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Accounting Policies of Beryl Securities Ltd. Company

Mar 31, 2015

(a) USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/materialize.

(b) REVENUE RECOGNITION

The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation

a. Interest and other dues are recognized on accrual basis except in the case of income on Non-performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms prescribed by the RBI.

b. Dividend declared by the respective companies' up to the close of the accounting period are accounted for as income, once the right to receive is established.

(c) CASH FLOW STATEMENT

The cash flow statement is prepared using the "Indirect method set out in Accounting Standard 3" Cash Flow statement, which presents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance.

(d) FIXED ASSETS

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(e) DEPRECIATION

Depreciation is charged over the estimated useful life of fixed assets on written down value basis. Depreciation is provided based on useful life of the assets as prescribed in schedule II to the Companies Act ,2013.

(f) INVESTMENT

All Investments which are held for more than one year from date of acquisition are classified as long term investment and are carried at cost.

(g) RETIREMENT BENEFIT

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits.

(h) BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to statement profit and loss as expenses, if any, incurred.

(i) EARNINGS PER SHARE

The company reports basic and diluted earning per shares computed in accordance with Accounting Standard- 20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(j) PRIOR PERIOD ITEM

Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year.

(k) TAXATION

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized in the profit and loss account.

3) Minimum Alternative Tax ('MAT') under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss as per recommendations contained in the guidance notes issued by ICAI, the credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

(l) PROVISION AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized where there is a Present obligation as a result of past events and it is probable that there will be out flow of resources. Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement.

(m) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(n) IMPAIRMENT OF ASSETS

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair value of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this, Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise.

(o) Provision/ Write Off against Loans and Other Credit Facilities

(a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI. Provisions are made on Standard, Sub-Standard and Doubtful Assets at the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increased provisions are necessary.

(b) NPA Provision has been written back of those accounts whose recovery is affected during the year.

(p) STATUTORY RESERVES

Company has made an appropriation of Rs.899218.49 (P.Y. Rs.601938.79) out of the Profit for the year ended 31st March,2015 to the statutory reserve pursuant to the requirement of RBI guidelines.


Mar 31, 2014

A) Basis of Preparation of Financial Statement

The accompanying financial statement have been prepared and presented under the historical cost convention and conform in all material aspects to the Generally Accepted Accounting Principles in India which encompasses applicable accounting standards notified by the Companies (Accounting Standards) Rules, 2006, prudential norms for Income recognition and provision for non performing assets as prescribed by Reserve Bank of India for Non Banking Financial Companies, complies with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 read with the General Circular 15 2013 dated 13th Sept.,2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 as adopted consistently by the company and other statutory provision and regulatory framework. The Company adopts the accrual concept in the preparation of Accounts.

(b) USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/ materialize.

(c) REVENUE RECOGNITION

The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation

a. Interest and other dues are recognized on accrual basis except in the case of income on Non- performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms prescribed by the RBI.

b. Interest on allotment/call money in arrears, on shares, is accounted as and when received due to practical difficulties.

c. Dividend declared by the respective companies'' up to the close of the accounting period are accounted for as income, once the right to receive is established.

(d) CASH FLOW STATEMENT

The cash flow statement is prepared using the "Indirect method set out in Accounting Standard 3" Cash Flow statement, which presents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance.

(e) FIXED ASSETS

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(f) DEPRECIATION

Depreciation is charged over the estimated useful life of fixed assets on written down value basis. The rates of depreciation for fixed assets, which are not lower than the rates prescribed in Schedule XIV to the Companies Act, 1956.

(g) INVESTMENT

All Investments which are held for more than one year from date of acquisition are classified as long term investment and are carried at cost.

(h) RETIREMENT BENEFIT

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits.

(i) BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to profit and loss account as expenses, if any, incurred.

(j) EARNINGS PER SHARE

The company reports basic and diluted earning per shares computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(k) PRIOR PERIOD ITEM

Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year.

(l) TAXATION

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized in the profit and loss account.

3) Minimum Alternative Tax (''MAT'') under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss as per recommendations contained in the guidance notes issued by ICAI, the credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

(m) PROVISION AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized where there is a Present obligation as a result of past events and it is probable that there will be out flow of resources. Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement.

(n) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(o) IMPAIRMENT OF ASSETS

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair value of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this, Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise.

(p) Provision/ Write Off against Loans and Other Credit Facilities

(a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI. Provisions are made on Standard, Sub-Standard and Doubtful Assets at the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increased provisions are necessary.

(b) NPA Provision has been written back of those accounts whose recovery is affected during the year.


Mar 31, 2013

(A) Basis of Preparation of Financial Statement

a) The accompanying financial statement have been prepared and presented under the historical cost convention and conform in all material aspects to the Generally Accepted Accounting Principles in India which encompasses applicable accounting standards notified by the Companies (Accounting Standards) Rules, 2006, prudential norms for Income recognition and provision for non performing assets as prescribed by Reserve Bank of India for Non Banking Financial Companies, complies with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company and other statutory provision and regulatory framework.. The Company adopts the accrual concept in the preparation of Accounts.

(b) CURRENT AND NON CURRENT CLASSIFICATION

All Assets and Liabilities are classified into Current and Noncurrent.

ASSETS: - As assets is classified as current when it satisfies any of the following criteria:

(i) It is expected to be realized in or intended for sale or consumption in the company normal operating cycle.

(ii) It is held primarily for the purpose of being traded.

(iii) It is expected to be realized within 12 months of the reporting date or

(iv) It is Cash or Cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current position of the non current financial assets. All other Assets are classified as Non current.

LIABILITY: - A Liability is classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the companies normal operating cycle, or

(ii) It is held primarily for the purpose of being traded, or

(iii) It is due to be settled within 12 months after the reporting date, or

(iv) The company does not have an unconditional right to date settlement of the liability for at least 12 months after the reporting date. Term of a liability that could at the option of the counter party result in its settlement by the issue of equity instrument do not affected its classification. Current liability includes current position of the non current financial liabilities all other liabilities are classified as Noncurrent.

(B) Use of Estimates

The preparation of financial statements require estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in preparation of financial statement are prudent and reasonable. Future results could differ from these estimates.

(C) Revenue Recognition

The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation

a. Interest and other dues are recognized on accrual basis except in the case of income on Non-performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms prescribe by the RBI.

b. Interest on allotment/call money in arrears, on shares, are accounted as and when received due to

(i) Long term Investments are carried at acquisition cost.

(ii) Current investments are carried at the lower of cost or fair value on an individual basis. However, appreciation if any, within the category, is available for set off.

(D) Fixed Assets :

Fixed Assets are stated at cost (inclusive of expenses incurred for acquisition thereof) less accumulated depreciation.

(E) Depreciation :

Depreciation has been provided on WDV method as per the rate and manner prescribed in Schedule XIV of the Companies Act, 1956.

(F) Investment:

All Investment are held for more than a year from date of acquisition are classified as long term investment and are carried at cost . Investment are classified non current investment and same are carried at carried at Carrying Cost without deducting the diminution in value of Rs.9986/- of PANJON LTD. of due to temporary in nature in the opinion of the management.

(G) Retirement Benefit:

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits. Management further stated that they are in process to determine the retirement benefit as per As-15 (Revised) and accordingly no provision was made in the accounts. Further they opined that same will be accounted on payment basis.

(H) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to profit and loss account as expenses if any incurred.

(I) Earnings per share

The earning considered to ascertain the Company''s EPS comprises the net profit after tax of the year and includes the past tax effect of any extra ordinary items.

(J) Prior Period Item

Prior period item (if any) has been separately disclosed in Profit & Loss Account as per AS-5.

(K) Taxation

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax Act. Deferred tax Asset is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income/expenditure that originate in one period and are capable of being reversed in one or more subsequent year(s).Deferred taxes are reviewed for their carrying values at each balance sheet dates.

(L) Provision and Contingencies

Provisions involving substantial degree of estimation in measurement are recognized where there is a present obligation as a result of past events and if it is probable that there will be out flow of resources Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement. However In current year , Company have written back the provision of income tax for assessment year (2008-09) in the financial statement as per order received in favor of company. But Income Tax department has filled Second Appeal before ITAT Indore against 1st Appeal decided in favour of the Company.

(M) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(N) Impairment of Assets

An assets is treated as impaired when carrying cost of assets exceeds its recoverable amount. Thus based on such exercise, there is no impairment of assets, accordingly no adjustment in respect of loss as impairment of assets is required to be made in the accounts.

(O) Provision/ Write Off against Loans and Other Credit Facilities

(a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI Provisions are made on Standard, Sub-Standard and Doubtful Assets as the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the extent RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increase provisions are necessary.

(b) NPA Provision has been written back of those accounts whose recovery is affected in during the year.

(P ) PREVIOUS YEAR FIGURES


Mar 31, 2012

(A) Basis of Preparation of Financial Statement

a) The accompanying financial statement have been prepared on a historical cost convention and conform in all material aspects to the Generally Accepted Accounting Principles in India which encompasses applicable accounting standards notified by the Companies (Accounting Standards) Rules, 2006, prudential norms for Income recognition and provision for non-performing assets as prescribed by Reserve Bank of India for Non-Banking Financial Companies, complies with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company and other statutory provision and regulatory framework.. The Company adopts the accrual concept in the preparation of Accounts.

b) Presentation & disclosure of financial statement

During the year ended 31st march, 2012 the revised schedule VI notified under the company Act, 1956 has become applicable to the company for preparation and presentation of its financial statement. The adaption of revised schedule VI does not impact recognition and measurement principle followed for preparation of financial statement. However it has significant impact on presentation and disclosure made in the financial statement. The company has also declared the previous year figures in accordance with the requirement applicable in the current year.

(B) Use of Estimates

The preparation of financial statements require estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent liabilities) as of the date of financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in preparation of financial statement are prudent and reasonable. Future results could differ from these estimates.

(C) Revenue Recognition

The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation

a. Interest and other dues are recognized on accrual basis except in the case of income on Non-performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms prescribe by the RBI.

b. Interest on allotment/call money in arrears, on shares, are accounted as and when received due to practical difficulties.

c. Dividend declared by the respective Companies till the close of the accounting period are accounted for as income, once the right to receive is established.

(D) Fixed Assets :

Fixed Assets are stated at cost (inclusive of expenses incurred for acquisition thereof) less accumulated depreciation.

(E) Depreciation :

Depreciation has been provided on WDV method as per the rate and manner prescribed in Schedule XIV of the Companies Act, 1956.

(F) Investment:

All Investment are held for more than a year from date of acquisition are classified as long term investment and are carried at cost. Investments are classified under two categories i.e. current and long term and are valued in according with the RBI Guidelines as applicable to Non-Banking Financial Companies (NBFCs) and Accounting Standard 13 on 'Accounting for Investment' as notified by the companies (accounting Standard) Rules, 2006.

(i) Long term Investments are carried at acquisition cost.

(ii) Current investments are carried at the lower of cost or fair value on an individual basis. However, appreciation if any, within the category, is available for set off.

(G) Retirement Benefit:

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits. Management further stated that they are in process to determine the retirement benefit as per As-15 (Revised) and accordingly no provision was made in the accounts. Further they opined that same will be accounted on payment basis.

(H) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to profit and loss account as expenses if any incurred.

(I) Earnings per share

The earning considered to ascertain the Company's EPS comprises the net profit after tax of the year and includes the past tax effect of any extra ordinary items.

(J) Prior Period Item

Prior period item has been separately disclosed in Profit & Loss Account as per AS-5.

(K) Taxation

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax Act. Deferred tax Asset is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income/expenditure that originate in one period and are capable of being reversed in one or more subsequent year(s). Deferred taxes are reviewed for their carrying values at each balance sheet dates.

(L) Provision and Contingencies

Provisions involving substantial degree of estimation in measurement are recognized where there is a present obligation as a result of past events and if it is probable that there will be out flow of resources Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement.

(M) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(N) Impairment of Assets

An assets is treated as impaired when carrying cost of assets exceeds its recoverable amount. Thus based on such exercise, there is no impairment of assets, accordingly no adjustment in respect of loss as impairment of assets is required to be made in the accounts.

(O) Provision/Write Off against Loans and Other Credit Facilities

(a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI Provisions are made on Standard, Sub-Standard and Doubtful Assets as the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/written off as per the extent RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increase provisions are necessary.

(b) NPA Provision has been written back of those accounts whose recovery is affected in during the year.


Mar 31, 2010

(A) System of Accounting

a. The financial statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and complies with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company. The Company adopts the accrual concept in the preparation of Accounts.

b. The Company has followed the prudential norms for Income recognition and provision for non performing assets as prescribed by Reserve Bank of India for Non Banking Financial Companies.

(B) Revenue Recognition

a. Income & Expenditures are recognized and accounted on accrual basis. Interest from customer/debtors who are not repaying the installment/loan are accounted when received and appropriated. Moreover revenue recognition is postponed to a later year only when it is not able to estimate if with reasonable accuracy.

b. Interest on allotment/call money in arrears, on shares, are accounted as and when received due to practical difficulties.

c. Dividend is accounted when the right to receive payment is established.

d. Income on NPA has been recognized as and when received.

e. Gratuity and Retirement Benefits for the employee are accounted for on payment basis.

(C) Fixed Assets :

Fixed Assets are stated at cost (inclusive of expenses incurred for acquisition thereof) less accumulated depreciation.

(D) Depreciation :

Depreciation has been provided on WDV method as per the rate and manner prescribed in Schedule XIV of the Companies Act, 1956.

(E) Investment:

Investments are classified as Long Term Investment and shown at cost. No Provision has been made for diminution in the value of investment as all the investments are long term and in the boards opinion the decline is temporary.

(G) Non Performing Assets and Provision:

All loan where the installment are over due for more than six months from the date of demand are classified as non performing assets in accordance with the prudential norms prescribed by the Reserve Bank of India Provision for non performing assets has been made as per RBI Norm. However, the advances by way of loans are stated before provision for NPA & Doubtful Debts.

(H) Retirement Benefit:

No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits. Management further stated that they are in process to determine the retirement benefit as per As-15 (Revised) and accordingly no provision was made in the accounts. Further they opined that same will be accounted on payment basis.

(I) Borrowing Cost:

Borrowing costs relating to working capital are charged to profit and loss account as expenses if any incurred.

(J) Earning per share

The earning considered to ascertain the Companys EPS comprises the net profit after tax of the year and includes the past tax effect of any extra ordinary items.

(K) Prior Period Item

Prior period item has been separately disclosed in Profit & Loss Account as per AS-5.

(L) Accounting for taxes on income.

Provision for current tax are computed as per provision under the Income Tax Act, 1961 Deferred tax liability is recognized if any subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of being reversed in one or more subsequent period.

(M) Provision , Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized where there is a present obligation as a result of past events and if it is probable that there will be out flow of resources Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement.

(N) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(O) Impairment of Assets

An assets is treated as impaired when carrying cost of assets exceeds its recoverable amount. Thus based on such exercise, there is no impairment of assets, accordingly no adjustment in respect of loss as impairment of assets is required to be made in the accounts.

(P) Loans & Advances

Loans & Advances granted by the company are repayable on demand. Hence the same are not classified between different categories.

(Q) Provision/ Write Off against Loans & Advances and Debtors

(a) All NPA, Loans & Advances & Debtors are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI. Provision has been made on the Sub-Standard and Doubtful Assets as the rates prescribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the extent RBI guidelines. Additional provision on some Advances & Debtors has not been made due to recoverable in the opinion of the Management.

(b) NPA Provision has been written back of those accounts whose recovery is affected in during the year.

 
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