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Accounting Policies of Agarwal Fortune India Ltd. Company

Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statement have been prepared under the historical cost convention, going concern and on the accrual basis of accounting in accordance with the provisions of the Companies Act, 1956 & comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable.

1.2 ACCOUNTING ESTIMATES

The preparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the preparation of the financial statement are prudent & reasonable, actual results could differ from these estimates.

1.3 FIXED ASSETS

Fixed assets are stated at cost

1.4 DEPRECIATION

The Company has not charged Depreciation on its fixed assets.

1.5 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.. Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

1.6 TAXES ON INCOME

Tax expenses comprises of Current tax and deferred tax. Current Tax Provision, if any, has been made on the basis of reliefs and deduction available under the Income- Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a reasonable certainty that the assets can be realised in future. However, where there is unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date.

1.7. CONSISTENCY :

These Financial statements have been prepared on basis consistent with previous years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles.

1.8. IMPAIRMENT OF ASSETS:

In accordance with the Accounting Standard (As-28 ) in " Impairment of Assets " issued by The Institute of Chartered accountants of India , during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable .

1.9. SEGMENTAL REPORTING:

Being the company having only one line of operation and working in a single geographical area and in accordance with the provisions of AS -17. Hence segmental report is not furnished.

1.10. INVESTMENTS

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investments and are carried at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

1.11 CONTINGENT LIABILITIES

Contingent liability that may arise due to delayed / non-compliance of certain fiscal statutes amount unascertainable.


Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statement have been prepared under the historical cost convention, going concern and on the accrual basis of accounting in accordance with the provisions of the Companies Act, 1956 & comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable.

1.2 ACCOUNTING ESTIMATES

The preparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the preparation of the financial statement are prudent & reasonable, actual results could differ from these estimates.

1.3 FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation.

1.4 DEPRECIATION

Depreciation on fixed assets have been provided on straight-line method and on prorata basis at the rates and in the manner prescribed under Schedule XTV of the Companies Act, 1956.

1.5 INVENTORIES

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under.

- Hire purchase Stock: At Cost Plus total finance charges and reduced by the installments, which have matured during the relevant period and un-matured finance charges.

The company has filed legal suits against some defaulters, which are classified as non-performing assets as per Reserve Bank of India's guidelines, and provisions for the same are being made in the accounts. However, during the year few of suits filed cases are written -off considering the bleak possibility of their recovery. Any recovery made in the future shall be properly accounted for as receipt.

- Stock in trade: The Securities acquired with the intention of short term holding and trading positions are considered as stock in trade. Securities held as stock in trade are valued at cost or net realizable value, whichever is lower.

1.6 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.. Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

1.7 TAXES ON INCOME

Tax expenses comprises of Current tax and deferred tax. Current Tax Provision, if any, has been made on the basis of reliefs and deduction available under the Income- Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a reasonable certainty that the assets can be realised in future. However, where there is unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date.

1.8 RETIREMENT BENEFITS

The company has not provided for gratuity .privilege leave and other retirement benefits as the company follows the practice of accounting for the retirement benefits as and when paid.

1.9. Consistency:

These Financial statements have been prepared on basis consistent with previous years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles.

1.10. IMPAIRMENT OF ASSETS:

In accordance with the Accounting Standard (As-28 ) in " Impairment of Assets " issued by The Institute of Chartered accountants of India , during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable .

1.11. SEGMENTAL REPORTING:

Being the company having only one line of operation and working in a single geographical area and in accordance with the provisions of AS -17 , the company has only one reportable segment consisting of its finance operation. Hence segmental report is not furnished.

1.12. INVESTMENTS

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investments and are carried at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.


Mar 31, 2011

1.1 BASIS OF ACCOUNTING

THE financial statements have been prepared on the historical cost basis and are in conformity with the statutory provisions and practices prevailing in the industry are in accordance with the generally accepted accounting principals and the provisions of the Companies Act, 1956.

1.2 INCOME AND EXPENSES

a) The Company recognizes income and expenditure in accordance with the guidelines issued by the Institute Of Chartered Accountants of India..

b) Hire charges arising out of hire purchase contracts are apportioned equally over the term of contract and taken into account on the date hire charges falls due.

c) In respect of other heads of income, the company follows the practice of accounting of such income on accrual basis. Delayed payment charges are accounted on Cash basis

d) These Financial Statements are prepared on going concern basis.

1.3 FIXED ASSETS:

In respect of fixed assets, the assets are valued as per Accounting Standard 10 prescribed by the institute of Chartered Accounts of India

1.4 DEPRECIATION:

The depreciation in respect of these assets is provided of on a Straight line method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.5.HIRE PURCHASE STOCK

a) Hire purchase stock is stated at cost plus total finance charges and reduced by the installments, which have matured during the relevant period and un-matured finance charges.

b) The Company has filed legal suits against some defaulters, which are classified as non-performing assets as per the Reserve Bank of India?s guidelines, and provisions for the same are being made in the accounts. However, during the year few of such suits filed cases are written-off considering the bleak possibility of their recovery. Any recovery made in the future shall be properly accounted for as receipt.

1.6 STOCK IN TRADE AND INVESTMENTS:

a) The Securities acquired with the intention of short – term holding and trading positions are considered as stock in – trade and shown as current assets. Other securities acquired with the intention pf long –term holdings are considered as Investments.

b) In respect of investments as well as stock-in-trade, brokerage and stamp duty payable are considered to arrive at the cost..

c) The securities held as stock –in trade under current assets are valued at cost or market, whichever is lower.

d) Investment are valued at cost of acquisition .Provision for diminution in value of investment ,if any , is made if such diminution is other then temporary.

1.7 TAXES ON INCOME: - Provisions for taxation for the year comprises of current tax and deferred tax. Current tax is the amount of income tax determined to be payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax liabilities / assets, on timing difference, being the difference between taxable income and accounting income that originate in one or more period and are being capable of reversal in one or more subsequent periods.

1.8 PROVISION FOR DOUBTFUL LOANS AND ADVANCES:

The policy of provisioning for non-performing Loans and Advances has been decided by the management considering prudential norms prescribed by the Reserve Bank of India.

1.9 SEGMENTAL REPORTING: - Being the company having only one line of operation and working in a single geographical area and in accordance with the provisions of AS 17, the company has only one reportable segment consisting of its finance operations. Hence segmental report is not furnished.

1.10 RETIREMENT BENEFITS: - Retirement benefits in form of Provident Fund, E.S.I.C. Etc whether in pursuance of law or otherwise is accounted on accrual basis and charged to profit & loss account of the year.

1.11 Consistency: - These Financial statements have been prepared in the basis of consistent with previous years and accounting policies not specifically referred here to are consistent with generally accepted accounting principal.

1.12 Impairment of Assets: - In accordance with the account statement (AS -28) in “Improvement of Asset” issued by ICAI. During the year the Company reassessed its fixed assets and is of the view that no impairment/reversal is considered to be necessary in view of its value realizable


Mar 31, 2010

1.1 BASIS OF ACCOUNTING

THE financial statements have been prepared on the historical cost basis and are in conformity with the statutory provisions and practices prevailing in the industry are in accordance with the generally accepted accounting principals and the provisions of the Companies Act, 1956.

1.2 INCOME AND EXPENSES

a) The Company recognizes income and expenditure in accordance with the guidelines issued by the Institute Of Chartered Accountants of India.

b) Hire charges arising out of hire purchase contracts are apportioned equally over the term of contract and taken into account on the date hire charges falls due.

c) In respect of other heads of income, the company follows the practice of accounting of such income on accrual basis. Delayed payment charges are accounted on Cash basis.

d) These Financial Statements are prepared on going concern basis.

1.3 FIXED ASSETS:

In respect of fixed assets, the assets are valued as per Accounting Standard 10 prescribed by the institute of Chartered Accounts of India

1.4 DEPRECIATION:

The depreciation in respect of these assets is provided of on a Straight line method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.5.HIRE PURCHASE STOCK

a) Hire purchase stock is stated at cost plus total finance charges and reduced by the installments, which have matured during the relevant period and un-matured finance charges.

b) The Company has filed legal suits against some defaulters, which are classified as non-performing assets as per the Reserve Bank of Indias guidelines, and provisions for the same are being made in the accounts. However, during the year few of such suits filed cases are written-off considering the bleak possibility of their recovery. Any recovery made in the future shall be properly accounted for as receipt.

1.6 STOCK IN TRADE AND INVESTMENTS:

a) The Securities acquired with the intention of short - term holding and trading positions are considered as stock in - trade and shown as current assets. Other securities acquired with the intention pf long -term holdings are considered as Investments.

b) In respect of investments as well as stock-in-trade, brokerage and stamp duty payable are considered to arrive at the cost..

c) The securities held as stock -in trade under current assets are valued at cost or market, whichever is lower.

1.7 TAXES ON INCOME: - Provisions for taxation for the year comprises of current tax and deferred tax. Current tax is the amount of income tax determined to be payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax liabilities / assets, on timing difference, being the difference between taxable income and accounting income that originate in one or more period and are being capable of reversal in one or more subsequent periods.

1.8 PROVISION FOR DOUBTFUL LOANS AND ADVANCES:

The policy of provisioning for non-performing Loans and Advances has been decided by the management considering prudential norms prescribed by the Reserve Bank of India.

1.9 SEGMENTAL REPORTING: - Being the company having only one line of operation and working in a single geographical area and in accordance with the provisions of AS 17, the company has only one reportable segment consisting of its finance operations. Hence segmental report is not furnished.

1.10 RETIREMENT BENEFITS: - Retirement benefits in form of Provident Fund, E.S.I.C. Etc whether in pursuance of law or otherwise is accounted on accrual basis and charged to profit & loss account of the year.

1.11 Consistency: - These Financial statements have been prepared in the basis of consistent with previous years and accounting policies not specifically referred here to are consistent with generally accepted accounting principal.

1.12 Impairment of Assets: - In accordance with the account statement (AS -28) in "Improvement of Asset" issued by ICAI. During the year the Company reassessed its fixed assets and is of the view that no impairment/reversal is considered to be necessary in view of its value realizable

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