Mar 31, 2015
1) Basis of Preparation of Financial Statements
India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013
The financial statements are prepared on accrual basis under the historical cost convention.
2) Use of Estimates
The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of tangible and intangible fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates and would be recognized in the period in which the results are known.
3) Revenue Recognition
Revenue is recognized on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery
(i) Revenue from sale of goods is recognised when the substantial risks and rewards of ownership is transferred to buyer under the terms of contract.
(ii) Other income is accounted on accrual basis as and when the right to receive arises.
4) Fixed Assets Tangible
Fixed assets are stated at cost of acquisition, less accumulated depreciation thereon. For this purpose, cost includes purchase price and all other attributable costs of bringing the assets to working condition for intended use. Assessment of indication of impairment of an asset is made at the year end and impairment loss, if any is recognized.
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013.
The written down value of Fixed Assets whose lives have expired as at 1 st April 2014 have been adjusted in the opening balance of Profit and Loss Account.
6) Valuation of Inventories
Stock of securities and work in progress has been valued at cost.
7) Employee Benefits
Providend fund is accounted for on actual basis.
8) Taxes on Income
Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals. Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
9) Impairment of Assets
As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine :
i) The provision for impairment loss, if any required; or
ii) The reversal, if any, required of impairment loss recognized in previous period.
Impairment loss is recognized when the carrying amount of assets exceeds its recoverable amount. Recoverable amount is determined:
i) In the case of individual assets, at the higher of the net selling price and the value in use;
ii) In the cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of cash generating unit's net selling price and the value in use;
(Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset from its disposal at the end of its useful life)
10) Provisions, Contingent Liabilities and Contingent Assets
a) Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if(i) the Company has a present obligation as a result of a past event.(ii) a probable outflow of resources is expected to settle the obligation, and(iii) the amount of the obligation can be reliably estimated.b) Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.c) Contingent Liability is disclosed in the case of a. a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation.b. a present obligation when no reliable estimate is possible, and c. a possible obligation arising from past events where the probability of outflow of resources is not remote.d) Contingent Assets are neither recognized, nor disclosed.e) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.
Claims against / by the company are accounted for on acceptance / receipt of the same.