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Accounting Policies of Kemp & Company Ltd. Company

Mar 31, 2015

1.1 Basis of Preparation of financial statements

The financial statements of the Company have been prepared on accrual basis under the historical cost convention and on going concern basis in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under section 133 of The Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of The Companies Act, 2013 ('the Act') / The Companies Act, 1956 as applicable.

1.2 Use of Estimates

The preparation and presentation of financial statements in conformity with the 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 amounts of revenue and expenses during the reporting period. Differences between the actual result and the estimates are recognized in the period in which the results are known / materialized.

1.3 Fixed Assets

(i) Fixed assets are stated at cost less accumulated depreciation

(ii) Compensation paid to obtaining possession of the tenanted premises is capitalised under Buildings.

(iii) Carrying amount of cash generating units/ assets are reviewed at the balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated as the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

1.4 Depreciation / Amortisation

Depreciation on cost of assets is provided on straight line method in accordance with the useful life prescribed under Schedule -II of the Companies Act, 2013. Intangible assets (Computer Software) is being amortized over a period of 3 years.

1.5 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the assets. If such recoverable amount of the assets is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit & Loss. If at the balance sheet date there is an indication that if previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum amount of depreciated historical cost.

1.6 Lease

Lease rentals in respect of assets acquired under operating lease are charged to the Statement of Profit & Loss as incurred.

1.7 Foreign Currency Transacations

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transactions. Resulted exchange differences arising on payment or conversion of liabilities are recognised as income or expense in the year in which they arise.Foreign currency assets & liabilities outstanding at the close of the financial year are valued at the closing exchange rate and loss/gain due to foreign exchange fluctuation is charged to the Statement of Profit & Loss.

1.8 Investments

Long Term investments are valued at cost less provision for diminution in value, if the diminution is other than temporary. Short term investments are valued at cost or market value whichever is lower.

1.9 Inventories

Traded goods are valued at cost or realizable value whichever is lower. The cost is arrived on first in first out basis.

1.10 Revenue Recognition

1. Sales are recognised on delivery of goods to customer and are exclusive of value added tax.

2. Dividend is accounted for as and when received.

1.11 Employee Benefits

(i) Short term employee benefits are recognised as expenses at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service is rendered.

(ii) Contribution payable to the recommended Provident Fund and Super Annuation Scheme which is Defined Contribution Scheme is charged to the Statement of Profit and Loss.

(iii) Liabilities in respect of defined benefit plans are determined based on actuarial valuation made by an independent actuary as at the balance sheet date. The acturial gains or losses are recognised immediately in the Statement of Profit and Loss.

1.12 Borrowing Cost

Borrowing costs incurred by the company on an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the cost of that asset.

1.13 Taxation

(i) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961.

(ii) Deferred Tax for timing differences between tax profit & book profit for the year is accounted for using the tax rate & laws that have been enacted or substantially enacted as of the Balance Sheet date.Deferred Tax assets arising from timing differences are recognised to the extent there is a virtual certainty that these assets would be realised in future and reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

1.14 Proposed Dividend

Proposed Dividend, if any, subject to shareholders' approval at the Annual General Meeting, is provided in the books

1.15 Provisions & Contingent Liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resourses and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resourses.Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.16 Earning Per Share

The basic earning per share is computed using weighted number of common shares outstanding during the period. Diluted earning per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except where the results would be anti- dilutive.


Mar 31, 2014

1.1 Basis of Preparation of financial statements

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards and the relevant provisions of the Companies Act, 1956.

1.2 Use of Estimates

The preparation and presentation of financial statements in conformity with the 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 amounts of revenue and expenses during the reporting period. Differences between the actual result and the estimates are recognized in the period in which the results are known / materialized.

1.3 Fixed Assets

(i) Fixed assets are stated at cost less accumulated depreciation

(ii) Compensation paid to obtaining possession of the tenanted premises is capitalised under Buildings.

(iii) Carrying amount of cash generating units/ assets are reviewed at the balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated as the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

1.4 Depreciation / Amortisation

The Company provides for depreciation at the rates prescribed under XIV of the Companies Act, 1956 as under :-

(i) Building, Furniture and Fixtures acquired before 1st April 1981 on Written Down Value Method and assets acquired thereafter on Straight Line Method.

(ii) Compensation paid to obtain possession of tenanted premises on Written Down Value method.

(iii) Computer Software is amortised over a period of 3 years.

(iv) Depreciation is provided on straight line method at the rates and manner specified in the schedule XIV of Companies Act, 1956, on the original Cost of the asset. Depreciation on additions to fixed assets costing less than Rs.5000 have been provided at 100% on pro-rata basis and depreciation on assets costing more than Rs.5000 have been provided on pro-rata basis from the date of put to use of such additions.

1.5 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the assets. If such recoverable

amount of the assets is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit & Loss. If at the balance sheet date there is an indication that if previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum amount of depreciated historical cost.

1.6 Lease

Lease rentals in respect of assets acquired under operating lease are charged to the Statement of Profit & Loss as incurred.

1.7 Foreign Currency Transacations

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transactions. Resulted exchange differences arising on payment or conversion of liabilities are recognised as income or expense in the year in which they arise.Foreign currency assets & liabilities outstanding at the close of the financial year are valued at the closing exchange rate and loss/gain due to foreign exchange fluctuation is charged to the Statement of Profit & Loss.

1.8 Investments

Long Term investments are valued at cost less provision for diminution in value, if the diminution is other than temporary. Short term investments are valued at cost or market value whichever is lower.

1.9 Inventories

Traded goods are valued at cost or realizable value whichever is lower. The cost is arrived on first in first out basis.

1.10 Revenue Recognition

1. Sales are recognised on delivery of goods to customer and are exclusive of value added tax.

2. Dividend is accounted for as and when received.

1.11 Employee Benefits

(i) Short term employee benefits are recognised as expenses at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service is rendered.

(ii) Contribution payable to the recommended Provident Fund and Super Annuation Scheme which is Defined Contribution Scheme is charged to the Statement of Profit and Loss.

(iii) Liabilities in respect of defined benefit plans are determined based on actuarial valuation made by an independent actuary as at the balance sheet date. The acturial gains or losses are recognised immediately in the Statement of Profit and Loss.

1.12 Borrowing Cost

Borrowing costs incurred by the company on an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the cost of that asset.

1.13 Taxation

(i) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961.

(ii) Deferred Tax for timing differences between tax profit & book profit for the year is accounted for using the tax rate & laws that have been enacted or substantially enacted as of the Balance Sheet date.Deferred Tax assets arising from timing differences are recognised to the extent there is a virtual certainty that these assets would be realised in future and reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

1.14 Proposed Dividend

Proposed Dividend, if any, subject to shareholders approval at the Annual General Meeting, is provided in the books

1.15 Provisions & Contingent Liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resourses and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resourses.Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.16 Earning Per Share

The basic earning per share is computed using weighted number of common shares outstanding during the period. Diluted earning per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except where the results would be anti- dilutive.

(1) The Company has only one class of equity shares. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend subject to the shareholders approval in the Annual General Meeting. The shareholders have rights in proportion to their shareholding for dividend as well as for assets, in case of liquidation.

1. The Company has identified the following segments:

a) The Real Estate segment, which includes letting out of properties.

b) The Trading segment which includes retailing of plastic moulded suit cases, brief cases & vanity cases and other travel goods & accessories. These segments have been identifed considering the organizational structure, internal finacial reporting system, and the risk- return profiles of the business.

2. Segment results / assets & liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

3. All the Company''s operations are conducted in India. The Commercial risks and returns involved on the basis of geographic segmentation are relatively insignificant. Accordingly, secondary segment disclosures based on geographic segments are not considered relevant.


Mar 31, 2013

1.1 Basis of Preparation of financial statements

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards and the relevant provisions of the Companies Act, 1956.

1.2 Use of Estimates

The preparation and presentation of financial statements in conformity with the 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 amounts of revenue and expenses during the reporting period. Difference between the actual result and the estimates are recognized in the period in which the results are known / materialized.

1.3 Fixed Assets

(i) Fixed assets are stated at cost less accumulated depreciation

(ii) Compensation paid to obtaining possession of the tenanted premises is capitalised under Buildings.

(iii) Carrying amount of cash generating units/ assets are reviewed at the balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated as the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

1.4 Depreciation/Amortisation

The Company provides for depreciation at the rates prescribed under XIV of the Companies Act, 1956 as under:-

(i) Building, Furniture and Fixtures acquired before 1s'' April 1981 on Written Down Value Method and assets acquired thereafter on Straight Line Method.

(ii) Compensation paid to obtain possession of tenanted premises on Written Down Value method.

(iii) Computer Software is amortised over a period of 3 years.

(iv) Depreciation is provided on straight line method at the rates and manner specified in the schedule XIV of Companies Act, 1956, on the original Cost of the asset. Depreciation on additions of fixed assets costing less than Rs.5000 have been provided at 100% on pro-rata basis and depreciation on assets Costing more than Rs.5000 have been provided on pro-rata basis from the date of put to use of such additions.

1.5 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired.

If any such indication exists, the management estimates the recoverable amount of the assets. If such recoverable amount of the assets is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit & Loss. If at the balance sheet date there is an indication that if previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverble amount subject to a maximum amount of depreciated historical cost.

1.6 Lease

Lease rentals in respect of assets acquired under operating lease are charged to the Statement of Profit & Loss as incurred.

1.7 Foreign Currency Transacations

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transactions. Resulted exchange differences arising on payment or conversion of liabilities are recognised as income or expense in the year in which they arise.Foreign currency assets & liabilities outstanding at the close of the financial year are valued at the closing exchange rate and loss/gain due to foreign exchange fluctuation is charged to the Statement of Profit & Loss.

1.8 Investments

Long Term investments are valued at cost less provision for diminution in value, if the diminution is other than temporary. Short term investments are valued at cost or market value whichever is lower.

1.9 Inventories

Traded goods are valued at cost or realizable value whichever is lower. The cost is arrived on first in first out basis.

1.10 Revenue Recognition

1. Sales are recognised on delivery of goods to customer and are exclusive of value added tax.

2. Dividend is accounted for as and when received.

1.11 Employee Benefits

(i) Short term employee benefits are recognised as expenses at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service is rendered.

(ii) Contribution payable to the recommended Provident Fund and Super Annuation Scheme which is Defined Contribution Scheme is charged to the Statement of Profit and Loss.

(iii) Liabilities in respect of defined benefit plans are determined based on actuarial valuation made by an independent actuary as at the balance sheet date. The acturial gains or losses are recognised immediately in the Statement of Profit and Loss.

1.12 Borrowing Cost

Borrowing costs incurred by the company on an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the cost of that asset.

1.13 Taxation

(i) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961,

(ii) Deferred Tax for timing differences between tax profit & book profit for the year is accounted for using the tax rate & laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred Tax assets arising from timing differences are recognized to the extent there is a virtual certainty that these assets would be realized in future and reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

1.14 Proposed Dividend

Proposed Dividend, if any, subject to shareholders approval at the Annual General Meeting, is provided in the books.

1.15 Provisions & Contingent Liabilities

The Company create0 a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a realiable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.16 Earning Per Share

The basic earning per share is computed using weighted number of common shares outstanding during the period. Diluted earning per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except where the results would be anti- dilutive.

(1) The Company has only one class of equity shares. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend subject to the shareholders approval in the Annual General Meeting.

(2) The details of shareholders holding more than 5% shares is below:


Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

The financial statements are prepared under the historical cost convention with revenues recognised and expenses accounted on their accrual in accordance with the generally accepted accounting principles, and are in compliance with the applicable Accounting Standards prescribed by the Central Government under Section 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act 1956. Where changes in presentation are made, comparative figures for the previous year are restated/grouped accordingly.

1.2 USE OF ESTIMATES

The preparation and presentation of financial statements in conformity with the Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Difference between the actual result and the estimates are recognized in the period in which the results are known / materialized.

1.3 FIXED ASSETS

(i) Fixed assets are stated at cost less accumulated depreciation

(ii) Compensation paid to obtain possession of the tenanted premises is capitalised under Buildings.

(iii) Profit or loss on sale, transfer or disposal of fixed assets is recognised in the year of such sale, transfer or disposal.

1.4 DEPRECIATION/AMORTISATION

The Company provides for depreciation at the rates prescribed under Schedule XIV of the Companies Act, 1956 as under

(i) Building, Furniture and Fixtures acquired before 1st April 1981 on Written Down Value Method and assets acquired thereafter on Straight Line Method.

(ii) Compensation paid to obtain possession of tenanted premises on Written Down Value method.

(iii) Computer Software is amortised over a period of 3 years.

(iv) Depreciation on additions of fixed assets costing less than Rs 5000 have been provided at 100% on pro-rata basis and depreciation on assets Costing more than Rs 5000 have been provided on pro-rata basis from the date of put to use of such additions.

1.5 IMPAIRMENT OF ASSETS

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the assets. If such recoverable amount of the assets is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recongnized in the profit & loss account. If at the balance sheet date there is an indication that if previously assets impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount subject to a maximum amount depreciated historical cost.

1.6 LEASE

Lease rentals in respect of assets acquired under operating leases are charged to the Profit & Loss Account as incurred.

1.7 INVESTMENTS

Long-term Investments are stated at cost (unless otherwise stated); however for any permanent diminution in the value of investments, the book value is reduced to recognise the decline. Readily realisable investments intended to be held for less than one year are classified as Current Investments, and are carried at the lower of their costs and fair values.

1.8 INVENTORIES

Traded goods are valued at cost or realizable value whichever is lower. The cost is arrived on first in first out basis.

1.9 REVENUE RECOGNITION

(i) Sales comprise sale of goods to external customers and are accounted net of sales tax, returns, discounts, rebates and allowances. Revenue from sale of products is recognised when risk of loss, title and insurable risk have transferred to the customer which coincides with the delivery of products.

(ii) Dividend is accounted for as an when received.

1.10 EMPLOYEE BENEFIT

(i) Short-term employee benefits (payable wholly within twelve months of rendering the service) : Short-term employee benefits such as salaries, wages, short-term compensated absences, etc., are determined on an undiscounted basis and recognised in the period in which the employee renders the related service.

(ii) Post-employment benefits: Defined Contribution Plan:

The Company's contributions paid / payable to Provident Fund, Employees' State Insurance Scheme and Employees' Pension Schemes, 1995 are determined under the relevant approved schemes and/or statutes, and are recognised as expense in the Profit and Loss Account during the period in which the employee renders the related service. Defined Benefit Plan:

The Company's gratuity and leave encashment are defined benefit plans. The Company's liability for the defined benefit schemes is actuarially determined by an independent actuary.

1.11 BORROWING COST

Borrowing costs incurred by the company on an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the cost of that asset.

1.12 TAXATION

(i) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961.

(ii) Deferred Tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognised on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of Deferred tax assets/liabilities are reviewed at each balance sheet date. The tax effect is calculated on the accumulated timing difference at the year end based on the tax rates and laws enacted or substantially enacted on the balance sheet date.

1.13 PROPOSED DIVIDEND:

Proposed Dividend, subject to shareholders' approval at the Annual General Meeting, is provided in the books.

1.14 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

A provision is recognised only when there is a present obligation as a result of a past event that probably requires an outflow of resources to settle the obligation and in respect of which a 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 balance sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision disclosure is made.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each balance sheet date.

1.15 EARNINGS PER SHARE

The basic earnings per share is computed using weighted number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except where the results would be anti-dilutive.


Mar 31, 2011

1.1. Basis of Accounting.

The financial statements are prepared under the historical cost convention on an accrual basis.

1.2. Fixed Assets.

Fixed Assets are stated at cost and include all incidental and/or installation expenses incurred for putting the assets to use.

- Compensation paid to obtain possession of tenanted premises is capitalised under Buildings.

Carrying amount of cash generating units/assets are reviewed at balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated as the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

1.3. Depreciation/Amortisation.

The Company provides for depreciation at the rates prescribed under Schedule XIV of the Companies Act, 1956 as under

- Building, Furniture and Fixtures acquired before 1s' April 1981 on Written Down Value Method and assets acquired thereafter on Straight Line Method.

- Compensation paid to obtain possession of tenanted premises on Written Down Value Method.

- Computer Software is amortised over a period of 3 years.

1.4. Investments.

Long Term investments are valued at cost less provision for diminution in value, if the diminution is other than temporary. Short term investments are valued at cost or market value whichever is lower.

1.5. Inventories.

Traded goods are valued at cost or realizable value whichever is lower. The cost is arrived on first in first out basis.

1.6. Retirement Benefits.

The Company's Contribution to Provident Fund is made on an accrual basis and is charged to revenue every year. The liability in respect of Leave encashment and Gratuity on retirement of employees is provided on the basis of actuarial valuation.

1.7 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

1.8. Borrowing Costs:

Borrowing costs incurred by the company on an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the cost of that asset.

1.9. Taxation:

Provision for Income tax is made on the basis of estimated taxable income for the accounting year in accordance with the Income Tax Act,1961.

Deferred tax assets and liabilities are based on temporary difference between the value of assets & liabilities recorded in the financial statements and those used for tax purposes. Tax rates applicable to future periods are used to calculate year-end deferred income tax amounts.

A valuation allowance is recorded against deferred tax assets resulting from net operating losses and deductible temporary differences when their future realization is not likely.

1.10 Revenue Recognition.

Sales are recognized on delivery of goods to customers and are inclusive of value added tax.

1.11 Earnings Per Share

The basic earnings per share is computed using weighted number of common shares outstanding during the period. Diluted earning per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except where the results would be anti-dilutive.

1.12 Provisions

Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.


Mar 31, 2010

1.1. Basis of Accounting.

The financial statements are prepared under the historical cost convention on an accrual basis.

1.2. Fixed Assets.

- Fixed Assets are stated at cost and include all incidental and/or installation expenses incurred for putting the assets to use.

- Compensation paid to obtain possession of tenanted premises is capitalised under Buildings.

- Carrying amount of cash generating units/assets are reviewed at balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated as the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

1.3. Depreciation/Amortisation.

The Company provides for depreciation at the rates prescribed under Schedule XIV of the Companies Act, 1956 as under

- Building, Furniture and Fixtures acquired before 1st April 1981 on Written Down Value Method and assets acquired thereafter on Straight Line Method.

- Compensation paid to obtain possession of tenanted premises on Written Down Value Method.

- Computer Software is amortised over a period of 3 years.

1.4. Investments.

Long Term investments are valued at cost less provision for diminution in value, if the diminution is other than temporary. Short term investments are valued at cost or market value whichever is lower.

1.5. Inventories.

Traded goods are valued at cost or realizable value whichever is lower. The cost is arrived on first in first out basis.

1.6. Retirement Benefits.

The Companys Contribution to Provident Fund is made on an accrual basis and is charged to revenue every year. The liability in respect of Leave encashment and Gratuity on retirement of employees is provided on the basis of actuarial valuation.

1.7 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account, if at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

1.8. Borrowing Costs:

Borrowing costs incurred by the company on an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the cost of that asset. -

1.9.

Taxation:

Provision for Income tax is made on the basis of estimated taxable income for the accounting year in accordance with the Income Tax Act, 1961.

Deferred tax assets and liabilities are based on temporary difference between the value of assets & liabilities recorded in the financial statements and those used for tax purposes. Tax rates applicable to future periods are used to calculate year-end deferred income tax amounts.

A valuation allowance is recorded against deferred tax assets resulting from net operating losses and deductible temporary differences when their future realization is not likely.

Provision for Fringe Benefit Tax is determined at current applicable rates on expenses falling within the ambit of "Fringe Benefit" as defined under the Income Tax Act, 1961.

Revenue Recognition.

Sales are recognized on delivery of goods to customers and are inclusive of value added tax.

Earnings Per Share

The basic earnings per share is computed using weighted number of common shares outstanding during the period. Diluted earning per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except where the results would be anti-dilutive.

Provisions

Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

 
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