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Accounting Policies of Digital Electronics Ltd. Company

Mar 31, 2014

Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

The preparation of the accounts, in conformity with generally accepted principles, requires that the management of the company makes estimates and assumption that affect the reported amounts of income & expenses of the period, reported balance of assets and liabilities and disclosure relating to contingent assets and liabilities as of that date of the accounts.

Though the Company has discontinued its business activity, the management is focusing on new line of business, developing management training centre etc. The company is generating funds from investments and the management believes that the company will be able to meet its financial obligations. The Management has assessed and confirmed that considering these factors the company will continue to be a going concern and hence, these financial statements have been prepared on going concern basis.

All Significant items of income and expenditure are accounted on accrual basis except for claims/refunds which are not ascertainable with reasonable accuracy, are accounted on cash basis.

II. AS-3 Cash flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

III. AS-5 Net Profit / (Loss) for the period, prior period items and changes in accounting policies

All items of income & expenses, which are recognized in a period, are included in the determination of net profit or loss for the period. This includes items and the effect of changes in accounting estimates.

The net profit or loss for the period comprises the following components, each of which is disclosed on the face of the statement of profit and loss:

(a) Profit or loss from ordinary activities; and

(b) Exceptional and Extra-ordinary items.

IV. AS-6 Depreciation Accounting

Depreciation on fixed assets is provided on the written down value of the assets at the rates prescribed under Schedule XIV of The Companies Act, 1956.

Depreciation on addition to fixed assets is provided pro-rata from the date of capitalization. Depreciation on sale/deduction from fixed assets is provided for up to the date of sale, deduction or discernment as the case may be. Assets costing Rs. 5,000/- or below are depreciated in full in year of its acquisition.

V. AS-9 Revenue recognition

a. Dividend income is recognised when shareholders'' right to receive payment is establishing by the balance sheet date.

b. Interest income is recognized on the time proportionate basis.

VI. AS-10 Fixed Assets

Fixed Assets are stated at historical cost, less accumulated depreciation.

Historical cost includes original cost of acquisition or revaluation cost and incidental expenses related to such acquisition and installation.

In the previous financial year i.e. 2012-13, the Company has entered in to a memorandum of Understanding with Mrs Shreya K. Dalal for developing a Managerial Training Center at Alibaug. There is an addition during the year to the said project and at the yearend work is not completed, hence the same expenses are shown as capital work in progress in the Balance Sheet and accordingly no depreciation is charged on the same.

VII. AS-11 Effects of changes in Foreign Exchange Rates

The Company has recorded the transactions denominated in foreign currency at the exchange rate prevailing at the date of the transaction.

VIII. AS-13 Investments

Trade investments are the investments made to enhance the company''s business interest. Investments are either classified as current or long term based on the managements intention at the time of purchase. Current investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

Cost includes original cost of acquisition, brokerage and stamp duty.

IX. AS-15 Employee''s Benefits

From 31st March, 2008 all the employees of the company have resigned, hence no provisions, except those actually payable, are made in the books of accounts towards retirement benefits of employees.

X. AS- 17 Segment Reporting

During the year under review there is no specific business activities carried out by the company and hence the clause relating to segment reporting is not applicable.

XI. AS-18 Related Party Disclosure

Disclosure in respect of related party transaction pursuant to Accounting Standard 18 issued by The Institute of Chartered Accountants of India for the year ended.

List of Related Parties

Group entities SoftDEL Systems Pvt. Ltd. UniDEL Advisors Pvt. Ltd. Asset Vantage Systems Pvt. Ltd. Rasiklal Maneklal Capital Advisors Pvt. Ltd. Kimasu Investments Sumaki Investments

Key Management Personnel (KMP)

Mr. Sunil K. Dalal, Director Mr. Vivekanand Shanbhag

Transactions with related parties:

Nature of Transaction Associate KMP Total

Income

OFCD Interest received SoftDEL Systems Pvt. Ltd - - - (6,02,961) - (6,02,961) Rasiklal Maneklal Capital Advisors 84,247 84,247 Pvt Ltd (-) (-)

Expense Advisory Fees

Rasiklal Maneklal Capital Advisors 4,23,059 - 4,23,059 Pvt Ltd (-) - (-)

UniDEL Advisors Pvt Ltd 63,142 - 63,142

(2,78,807) - (2,78,807)

Outstanding Payable balance as on March 31, 2014

Rasiklal Maneklal Capital Advisors 2,89,010 - 2,89,010 Pvt Ltd (-) (-)

Outstanding Receivable balance as on March 31, 2014 _ -

SoftDEL Systems Pvt Ltd (1,34,647) - - (1,34,647)

Note: Figures in brackets are for the previous year

XII. AS-20 Earning Per Share:

In determining earning per share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary / 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 shares consider for deriving basic earning per share, and also the weighted average number of equity shares that could have been issued on the conversion of all diluted potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value (i.e. the average market value of outstanding shares). Diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at the later date. The number of shares and potentially diluted equity shares are adjusted for any stock splits and bonus shares issues affected prior to the approval of the financial statements by the board of directors.

Earning per share is computed in accordance with Accounting Standard 20.

Particulars 31-Mar-14 31-Mar-13

Weighted average number of shares (A) 237,600 237,600

Net Profit after tax for the year excluding extraordinaryitems (B) (8,72,18,584) (3,33,50,085)

Basic / Diluted EPS (B/A) (367) (140)

XIII. AS- 22 Deferred Tax Assets / (Liability):

Deferred tax expenses or benefits is recognized on timing differences being the difference between taxable incomes and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets & liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax charges/credits have not been recognized in view of unabsorbed depreciation and brought forward losses on considerations of prudence. Deferred Tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

XIV. AS - 28 Impairment of Assets:

The management periodically accesses, using internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceed the present value of future cash flows expected to arise from the continuing use of assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of carrying amount over the higher of the assets net sales price or present value as determined above.

XV. AS - 29 Provision, Contingent Liability and Contingent Assets:

Provision are recognized for liabilities that can be measured only by using a substantial degree of estimation if,

a. The company has a present obligation as a result of past events

b. The probable outflow of resources is expected to settle the obligation

c. The amount of obligation can be reliably estimated.

Contingent liability is disclosed in case of

a. Present obligation arising out of past event, when it is not probable that an outflow of resources will be required to settle obligation.

b. A possible obligation, when the probability of outflow of resources is remote

Contingent liability not provided for:

(i) Disputed arrears towards society maintenance Rs.15.01 Lacs (previous year Rs 14.63 lacs)

(ii) Contracts remaining to be executed on capital and current account and not provided for Nil (Previous Year Nil).

(iii) Liabilities to Encad Inc. for suit filed against company for compensation. Amount is unascertainable.

Contingent assets are neither recognized nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed on each balance sheet date.


Mar 31, 2013

I. AS-1 Disclosures of Accounting Policies

Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

The preparation of the accounts, in conformity with generally accepted principles, requires that the management of the company makes estimates and assumption that affect the reported amounts of income & expenses of the period, reported balance of assets & liabilities & disclosure relating to contingent assets & liabilities as of that date of the accounts.

All Significant items of income and expenditure are accounted on accrual basis except for claims/refunds which are not ascertainable with reasonable accuracy, are accounted on cash basis.

II. AS-3 Cash flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

III. AS-5 Net Profit / (Loss) for the period, prior period items and changes in accounting policies

All items of income & expenses, which are recognized in a period, are included in the determination of net profit or loss for the period. This includes items and the effect of changes in accounting estimates.

The net profit or loss for the period comprises the following components, each of which is disclosed on the face of the statement of profit and loss:

(a) Profit or loss from ordinary activities; and

(b) Exceptional and Extra-ordinary items.

IV. AS-6 Depreciation Accounting

Depreciation on fixed assets is provided on the written down value of the assets at the rates prescribed under Schedule XIV of The Companies Act, 1956.

Depreciation on addition to fixed assets is provided pro-rata from the date of capitalization. Depreciation on sale/deduction from fixed assets is provided for up to the date of sale, deduction or discernment as the case may be.

Assets costing Rs. 5,000/- or below are depreciated in full in year of its acquisition.

V. AS-9 Revenue recognition

a. Dividend income is recognised when shareholders'' right to receive payment is establish by the balance sheet date.

b. Interest income is recognized on the time proportionate basis.

VI. AS-10 Fixed Assets

Fixed Assets are stated at historical cost, less accumulated depreciation.

Historical cost includes original cost of acquisition or revaluation cost and incidental expenses related to such acquisition and installation.

During the year under review, the Company has entered in to a memorandum of Understanding with one of the Directors Mrs Shreya K. Dalal for developing a Managerial Training Center at Alibaug. The work is not completed, hence the same expenses are shown as work in progress in the Balance Sheet and accordingly no depreciation is charged on the same.

VII. AS-11 Effects of changes in Foreign Exchange Rates

The Company has recorded the transactions denominated in foreign currency at the exchange rate prevailing at the date of the transaction.

VIII. AS-13 Investments

Trade investments are the investments made to enhance the company''s business interest. Investments are either classified as current or long term based on the managements intention at the time of purchase. Current investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

Cost includes original cost of acquisition, brokerage and stamp duty.

IX. AS-15 Employee''s Benefits

From 31st March, 2008 all the employees of the company have resigned, hence no provisions, except those actually payable, are made in the books of accounts towards retirement benefits of employees.

X. AS- 17 Segment Reporting

During the year under review there is no specific business activities carried out by the company and hence the clause relating to segment reporting is not applicable.

XI. AS-18 Related Party Disclosure

Disclosure in respect of related party transaction pursuant to Accounting Standard 18 issued by The Institute of Chartered Accountants of India for the year ended.


Mar 31, 2012

I. AS-1 Disclosures of Accounting Policies

Basis of accounting

The financial statements have been prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

The preparation of the accounts, in conformity with generally accepted principles, requires that the management of the company makes estimates, and assumption that affect the reported amounts of income & expenses of the period, reported balance of assets & liabilities & disclosure relating to contingent assets & liabilities as of that date of the accounts.

All Significant items of income and expenditure are accounted on accrual basis except for claims/refunds which are not ascertainable with reasonable accuracy, are accounted on cash basis.

II. AS-3 Cash flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

III. AS-5 Net Profit / (Loss) for the period, prior period items and changes in accounting policies

All items of income & expenses, which are recognized in a period, are included in the determination of net profit or loss for the period. This includes items and the effect of changes in accounting estimates.

The net profit or loss for the period comprises the following components, each of which is disclosed on the face of the statement of profit and loss:

(a) Profit or loss from ordinary activities; and

(b) Extra-ordinary items.

IV. AS-6 Depreciation Accounting

Depreciation on fixed assets is provided on the written down value of the assets at the rates prescribed under Schedule XIV of The Companies Act, 1956.

Depreciation on addition to fixed assets is provided pro-rata from the date of capitalization. Depreciation on sale/deduction from fixed assets is provided for up to the date of sale, deduction or discernment as the case may be.

Assets costing Rs. 5,000/- or below are depreciated in full in year of its acquisition.

V. AS-9 Revenue recognition

a. Sales of goods are recognized on dispatch to customers and are recorded net of trade discount.

b. Annual maintenance charges are accounted on pro-rata basis over the period of contract.

c. Service income is recognized on the completion of service.

d. Dividend is recorded when right to receive the same is established.

e. Reimbursement expected in respect of expenditure required to ascertain a provision is recognized only when it is virtually certain that the reimbursement will be received.

VI. AS-10 Fixed Assets

Fixed Assets are stated at historical cost, less accumulated depreciation.

Historical cost includes original cost of acquisition or revaluation cost and incidental expenses related to such acquisition and installation.

VII. AS-11 Effects of changes in Foreign Exchange Rates

The Company has recorded the transactions denominated in foreign currency at the exchange rate prevailing at the date of the transaction.

Monetary items denominated in foreign currencies at the year-end are translated at the exchange rates prevailing on the date of the balance sheet.

Any income or expense on account of exchange differences either on settlement or on translation of transactions other than those in relation to fixed assets is recognized in the profit and loss account.

VIII. AS-13 Investments

Trade investments are the investments made to enhance the company's business interest. Investments are either classified as current or long term based on the managements intention at the time of purchase. Current investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.

Cost includes original cost of acquisition, brokerage and stamp duty.

IX. AS-15 Employee's Benefits

From 31st March, 2008 all the employees of the company have resigned, hence no provisions, except those actually payable, are made in the books of accounts towards retirement benefits of employees.

X. AS-17 Segment Reporting

The Company has only one business segment namely trading in electronic equipment, as a result segment wise income and expenditure and particulars of Assets and Liabilities is not applicable.

XI. AS-18 Related Party Disclosure

Disclosure in respect of related party transaction pursuant to Accounting Standard 18 issued by The Institute of Chartered Accountants of India for the year ended.

List of Related Parties Subsidiary DEL-Automation Pvt. Ltd (Till March 11,2012) Group entities Soften Systems Pvt. Ltd. UniDEL Advisors Pvt. Ltd. Shasa Systems Pvt. Ltd. Spring Consultants Kimasu Investments Sumaki Investments Ruby Enterprise Diamond Enterprise Emerald Enterprise Saphire Enterprise Key Management Personnel (KMP) Mr. Kishore R. Dalai, Chairman Mr. Sunil K. Dalai, Managing Director

XII. AS-20 Earning Per Share:

In determining earning per share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary/exceptional item. The number of shares used in computing basic earning 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 shares consider for deriving basic earning per share, and also the weighted average number of equity shares that could have been issued on the conversion of all diluted potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value (i.e. the average market value of outstanding shares). Diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at the latter date. The number of shares and potentially diluted equity shares are adjusted for any stock splits and bonus shares issues affected prior to the approval of the financial statements by the board of directors.

XIII. AS- 22 Deferred Tax Assets / (Liability):

Income Taxes are computed using the tax effect accounting network were taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually based on the tax liability completed, after considering tax allowance and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matter is probable.

The differences that result between the profit considered for income taxes and the profit as per financial statement are identified, and there after a deferred tax Assets or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being consider. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and reviewed for the appropriateness of their respective carrying values at each balance sheet date. Tax benefit of deductions earned on exercise of employee stock option in excess of compensation charge to the profit and loss account is credited to the share premium account.

XIV. AS - 28 Impairment of Assets:

The management periodically accesses, using internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceed the present value of future cash flows expected to arise from the continuing use of assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of carrying amount over the higher of the assets net sales price or present value as determined above.

XV. AS - 29 Provision, Contingent Liability and Contingent Assets:

Provision are recognized for liabilities that can be measured only by using a substantial degree of estimation if,

a. The company has a present obligation as a result of past events

b. The probable outflow of resources is expected to settle the obligation

c. The amount of obligation can be reliably estimated.

Contingent liability is disclosed in case of

a. Present obligation arising out of past event, when it is not probable that an outflow of resources will be required to settle obligation.

b. A possible obligation, when the probability of outflow of resources is remote Contingent liability not provided for:

(i) Bank guarantee given Rs 360,000/- (previous year Rs 360,000/-)

(ii) Disputed arrears towards society maintenance Rs.10.52 Lacs (previous year Rs 9.42 lacs)

(iii) Contracts remaining to be executed on capital and current account and not provided for Nil (Previous Year Nil). (iv) Liabilities to Encad Inc. for suit filed against company for compensation. Amount is unascertainable.

Contingent assets are neither recognized nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed on each balance sheet date.


Mar 31, 2011

AS-1 Disclosures of Accounting Policies

Basis of accounting

The financial statements have been prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

The preparation of the accounts, in conformity with generally accepted principles, requires that the management of the company makes estimates and assumption that affect the reported amounts of income & expenses of the period, reported balance of assets & liabilities & disclosure relating to contingent assets & liabilities as of that date of the accounts.

All Significant items of income and expenditure are accounted on accrual basis except for claims/ refunds which are not ascertainable with reasonable accuracy, are accounted on cash basis.

AS-2 Valuation of inventory

Inventories

Inventories are valued at cost of purchase or realizable value whichever is lower on First In First Out (FIFO) basis.

AS-3 Cash flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

AS-5 Net Profit / (Loss) for the period, prior period items and changes in accounting policies

All items of income & expenses, which are recognized in a period, are included in the determination of net profit or loss for the period. This includes items and the effect of changes in accounting estimates.

The net profit or loss for the period comprises the following components, each of which is disclosed on the face of the statement of profit and loss:

(a) profit or loss from ordinary activities; and

(b) extra-ordinary items.

AS-6 Depreciation Accounting

Depreciation

Depreciation on fixed assets is provided on the written down value of the assets at the rates prescribed under Schedule XIV of The Companies Act, 1956.

Depreciation on addition to fixed assets is provided pro-rata from the date of capitalization. Depreciation on sale/deduction from fixed assets is provided for up to the date of sale, deduction or discernment as the case may be.

Assets costing Rs. 5,000/- or below are depreciated in full in year of its acquisition.

AS-9 Revenue recognition Revenue Recognition:

a. Sales of goods are recognized on dispatch to customers and are recorded net of trade discount.

b. Annual maintenance charges are accounted on pro-rata basis over the period of contract.

c. Service income is recognized on the completion of service.

d. Dividend is recorded when right to receive the same is established.

e. Reimbursement expected in respect of expenditure required to ascertain a provision is recognized only when it is virtually certain that the reimbursement will be received.

AS-10 Fixed Assets Fixed Assets

Fixed Assets are stated at historical cost, less accumulated depreciation.

Historical cost includes original cost of acquisition or revaluation cost and incidental expenses related to such acquisition and installation.

AS-11 Effects of changes in Foreign Exchange Rates

The Company has recorded the transactions denominated in foreign currency at the exchange rate prevailing at the date of the transaction.

Monetary items denominated in foreign currencies at the year-end are translated at the exchange rates prevailing on the date of the balance sheet.

Any income or expense on account of exchange differences either on settlement or on translation of transactions other than those in relation to fixed assets is recognised in the profit and loss account.

AS-13 Investments

Trade investments are the investments made to enhance the company's business interest. Investments are either classified as current or long term based on the managements intention at the time of purchase. Current investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognize any decline, other then temporary, in the carrying value of each investment.

Cost includes original cost of acquisition, brokerage and stamp duty.

AS-15 Employee's Benefits

From 31st March, 2008 all the employees of the company have resigned, hence no provisions, except those actually payable, are made in the books of accounts towards retirement benefits of employees.

AS- 17 Segment Reporting

The Company has only one business segment namely trading in electronic equipment, as a result segment wise income and expenditure and particulars of Assets and Liabilities is not applicable.

AS-18 Related Party Disclosure

Disclosure in respect of related party transaction pursuant to Accounting Standard 18 issued by The Institute of Chartered Accountants of India for the year ended.

List of Related Parties

i) Subsidiary - DEL-Automation Pvt. Ltd.

ii) Associates - SoftDEL Systems Pvt. Ltd.

- UniDEL Advisors Pvt. Ltd.

- Shasa Systems Pvt. Ltd.

- Spring Consultants

- Kimasu Investments

- Sumaki Investments

- Ruby Enterprise

- Diamond Enterprise

- Emerald Enterprise

- Saphire Enterprise

iii) Key Management Personnel

Mr. Kishore R. Dalal - Director

Mr. Sunil K. Dalal - Director

AS-20 Earning Per Share:

In determining earning per share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary / exceptional item. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earning per share comprises the weighted average shares consider for deriving basic earning per share, and also the weighted average number of equity shares that could have been issued on the conversion of all diluted potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value (i.e. the average market value of outstanding shares). Diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at the latter date. The number of shares and potentially diluted equity shares are adjusted for any stock splits and bonus shares issues affected prior to the approval of the financial statements by the board of directors.

AS- 22 Deferred Ta x Assets / (Liability):

Income Taxes are computed using the tax effect accounting network were taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually based on the tax liability completed, after considering tax allowance and exemptions.

Provisions are recorded when it is estimated that a liability due to disallowances or other matter is probable.

The differences that result between the profit considered for income taxes and the profit as per financial statement are identified, and there after a deferred tax Assets or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being consider. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and reviewed for the appropriateness of there respective carrying values at each balance sheet date. Tax benefit of deductions earned on exercise of employee stock option in excess of compensation charge to the profit and loss account are credited to the share premium account.

AS - 28 Impairment of Assets:

The management periodically accesses, using internal sources, whether there is a indication that an asset may be impaired. An impairment occurs where the carrying value exceed the present value of future cash flows expected to arise from the continuing use of assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of carrying amount over the higher of the assets net sales price or present value as determined above.

AS - 29 Provision, Contingent Liability and Contingent Assets:

Provision are recognized for liabilities that can be measured only by using a substantial degree of estimation if,

a) The company has a present obligation as a result of past events

b) The probable outflow of resources is expected to settle the obligation

c) The amount of obligation can be reliably estimated.


Mar 31, 2010

AS-1 Disclosures of Accounting Policies

Basis of accounting

The financial statements have been prepared under the historical cost convention in accordance with the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

The preparation of the accounts, in conformity with generally accepted principles, requires that the management of the company makes estimates and assumption that affect the reported amounts of income & expenses of the period, reported balance of assets & liabilities & disclosure relating to contingent assets & liabilities as of that date of the accounts.

All Significant items of income and expenditure are accounted on accrual basis except for claims/refunds which are not ascertainable with reasonable accuracy, are accounted on cash basis.

AS-2 Valuation of inventory

Inventories

Inventories are valued at cost of purchase or realizable value whichever is lower on First In First Out (FIFO) basis.

AS-3 Cash flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

AS-5 Net Profit / (Loss) for the period, prior period items and changes in accounting policies

All items of income & expenses, which are recognized in a period, are included in the determination of net profit or loss for the period. This includes items and the effect of changes in accounting estimates.

The net profit or loss for the period comprises the following components, each of which is disclosed on the face of the statement of profit and loss:

(a) profit or loss from ordinary activities; and

(b) extra-ordinary items.

AS-6 Depreciation Accounting

Depreciation

Depreciation on fixed assets is provided on the written down value of the assets at the rates prescribed under Schedule XIV of The Companies Act, 1956.

Depreciation on addition to fixed assets is provided pro-rata from the date of capitalisation. Depreciation on sale/deduction from fixed assets is provided for up to the date of sale, deduction or discernment as the case may be.

Assets costing Rs. 5,000/- or below are depreciated in full in year of its acquisition.

AS-9 Revenue recognition

Revenue Recognition:

a. Sales of goods are recognized on dispatch to customers and are recorded net of trade discount.

b. Annual maintenance charges are accounted on pro-rata basis over the period of contract.

c. Service income is recognized on the completion of service.

d. Dividend is recorded when right to receive the same is established.

e. Reimbursement expected in respect of expenditure required to ascertain a provision is recognized only when it is virtually certain that the reimbursement will be received.

AS-10 Fixed Assets

Fixed Assets

Fixed Assets are stated at historical cost, less accumulated depreciation.

Historical cost includes original cost of acquisition or revaluation cost and incidental expenses related to such acquisition and installation.

AS-11 Effects of changes in Foreign Exchange Rates

The Company has recorded the transactions denominated in foreign currency at the exchange rate prevailing at the date of the transaction.

Monetary items denominated in foreign currencies at the year-end are translated at the exchange rates prevailing on the date of the balance sheet.

Any income or expense on account of exchange differences either on settlement or on translation of transactions other than those in relation to fixed assets is recognised in the profit and loss account.

AS-13 Investments

Trade investments are the investments made to enhance the companys business interest. Investments are either classified as current or long term based on the managements intention at the time of purchase. Current investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provisions recorded to recognize any decline, other then temporary, in the carrying value of each investment.

Cost includes original cost of acquisition, brokerage and stamp duty.

AS-15 Employees Benefits

From 31st March,2008 all the employees of the company have resigned, hence no provisions, except those actually payable, are made in the books of accounts towards retirement benefits of employees.

AS- 17 Segment Reporting

The Company has only one business segment namely trading in electronic equipment, as a result segment wise income and expenditure and particulars of Assets and Liabilities is not applicable.

AS-18 Related Party Disclosure

Disclosure in respect of related party transaction pursuant to Accounting Standard 18 issued by The Institute of Chartered Accountants of India for the year ended.

List of Related Parties

i) Associates - SoftDEL Systems Pvt. Ltd.

- Del-Automation Pvt. Ltd.

- Unidel Advisors Pvt. Ltd.

- Shasa Systems Pvt. Ltd.

- Spring Consultants

- Kimasu Investments

- Sumaki Investments

- Ruby Enterprise

- Diamond Enterprise

- Emerald Enterprise

- Saphire Enterprise

ii) Key Management Personnel

Mr. Kishore R. Dalai - Chairman and Managing Director

Mr. Sunil K. Dalai - Director

Mrs. Mamta S. Dalai - Director

Mrs. Mamta A. Mangaldas - Director

Mr. V. H. Shanbhag - Director

AS-20 Earning Per Share:

In determining earning per share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary / exceptional item. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earning per share comprises the weighted average shares consider for deriving basic earning per share, and also the weighted average number of equity shares that could have been issued on the conversion of all diluted potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value( i.e. the average market value of outstanding shares). Diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at the letter date. The number of shares and potentially diluted equity shares are adjusted for any stock splits and bonus shares issues effected prior to the approval of the financial statements by the board of directors.

AS- 22 Deferred Tax Asset / (Liability):

Income Taxes are computed using the tax effect accounting network were taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually based on the tax liability completed, after considering tax allowance and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matter is probable.

The differences that result between the profit considered for income taxes and the profit as per financial statement are identified, and there after a deferred tax Assets or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being consider. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty, that they will be realized and reviewed for the appropriateness of there respective carrying values at each balance sheet date. Tax benefit of deductions earned on exercise of employee stock option in excess of compensation charge to the profit and loss account are credited to the share premium account.

AS - 28 Impairment of Assets:

The management periodically accesses, using internal sources, whether there is a indication that an asset may be impaired. An impairment occurs where the carrying value exceed the present value of future cash flows expected to arise from the continuing use of assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of carrying amount over the higher of the assets net sales price or present value as determined above.

AS - 29 Provision, Contingent Liability and Contingent Assets:

Provision are recognized for liabilities that can be measured only by using a substantial degree of estimation if,

a) The company has a present obligation as a result of past events

b) The probable outflow of resources is expected to settle the obligation

c) The amount of obligation can be reliably estimated.

Contingent liability is disclosed in case of

a) Present obligation arising out of past event, when it is not probable that an outflow of resources will be required to settle obligation.

b) A possible obligation, when the probability of outflow of resources is remote

Contingent assets are neither recognized nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed on each balance sheet date.

 
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