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Accounting Policies of IFL Promoters Ltd. Company

Mar 31, 2015

1.1 METHOD OF ACCOUTING

a) The Company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) Financial statements are prepared on the historical cost convention and on the principles of going concern, and accordance with the prevalent accounting standards as applicable except as stated otherwise.

c) Accounting Policies not specifically referred to otherwise, are consistent & in accordance with the generally accepted accounting principles followed by the company.

1.2 REVENUE RECOGNISATION

Revenue is recognized only when it is earned & its collection is reasonably certain.

1.3 FIXED ASSETS

Fixed assets are stated at cost of acquisition inclusive of freight, duty and taxes and incidental expenses less accumulated depreciation.

1.4 INVESTMENTS

Investment s are valued at cost of acquisition, which includes the brokerage and stamp duty. Dividend credited/debited for the ex-dividend/cum-dividend transactions are considered with the cost of acquisition of the investments

1.5 DEPRECIATION

Depreciation is charged on a pro-rata basis on the written down method as per the rates and in the manner prescribed under the Companies Act, 2013.

1.6 EMPLOYEE BENEFITS

Since there is no employee in the Company who has completed 5 years of service till the end of financial year so no provision for gratuity has been made in the financial statements.


Mar 31, 2014

1.1 METHOD OF ACCOUTING

a) The Company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) Financial statements are prepared on the historical cost convention and on the principles of going concern, and accordance with the prevalent accounting standards as applicable except as stated otherwise.

c) Accounting Policies not specifically referred to otherwise, are consistent & in accordance with the generally accepted accounting principles followed by the company.

1.2 REVENUE RECOGNISATION

Revenue is recognized only when it is earned & its collection is reasonably certain.

1.3 FIXED ASSETS

Fixed assets are stated at cost of acquisition inclusive of freight, duty and taxes and incidental expenses less accumulated depreciation.

1.4 INVESTMENTS

Investment s are valued at cost of acquisition, which includes the brokerage and stamp duty. Dividend credited/debited for the ex-dividend/cum-dividend transactions are considered with the cost of acquisition of the investments

1.5 DEPRECIATION

Depreciation is charged on a pro-rata basis on the written down method as per the rates and in the manner prescribed under the Schedule XIV to the Companies Act, 1956.

1.6 EMPLOYEE BENEFITS

Since there is no employee in the Company who has completed 5 years of service till the end of financial year so no provision for gratuity has been made in the financial statements.


Mar 31, 2010

A) ACCOUNTING CONVENTION

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting, as applicable to a going concern in accordance with generally accepted accounting principles in India, mandatory accounting standards prescribed in the Companies (Accounting Standard) Rules’2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standards and in accordance with the relevant provisions of the Companies Act, 1956 to the extent applicable. The financial statements are presented in Indian Rupees rounded off to the nearest rupee.

b) USE OF ESTIMATES

The preparation of financial statements in confirmation with the generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

c) RECOGNITION OF INCOME

All the incomes are accounted for on accrual basis.The transactions relating to the dealing in shares carried on with a view to make profits and not to earn dividends are treated as business of shares and routed through the Profit & Loss Account.

d) EXPENSES

The Company has recognized all administrative and financial expenses on accrual basis of accounting

e) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded in terms of the Accounting Standard 11 (Revised 2003) - “The effects of changes in Foreign Exchange Rates” prescribed under The Companies (Accounting Standards) Rules, 2006 at the exchange rates prevailing on the dates of the transaction. Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the Profit & Loss Account except for the resultant net exchange gain or loss on account of imported fixed assets, which is adjusted in the carrying amount of the related fixed assets.

Assets and liabilities relating to transactions involving foreign currency are converted at the exchange rates prevailing at the year end. Any loss or gain arising out of conversion is adjusted to the concerned assets, if the liability is incurred for the purpose of acquisition of fixed assets, and in the Profit & Loss Account, in case of monetary items. However, there is no foreign currency transaction during the year.

f) INVESTMENTS

The investments of the company are bifurcated into long term and short term investments. The long term investments are stated at cost and the short term investments are stated at the lower of cost or market value as on 31/03/2010.

g) BORROWING COSTS

Borrowing cost that is attributable to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

h) PROVISION FOR RETIREMENT BENEFITS Provision for gratuity liability and for leave salary in respect of unavailed leave of employees payable on retirement or otherwise outstanding as at the date of the balance sheet is made based on an actuarial valuation made by an independent actuary.

i) EARNING PER SHARE

The basic earning per equity shares are computed by dividing the net profit or loss attributable to the equity share holders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for driving basic earning per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential, unless the results would be anti dilutive.

j) TAXATION

Income tax comprises current tax, deferred tax and fringe benefit tax.

Current Taxes

Provision for Current tax is recognized in accordance with the provisions of the Income Tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Tax

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred tax assets are reassessed for the appropriateness of their respective carrying values at each Balance Sheet date.

k) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent Assets are not recognized in the financial statements. However contingent assets are assessed continually and if it is virtually certain that an economy benefit will arise, the asset and related income are recognized in the period in which change occurs.


Mar 31, 2009

A) ACCOUNTING CONVENTION

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting, as applicable to a going concern in accordance with generally accepted accounting principles in India, mandatory accounting standards prescribed in the Companies (Accounting Standard) Rules’2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standards and in accordance with the relevant provisions of the Companies Act, 1956 to the extent applicable. The financial statements are presented in Indian Rupees rounded off to the nearest rupee.

b) USE OF ESTIMATES

The preparation of financial statements in confirmation with the generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

c) INVENTORIES

Closing Stock of Shares & Securities is valued at lower of cost or market value. The valuation of inventory has been made as per the requirement of AS-2 prescribed under The Companies (Accounting Standards) Rules, 2006.

d) FIXED ASSETS

Fixed Assets are stated at their original cost of acquisition and subsequent improvements thereto less accumulated depreciation. Cost comprises of purchase price and all expenses directly attributable to the acquisition or construction of the asset.

e) DEPRECIATION

The Company’s Fixed Assets are stated at cost less depreciation. Depreciation has been provided as per Written Down Value Method at rates provided in Schedule XIV of the Companies Act 1956. Additions/deletions to fixed assets during the year are being depreciated on pro-rata basis with respect to the period of use.

f) RECOGNITION OF INCOME

All the incomes are accounted for on accrual basis except dividend received, which is accounted for as per the provisions of accounting standard issued prescribed under The Companies (Accounting Standards) Rules, 2006.

g) EXPENSES

The Company has recognized all administrative and financial expenses on accrual basis of accounting

h) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded in terms of the Accounting Standard 11 (Revised 2003) - “The effects of changes in Foreign Exchange Rates” prescribed under The Companies (Accounting Standards) Rules, 2006 at the exchange rates prevailing on the dates of the transaction. Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the Profit & Loss Account except for the resultant net exchange gain or loss on account of imported fixed assets, which is adjusted in the carrying amount of the related fixed assets.

Assets and liabilities relating to transactions involving foreign currency are converted at the exchange rates prevailing at the year end. Any loss or gain arising out of conversion is adjusted to the concerned assets, if the liability is incurred for the purpose of acquisition of fixed assets, and in the Profit & Loss Account, in case of monetary items. However, there is no foreign currency transaction during the year.

i) INVESTMENTS

The investments of the company are bifurcated into long term and short term investments. The long term investments are stated at cost and the short term investments are stated at the lower of cost or market value as on 31/03/2009.

j) BORROWING COSTS

Borrowing cost that is attributable to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

k) PROVISION FOR RETIREMENT BENEFITS

Provision for gratuity liability and for leave salary in respect of unavailed leave of employees payable on retirement or otherwise outstanding as at the date of the balance sheet is made based on an actuarial valuation made by an independent actuary.

l) EARNING PER SHARE

The basic earning per equity shares are computed by dividing the net profit or loss attributable to the equity share holders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for driving basic earning per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential, unless the results would be anti dilutive.

m) TAXATION

Income tax comprises current tax, deferred tax and fringe benefit tax.

Current Taxes

Provision for Current tax is recognized in accordance with the provisions of the Income Tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Tax

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred tax assets are reassessed for the appropriateness of their respective carrying values at each Balance Sheet date.

Fringe Benefits

Provision for Fringe Benefit Tax (FBT) is on the basis of applicable FBT on the taxable value of eligible expenses of the company as prescribed under the Income Tax Act, 1961.

n) IMPAIRMENT OF ASSETS

In accordance with the provisions of AS-28 “Impairment of Assets” prescribed under The Companies (Accounting Standards) Rules, 2006, the carrying amounts of the company’s assets are reviewed at each balance sheet date to determine whether there is any impairment. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

o) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent Assets are not recognized in the financial statements. However contingent assets are assessed continually and if it is virtually certain that an economy benefit will arise, the asset and related income are recognized in the period in which change occurs.

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