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Accounting Policies of Cindrella Financial Services Ltd. Company

Mar 31, 2012

1. METHOD OF ACCOUNTING :

The Company generally follows the accmal system of accounting. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting practices.

2. INCOME RECOGNITION :

All known incomes are accounted for on accrual basis except income from dividends which are accounted for as and when received.

3. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

4. SHARE CAPITAL:

Equity Shares have equitable voting rights.

The details of shareholding in excess of 5% are as below:

5. DEFFERED TAX ASSET/LIABILITY:

To provide Snd recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available Jo realize such assets. -

6. TAXES ON INCOME:

The current tax liability has been calculated after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961 and provided for as short term provisions.

7. FIXED ASSETS:

Fixed Assets are stated at their historical cost inclusive of legal and/or installation changes less Depredation. Details of Fixed Assets have been given in "Note no 9" forming part of Balance Sheet and Profit & Loss Account. None of the Fixed Assets have been revalued during the year.

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.

8. INVENTORIES:

Inventories have been valued at lower of Cost. As the Company is involved in trading of shares, the inventories of the Company includes the shares of various Companies.

9. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written Down Value Method on a consistent basis as per Schedule XIV of the Companies Act, 1956 on pro-rata basis. Details of depreciation have been stated in "Note no 6" forming part of Balance Sheet and Profit & Loss Account.

10. RELATED PARTY TRANSACTIONS:

The details regarding related parties and transactions taken place between them during the financial year 2011-12 has been given below:


Mar 31, 2011

I. METHOD OF ACCOUNTING:

The Company generally follows the accrual system of accounting. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting practices.

ii. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written down Value Method on a consistent basis as per Schedule XIV of the Companies Act, 1956 on pro-rata basis. Details of depreciation have been stated in "Schedule B" forming part of Balance Sheet and Profit & Loss Account.

iii. INCOME RECOGNITION :

All known incomes are accounted for on accrual basis except income from dividends which are accounted for as and when received.

iv. FIXED ASSETS.

Fixed Assets are stated at their historical cost inclusive of legal and/or installation charges less Depreciation. Details of Fixed Assets have been given in "Schedule-B" forming part of Balance Sheet and Profit & Loss Account. None of the Fixed Assets have been revalued during the year.

v. ACCOUNTING FOR INVESTMENTS:

The company's trade investments in pursuance of its objective is meant to be held for long term and as such are valued at cost. However, provision if any for diminution is made to recognize any decline other than temporary, in the value of investment. But there is no diminution in value of investment which would have long term effect The Market Value of quoted investments amounts to Rs.3,07,05,553/-.

vi. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

vii. RELATED PARTY TRANSACTIONS:

The details regarding related parties and transactions taken place between them during the financial year 2010-11 has been given below:

viii. EARNING PER SHARE:

Basic and diluted earning per share (pursuant to AS-20) 31.03.2011

ix. TAXES ON INCOME:

a. Current Year: To provide and determine current year tax liability as the amount of the tax payable in respect of taxable income for the year, after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961.

b. Deferred Tax: To provide and recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

1.During the year, the Deferred Tax Liability of Rs.368.47 has been originated and therefore the closing balance of Deferred Tax Liability as on 31.03.2011 is Rs.94,552.71. The Deferred Tax Liability Comprise of tax effect of the following timing difference:-

2.In the view of Companies past financial performance and the future profit projection, the Company expects to fully recover the Deferred Tax Liability.

x. INTANGIBLE ASSETS:

In pursuance to Accounting Standard-26, any expenses relating to pre-operational activities have to be written off in the same year. This policy is being followed. The Public Issue Expenses are not covered by this standard and hence it is being written off in equal installments over a period of 10 years.

xi. IMPAIRMENT OF ASSETS:

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.

xii. CONTINGENT LIABILITIES:

Contingent liabilities existed as on 31.03.2011 amounting to Rs. Nil (P.Y. Nil).


Mar 31, 2010

I. METHOD OF ACCOUNTING:

The Company generally follows the accrual system of accounting. The Accounts are prepared on historical

cost basis as a going concern and are consistent with generally accepted accounting practices.

ii. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written down Value Method on a consistent basis as per Schedule

XIV of the Companies Act, 1956 on pro-rata basis. Details of depreciation have been stated in "Schedule B"

forming part of Balance Sheet and Profit & Loss Account.

iii. INCOME RECOGNITION :

All known incomes are accounted for on accrual basis except income from dividends which are accounted for as and when received.

iv. FIXED ASSETS:

Fixed Assets are stated at their historical cost inclusive of legal and/or installation charges less Depreciation.

Details of Fixed Assets have been given in "Schedule-B" forming part of Balance Sheet and Profit & Loss

Account. None of the Fixed Assets have been revalued during the year.

v. ACCOUNTING FOR INVESTMENTS:

The companys trade investments in pursuance of its objective is meant to be held for long term and as such

are valued at cost, unless there is permanent fall in its market value.

vi. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

viii. TAXES ON INCOME:

a. Current Year: To provide and determine current year tax liability as the amount of the tax payable in respect of taxable income for the year, after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961.

b. Deferred Tax: To provide and recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

ix.IMPAIRMENT OF ASSETS:

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.

 
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