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Accounting Policies of Authum Investment & Infrastructure Ltd. Company

Mar 31, 2014

I- Basis of Preparation of Financial Statements

The financial Statements have been prepared using historical cost convention in accordance with the generally accepted accounting principles in India issued by the Institute of Chartered Accountants of India and in accordance with the relevant presentational requirements of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements 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 recognized in the period in which the results are known /materialized

3. Fixed Assets

Fixed assets are stated at cost. All cost attributable to bring tile fixed assets to a working condition is capitalized.

4. Depreciation

Depreciation on fixed assets is provided on Written down Value method in accordance with the rates specified in Schedule XIV to the Companies Act, 1956.

5. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there lias been a change in the estimate of recoverable amount.

6. Investments

Investments that are intended to be held for more than a year from the date of acquisitions are classified as Long Term Investments and are carried at cost, Provision for diminution in value of long term investments is made only if, such a decline is other than temporary in nature in opinion of management. Current Investments arc stated at cost or fail- market value whichever is lower.

7. Inventories

Inventory consists of shares and securities purchased for trading purposes. These are valued at lower of cost and net realizable value. Cost is computeckpn FIFO basis.

8. Revenue Recognition

Interest income is accounted on accrual basis.

Dividend income is recognised when the right to receive dividend is established.

Realised gains and losses m reject of shares & Securities and VtmtS of ffiUTOai funds art- calculated as the difference between the net sales proceeds and their cost.

Transaction in respect oi dealing in share and securities are recognised on trade dates.

9- Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income lax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable /virtual certainty that the asset will be realized in future.

10- Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimate in measurement are recognized 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 recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Employee Benefits

Short-term employee benefits are charged off in the year in which the related service is rendered.

12. Foreign Currency Transaction

i) Transactions in foreign exchange are accounted at the exchange rates prevailing on the date of the transaction.

ii) Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognized in the Profit & Loss account as diey arise,

13. Events occurring after the Balance Sheet Date

Assets and liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts relating to conditions existing at the balance sheet date.

14. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such as asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intendctfW. All other borrowing costs are charged to revenue.


Mar 31, 2013

1. Basis of Preparation of Financial Statements

The financial Statements have been prepared using historical cost convention in accordance with the generally accepted accounting principles in India issued by the Institute of Chartered Accountants of Tndia and in accordance with the relevant presentational requirements of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements 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 recognized in the period in which the results are known /materialized

3. Fixed Assets

Fixed assets are stated at cost. All cost attributable to bring the fixed assets to a working condition is capitalized.

4. Depreciation

Depreciation on fixed assets is provided on Written down Value method in accordance with the rates specified in Schedule XIV to the Companies Act, 1956.

5. Impairment of Assets *

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

6. Investments

Investments that arc intended to be held for more than a year from the date of acquisitions are classified as Long Term Investments and are carried at cost, Provision for diminution in value of long term investments is made only if, such a decline is other than temporary in nature in opinion of management. Current Investments are stated at cost or fair market value whichever is lower.

7. inventories

Inventory consists of shares and securities purchased for trading purposes. These are valued at lower of cost and net realizable value. Cost is computed on FIFO basis.

8. Revenue Recognition

Interest income is accounted on accrual basis.

Dividend income is recognised when the right to receive dividend is established.

Realised gains and losses in respect of shares & securities and units of mutual funds are calculated as the difference between the net sales proceeds and their cost.

Transaction in respect of dealing in share and securities are recognised on trade dates.

9. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable /virtual certainty that the asset will be realized in future.

IQ- Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimate in measurement are recognized 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 recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Employee Benefits

Short-term employee benefits arc charged off in the year m which the related sendee is rendered.

12. Foreign Currency Transaction

i) Transactions in foreign exchange are accounted at die exchange rates prevailing on the date of the transaction.

ii) Changes in the fair value of derivative instruments diat do not qualify for hedge accounting are recognized in the Profit & Loss account as they arise.

15- Events occurring after the Balance Sheet Dare

Assets and liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts relating to conditions existing at the balance sheet date.

14. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such as asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.


Mar 31, 2012

1. Basis of Preparation of Financial Statements

The financial Statements have been prepared using historical cost convention in accordance with the generally accepted accounting principles in India issued by the Institute of Chartered Accountants of India and in accordance with the relevant presentational requirements of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements 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 recognized in the period in which the results are known /materialized

3. Fixed Assets

Fixed assets are stated at cost. All cost attributable to brin&Uhe fixed Assets to a Working condition is capitalized.

4. Denreciation

Depreciation on Fixed Assets is provided on Written down Value method in accordance with the rates specified in Schedule XIV to the Companies Act, 1956.

5. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoveiable value. An impairment loss is charged for when asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed it there has been a change in the estimate of recoverable amount.

6. Investments

Investments that are intended to be held for more than a year from the date of acquisitions are classified as Long Term Investments and are carried at cost, Provision for diminution in value of long term investments is made only if, such a decline is other than temporary in nature in opinion of management. Current Investments are stated at cost or fair market value whichever is lower.

7. Revenue Recognition

Income & Expenditure are recognized on accrual basis and provision is made for all known expenses.

8. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted tor using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that theie is a reasonable /virtual certainty that the asset will be realized in future.

9. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimate in measurement are recognized 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 recognized but are d isclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

10. Employee Benefits

Short-term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

11. Foreign Currency Transaction

i) Transactions in foreign exchange are accounted at the exchange rates prevailing on the date of the transaction.

ii) Changes in the fair value of derivative instruments that do not quality for hedge accounting are recognized in the Profit & Loss account as they arise.

12. Events occurring after the Balance Sheet Date

Assets and liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts relating to conditions existing at the balance sheet date.

13. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction ot qualifying assets are capitalized as part of the cost of such as asset. A qualifying asset is one that necessarily takes substantial period of time to gel ready for its intended use. All other borrowing costs are charged to revenue.

 
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