Mar 31, 2015
A) Basis of 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] including the Accounting Standards notified under the
relevant provisions of the Companies Act, 2013. The financial
statements have been prepared on accrual basis under the historical
cost convention.
b) Inventories
Trading Goods are valued at cost or net realizable value whichever is
lower.
c) Revenue Recognition
Revenues are recognized and accounted for on accrual basis except in
cases where significant uncertainties as to its measurability or
collectability exist.
d) Fixed Assets
i) Tangible Asset: - Tangible assets are stated at cost less
depreciation and impairment losses, if any. The cost comprises the
purchase price and any other attributable costs of bringing the assets
at its working condition for the intended use.
ii) Intangible Assets/- Intangible assets are carried at cost less
accumulated amortization and impairment losses, if any. The cost of an
intangible asset comprises its purchase price, including any import
duties and other taxes (other than those subsequently recoverable from
the taxing authorities], and any directly attributable expenditure on
making the asset ready for its intended use and net of any trade
discounts and rebates.
iii) Depreciation:- Depreciation has been provided on the written down
value method based on the useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013.
e) Earning Per Shares
Basic earnings per share are computed by dividing the profit/(loss]
attributable to equity shareholders by the weighted average number of
equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the
profit/(loss] for the period attributable to equity shareholders and
the weighted average number of equity shares outstanding during the
period are adjusted for the effects of all diluted potential equity
shares.
f) Taxation
i) Income Tax
Provision for Income Tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with
provisions as per Income Tax Act, 1961.
ii) Deferred Tax
Deferred tax resulting from "timing difference" book and taxable profit
for the year is accounted for using the tax rates and laws that have
enhanced or substantially enacted as on the balance sheet date. The
deferred tax asset is recognized and carried forward only to the extent
that there is a reasonable certainty that the asset will be adjusted in
future. Permanent timing difference adjustments are not accounted for
in provisions.
g) Impairment Of Assets
An asset is treated as impaired when the carrying cost of an asset
exceeds its recoverable value and the impairment cost 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 year is
reversed if there has been a change in the estimate of recoverable
amount.
h) Investments Quoted investments
Short term investment are stated at cost or market price , whichever is
lower. Long term investments are valued at cost.
Unquoted investment:-
Short term investments are stated at cost. Long term investments are
valued at cost.
i) Provisions , Contingent Liabilities
Provision in respect of present obligation, arising out of past events
is made in accounts When reliable estimates can be made of the amount
of obligation. Contingent liabilities (if material) are disclosed by
way of Notes on Accounts.
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