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Accounting Policies of Ladderup Finance Ltd. Company

Mar 31, 2015

A Basis of Preparation of Financial Statements :

The Financial Statements have been prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis and in compliance with all the mandatory accounting standards as prescribed under Section 133 of the Act read with rule 7 of the Companies (Accounts) Rules, 2014

Company follows mercantile system of accounting and recognizes Income & Expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization in respect of incomes.

B Use of Estimates:

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

C Revenue Recognition

i) Profit or Loss from dealing in shares and securities are recognized on settlement dates.

ii) Interest is recognised on a time proportion basis taking in to account the amount outstanding and the rate applicable.

ii) Dividend on shares is being considered when the right to receive payment is established.

iii) In respect of other heads of income, the Company follows the practice of accounting on accrual basis.

D Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost of acquisition comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

E Depreciation:

i) Depreciation on Fixed Assets is provided on 'Straight Line Method' considering their useful lives and residual value as provided in Schedule II of the Act.

ii) Depreciation on revalued assets to the extent of revaluation is charged from Revaluation Reserve.

F Impairment of Fixed Assets:

At the end of each year, the Company determines whether a provision should be made for

impairment loss on fixed assets by considering the indication that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets". Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made for the difference.

G Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

H Accounting for Taxes of Income:

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

I Provisions and Contingent Liabilities:

i) Contingent Liabilities in respect of show cause notices received are considered only when they are converted into demands. Payments in respect of such demands, if any, are shown as advances.

ii) Contingent Liabilities under various fiscal laws includes those in respect of which the Company/department is in appeal.

iii) Contingent Liabilities if any, are disclosed by way of notes.

J Prior Period Items:

Material amount of Income and Expenditure pertaining to prior years are disclosed separately.

K Employee Benefits:

Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

L Inventories:

Stock of shares and securities is valued at lower of cost or market value.


Mar 31, 2012

A Basis of Preparation of Financial Statements :

The Financial Statements are prepared under the historical cost convention, on a going concern concept and in compliance with the Accounting Standards issued by the ICAI/Companies (Accounting Standard), Rules, 2006. The Company follows mercantile system of accounting and recognizes Income & Expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization in respect of incomes. Accounting Policies not specifically referred to otherwise, are consistent and in consonance with the generally accepted Accounting Principles.

B Use of Estimates:

The preparation of Financial Statements are in conformity with generally accepted accounting principles which requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual and estimated results are recognized in the period in which the results are materialized.

C For the financial year ended 31st March, 2012, the Revised Schedule VI notified under the Companies Act, 1956, is applicable to the Company, for presentation and disclosures in financial statements. The Company has reclassified the previous year's figures in accordance with the Revised Schedule VI as applicable in the current year.

D Revenue Recognition :

i) Profit or Loss from dealing in Shares and Securities are recognized on settlement dates.

ii) Dividend on Shares is being considered when the right to receive payment is established.

iii) In respect of other heads of income, the Company follows the practice of accounting on accrual basis.

E Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost of acquisition comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

F Depreciation:

i) Depreciation on Fixed Assets is provided on 'Straight Line Method' at the rates and in the manner as specified in Schedule XIV of the Companies Act, 1956.

ii) Depreciation on Revalued Assets to the extent of revaluation is charged from Revaluation Reserve.

G Impairment of Fixed Assets:

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indication that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the ICAI/ Companies (Accounting Standard), Rules, 2006. Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made for the difference.

H Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as Long Term Investments and are carried at cost less any provision for permanent diminution in value. Investments other than Long Term Investments being Current Investments are valued at cost or fair value whichever is lower.

I Accounting for Taxes of Income:

Current Taxes

Provision for current Income-Tax is recognized in accordance with the provisions of Indian Income- Tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred Tax Assets and Liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for Income Taxes and the profits as per the Financial Statements. Deferred Tax Assets and Liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred Tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

J Employee Benefits :

i) Company's contribution to Provident Fund and Other Funds for the year is accounted on accrual basis and charged to the Profit & Loss Account for the year

ii) Liability for Leave Encashment Benefits has been provided on accrual basis.

iii) Retirement Benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

K Provisions and Contingent Liabilities:

i) Contingent Liabilities in respect of show cause notices received are considered only when they are converted into demands. Payments in respect of such demands, if any, are shown as advances.

ii) Contingent Liabilities under various fiscal laws includes those in respect of which the Company/Department is in appeal.

iii) Contingent Liabilities if any, are disclosed by way of notes.

L Prior Period Items:

Material amount of Income and Expenditure pertaining to prior years are disclosed separately.

M Inventories:

Stock of Shares and Securities is valued at lower of Cost or Market Value.


Mar 31, 2011

1. Basis of Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention, on a going concern concept and in compliance with the Accounting Standards issued by the ICAI/ Companies (Accounting Standard) Rules, 2006 Company follows mercantile system of accounting and recognizes Income & Expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization in respect of incomes. Accounting policies not specifically referred to otherwise, are consistent and in consonance with the generally accepted accounting principles.

2. Use of estimates:

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

3. Recognition of Income and expenditure:

The Company follows the accrual basis of accounting except in the case of Insurance claims, where the same are recorded on cash basis.

4. Revenue Recognition:

a. Profit or Loss from dealing in Shares and Securities are recognized on settlement dates.

b. Dividend on Shares is being considered when the right to receive payment is established.

c. In respect of other heads of income, the Company follows the practice of accounting on accrual basis.

5. Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost of acquisition comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use.

6. depreciation:

a. Depreciation on Fixed Assets is provided on ‘Straight Line Method’ at the rates and in the manner as specified in Schedule XIV of the Companies Act, 1956.

b. Depreciation on Revalued Assets to the extent of revaluation is charged from Revaluation Reserve.

7. Impairment of Fixed Assets:

At the end of each year, the Company determines whether a provision should be made for impairment Loss on Fixed Assets by considering the indication that an impairment Loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the ICAI/Companies (Accounting standard), Rules, 2006. Where the recoverable amount of any Fixed Assets is lower than its carrying amount, a provision for impairment Loss on Fixed Assets is made for the difference.

8. Investments:

Investments those are intended to be held for more than a year from the date of acquisition are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair market value whichever is lower.

9. Inventory:

Stock of Shares and Securities is valued at lower of cost or market value.

10. Accounting for taxation on Income:

Current taxes

Provision for current Income-tax is recognized in accordance with the provisions of Indian Income-Tax Act, 1961 and is made annually based on the Tax liability after taking credit for Tax allowances and exemptions.

Deferred taxes

Deferred Tax Assets and Liabilities are recognized for the future tax consequences attributable to timing deferences that result between the profits offered for Income Taxes and the profits as per the financial statements. Deferred Tax Assets and Liabilities are measured using the Tax Rates and the Tax Laws that have been enacted or substantially enacted at the Balance Sheet date. Deferred Tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

11. Prior Period Items:

Material amount of Income and Expenditure pertaining to prior years are disclosed separately.

12. Employee Benefits:

i) Company's contribution to Provident Fund and other Funds for the year is accounted on accrual basis and charged to the Profit & Loss Account for the year.

ii) Liability for leave encashment benefits has been provided on accrual basis.

iii) Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet

13. Treatment of Contingent Liabilities:

a. Contingent Liabilities in respect of show cause notices received are considered only when they are converted into demands. Payments in respect of such demands, if any, are shown as advances.

b. Contingent Liabilities under various Fiscal Laws includes those in respect of which the Company/Department is in appeal.

c. Contingent Liabilities are disclosed by way of notes.


Mar 31, 2010

1. Basis of Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention, on a going concern concept and in compliance with the Accounting Standards issued by the ICAI/ Companies (Accounting Standard), Rules, 2006, Company follows mercantile system of accounting and recognizes Income & Expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization in respect of incomes. Accounting policies not specifically referred to otherwise, are consistent and in consonance with the generally accepted accounting principles.

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 reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimated are recognized in the period in which the results are materialized.

3. Recognition of income and expenditure:

The Company follows the accrual basis of accounting except in the following cases, where the same are recorded on the cash basis.

(a) Insurance claims

(b) Payment of bonus and leave salary

(c) Gratuity

4. Revenue Recognition:

(a) Profit or Loss from dealing in shares and securities are recognized on settlement dates.

(b) Dividend on shares is being considered when the right to receive payment is established.

(c) In respect of other heads of income, the Company follows the practice of accounting on accrual basis.

5. Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost of acquisition comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

6. Depreciation:

(a) Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner as specified in Schedule XIV of the Companies Act, 1956.

(b) Depreciation on revalued assets to the extent of revaluation is charged from Revaluation Reserve.

7. Impairment of Fixed Assets:

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indication that an impairment loss may have occurred in accordance with Accounting Standard 28 on “Impairment of Assets” issued by the ICAI/Companies (Accounting Standard), Rules, 2006. Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made for the difference.

8. Investments:

Investments those are intended to be held for more than a year from the date of acquisition are classified as long-term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long-term investments being current investments are valued at cost or fair market value whichever is lower.

9. Inventory:

Stock of shares and securities is valued at lower of cost or market value.

10. Accounting for Taxation on Income:

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income-tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred Tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

11. Prior Period Items:

Material amount of Income and Expenditure pertaining to prior years are disclosed separately.

12. Employee Benefits:

(a) Liability for bonus & leave encashment benefits has been accounted for on cash basis.

(b) Gratuity liability is accounted for on cash basis.

13. Treatment of Contingent Liabilities:

(a) Contingent Liabilities in respect of show cause notices received are considered only when they are converted into demands. Payments in respect of such demands, if any, are shown as advances.

(b) Contingent Liabilities under various fiscal laws includes those in respect of which the company/department is in appeal.

(c) Contingent Liabilities are disclosed by way of notes.

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