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Accounting Policies of Jackson Investments Ltd. Company

Mar 31, 2015

Company Information

The company is incorporated on 25th August, 1982 at Calcutta, West Bengal, India. It is a Public limited company by its shares.

Accounting Policies

Basis of Preparation of Financial Statements

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and the relevant provisions thereof.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. and the relevant provisions thereof which continue to be applicable in respect of Section 133 of Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.

Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

Use of Estimates

The preparation of the financial statements in conformity with the generally accepted principles requires the management to make estimates and assumptions that effect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from that estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized.

Cash Flow Statement

Cash flow statement has been prepared in accordance with the "indirect method" as explained in the AS-3 issued by the Institute of Chartered Accountants of India.

Fixed Assets & Depreciation

Fixed Assets are stated at cost less accumulated depreciation thereon. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their book value and net realizable value and are shown separately in the financial statements under Other Current Assets. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account

The cost of fixed assets comprises purchase price and any attributable cost of bringing the assets to its working condition for its intended use. The Company provides pro-rata depreciation from the date on which assets is acquired / put to use. Depreciation is provided on the Written Down value method over the estimated useful lives of the assets or the rates prescribed under Schedule XIV of the Companies Act, 1956, whichever is higher. In respect of assets sold, prorata depreciation is provided up to the date on which assets is sold. On all assets depreciation has been provided using the Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956.and the relevant provisions thereof which continue to be applicable in respect of Section 133 of Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.

Intangible Assets & Amortization

Intangibles assets are stated at cost less accumulated amortization. These are being amortized over the estimated useful life, as determined by the management. Leasehold land is amortized over the primary period of the lease.

Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized.

a) Income is recognized on accrual basis as soon as the sale takes place and ownership transfer.

Other Income Recognition

Interest on investments is booked on a time proportion basis taking into account the amounts invested and the rate of interest.

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

Purchase

Purchase is recognized on passing of ownership in share based on broker's purchase note as well as for textile materials based on purchase invoices along with challans.

Expenditure

Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

Investments

Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long-term investments. Investments are classified into current and long-term investments.

Investments that are readily realizable and are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as noncurrent investments.

Cash & Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.

Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there is a change in the estimated recoverable value.

Taxation

Provision for current Income Ta x is made on the taxable income using the applicable tax rates and tax laws. Deferred tax assets or liabilities arising on account of timing differences between book and tax profits, which are capable of reversal in one or more subsequent years is recognized using tax rate and tax laws that have been enacted or subsequently enacted. Deferred tax asset in respect of unabsorbed depreciation and carry forward losses are not recognized unless there is sufficient assurance that there will be sufficient future taxable income available to realize such losses.

Earnings per Share

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

Stock in Trade

Shares are valued at cost or market value, whichever is lower.

Contingent Liabilities & Provisions

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the yearend date

These are reviewed at each year end date and adjusted to reflect the best current estimate

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.


Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

The Financial Statements have been prepared under the historical cost convention and in accordance with the provisions of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent and are in consonance with the generally accepted accounting principles in India.

1.2 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 amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known to be materialized.

1.3 Recognition of Income & Expenses

Items of Income and Expenditure are recognized and accounted for on Accrual basis except dividend.

1.4 Method of Valuation

Quoted Inventories/Stock-in-trade has been valued at cost or Market Price whichever is lower. Unquoted Shares are valued at cost.

1.5 Fixed Assets

The company has no Fixed Assets during the current year and hence there is no depreciation debited in the Profit & Loss Account

1.6 Depreciation

Since the company has no fixed assets, there is nothing to be debited regarding depreciation

1.7 Current Assets & Liabilities

In the opinion of the Board, all the assets (there is no Fixed Assets & Non-current Investment) are at least approximately of the value stated in the accounts, if realized in the ordinary course of business, unless otherwise stated. The provisions of all known liabilities are adequate and are not in excess of the amount considerably necessary by the management.

1.8 Provisions, 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. Contingent assets are neither recognized nor disclosed in the financial statements.

Contingent Liability, if any are disclosed by way of notes

1.9 Provision for Gratuity

Provision for Gratuity is made when there is a reasonable certainty of staff continuing the service for minimum eligible period or has completed such period. However, it has not been made in the accounts for the year as there is no such reasonable certainty of completion.

1.10 Provision for Taxation

Provision for Income Tax is made on the basis of estimated taxable income for the period at current rates.

1.11 Provision for Deferred Tax

The Company recognizes deferred tax assets and liabilities in terms with Accounting standard 22 issued by the Institute of Chartered Accountants of India on "Accounting for Taxes on Income". Provision for Income Tax is made on the basis of estimated taxable income for the period at current rates. Tax expense comprises both Current Tax and Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income Tax payable/ recoverable in respect of taxable income/ loss for the reporting period. Deferred Tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originates in one year and are capable of reversal in one or more subsequent years.


Mar 31, 2013

1.1 Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

1.2 Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

1.3 In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

1.4 Fixed Assets

Generally Fixed Assets are stated at cost less Depreciation, cost comprises the purchases price and other attributable costs. Depreciation on assets is provided on written down value method as per rates prescribed in Schedule XIV to the Companies Act 1956 however the Company was not having any Fixed Assets during the year under review.

1.5 Depreciation

According to Company policy, Depreciation on Fixed Assets is generally provided for on Diminishing Balance Method at rated specified in schedule XIV of the Companies Act 1956. Depreciation on Assets purchased/sold during the year has been provided for on pro-rata basis however the Company was not having any Fixed Assets during the year under review thus no provision for Depreciation is required to be made for the year under review.

1.6 Stock-in-trade

The Securities acquired with the intention of short term holding and trading positions are considered as Stock in Trade and shown as current assets. Quoted stocks are valued at cost or market value, whichever is lower and Unquoted Stocks are valued at Cost..

1.7 Revenue Recognition

Income is accounted on accrual basis except Dividend.

1.8 Gratuity

None of the Employee has completed the service period to become eligible for payment of gratuity.

1.9 Taxation

Provision for Taxation has been made as per Income Tax Act and Rules made there under.

1.10 Contingent Liabilities

Contingent Liabilities not provided for : Nil

1.11 Others

None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

None of the Earnings / Expenditures is in Foreign Currency.

Balance of Debtors, Creditors, Deposits, Loans and Advances are subject to confirmation.

In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

1.12 Investments

All investments are held or intended to be held for one year or more and therefore considered a long term investments and valued at cost as per AS 13 issued by ICAI. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in opinion of the management.

1.13 Differed Tax Assets/Liabilities

The company had recognized deferred tax assets and liabilities in terms with Accounting Standard 22 issued by the Institute of Chartered Accountants of India on “Accounting for Taxes on Income” Deferred tax is recognized on timing differences (being the difference between taxable income under Income Tax Act, and Accounting Income) which originate in one period and are capable of reversal in subsequent period Deferred Tax Assets are recognized only if there is reasonable certainly of recouping them against future taxable Profit. All such assets there is reasonable certainly of recouping them against future taxable Profit. All such assets and liabilities are reviewed on each Balance Sheet date to reflect the charged position.


Mar 31, 2012

A) Principle & Pratice :

The Financial Statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles, following Accounting standards and other provisions ot the Companies Act, and ongoing concern concept.

b) System of Accounting :

Generally Mercantile System of Accounting is followed except loss on speculation of shares tiling fees and unascertained items which have been taken on cash basis.

c) Recognition of Income & Expenses :

Items of Income and Expenditure are recognised on accrual basis save as above.

d) Current Assets & Liabilities :

In the opinion of the Board, all the Assets (there is no Fixed Assets & Non-current Investment) are at least approximately of the value stated in the accounts, if realized in the ordinary course of business, unless otherwise stated. The provision of all the known liabilities are adequate and are not in excess of the amount considered reasonably necessary by the management.

e) Method of valuation :

Stock in Trade of shares are valued at cost without recognizing temporary diminution in their values. The other items are valued at cost or market value whichever is lower. However there is no stock of other items at the year end,

0 Contingent Liabilities & Commitments :

Contingent Liabilities are provided in the Accounts on the best judgement basis depending upon the degree of certainty of the contingency. Commitments are provided on the basis of estimated amount and penod of occurrence. The balance of both of them not provided for, are disclosed by way of note. However, there is no known or expected Contingent Liability or Commitment at the end of the year.

9) Provision for Gratuity:

Provision for Gratuity is made when there is a reasonable certainty of Staff continuing the service for minimum eligible period or has completed such period. However, it has not been made in the accounts for the year as there is no such reasonable certainty or completion.

h) Provision for Taxation :

Provision for Taxation has been made in accordance with Income Tax Act & Rules thereunder.

i) Recognition of Deferred Tax -

The Company recognises deferred tax assets and liabilities in terms with Accounting Standard 22 issued by the Institute of Chartered Accountants of India on "Accounting for Taxes on Income- Deferred tax is recognised on timing differences (being the difference between taxable income under Income Tax Act and Accounting income) which originate in one period and are capable of reversal tn subsequent period. Deferred Tax Assets over & above Deferred Tax Liabilities are recognised only if there is reasonable certainly of recouping them against taxable Profit in foreseeable future. All such assets and liabilities are reviewed on each Balance Sheet date to reflect the changed position.


Mar 31, 2011

1 DEFERRED TAX ASSETS/LIABILITIES :

The Company has not acquired any fixed assets (no Depreciation Difference) and there is no Deferred Tax Liability. The Company has not carried forward business losses under the ncome Tax Act, 1961, there is no Deferred Tax Assets. Hence, the Deferred Tax Assets and Uab.lrt.es have not been Accounted for. This is in accordance with Accounting Standard India n9 for Taxes on ,Income" issued bV the ,Institute of Chartered Accoutants of

2. CURRENT ASSETS/LIABILITIFR

In the opinion of the Board, the Current Assets and Loans & Advances are approximately of the value stated in the accounts, if realised in the ordinary course of business unless otherwise stated. The provisions of all known liabilities is adequate and is not in excess cf the amount considered reasonably necessary by the management save as stated herein

3. CONTINGENT LIABILITY;

Income Tax Demands of Rs. 41,822/- & 2,27,7 56/-for Asst. Yrs. 1990-91 & 1997-98 respectively are not recognized /accounted for in the books of accounts. The same shall be set off with the refundables of the recent years.

 
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