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Accounting Policies of CLIO Infotech Ltd. Company

Mar 31, 2014

1. Basis of Preparation of Financial Statements

The Financial Statements have been prepared under Historical Cost conventions and on accrual basis in accordance with the Generally Accepted Accounting Principles (''GAAP'') applicable in India, Compa- nies (Accounting Standard) Rules, 2006 notified by Ministry of Company Affairs and Accounting Stan- dards issued by the Institute of Chartered Accountants of India as applicable and relevant provisions of the Companies Act, 1956, as adopted consistently by the Company.

2. Use of Estimates

The preparation of Financial Statements in conformity with Indian GAAP requires estimates and as- sumptions to be made, that affects the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets

Fixed Assets are capitalized at cost less accumulated depreciation inclusive of purchase price, duties and other non refundable taxes, direct attributable cost of bringing asset to its working condition and financing cost till commercial production, if any.

Projects, if any, under which assets are not ready for their intended use are shown as Capital Work-in- Progress. However no project was undertaken during the year under review.

4. Depreciation / Amortization

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Inventories

Shares held by Company as stock-in-trade is valued at cost as per consistent accounting policy de- cided & followed by the management. Shares, Debentures and other Securities, purchased if any, are accounted under Stock-in-trade on trade dates.

6. Revenue Recognition

Interest earned on loans is recognized on accrual basis. Revenue from Capital gain on sale of securi- ties is recognized once trade is done and delivery is given. Dividend is recognized when the right to receive the payment is established.

7. Investment

Investments are classified as Current & Non Current Investments. Current Investments are carried at lower of cost or Market / Fair Value determined on an individual investment basis. Non-Current invest- ments are valued at cost. However no fresh Investment was made by the Company during the year.

8. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capital- ized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss A/c..

9. Taxation

Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured as amount

of tax payable in respect of taxable income for current year as per Income Tax Act 1961 after considering tax allowances and exemptions, if any. Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that origi- nate in one year and are capable of reversal in one or more subsequent year.

Due to brought forward losses no provision is made for current Income Tax. Deffered Tax liability is created on account of timing difference on Depreciation as per Companies Act and Income Tax Act. Company has also w/off excess provision made in past years.

10. Leases Operating Lease

Lease where the lesser effectively retains substantially all risks and benefits of the asset are classified as Operating lease. Operating lease payments are recognized as an expense in the Profit & Loss account.

11. Impairment of Assets

An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Profit & Loss in the year in which an asset is identified as Impaired. As on Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there are any indications that those assets have suffered "Impairment Loss".

12. Earnings per Share

In determining the Earnings Per share, the company considers the net profit after tax which includes any post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted average number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been issued on conversion of all potentially dilutive shares.

13. Retirement Benefits

Short term employee benefits - The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services. These benefits include performance incentive and com- pensated absences.

According to management, since the number of employees are less than mandatory limit, Company has not yet applied for registration under Provident Fund Act or ESIC Act.

14. Segmental Reporting

Company operates only in one segment viz. financial activities.

15. Related Party Transactions

As per accounting standard 18 (AS-18) Related party disclosures, notified in the companies (Accounting Standards) Rules 2006, the disclosure of transactions with the related parties defined in AS-18 are given below;

1. Key Managerial Personnel:

a) Mr. Suresh Bafna

b) Mr. Ashok Bafna

c) Mrs. Manju Bafna

d) Mr. Himanshu Shah

2. Relatives of Key Management Personnel

Names of the Relative Relation

Prithviraj Bafna (Bafna Babulal & Sons) Brother of Director Mr. Suresh Bafna

3. Parties where control exists

Name of the Party Nature of Control

Monarch Securities Pvt. Ltd. Mrs. Manju Bafna & Mr. Ashok Bafna - Directors till 12/08/2013.

Simandhar Securities Pvt.Ltd. Mr. Suresh Bafna, Mrs. Manju Bafna & Mr. Ashok Bafna are Directors.

Monarch Project & Finmarkets Ltd. Mr. Suresh Bafna, Mrs. Manju Bafna, Mr. Ashok Bafna, Mr. Himanshu Shah - Major Shareholders & Mrs. Manju Bafna & Mr. Ashok Bafna are Common Directors.

Further following Related Party Transactions were noticed during the year -

Company carries on its Share Transactions with Monarch Project & Finmarkets Limited, NSE Member.

16. Contingent Liabilities & Provisions

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made.


Mar 31, 2013

1. Basis of accounting:

The financial statements are prepared on the historical cost convention basis and on accrual concept as a going concern in accordance with the applicable Accounting Standards referred to in Sub section 3C of Section 211 of the Companies Act, 1956 and normally accepted accounting principles.

2. Accounting Standards:

Accounting standards as prescribed by the Department of Corporate Affairs (Formerly known as Department of Company Affairs) and referred to in the Companies Act, 1956 have been followed wherever applicable.

3. Fixed Assets and its Depreciation:

Fixed assets are stated at cost price comprising of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Deprecation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 & on pro-rata basis wherever applicable, if any.

4. Investments:

Company has not made any fresh investment during the year. Long Term Investments are stated at Cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term invest- ments, if any.

5. Stock in Trade

Shares held by Company as stock-in-trade is valued at cost as decided by the management. Shares, Debentures and other Securities, purchased if any, are accounted under Stock-in-trade on trade dates. Contracts relating to specified shares intended to be squared-off in the same settlement are accounted on the squaring up dates.

6. Contingent Liabilities:

No litigations are filed or is pending against the Company & Company does not have any present obligation arising out of any past event as is just being formed. Hence no provision arises or is made for contingent liabilities.

7. Revenue Recognition:

Interest on Loans is provided as agreed with respective parties and same is made on annual basis. Dividend income is recognized as and when the right to receive dividend is established. Profit or losses from Investments/ Stock-in-trade are recognized on trade dates on first-in-first out basis.

8. Retirement Benefits:

Company has not applied under Provident Fund & Miscellaneous Provisions Act & hence no provision is made towards retirement benefits of Employees.

9. Borrowing Cost:

Company has taken loans from its members & other Corporate Bodies but according to management & from records it appears same are temporary loans and hence according to management interest is not payable to them and hence is not provided for.

10. Taxation:

In view of loss incurred during the year, no provision for current tax is made under the provisions of the Income Tax act, 1961. Deferred tax Asset of Rs.119870/- resulting from timing differences'' between taxable and ac- counting income, mainly on account of Depreciation, is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

11. Segmental Reporting:

The Company is operating only in one segment i.e. Finance.

12. Related Party Transactions:

As per accounting standard 18 (AS-18) Related party disclosures, notified in the companies (Accounting Stan- dards) Rules 2006, the disclosure of transactions with the related parties defined in AS-18 are given below;

1. Key Managerial Personnel:

a) Mr. Suresh Bafna

b) Mr. Ashok Bafna

c) Company carries on its Share Transactions with Monarch Project & Fin markets Limited, NSE Member.

13. Earnings (Loss) Per Share:

Basic EPS - (0.67) = 7375069/- (Net Loss attributable to Shareholders) /11010950 (Weighted Avg. No of Equity Shares)

Diluted EPS - (0.67) = 7375069/- (Net Loss attributable to Shareholders) / 11010950 (Weighted Avg. No of Equity Shares)

Diluted EPS is similar to Basic EPS as there are no potential equity share as on date.


Mar 31, 2012

1. ACCOUTING CONVENTION

The accounts have been prepared under the historical cost convention.

2. FIXED ASSETS

Fixed Assets are stated at cost inclusive of expenses in connection therewith and deduction is made for the depre- ciation.

3. DEPRECIATION

Deprecation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed in Schedule XTV to the Companies Act, 1956.

4. TREATMENT OF STOCK OF STATIONERY FORMS, SHARES ETC.

The entire amount of printing and stationery is treated as expenditure for the year without making any provision for stock at the end of the year. Further shares held by the Company as stock-in-trade is valued at cost as decided by the management.

Shares, Debentures and other Securities, purchased if any, are accounted under Stock-in-trade on trade dates. Contracts relating to specified shares intended to be squared-off in the same settlement are accounted on the squar- ing up dates. The brokerage is included in the cost of Investments/ Stock-in-Trade.

5. VALUATION OF INVESTMENTS

Long term Investment are carried at cost less provision, if any, for permanent diminution in the value of such investments. The comparative shortfall is charged to revenue.

6. REVENUE RECOGNITION

Interest on Loans is provided as agreed with respective parties and same is made on annual basis. Dividend income is recognized as and when the right to receive dividend is established. Profit or losses from Investments/ Stock-in-trade are recognised on trade dates on first-in-first out basis.

7. EXPENDITURE

All the expenses comprising interest, rent and charges are provided on accrual basis except certain petty expenses which are accounted on cash basis.

8. TAXES ON INCOME

Current Charge for Income Tax including Deferred Tax, if any, is calculated in accordance with the relevant tax regulations applicable to the Company.

9. EMPLOYEE RETIREMENT BENEFITS

Leave encashment liabilities is accounted for on cash basis as the liability on the date of the Balance Sheet is not expected to be material.

10. Material Events occurring after Balance Sheet date are taken into cognizance.

11. PRIOR PERIOD AND EXTRA ORDINARY ITEMS

Prior period and Extra ordinary Hero and changes in Accounting policies having material impact on the financial attain of the company, if any, have been disclosed.

12. Contingent liabilities ate not provided for and are disclosed by way of notes, if any.


Mar 31, 2010

1. ACCOUTING CONVENTION

The accounts have been prepared under the historical cost convention.

2. FIXEDASSETS

Fixed Assets are stated at cost inclusive of expenses in connection therewith and deduction is made for the depreciation.

3. DEPRECIATION

Deprecation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

4.TREATMENT OF STOCK OF STATI ON ERYFORMS ETC.

The entire amount of printing and stationery is treated as expenditure for the year without making any provision for stock at the end of the year.

5. INVESTMENTS/STOCK-IN-TRADE

(a) Shares, Debentures and other Securities are accounted under Investments/Stock-in-trade on trade dates. Contracts relating to specified shares intended to be squared-off in the same settlement are accounted on the squaring up dates.

(b) The brokerage is included in the cost of Investments/ Stock-in-Trade.

6. VALUATION OFDSVESTMENTS/STOCK-IN-TRADE

Long term Investment are carried at cost less provision, if any, for permanent diminution in the value of such investments. Stock-in-trade is valued at cost or market value whichever is lower. The comparative shortfall is charged to revenue. The comparison for each scrip is made separately.

7. DETERMNATION OF THE MARKET VALUE OF INVESTMEN

i) Quoted shares, securities are taken at the year-end closing market rates prevailing on the principal stock exchanges where they are traded.

ii) Unquoted shares are taken at cost or break-up value of the shares as per the last audited Balance Sheet of the Company concerned, whichever is lower.

iii) Investment in estate finance is valued at cost taking into account all the value additions made thereon.

 
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