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Accounting Policies of Dynamic Archistructures Ltd. Company

Mar 31, 2015

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statements have been prepared on going concern basis under the historical cost convention in accordance with Generally Accepted Accounting Principles in India, the provisions of the Companies Act 2013 and the applicable Accounting Standards issued by The Institute of Chartered Accountants of India Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosures

2. FIXED ASSETS

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation including the shortfall of depreciation consequent upon change in the useful life of assets provided for after residual value of 5% and charged against the opening balance of retained earnings

3. DEPRECIATION & AMORTISATION

(a) Depreciation: - Depreciation on Fixed Assets has been provided on straight line method at the rates and in the manner as prescribed in Schedule "II" to the Companies Act, 2013 and on pro rata basis in respect of additions to all fixed assets

(b) Amortisation: - Not Applicable

4. INVENTORIES

Inventories are valued at cost or NRV whichever is lower however the company is a NBFC so there is no stock

5. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date on which such

(a) Current investments are carried at lower of cost and fair value determined on an individual investment basis

(b) Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of such investments

6. BORROWING COST

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying assets are capitalized as part of the cost of that assets Other borrowing costs are recognized as an expense in the period in which they are incurred.

7. IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. However there is no significant loss on account of impairment of assets

8. EXCISE DUTY

Company is a non banking finance company so there is no liability of excise duty.

9. EMPLOYEES RETIREMENT BENEFIT & GRATUITY: -

Provision has not been made for gratuity as no employee has put in the qualifying period of services for entitlement of the benefits

10. REVENUE RECOGNITION

Mercantile method of accounting has been followed by the Company. However, where the amount is immaterial / negligible and / or where the establishment of accrual / determination of amount Is not possible, no entries are made for the accruals

11. ACCOUNTING FOR TAXES ON INCOME: -

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date The deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that these will be realised in future,

12. CONTINGENT LIABILITIES

Contingent liabilities:- Contingent liabilities are generally not provided for in the accounts and are shown separately in notes on accounts However there is no contingent liability (Previous year NIL)

13. PRUDENTIAL NORMS

The company follows the prudential norms for income recognition, classification of assets and provisioning requirement as prescribed by non banking financial companies prudential norms (RBI) directions, 1998

14. SEGMENT REPORTING

The company is a NBFC and all its activities relates to one segment i.e.non banking financial activities and its operations are confined within India.

16. RELATED PARTY DISCLOSURE

As per accounting standard 18, disclosures of the transactions with the related parties as defined in the Accounting Standard are given below,

(i) List of related parties with whom transactions have been taken place and relationship

[NAME OF THE RELATED PARTY RELATIONSHIP

Shri Danmal Porwal Key Management Personnel

Smt. Aditi Porwal Relative of Key Management Personnel

Coal Chem Associates

Utkal Hydrocarbons Associates


Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

The accompanying financial statements have been prepared on going concern basis under the historical cost convention in accordance with Generally Accepted Accounting Principles in India, the provisions of the Companies Act 1956 and the applicable Accounting Standards issued by The Institute of Chartered Accountants of India. Previous year's figures have been regrouped I reclassified wherever necessary to correspond with the current year's classification I disclosures.

2, FIXED ASSETS

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

3. DEPRECIATION & AMORTISATION :-

(a) Depreciation: - Depreciation on Fixed Assets has been provided on straight line method at the rates and in the manner as prescribed in Schedule "XIV" to the Companies Act, 1956 and on pro rata basis in respect of additions to all fixed assets.

(b) Amortisation: - Not Applicable

4. INVESTMENTS

Investments in shares and mutual funds are valued at cost.

5, INVENTORIES

Inventories are valued at cost however the company is a NBFC so there is no stock.

6, REVENUE RECOGNITION

Mercantile method of accounting has been followed by the Company. However, where the amount is immaterial I , negligible and / or where the establishment of accrual / determination of amount is not possible, no entries are made for: the accruals.

7. ACCOUNTING FOR TAXES ON INCOME: -

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax resulting: from timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that these will be realised in future.

8, EMPLOYEES RETIREMENT BENEFIT & GRATUITY: -

Provision has not been made for gratuity as no employee has put in the qualifying period of services for entitlement of the benefits.

9. CONTINGENT LIABILITIES

Contingent liabilities :- Contingent liabilities are generally not provided for in the accounts and are shown separately in notes on accounts. However there is no contingent liability.

10. PRUDENTIAL NORMS : -

The company follows the prudential norms for income recognition, classification of assets and provisioning requirement as prescribed by non banking financial companies prudential norms (RBI) directions, 1998.

11. IMPAIRMENT OF ASSETS

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. However there is no significant loss on account of impairment of assets.

12. SEGMENT REPORTING

The company is a NBFC and all its activities relates to one segment i.e.non banking financial activities and its operations are confined within India.



 
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