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Accounting Policies of Leena Consultancy Ltd. Company

Mar 31, 2010

The Companys accounting policies are as follows :

a) Method of accounting :

The accounts are prepared on the basis of Going Concern Concept and under the historical cost convention. The Company adopts accrual basis in preparation of its accounts to comply in all material aspects with applicable accounting principles in India, the Accounting Standards notified vide Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b) Use of estimates:

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

c) Investments:

Long term investments are stated at cost. Provision for diminution in value of investments is made, if such diminution is of permanent nature in the opinion of the management. Earning from investments is taken into revenue on accrual.

d) Revenue Recognition

The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties about ultimate realization of revenue.

e) Provisions & Contingent liabilities:

Provision is recognized when an enterprise has a present obligation as a result of past event and 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 management 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 management estimates. Contingent liabilities are disclosed when the Company has possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

f) Taxation:

i) Provision for Current Tax is made on the basis of taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961.

ii) Deferred Tax is calculated at the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date and is recognized on timing differences that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets, subject to consideration of prudence, are recognized and carried forward only to the extent that they can be realized.

g) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by number of equity shares outstanding during the period.

Oct 21, 12:00 am
Oct 21, 4:14 pm
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