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Accounting Policies of IB Infotech Enterprises Ltd. Company

Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements.

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Inventories

Stock in trade is valued scrip wise, at cost or net realisable value whichever is lower in case of listed shares. Whereas in case of unquoted shares, valuation is at cost. Cost is calculated on the basis of first- in- first- out method.

1.3 Cash & Cash Equivalents

In the cash flow statement, cash and cash equivalents includes cash on hand, demand deposites with banks, other short term highly liquid investments with original maturities of three months or less.

1.4 Tangible Fixed Assets:

Fixed Assets have been stated at historical cost inclusive of incidental expenses, less accumulated depreciation.

1.5 Depreciation:

Depreciation has been provided on Straight line Method on prorata-basis and in some cases to the extent available at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

1.6 Revenue Recognition

Sales are recognised on transfer of significant risks and rewards of the ownership of the goods to the buyer and are reported net of turnover / trade discounts, returns and claims if any. Revenue from services are accounted as and when incurred.

Dividend income on investments is accounted for when the right to receive the payment is established.

Interest income is accounted on time proportion basis taking into account the amount outstanding and applicable

1.7 Investments

Long term investments are stated at cost, less provision for diminution in the value other than temporary, if any.

1.8 Employee benefits

The Company does not have any employee to whom gratuity or any retirement benefits are payable.

1.9 Earning per Share:

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

1.10 Taxation

Tax liability is estimated considering the provision of the Income Tax, 1961. Deferred tax is recognised on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, deferred tax assets are recognised and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future.


Mar 31, 2012

1. General

i) The Accounts have been prepared on historical cost basis ignoring Changes, if any in the purchasing power of money.

ii) All revenue and expenses are accounted on accrual basis.

2. Taxation

i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between book and taxable profit is accounted for using tax rates and law that have been enacted as on the Balance Sheet Date. Deferred Tax Asset, if any, is recognized and carried forward only to the extent that there is a reasonable certainly that the assets will be realized in future.

3. Borrowing Cost.

Borrowing cost directly attributable to the acquisition or construction of fixed asset are capitalized as part of the cost of the asset, up to the date the asset is put to use. Other borrowing costs are changed to the profit & loss account in the year in which they arc incurred.

4. Investment

Long term investments arc stated at cost. Provision for diminution in value of long term investment is made only if such a decline is other than temporary.

5. Income Recognition

Income earned during the year is from Consultancy fees and is shown in the Profit & Loss Account.


Mar 31, 2011

1. General

i) The Accounts have been prepared on historical cost basis ignoring Changes, if any in the purchasing power of money. ii) All revenue and expenses are accounted on accrual basis.

2. Taxation

i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing difference between book and taxable profit is accounted for using tax rates and law that have been enacted as on the Balance Sheet Date. Deferred Tax Asset, if any, is recognized and carried forward only to the extent that there is a reasonable certainly that the assets will be realized in future.

3. Borrowing Cost.

Borrowing cost directly attributable to the acquisition or construction of fixed asset are capitalized as part of the cost of the asset, up to the date the asset is put to use, Other borrowing costs are changed to the profit & loss account in the year in which they are incurred.

4. Investment

Long term investments are stated at cost. Provision for diminution in value of long term investment is made only if such a decline is other than temporary.

5. Income Recognition

Income earned during the year is from Consultancy fees and is shown in the Profit & Loss Account.

6. REVENUE RECOGNITION

Accrual basis of accounting has been adopted in preparation of the accounts.

7. PRELIMINARY EXPENSES/PUBLIC ISSUE EXPENSES

Preliminary expenses/Public Issue expenses are being written off over a period of 10 years.

8. FIXED ASSETS/DEPRECIATION

a) The gross block of Fixed Assets is stated at cost of acquisition or construction including any cost attributed in bringing the assets to their working condition for their intended use.

b) Depreciation on assets has been provided on W.D.V. basis at the rate specified in Schedule XIV of the Companies Act, 1956.

c) Depreciation is provided on pro-rata basis from the date of addition.

9. INVENTORIES

The basis of valuation of inventories is as under :- Raw Material/Stores & Spares/ - Cost or net realizable value Packing Material & Finished goods whichever is lower.

 
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