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Accounting Policies of Chamak Holdings Ltd. Company

Mar 31, 2015

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the company have been prepared in accordance with the Indian Generally Accepted Accounting Principles ("Indian GAAP") under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed as section 133 of the companies Act, 2013, read with rule 7 of companies (Accounts) Rules, 2014. Accounting policies have been consistently applied except where a newly Issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hereto In use.

b) TANGIBLE ASSETS

Tangible assets are stated at cost or at revalued amount less accumulated depreciation. Cost of fixed assets includes all Incidental expenses and interest costs on borrowings, attributable to the acquisition of qualifying assets, upto the date of commissioning of assets. An item of Fixed assets or de-recognised upon disposal or future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the fixed assets (calculated as the differences between the net disposal proceeds and the carrying amount of the assets) Is included in the financial statements in the year the assets is de-recognised.

c) INVESTMENTS

Long term invests are carried individually at cost less diminution, other than temporary, In the value of such investments determined on an individual basis. Current investments are carried individually, at lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

d) DEPRECIATION

Depreciation on fixed assets charged in accordance with estimate of useful life's of the assets, on straight line method, at rates specified in Schedule II of the companies Act,2013. Depreciation on assets purchased during the year is provided pro-rara to the period such asset was put to use during the year.

In respect of an assets for which Impairment loss is recognised, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

e) INCOME AND EXPENDITURE

Income and expenditure are accounted for on accrual basis.

f) EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit or loss for the year attributed to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earning proper share, the net profit or loss for the year attributable to the equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares except where the results would be anti-dilutive.

The number of shares and dilutive equity shares are adjusted retrospectively for all period presented for any share split and bonus shares issues.

g) TAXES ON INCOME

Provision for current income tax, is made as per the provisions of the Income tax Act, 1961.

h) CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purposes of cash flow statement comprises cash at bank and in hand and short term investments with an original maturity period of three months or less

i) CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the affects of transactions of a non-cash nature and any deferral pr accrual of past or future cash receipts or payments. The cash flow from regular revenue generating, investing and financing activities of the company are segregated.


Mar 31, 2012

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles ('GAAP ) under the historical cost convention, accrual basis of accounting, on going concern basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b) INVESTMENTS ,

investment in shares are stated at cost and provision is made to recognise any decline, other than temporary, in the value of such investments. Profits or losses on sale of investments are included in the Profit and Loss Account and calculated as the difference between the net proceeds realised and the book value.

c) INCOME AND EXPENDITURE

income and expenditure are accounted for on accrual basis.

d) INVENTORIES

Inventories of flats are valued at Lower of cost or net market value; Cost includes cost of acquisition and other related expenses incurred in bringing the inventories to their present location and condition. Net market value is the estimated selling price in the ordinary course of business.

e) CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and hand and short term investments with an original maturity period of three months or less.

f) EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential - equity shares except where the results would be anti-dilutive. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all period presented for any share splits and bonus shares issues,

g) Deferred tax is recognised, subject for the consideration of prudence, an timing difference, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods.

 
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