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.