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Accounting Policies of Inanna Fashion and Trends Ltd. Company

Mar 31, 2015

A. Basis of preparation of financial statements :

These Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) under the historical cost convention on the accounting principles of going concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014, till the Standards of Accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standard notified under the Companies Act, 1956 shall continue to apply. Consequently these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013 (the 'Act').

All assets/liability is classified as current if it is expected to be realized / settled within 12 months after the reporting date as the case may be. All other assets/liabilities are classified as non current.

Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

a) Fixed Assets & Depreciation

i. Tangible Assets

Fixed Assets are stated at the original cost of acquisition including incidental expenses related to acquisition and installation of the concerned assets. Fixed Assets are shown net of accumulated depreciation.

ii. Intangible Assets

Intangible assets are stated at their cost of acquisition, less accumulated amortization and impairment losses. An intangible asset is recognized, where it is probable that future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably measured. The depreciable amount of Intangible Assets is allocated over the best estimate of its use-full life on straight line basis.

iii. Depreciation

Depreciation on fixed assets is provided pro rata base on straight line method at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013.

Intangible assets are amortised over their estimated useful life of 5 years.

d) Impairment of Assets

The management, assesses for any impairment of assets or cash generating units, in indicators, external or internal, suggests possibilities for reduction in net realizable value of assets or value in use of cash generating units below its carrying costs. Impairments, if any, will be recognized in the Profit and Loss Accounts.

e) Investments

Long-term investments are stated at cost.

f) Revenue Recognition

The revenue in respect of Professional Fees including Professional Fees for Human Resources Solution Provider, Providing of personnel's, Outsourcing are recognized on delivery of service to the customers.

Revenue is recognized inclusive of applicable taxes.

Interest Income is recognized on accrual basis except interest on Income Tax Refund which is recognized on receipt basis

g) Deferred Revenue Expenses

Miscellaneous Expenses incurred for issue of Bonus Shares are amortized over a period of 5 years.

h) Provisions, Contingent Liabilities and Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation.

Contingent Liabilities in respect of showcause notice received are considered only when they are converted into demands. Contingent Liabilities under various fiscal laws include those in respect of which the Company / Department is in appeal. Contingent Liabilities are disclosed by way of notes to accounts.

Contingent assets are not recognized or disclosed in the financial statement.

i) Taxation:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income-tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economics benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that the future economic benefits associated with it will flow to the company.

Deferred Income Tax reflect the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years/ period.

j) Earnings Per Share:

The company reports Earning Per Shares (EPS) in accordance with Accounting Standard 20 on Earning Per Share. Basic EPS is computed by dividing the net profit for the year by the weighted average number of Equity Shares outstanding during the year. Diluted EPS is computed by divining the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

basic and diluted earnings per share (EPS) in accordance with Accounting Standard 20. EPS is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares outstanding during the year.




Mar 31, 2014

A) Basis of preparation of financial statements

The financial statements have been prepared to comply with the accounting principles generally accepted in India, the accounting standards notified under section 211 (3C) of the Companies Act, 1956 (which continues to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of the General Circular 15/2013 dated 13 September 2013 of the Ministry Corporate Affairs)

Use of Estimates

The preparation of financial statements, in conformity with generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialize.

b) Fixed Assets & Depreciation

i. Tangible Assets

Fixed Assets are stated at the original cost of acquisition including incidental expenses related to acquisition and installation of the concerned assets. Fixed Assets are shown net of accumulated depreciation.

ii. Intangible Assets

Intangible assets are stated at their cost of acquisition, less accumulated amortization and impairment losses. An intangible asset is recognized, where it is probable that future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably measured. The depreciable amount of Intangible Assets is allocated over the best estimate of its use-full life on straight line basis.

iii. Depreciation

Depreciation on fixed assets has been provided on straight line method at the rates and in the manner prescribed under schedule - XIV of the Companies Act, 1956. Intangible assets are amortised over their estimated useful life of 5 years.

d) Impairment of Assets

The management, assesses for any impairment of assets or cash generating units, in indicators, external or internal, suggests possibilities for reduction in net realizable value of assets or value in use of cash generating units below its carrying costs. Impairments, if any, will be recognized in the Profit and Loss Accounts.

e) Investments

Long-term investments are stated at cost.

f) Revenue Recognition

The revenue in respect of Professional Fees including Professional Fees for Human Resources Solution Provider, Providing of personnel''s, Outsourcing are recognized on delivery of service to the customers.

Revenue is recognized inclusive of applicable taxes.

Interest Income is recognized on accrual basis except interest on Income Tax Refund which is recognized on receipt basis

g) Deferred Revenue Expenses

Miscellaneous Expenses incurred for issue of Bonus Shares are amortized over a period of 5 years.

h) Provisions, Contingent Liabilities and Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation.

Contingent Liabilities in respect of showcause notice received are considered only when they are converted into demands. Contingent Liabilities under various fiscal laws include those in respect of which the Company / Department is in appeal. Contingent Liabilities are disclosed by way of notes to accounts.

Contingent assets are not recognized or disclosed in the financial statement.

i) Taxation:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income-tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economics benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that the future economic benefits associated with it will flow to the company.

Deferred Income Tax reflect the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years/ period.

j. Earnings Per Share:

The company reports Earning Per Shares (EPS) in accordance with Accounting Standard 20 on Earning Per Share. Basic EPS is computed by dividing the net profit for the year by the weighted average number of Equity Shares outstanding during the year. Diluted EPS is computed by divining the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

basic and diluted earnings per share (EPS) in accordance with Accounting Standard 20. EPS is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares outstanding during the year.


Mar 31, 2010

1 Basis of Accounting:

The Company prepares its financial statement in accordance with the generally accepted accounting on accrual basis and as per the provisions of the Companies Act, 1956 except where stated otherwise.

2 Fixed Assets & Depreciation:

2.1 Fixed Assets:

Fixed Assets are stated at the cost of acquisition inclusive of all incidental expenses incurred towards acquisition and installation thereof.

2.2 Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed under schedule - XIV of the Companies Act, 1956.

3 Revenue Recognition:

The revenue in respect of Professional Fees including Professional Fees for Human Resources Solution Provider, Providing of personnels, Outsourcing are recognized on delivery of service to the customers whereas the revenue from the tuition activity is recognized in the year of booking/admitting of student.

Revenue is recognized inclusive of applicable taxes.

Interest Income on Income Tax Refund is recognized on receipt basis

4 Taxation:

No provision for taxation is made since the company has incurred loss and it has huge carried forward losses.

Deferred Tax is recognized, subject to the consideration of prudence of, on timing differences, being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods.

5 Contingent Liabilities:

The Company has Contingent Liabilities in respect of JCCI Penalty of Rs. 5,34,523/- and Disputed Sales Tax Liability (Bangalore) of Rs. 6,47,571/-.



 
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