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Accounting Policies of Citizen Infoline Ltd. Company

Mar 31, 2015

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and comply with the Companies (accounting Standard) Rules 2006, the relevant provision of the Companies Act 2013.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Considering the matching concept, the company recognizes its revenue from information service business on receipt basis.

AS -1 - Disclosure of Accounting Policies

The Accounting Principles and policies recognized as appropriate for measurement and reporting of the financial performance and the financial position on mercantile system and recognize items of income and expenditure on accrual basis. The statement on Significant Accounting policy excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during year.

AS - 3 - Cash Flow Statement

Cash flow statement, as per AS - 3 is annexed with financial statements.

AS -4 - Contingencies and Events occurring after Balance sheet date.

Sr. Particulars Amount No. Rs.

1 Contingent Liabilities Nil

2 Liabilities Disputed under Income Tax Nil

3 Estimated Amount of Contracts remaining to be executed on Capital accounts and not provided for Nil

4 Material Events occurring after Balance sheet date are taken into cognizance. There have been no material changes or events since the date of balance sheet affecting financial statements as on the Balance sheet date. Further, the dates of Balance sheet, no events or circumstances have occurred, though properly excluded from the accounts, are of such importance that they should be disclosed through any medium.

AS - 5 - Net Profit and Loss for the period, extra ordinary items and change in accounting policy.

1 Net Profit for the period

All items of income and expense in the period are included for determination of net profit of the year unless specifically mentioned elsewhere in the financial statements or required by an Accounting Standard. Prior period items, extra ordinary items and changes in accounting policy are disclosed only if those have material impact on the affairs of the company.

2 Prior Period items: All material items of Income/ Expenditure pertaining to prior period and expenses to subsequent period are accounted separately. During the year, the company has debited deferred tax Rs.1,111,131 for earlier years, against opening balance of profit & loss account. The company has made error in calculations in the preceding periods. The same has been corrected by debit to Opening balance of surplus account.

3 Extra ordinary Items : Nil

4 Accounting Policies

The company has consistently followed accounting polices and there are no material changes in accounting policy of the company from that followed in previous year.

AS - 6 - Depreciation Accounting

a) The Gross Block of fixed assets is stated at cost or acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.

b) Depreciation on fixed assets is provided on 'Straight Line Basis' at the rate prescribed in Schedule II to the Companies Act. 2013.

c) Write Offs of Fixed Assets

The Company had depreciated fixed assets at rates specified under Schedule XIV of Companies Act. 1956 till 31 March 2014. However, Schedule II of Companies Act. 2013 requires company to depreciate its assets over its useful-life with effect from 1 April 2014. Accordingly, the company has calculated useful lives of all assets as on 1 April 2014 and depreciated their written down value on their remaining useful lives. However, the written down values of assets, whose useful life has become Nil as on 1 April 2014, are required to be adjusted towards reserves and surplus. The Company has adjusted Rs. 32,14,399/-towards reserves and surplus of the company. The change in rate of depreciation or useful life of an asset is change in accounting estimate and is therefore applied prospectively with effect from 1 April 2014.

AS -10 - Accounting of Fixed Assets

Fixed Assets reflected in the financial statements are stated at their cost of acquisition including taxes, duties (Net of Refunds) and other identifiable direct charges incurred upto date the asset is put to use less accumulated depreciation where charged.

AS -13 - Accounting for Investments:-

The investments of the company are classified in to investments held for maturity and investment held other than for maturity. The company values its investments held for maturity at cost price ignoring any changes in the market price of the same. However, if change in value is on permanent basis, the same is recognized as profit or loss in profit and loss account. While investment held for other than maturity is valued at Market price by recognizing the same in profit and loss account.

AS -14 - Accounting of Amalgamation

In 2009 the company has amalgamated Citizen Communication Limited by issuing the fully paid of shares of the company as purchase consideration. The amalgamation was in nature of merger. All the assets and liability acquired is shown at book value. However, the difference arise on amalgamation is not adjusted from profit and loss account or reserves of the company. The company has shown them as Goodwill on Asset side amounting to Rs. 1 crore. This has resulted to overstatement of reserves of the company by Rs. 1 crore.

AS - 15 - Accounting for retirement benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered.

The eligible employees of the Company are entitled to receive benefits under the Provident Fund, a defined contribution plan in which both the employees and the Company make monthly contributions at a specified percentage of the covered employees' salary (currently 12% of employees' salary). The contributions as specified under the law are paid to the Regional Provident Fund Commissioner and the Central Provident Fund under the Pension scheme. The Company recognizes such contributions as expense of the year in which the liability is incurred.

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave for availment as well as encashment subject to the rules. As per the regular past practice followed by the employees, the company does not create provisions for leave encashment but recognizes the same on actual payment basis.

AS - 17 - Segment Reporting

The Company operates six segments viz Ahmedabad, Rajkot, Surat. Baroda. Mumbai and Pune division on the basis of Geographical Critena. The company has preferred to give segment reporting based on statewide classifications of its divisions.

 
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