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Accounting Policies of Finaventure Capital Ltd. Company

Mar 31, 2014

A. Basis of Accounting:

The Financial Statements of the Company are prepared under historical cost convention and on accrual basis and in accordance with the Accounting Standards notified by the Companies (Account- ing Standards) Rules, 2006 and the relevant provisions of the Companies Act 1956. Accounting policies, not specifically referred to hereunder are otherwise consistent with generally accepted accounting polices ["GAAP"].

The preparation of financial statements requires the management to make certain estimates and assumptions in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

b. Revenue Recognition

The Company follows the mercantile system of accounting and hence Revenue is recognized by the company on accrual basis except for dividends which is recognized once the unconditional right to receive the dividend is established.

c. Pre-Operative Expenditure & Preliminary Expenses

Pre-Operative expenses of the company incurred in previous years has been fully written off in Pursuance of Accounting Standard- 26 "Intangible Assets" which mandates immediate Write off of all the Fictitious Assets except for any Fictitious asset which is prescribed by any other Accounting Standard to be Deferred over a period of time.

d. Taxation

Tax expenses is the aggregate of current tax and deferred tax charged, as the case may be to the Profit and Loss Account for the year in accordance with Companies (Accounting Standards) Rules ,2006 and measured at the tax rate that have been enacted or substantively enacted by the Balance Sheet date.

I. Current Tax

Tax on income for the current period is determined on the basis of assessable income com- puted in accordance with the provisions of the Income Tax Act, 1961.

II. Deferred Tax

Deferred income taxes are recognized for the future tax consequences attributable to timing difference between the financial statements and determination of income for their recognition for tax purposes. The effect on deferred tax liabilities of a charge in tax rates is recognized in income using the rates and tax laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognized and carried forward to the extent there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

e. Earnings per share

In determining earnings per share, the Company considers the net profit after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares out- standing during the year. The number of shares used in computing diluted earnings per share com- prises weighted average shares considered for deriving basic earnings per share and the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the year, unless issued at a later date.

f. Provisions, Contingent Liability & Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that the outflow of resources would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimates at the balance sheet date required to settle the obliga- tion. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimates. A contingent liability is disclosed unless the possibility of an outflow of resources embody- ing the economic benefit is remote. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

A. Basis of Accounting:

The Financial Statements of the Company are prepared under historical cost convention and on accrual basis and in accordance with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act 1956. Accounting policies, not specifically referred to hereunder are otherwise consistent with generally accepted accounting polices ["GAAP"].

The preparation of financial statements requires the management to make certain estimates and assumptions in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

b. Revenue Recognition

The Company follows the mercantile system of accounting and hence Revenue is recognized by the company on accrual basis except for dividends which is recognized once the unconditional right to receive the dividend is established.

c. Pre-Operative Expenditure & Preliminary Expenses

Pre-Operative expenses of the company incurred in previous year would be written off proportionately over the period of time.

d. Taxation

Tax expenses is the aggregate of current tax and deferred tax charged, as the case may be to the Profit and Loss Account for the year in accordance with Companies (Accounting Standards) Rules 2006 and measured at the tax rate that have been enacted or substantively enacted by the Balance Sheet date.

I. Current Tax

Tax on income for the current period is determined on the basis of assessable income computed in accordance with the provisions of the Income Tax Act, 1961.

II. Deferred Tax

Deferred income taxes are recognized for the future tax consequences attributable to timing difference between the financial statements and determination of income for their recognition for tax purposes.

The effect on deferred tax liabilities of a charge in tax rates is recognized in income using the rates and tax laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognized and carried forward to the extent there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

e. Earnings per share

In determining earnings per share, the Company considers the net profit after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises weighted average shares considered for deriving basic earnings per share and the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the year, unless issued at a later date.

f. Provisions. Contingent Liability & Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that the outflow of resources would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimates at the balance sheet date required to settle the obligation. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimates. A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote. Contingent Assets are neither recognised nor disclosed in the financial statements.

 
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