Mar 31, 2015
A. Use of estimates
The preparation of Financial Statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current event and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future period.
b. Fixed Assets
Fixed assets are carried at the cost of acquisition or construction
less accumulated depreciation. The cost of fixed assets includes
non-refundable taxes, duties, freight and other incidental expenses
related to the acquisition and installation of the respective assets.
c. Depreciation on Fixed Assets
Depreciation on fixed asset is provided on the Written Down Value (WDV)
Method. Depreciation is provided based on useful life of the asset as
prescribed in Schedule II to the Companies Act 2013.
d. Revenue Recognition
Having regards to the size, nature and level of operation of the
business, the company is applying accrual basis of accounting for
recognition of income earned and expenses incurred in the normal course
of business.
e. Inventories
Inventories include investments in shares of other companies. The
company classified such investments as inventory and valuation of them
has been made at cost.
f. Taxes on Income
Tax expense comprises of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflect the current
period timing differences between taxable income and accounting income
for the period and reversal of timing differences of earlier
years/period.
Deferred tax assets are recognised only to the extent that there is a
reasonable certainty that sufficient future income will be available
except that deferred tax assets, in case there are unabsorbed
depreciation or losses, are recognised if there is virtual certainty
that sufficient future taxable income will be available to realize the
same.
Deferred tax assets and liabilities are measured using the tax rates
and tax law that have been enacted or substantively enacted by the
Balance Sheet date.
g. Provisions
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outflow of resource
embodying economic benefits will be require to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are review at the end of each reporting
date and adjusted to reflect the current best estimates.
h. Earning Per Share
Basic Earning per Share has been calculated by dividing the net profit
or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
Diluted Earning per Share has been computed by dividing the net profit
after tax by the weighted average no. of equity shares considered for
deriving basic Earning per Share and also the weighted average no. of
equity shares that could have been issued upon conversion of all
dilutive potential equity shares.
i. Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash at bank and short
term investments with the original maturity of three months or less.
j. Previous year figures
The company has reclassified previous year figures to conform to
current year's classification.
Mar 31, 2014
1. Basis of preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles (Indian GAAP).
The company has prepared these financial statements to comply in all
material respects with the accounting standards notified under
Companies (Accounting Standards) Rules, 2006 (as amended from time to
time) and the relevant provisions of the Companies Act, 1956.
The financial statements have been prepared on accrual basis and under
the historical cost convention. The accounting policies not
specifically referred, are consistently applied from the past
accounting periods.
2. Summary of significant accounting policies
a. Revenue recognition
Having regard to the size, nature and level of operation of the
business, the company is applying accrual basis of accounting for
recognition of income earned and expenses incurred in the normal course
of business.
b. Fixed assets:
Fixed Assets are valued at cost of purchase and/ or construction as
increased by necessary expenditure incurred to make them ready for use
in the business.
c. inventories
Inventories include investments in shares of other companies. The
Company classifies such investments as inventory and valuation of them
has been made at tower of cost or Market Value. However, unquoted
investments are stated at cost.
d. Depreciation
The company is charging depreciation on all assets which are put to use
by the Companyon written down value method method as per rates
prescribed under Schedule XIV of the Companies Act, 1956 on pro- rata
basis. However, no Depreciation is being trharged on asset depreciated
upto 95% of its historical cost.
e. Taxes on income
Current taxes on income have been provided by the Company in accordance
with the relevant provisions of the Income Tax Act, 1961. Deferred
Taxes has been recognisedon timing differences between accounting
income and taxable income subject to consideration of prudence.
Mar 31, 2012
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