

1.4 impairment of Assets

The carrying amounts of the assets are reviewed at each balance sheet date. An asset is treated as impaired when the carrying cost of the asset exceeds is recoverable value. An impairment loss is charged when the asset is identified as Impaired,

1.5 investments

Long-term investments are carried at acquisition cost. Investments intended to be held for less than one year are classified as ''Current Investments and darried at lower of cost and net realizable value. Provision for diminution in value is made if the decline in value is other than temporay nature in the opinion of the management,

1.6 Inventories

inventories of shares and securities are valued at lower of cost and net realizable value.

1.7 Emplayee Retirement Benefits

(i) Short term employee benefits are charged off at the undiscounted amount in the period in which the related service is rendered.

(ii) Post employment ant other long term employee benefits are charged off in the period in which the employee has rendered services the amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Less.

1.8 Taxes on income

Provision for income Tax made on the basis of estimated taxable income for the period at current rates. Tax expense comprises both Current Tax and Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income Tax payable/ Recoverable in respect of taxable income/ loss for the reporting period- Deferred Tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originates in one year and are capable of reversal in one or more subsequent years.

1.9 Provisions, Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed In the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

1.1 Basis of Preparation of Financial Statements

The Financial Statements have been prepared under the historical cost convention and in accordance with the provisions of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent and are in consonance with the generally accepted accounting principles in India.

1.2 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

1.3 Fixed Assets & Depreciation

(i) Fixed assets are stated at cost of acquisition and subsequent improvements thereto; less accumulated depreciation, and impairment loss, if any.

(ii) Depreciation is provided on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.4 Impairment of Assets ,

The carrying amounts of the assets are reviewed at each balance sheet date. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged when the asset is identified as impaired.

1.5 Investments

Long-term Investments are carried at acquisition cost. Investments intended to be held for less than one year are classified as ''Current Investments'' and carried at lower of cost and net realizable value. Provision for diminution in value is made if the decline in value is other than temporary in nature in the opinion of the management. .

1.6 Inventories

Inventories of shares and securities are valued at lower of cost and net realizable value.

1.7 Employee Retirement Benefits

(i) Short term employee benefits are charged off at the undiscounted amount in the period in which the related service is rendered.

(ii) Post employment and other long term employee benefits are charged off in the period in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

1.8 Taxes on Income

Provision for Income Tax is made on the basis of estimated taxable income for the period at current rates. Tax expense comprises both Current Tax and Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income Tax , payable/ recoverable in respect of taxable income/ loss for the reporting period. Deferred Tax represents the effect of timing difference '' between taxable income and accounting income for the reporting period that originates in one year and are capable of reversal in one or : more subsequent years.

1.9 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

SYSTEM OF ACCOUNTING :

The company follows accrual basis of accounting in the preparation of account.

FIXED ASSETS & DEPRECIATION:

Fixed assets are valued at cost and depreciation is provided on Written Down Value basis in accordance with the provisions of Schedule XIV (as amended) to the Companies Act, 1956. .

INVESTMENTS:

Long Term Investments are carried at acquisition cost (net of securities transaction tax) and Investments intended to be held for less than one year are classified as Current Investments and valued at lower of cost and market value.

STOCK IN TRADE : .

Stock of shares and securities are valued at lower of cost and market value.

REVENUE :

Income is accounted for on accrual basis except where the receipt of income is uncertain. ''

TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized subject to consideration of prudence, in respect of deferred tax assets on timing differences, being the difference . between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

 
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