Mar 31, 2015
1.1 Use of Estimates
The preparation of Financial Statement requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of Financial Statement and the reported amount of revenue and expenses during the reported period. Differences between the actual results and estimates are recognized in the period in which the results are known/ materialized.
1.2 Revenue recognition
(a) The Company prepares its accounts on accrual basis, in accordance with normally accepted accounting principles.
(b) Lease rentals and finance charges on hire purchase transaction are accounted for on accrual basis. If there are any uncertainties in realisation, the same are not accounted for.
(c) Income on Bills of exchange discounted during the year is accounted for on accrual basis.
(d) Dividend income is recognised when the right to receive the same is established.
(e) Profit/ Loss on sale of investments is accounted for on the trade dates.
1.3 Fixed Assets.
(a) Fixed assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/ commissioning expenses etc. upto tire date the assets are put to use less accumulated depreciation/amortination.
(a) Investments intended to be held for a period of more than one year are classified as non current investments.
(b) Non current investments are valued at cost. Provision for permanent diminution in the value . non current investments, if any, is based on perception of the management of the Company.
(a) Shares have been valued at cost or market value, whichever is lower.
(b) Stock on hire is shown at agreement values and unmatured finance charges.
(c) Stock on hire under hire purchase includes advances paid/deposit made on behalf of hire purchaser.
Depreciation on fixed assets is provided over the useful life of the tangible assets prescribed under Schedule II of Companies Act, 2013 is as under:
Furniture and Fixtures 10 years
Office Equipments 5 years
Computer Hardware 3 years
The cost of Intangible assets Is amortized over a period of four years the estimated economic life of the assets.
1.7 Contingent Liabilities
(a) Contingent liabilities are not provided for and are disclosed by way of notes to accounts.
1.8 Retirement Benefits
(a) Provisions for gratuity and leave encashment benefit have been made on the basis of own valuation.
(a) The provision for income tax is based on the assessable profit as computed in accordance with the Income Tax Act, 1961/Rules, 1962.
(b) Deferred tax is recognized subject to consideration, of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods