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.
1.4 Investments.
(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.
1.5 Inventories
(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.
1.6 Depreciation/Amortization
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.
1.9 Taxation
(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