Accounting Policies of Indiaco Ventures Ltd. Company

Mar 31, 2015

A. Basis of preparation

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

b. Cash Flow Statement:-

Cash-flow Statements are prepared in accordance with the "Indirect Method" as explained in the Accounting Standard (AS) 3 -Cash Flow Statements as prescribed under section 211(3C) of the Companies Act,1956.

c. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

d. Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets has been provided on the Written Down Value (WDV) as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, where the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

e. Investments

* Long term Investments are valued at the Cost of Acquisition. Current Investments are valued at cost or market price which ever is less. Profit and loss on the current investments is calculated on First in First out (FIFO) basis.

* Investment is treated as Current/temporary; i.e., intention at the time of investing is to dispose the relevant investment in the 'near future' or the subsidiary operates under severe long term restrictions impairing transfer of funds to the parent.

f. Revenue recognition

Income from professional fees is recognized on completion of services. Interest on deposits is recognized on accrual basis. Dividend income from investments is recognized on cash basis. Rental Income is recognized on accrual basis.

g. Foreign Currency Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of booking the contract/transactions. Any gain or loss arising on receipt/payment due to foreign exchange rate fluctuation is recognized in the profit and loss account.

h. Segment Reporting

Identification of Segments:

During the financial year 2013-14, the company has income under only one reportable segment i.e., Advisory and Consultancy services. However, During the year, company had substantial income from Renting of Immovable property.

i. Income taxes

Tax expense comprises of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Current tax also includes tax on wealth as computed in accordance with the provisions of the Wealth Tax Act, 1957.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the company has unabsorbed depreciation or carry forward tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

j. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

Amount (Rs.)

Particulars 2014-15 2013-14

Net Profit(loss) attributable to equity (2,27,21,127) (49,93,247) shareholders

Weighted number of equity shares 1,85,36,785 1,85,36,785

Basic earning per share (1.23) (0.27)

k. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

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Mar 31, 2014

A. Basis of preparation

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

b. Cash Flow Statement:-

Cash-flow Statements are prepared in accordance with the "Indirect Method" as explained in the Accounting Standard (AS) 3 -Cash Flow Statements as prescribed under section 211(3C) of the Companies Act,1956.

c. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

d. Depreciation

The company follows the policy of providing for depreciation on the Written down Value basis of the Assets at the rates prescribed by Schedule XIV of the Companies Act 1956.

e. Investments

* Long term Investments are valued at the Cost of Acquisition. Current Investments are valued at cost or market price which ever is less. Profit and loss on the current investments is calculated on First in First out (FIFO) basis.

* Investment is treated as Current/ temporary; i.e., intention at the time of investing is to dispose the relevant investment in the ''near future'' or the subsidiary operates under severe long term restrictions impairing transfer of funds to the parent.

f. Revenue recognition

Income from professional fees is recognized on completion of services. Interest on deposits is recognized on accrual basis. Dividend income from investments is recognized on cash basis. Rental Income is recognized on accrual basis.

g. Foreign Currency Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of booking the contract/ transactions. Any gain or loss arising on receipt/payment due to foreign exchange rate fluctuation is recognized in the profit and loss account.

h. Segment Reporting Identification of Segments:

During the financial year 2013-14, the company has income under only one reportable segment i.e., Advisory and Consultancy services. However, During the year, company had substantial income from Renting of Immovable property.

i. Income taxes

Tax expense comprises of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Current tax also includes tax on wealth as computed in accordance with the provisions of the Wealth Tax Act, 1957.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the company has unabsorbed depreciation or carry forward tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

j. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares

k. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

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Mar 31, 2013

A. Basis of preparation

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

b. Cash Flow Statement: -

Cash-flow Statements are prepared in accordance with the "Indirect Method" as explained in the Accounting Standard (AS) 3 -Cash Flow Statements as prescribed under section 211(3C) of the Companies Act,1956.

c. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

d. Depreciation

The company follows the policy of providing for depreciation on the Written down Value basis of the Assets at the rates prescribed by Schedule XIV of the Companies Act 1956.

e. Investments

- Long term Investments are valued at the Cost of Acquisition. Current Investments are valued at cost or market price which ever is less. Profit and loss on the current investments is calculated on First in First out (FIFO) basis.

- Investment is treated as Current/temporary; i.e., intention at the time of investing is to dispose the relevant investment in the ‘near future'' or the subsidiary operates under severe long term restrictions impairing transfer of funds to the parent.

f. Revenue recognition

Income from professional fees is recognized on completion of services. Interest on deposits is recognized on accrual basis. Dividend income from investments is recognized on cash basis. Rental Income is recognized on accrual basis.

g. Foreign Currency Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing at the time of booking the contract/transactions. Any gain or loss arising on receipt/payment due to foreign exchange rate fluctuation is recognized in the profit and loss account.

h. Segment Reporting

Identification of Segments:

During the financial year 2012-13, the company has income under only one reportable segment i.e., Advisory and Consultancy services. However,During the year, company had substantial income from Renting of Immovable property.

i. Income taxes

Tax expense comprises of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Current tax also includes tax on wealth as computed in accordance with the provisions of the Wealth Tax Act, 1957.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the company has unabsorbed depreciation or carry forward tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

j. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

k. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

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Mar 31, 2012

1.1 BASIS FOR PREPARATION OF FINANCIAL STATEMENT

The Rnancial Statements are prepared on historical cost convention and the mercantile system of accounting. The accounts are prepared on going concern basis and are consistent with generally accepted accounting principles.

1.2 CASH FLOW STATEMENT

The cash flow statement is prepared under the suggestive ''Indirect Method'' of Accounting Standard-3 ''Cash Row Statements'' issued by the Institute of Chartered Accountants of India and the same is annexed herewith.

1.3 DEPRECIATION

Rxed Assets are stated at cost of acquisition including any attributable expenditure to bring asset to the working condition, less accumulated depreciation. Assets under installation or construction as at the Balance Sheet date are shown as capital work in progress.

Depreciation has been charged on the Rxed Assets under the written down value method, at the rates prescribed under Schedule XIV of the Companies Act, 1956.

1.4 REVENUE RECOGNITION

Income from professional fees is recognised on completion of services. Interest on deposits is recognised on accrual basis. Dividend income from investments is recognised on cash basis. ''

1.5 INVESTMENTS

- Long term Investments are valued at the cost of acquisition. Current Investments are valued at cost or market price which ever is less. Profit and loss on the current investments is calculated on Rrst in Rrst out (FIFO) basis.

- Investment is treated as current/ temporary; i.e., intention at the time of investing is to dispose the relevant investment in the ''near future'' or the subsidiary operates under severe long-term restrictions impairing transfer of funds to the parent.

1.6 TAXATION

Tax expenses are recognised as per the provisions of Income tax Act, 1961 at the prescribed tax rates of the relevant assessment year. Tax expenses include current tax and deferred tax.

The deferred tax assets/ liabilities for the year, arising on account of timing differences, are recognised in the profit & Loss Account and the accumulated effect thereof is shown in the Balance Sheet as per the provisions of AS-22 '' Accounting For Taxes on Income'' issued by the Institute of Chartered Accountants of India.

1.7 FOREIGN CURRENCY

Transactions in Foreign Currencies are recorded at the exchange rate prevailing at the time of booking the contract/ transaction. Any gain or loss arising on receipt/payment due to foreign exchange rate fluctuation is recognized in the Profit and Loss Account.

1.8 EMPLOYEE STOCK OPTION SCHEME

The compensation cost relating to employee stock option scheme is determined by intrinsic value method. The compensation cost is amortised over the vesting period of the option on straight line basis.

1.9 PROVISIONS

Provisions for expenses and liabilities are made on the basis of reliable estimate of the financial obligation occurring as a result of past event wherein the probable outflows of resources exist

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Mar 31, 2010

1. BASIS FOR PREPARATION OF FINANCIAL STATEMENT

The Financial Statements are prepared on historical cost convention and the mercantile system of accounting. The accounts are prepared on going concern basis and are consistent with generally accepted accounting principles.

2. CASH FLOW STATEMENT

The cash flow statement is prepared under the suggestive Indirect Method of Accounting Standard-3 Cash Flow Statements issued by the Institute of Chartered Accountants of India and the same is annexed herewith.

3. DEPRECIATION

Fixed Assets are stated at cost of acquisition including any attributable expenditure to bring asset to the working condition, less accumulated depreciation. Assets under installation or construction as at the Balance Sheet date are shown as capital work in progress.

Depreciation has been charged on the Fixed Assets under the written down value method, at the rates prescribed under Schedule XIV of the Companies Act, 1956.

4. REVENUE RECOGNITION

Income from professional fees is recognised on completion of services. Interest on deposits is recognised on accrual basis. Dividend income from investments is recognised on cash basis.

5. INVESTMENTS

? Long term Investments are valued at the cost of acquisition. Current Investments are valued at cost or market price which ever is less. Profit and loss on the current investments is calculated on First in First out (FIFO) basis.

? Investment is treated as current/temporary; i.e., intention at the time of investing is to dispose the relevant investment in thenear futureor the subsidiary operates under severe long-term restrictions impairing transfer of funds to the pa rent.

6. TAXATION

Tax expenses are recognised as per the provisions of Income tax Act, 1961 at the prescribed tax rates of the relevant assessment year. Tax expenses include current tax and deferred tax. The deferred tax assets/ liabilities for the year, arising on account of timing differences, are recognised in the profit & Loss Account and the accumulated effect thereof is shown in the Balance Sheet as per the provisions of AS-22 Accounting ForTaxes on Income issued by the Institute of Chartered Accountants of India.

7. FOREIGN CURRENCY

Transactions in Foreign Currencies are recorded at the exchange rate prevailing at the time of booking the contract/ transaction. Any gain or loss arising on receipt/payment due to foreign exchange rate fluctuation is recognized in the Profit and Loss Account.

8. EMPLOYEE STOCK OPTION SCHEME

The compensation cost relating to employee stock option scheme is determined by intrinsic value method. The compensation cost is amortised over the vesting period of the option on straight line basis.

9. PROVISIONS

Provisions for expenses and liabilities are made on the basis of reliable estimate of the financial obligation occurring as a result of past event wherein the probable outflows of resources exist.