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Accounting Policies of Luminaire Technologies Ltd. Company

Mar 31, 2014

A Basis of Accounting:

The financial statements are prepared under the historical cost convention, on going concern concept and in compliance with the Accounting Standards issued by the Companies (Accounting standard), Rules, 2006.

B 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 amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the 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 Recognition of income and expenditure

The Company follows the accrual method of accounting for its income & expenditure.

D Revenue Recognition

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 actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

F Depreciation:

Depreciation on Fixed Assets is being provided on ''Written Down Value Method'' in the manner and at the rates prescribed in Schedule XIV of the Companies Act, 1956. However during the year no depreciation had been provided on Fixed assets as the same to discarded and not to put use.

G Investments:

Long term investments are stated at cost. Provision for diminution in the value of investment is made only if such decline is other than temporary in the opnion of the management.

H Foreign Currency Transactions :

i) The transactions in foreign currencies are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange prevailing on the date of transaction and the date of realization is charged to the Profit and Loss Account.

iii) Differences on translations of Current Assets and Current Liabilities remaining unsettled at the year-end are recognized in the Profit and Loss Account.

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

J 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.

K Employee Benefits :

i) Short-term employee benefit are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered.

ii) The Company make contributions towards Provident Fund to defined contribution retirement benefit plan for qualifying employee. The provident fund plan is operated by the Regional Provident fund Commissioner. Under the scheme the company is required to contribute a specified percentage of payroll cost to reirement benefit scheme to fund the benefits.

L Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets issued by The Institute of Chartered Accountants of India (ICAI), when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.


Mar 31, 2013

A Basis of Accounting:

The financial statements are prepared under the historical cost convention, on going concern concept and in compliance with the Accounting Standards issued by the Companies (Accounting standard), Rules, 2006.

B 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 amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the 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 Recognition of income and expenditure

The Company follows the accrual method of accounting for its income & expenditure.

D Revenue Recognition

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 actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

F Depreciation:

Depreciation on Fixed Assets is being provided on ''Written Down Value Method'' in the manner and at the rates prescribed in Schedule XIV of the Companies Act, 1956. However during the year no depreciation had been provided on Fixed assets as the same to discarded and not to put use.

G Investments:

Long term investments are stated at cost. Provision for diminution in the value of investment is made only if such decline is other than temporary in the opnion of the management.

H Foreign Currency Transactions :

I) The transactions in foreign currencies are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange prevailing on the date of transaction and the date of realization is charged to the Profit and Loss Account.

iii) Differences on translations of Current Assets and Current Liabilities remaining unsettled at the year-end are recognized in the Profit and Loss Account.

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

J 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.

K Employee Benefits :

i) Short-term employee benefit are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered.

ii) The Company make contributions towards Provident Fund to defined contribution retirement benefit plan for qualifying employee. The provident fund plan is operated by the Regional Provident fund Commissioner. Under the scheme the company is required to contribute a specified percentage of payroll cost to reirement benefit scheme to fund the benefits.

L Provisions and Contingent Liabilities:

I) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent

Assets issued by The Institute of Chartered Accountants of India (ICAI), when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.


Mar 31, 2010

1. SYSTEM OF ACCOUNTING: Company follows accrual system of accounting.

2. FIXED ASSETS: Fixed Assets are stated at cost of acquisition less accumulated depreciation. Depreciation on all assets is provided on WDV method as per rates prescribed in schedule XIV of the Companies Act, 1956.

3. TAXATION : Provisions for taxation comprises of current tax and deferred tax charge or release and Fringe Benefit Tax. Deferred tax is recognised subject to consideration of prudence on timing difference, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets arising out of carry forward losses and unabsorbed depreciation are not recognised unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised.

4. INVESTMENT: Long term investments are stated at cost. Provision for diminution in the value of investments is made only if such a decline is other then temporary in the opinion of the management.

5. INVENTORIES: Inventories are valued at cost or net realisable value whichever is lower (determined on weighted/ moving average basis)

6. FOREIGN CURRENCY TRANSACTION : Recorded on the basis of exchange rate prevailing on the date of their occurrence. Monetary foreign currency assets and liabilities outstanding at the close of the year are revalorised at the exchange rates prevailing on the balance sheet date Exchange differences arising on account of fluctuation in the rate of exchange is recognised in the profit and loss account.

7. EMPLOYEE BENEFIT:

a) Short-term employee benefit are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered.

b) The Company makes contributions towards Provident Fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident fund Commissioner. Under the scheme the company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.


Mar 31, 2009

1. SYSTEM OF ACCOUNTING: Company follows accrual system of accounting.

2. FIXED ASSETS: Fixed Assets ore stated at cost of acquisition less accumulated depreciation. Depreciation on all assets is provided on WDV method as per rates prescribed in schedule XIV of the Companies Act, 1956.

3. TAXATION : Provisions for taxation comprises of current tax and deferred tax charge or release and Fringe Benefit Tax. Deferred tax is recognised subject to consideration of prudence on timing difference, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets arising out of carry forward losses and unabsorbed depreciation are not recognised unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised.

4. INVESTMENT long term investments are stated at cost. Provision for diminution in the value of investments is made only if such a decline is other then temporary in the opinion of the management. -

5. INVENTORIES: Inventories are valued at cost or net realisable value whichever is lower (determined on weighted/ moving average basis)

6. FOREIGN CURRENCY TRANSACTION : Recorded on the basis of exchange rate prevailing on the date of their occurrence. Monetary foreign currency assets and liabilities outstanding at the close of the year are revalorised at the exchange rates prevailing on the balance sheet date Exchange differences arising on account of fluctuation in the rate of exchange is recognised in the profit and loss account.

7. EMPLOYEE BENEFIT:

a) Short-term employee benefit are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered.

b) The Company makes contributions towards Provident Fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident fund Commissioner. Under the scheme the company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

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