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Accounting Policies of Otco International Ltd. Company

Mar 31, 2015

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1.1 These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory. accounting standards as prescribed under Section 133 of the Companies Act, 2013 (Act') read with Rule7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing counting standard requires a change in the accounting policy hitherto in use.

1.2 The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements. Management believes that these estimate and assumptions are reasonable and prudent. However, actual results could differ from estimate.

2. FIXED ASSETS

2.1 Fixed Assets are stated at cost of construction or acquisition less accumulated depreciation. All other expenses including taxes, duties, freight incurred to bring the fixed assets to a working condition are also treated as the cost of the fixed assets.

2.2 Fixed Assets are stated at acquisition cost less accumulated depreciation or amortization and cumulative impairment.

3. DEPRECIATION

Depreciation on Fixed assets is provided on Written Down Value method at the rates and in the manner prescribed under Part C of Schedule II of the Companies Act, 2013.

4. REVENUE RECOGNITION

4.1 Revenue from services is recognized in proportion to the services rendered.

5. PRIOR PERIOD ITEMS

Significant items of income and expenditure which relate to prior accounting periods (if any) are shown as appropriation of the Profit under the head "Prior Period Items", other than those occasioned by events occurring during or after the close of the year and which are treated as relatable to the current year.

6. AXES ON INCOME

6.1 Provision for current tax made as per the provisions of the Income Tax Act, 1961.

6.2 Deferred Tax Liability or Asset resulting from "timing difference" between book and taxable profit is accounted for considering the tax rate and laws that have been enacted or substantively enacted as on the balance sheet date.

6.3 Deferred Tax Asset is recognized and carried forward only to the extent that there is virtual certainty with convincing evidence that there will be sufficient future income to recover such deferred tax asset.


Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1.1 The Financial Statements are prepared under historical cost convention in accordance with the mandatory accounting standards notified by the Central Government Company (Accounting Standard) Rules, 2006 and Relevant Provision of Companies Act, 1956.

1.2 The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements. Management believes that these estimate and assumptions are reasonable and prudent. However, actual results could differ from estimate.

2. FIXED ASSETS

2.1 Fixed Assets are stated at cost of construction or acquisition less accumulated depreciation. All other expenses including taxes, duties, freight incurred to bring the fixed assets to a working condition are also treated as the cost of the fixed assets.

2.2 Fixed Assets are stated at acquisition cost less accumulated depreciation or amortization and cumulative impairment.

3. DEPRECIATION

Depreciation on Fixed assets is provided on Written Down Value method at the rates

and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

4. REVENUE RECOGNITION

4.1 Revenue from sale of goods is recognized when sufficient risks and rewards are transferred to customers, which is generally on dispatch of goods and sales are stated net of returns and discounts.

4.2 Dividend income is recognized when the company''s right to receive dividend is established.

4.3 Interest Income is recognized on time proportion basis.

5. PRIOR PERIOD ITEMS

Significant items of income and expenditure which relate to prior accounting periods (if any) are shown as appropriation of the Profit under the head "Prior Period Items", other than those occasi -oned by events occurring during or after the close of the year and which are treated as relatable to the current year.

6. TAXES ON INCOME

6.1 Provision for current tax made as per the provisions of the Income Tax Act, 1961.

6.2 Deferred Tax Liability or Asset resulting from "timing difference" between book and taxable profit is accounted for considering the tax rate and laws that have been enacted or substantively enacted as on the balance sheet date.

6.3 Deferred Tax Asset is recognized and carried forward only to the extent that there is virtual certainty with convincing evidence that there will be sufficient future income to recover such deferred tax asset.


Mar 31, 2013

1. Basis of Accounting:

(a) These accounts are prepared on the historical cost basis.

(b) Accounting policies which not specifically referred to are consistent and in consonance with generally accepted accounting principles.

2. Revenue Recognition:

Expenses and Income considered payable and receivable respectively are accounted on accrual basis.

2 Fixed. Assets i Fixed Assets are stated at cost of acquisition inclusive of taxes and incidental expenses.

DePreDepr0eciation on fixed asset has been provided for under Written down Value (WDV) method, at the rates and manner prescribed under Schedule XIV to the Companies Act 1956 of India.

5. Valuation of Closing Stock : . inventories are valued at lower of cost (determined on hrst-in-first-out basis) and Market value.

6. Foreign Currency Transactions :

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year-end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rates. Exchange differences resulting from the settlement of such transactions and from the translation of such monetary assets and liabilities are recognized in the Profit and Loss Account.


Mar 31, 2010

1. Basis of Accounting :

(a) These accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

(b) Accounting policies which not specifically referred to m consistent and in consonance with generally accepted accounting principles.

2. Revenue Recognition:

Expenses and Income considered payable and receivable respectively are accounted on accrual basis.

3. Fixed Assets:

Fixed Assets are stated at cost of acquisition inclusive of taxes and incidental expenses;

4. Depreciation:

Depreciation of fixed assets is provided on straight-line basis over their estimated useful lives at the rates which are higher than the rate prescribed in Schedule XIV of the Companies Act, 1956.1ndividual assets for less than Rs.5000 are entirely depreciated in the year of acquisition. The estimated useful lives are as follows:

Computer and Peripherals - 3 years

Office Equipment - 5 years

In the case of purchase of assets, depreciation has been provided on pro-rata basis from the date of purchase of those assets.

5. Valuation of Closing Stock :

Inventories are valued at lower of cost (determined on first-in-first-out basis) and Market value.

6. Foreign Currency Transactions :

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. At the year-end, all the monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rates. Exchange differences resulting from the settlement of such transactions and from the translation of such monetary assets and liabilities are recognized in the Profit and Loss Account.

1. AS-17/AS-20/AS-22:

AS-17 Segmental Reporting

Segmental Reporting has not been prepared in relation to the Company as the Company has only one major segment of Credit Information.

AS - 20 Earnings Per Share

Basic & Diluted Earnings Per Share has been reflected in Profit & Loss Account. Basic & Diluted Earnings Per Share for the Year under audit is Nil (Previous Year Rs. 0.00/- Per Share)

AS - 22 Taxes On Income

Deferred Tax Liability has been shown separately below Reserves & surplus.

 
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