Accounting Policies of Parab Infra Ltd. Company

Mar 31, 2013

(i) Method Of Accounting

a) The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the requirements of the Companies Act, 1956.

b) The Company generally follows accrual system of accounting and recognises significant items of Income & Expenditure on accrual basis.

(ii) Investments:

1. BASIS OF ACCOUNTING:

The financial statement has been prepared under the historical cost convention principles and provision of Companies Act, 1956 as consistently adopted by the company.

2. FIXED ASSETS:

Fixed Assets(if any) are shown at historical cost. Intangible assets are recorded at their cost of acquisition. Capital expenditure on assets by the company is reflected as a distinct item in Capital Work-in Progress till the period of completion and thereafter in the Fixed Assets.

3. INVESTMENTS:

Current lnvestments(if any) are valued at lower of cost and fair value determined on an individual basis. Long term investments are carried at cost. Provision is made for diminution, other than temporary, in the value of such investment. Premium paid on long term investments is amortized over the period remaining to maturity.

4. INCOME RECOGNITION :

Dividend is recognized on the basis of receipt and other revenues are recorded on the basis of accrual basis.

5. DEPRICATION:

Depreciation (if any) is charged on SLM method at the rates specified in Schedule XIV of the Companies Assets costing up to Rs.5000/- are fully depreciated in the year of capitalization.

6. CONTIGENT LIABILITIES:

There are no Contingent liabilities as perceive by the management.

7. TAXATION:

Deferred Taxation: The Company has accounted for deferred tax in accordance with accounting standard- 22''''Accounting forTaxes on Income" issued by The council of the Institute of Chartered Accountants of India.

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Mar 31, 2012

1. BASIS OF ACCOUNTING:

The financial statement has been prepared under the historical cost convention principles and provision of Companies Act, 1956 as consistently adopted by the company.

2. FIXED ASSETS:-

Fixed Assets(if any) are shown at historical cost. Intangible assets are recorded at their cost of acquisition. Capital expenditure on assets by the company is reflected as a distinct item in Capital Work-in Progress till the period of completion and thereafter in the Fixed Assets.

3. INVESTMENTS:

Current Investments(if any) are valued at lower of cost and fair value determined on an individual basis. Long term investments are carried at cost. Provision is made for diminution, other than temporary, in the value of such investment. Premium paid on long term investments is amortized over the period remaining to maturity.

4. INCOME RECOGNITION

Dividend is recognized on the basis of receipt and other revenues are recorded on the basis of accrual basis.

5. DEPRICATION:

Depreciation(if any) is charged on SLM method at the rates specified in Schedule XIV of the Companies Assets costing up to Rs.5000/- are fully depreciated in the year of capitalization.

6. CONTIGENT LIABILITIES:

There are no Contingent liabilities as perceive by the management.

7. TAXATION:

Deferred Taxation: The Company has accounted for deferred tax in accordance with accounting standard-22"Accounting for Taxes on Income" issued by The council of the Institute of Chartered Accountants of India.

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Mar 31, 2011

1. BASIS OF ACCOUNTING:

The financial statement has been prepared under the historical cost convention principles and provision of Companies Act, 1956 as consistently adopted by the company.

2. FIXED ASSETS:-

Fixed Assets are shown at historical cost as per AS-10 issued by ICAI. Intangible assets are recorded at their cost of acquisition. Capital expenditure on assets by the company is reflected as a distinct item in Capital Work-in Progress till the period of completion and thereafter in the Fixed Assets.

3. INVESTMENTS:

Current Investments are valued at lower of cost and fair value determined on an individual basis as per AS-13 issued by ICAI. Long term investments are carried at cost. Provision is made for diminution, other than temporary, in the value of such investment. Premium paid on long term investments is amortized over the period remaining to maturity.

4. INCOME RECOGNITION

Dividend is recognized on the basis of receipt and other revenues are recorded on the basis of accrual basis as per AS-9 issued by ICAI.

5. DEPRICATION:

Depreciation is charged on SLM method at the rates specified in Schedule XIV of the Companies Assets costing up to Rs.5000/- are fully depreciated in the year of capitalization.

6. MISCELLANEOUS EXPENDITURE:

Preliminary, Pre Operative and Expenses related to Public issue are to be amortized over a period of ten years.

7. CONTIGENT LIABILITIES:

There are no Contingent liabilities as perceive by the management.

8. TAXATION:

Deferred Taxation: The Company has accounted for deferred tax in accordance with accounting standard-22"Accounting for Taxes on Income" issued by The Council of the Institute of Chartered Accountants of India.

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Mar 31, 2010

1. BASIS OF ACCOUNTING :

(a) The accounts are prepared in accordance with the accounting principles generally accepted in India and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India

(b) The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis those which are insignificant and uncertainties.

(c) Financial statements are based on accounting are policies referred to otherwise are consistent with generally accepted accounting principles

(d) System of accounting: - The Company adopts the accrual basis in the preparation of accounts

2. FIXED ASSETS:

(a) There are no fixed assets except computer as all the assets were auctioned by Madhya Pradesh Electricity Board on 25-05-2001.

(b) There are no fixed assets hence the question of depreciation on the same does not arise.

3. INVESTMENTS:

Investment in shares which are unquoted is made at cost. No Provision is made for any diminution in the value of shares if any as the shares are not quoted in the market.

4. INVENTORY VALUATION:

There was no closing Stock of ram material stores & spares, work in process and finished goods the question of valuation does not arise.

5. CONTINGENT LIABILITIES:

Contingent liabilities are generally not provided for in the accounts and are shown separately under the Schedule of notes on accounts.

6. IMPAIRMENT OF ASSETS :

The Company carries out a periodic review of all its assets with a view to identify any impairment, impairment to assets, if any, identified on the basis of such review is accounted for in the books as required by the Accounting Standard on Impairment of Assets ( AS-28) issued by the ICAI. No impairment of assets has been identified during the review carried out in the current Year.

7. Related Parties Disclosure as required by accounting standard 18 of ICAI (A) Relationship :

(a) Key Management Personal :

(b) Relatives of key management personal with whom transaction have taken place:

(c) Enterprises over which key management personal exercise significant influence :

(d) Transactions with related parties during the year NIL

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Mar 31, 2002

A) SIGNIFICANT ACCOUNTING POLICES :

1. BASIS OF ACCOUNTING :

a The Company follow the mercantile system of accounting and recongnise income and accrual basis except those with insignificant uncertainties.

b. Financial statements are based on accounting policies referred to otherwise are consistant with generally accepted accounting principles.

2. FIXED ASSETS:

a. There are no fixed assets except computer as all the assets were auctioned by Madhya Pradesh Electricity Board on 25:5.2001.

b. There are no fixed assets hence the question or depredation on the same does notarise.

c. The fixed assets of the company except computer were auctioned by the Madhya Pradesh Electricity Board, Mandsaur against its due on 25.5.2001 for Rs.45,00,000/-on which toss of Rs. 1,35,88,760/- was incurred which has been charged to Front & Loss Account

3. INVESTMENTS :

Investment in shares which are unquoted, is made at cost No Provision is made for any diminution in the value of shares, If any, as the shares are not quoted in the market

4. INVENTORIES :

There was no Closing Stock of Raw Material, Stores & Spares, Work-in-Progress and Finished Goods the question of valuation does not arise.

5. TREATMENT OF MISCELLANEOUS EXPENDITURE :

Miscellaneous expenditure (i.e. preliminary and public issue expenses etc.) are written off over a period of 10 years.

6. CONTINGENT LIABILITIES :

Contingent Liabilities are not provided for and have been disclosed by way of notes on accounts.

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Mar 31, 2000

1. BASIS OF ACCOUNTING :

a. The Company follows the mercantile system of accounting and recongnises Income and expenditure on accrual basis except those with in significant uncertainties.

b. Financial Statements are based on historical cost basis. Accounting Policies not referred to otherwise are consistent with generally accepted accounting principles.

2. FIXED ASSETS :

a. Fixed assets are capitalised at cost inclusive of expenses.

b. Depreciation on fixed assets is provided on straight line. method at the rates specified in schedule XIV (as amended) of the companies Act, 1956.

c. The Company has sold during the year fixed assets worth Rs. 1,68,91,302/- on which loss of Rs. 77,26,432/- which has been charged to Profit & Loss account.

3. INVESTMENTS :

Investment in shares which are unquoted, is made at cost. No Provision is made for any diminution in the value of shares, if any, as the shares are not quoted in the market.

4. INVENTORIES :

a. Raw Materials, Stores & spares and work-in-progress are valued at lower of cost or realisable value.

b. Finished products are valued at lower of cost or realisable value.

5. TREATMENT OF MISCELLANEOUS EXPENDITURE :

Miscellaneous expenditure (i.e. preliminary and public issue etc. expenses) are written off over a period of 10 Years.

6. CONTINGENT LIABILITIES :

Contingent Liabilities are not provided for and have been disclosed by way of notes on accounts.

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Mar 31, 1999

NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 1999

A) SIGNIFICANT ACCOUNTING POLICIES :

1. Basis Accounting :

a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis except those with significant uncertainties.

b) Financial statements are based on historical cost basis. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles.

2. Fixed Assets :

a) Fixed assets are capitalised at cost inclusive of expenses.

b) Depreciation on fixed assets is provided on straight line method at the rates specified in schedule XIV (as amended) of the Companies Act, 1958.

3. Inventories :

a) Raw materials, stores & Spares and work-in-progress are valued at cost.

b) Finished Products are valued at Lower of cost or realisable value.

4. Treatment of Miscellaneous Expenditure :

Miscellaneous expenditure (i.e Preliminary and public issue etc. expenses) are written off over a period of 10 years.

5. Contingent Liabilities :

Contingent Liabilities not provided for and have been disclosed by way of notes on accounts.

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Mar 31, 1998

1. Basis of Accounting :

a. The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis except those with significant uncertainties.

b. Financial statements are based on historical cost basis. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles.

2. Fixed Assets :

a. Fixed assets are capitalised at cost inclusive of expenses.

b. Depreciation on fixed assets is provided on straight line method at the rates in schedule XIV (as amended) of the Companies Act, 1956.

3. Inventoreis :

a. Raw materials, stores & Spares and work-in-progress are valued at cost.

b. Finished Products are valued at Lower of cost or realisable value.

4. Treatment of Miscellaneous Expenditure : Miscellaneous expenditure (i.e. Preliminary and public issue etc. expenses) are written off over a period of 10 years.

5. Contingent Liabilities : Contingent Liabilities not provided for and have been disclosed by way of notes on accounts.

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Mar 31, 1997

1. Basis of Accounting

a) The Company follows the mercantile system of accounting and recognises Income and expenditure on accrual basis except those with significant uncertainties.

b) Financial statements are based on historical cost basis. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles.

2, Fixed Assets

a Fixed assets are capitalised at cost inclusive of expenses.

b Depreciation on fixed assets is provided on straight line method at the rates in schedule XIV (as amended) of the Companies Act, 1956.

3. Inventories

a) Raw materials, stores & Spares and work-in-progress are valued at cost.

b) Finished Product are valued at Lower of cost or realisable value.

4. Treatment of Miscellaneous Expenditure:

Miscellaneous expenditure (i.e. Preliminary and public issue etc, expenses) are written off over a period of 10 years.

5. Contingent Liabilities

Contingent Liabilities, not provided for and have been disclosed by way of notes on accounts.

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Mar 31, 1996

1. Basis of Accounting.

a) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis except those with significant uncertainties.

b) Financial statements are based on historical cost basis. Accounting policies not referred to otherwise are consistant with generally accepted accounting principles.

2. Fixed Assets

a) Fixed assets are capitalised at cost inclusive of expenses.

b) Depreciation on fixed assets is provided on straight line method at the rates in schedule XIV (as amended) of the Companies Act, 1956. Fixed assets costing below Rs.5,000/- purchased during the year are fully written off during the year of purchase.

3. Inventories.

a) Raw materials, stores & spares and work-in-progress are valued at cost

b) Finished Products are Valued at lower of cost or realisable value.

4. Treatment of Miscellaneous Expenditure:

Miscellaneous expenditure (i.e. Preliminary and Public issue etc. expenses) are written off over a period of 10 years.

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Mar 31, 1995

1. Basis of Accounting.

a) The Company follows the Mercantile system of accounting and recognises income and expenditure on accural basis except those with significant uncertainties.

b) Financial statements are based on historical cost basis. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles.

2. Fixed Assets:

a) Fixed assets are capitalised at cost inclusive of expenses.

b) Depreciation of fixed assets is provided on straight line method at the rates in schedule XIV (as amended) of the Companies Act, 1956.

3. Inventories.

a) Raw materials, stores & Spares and work-in progress are valued at cost.

b) Finished Products are valued at lower of cost or realisable value.

4. Treatment of Miscellaneous Expenditure:

Miscellaneous expenditure (i.e. Preliminary and public issue etc. expenses) are written off over a period of 10 years.

Contingent Liabilities:

Contingent Liabilities are not provided for and have been disclosed by way of notes on accounts.

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Mar 31, 1994

Fixed Assets:

a) Fixed assets are capitalised at cost inclusive of expenses.

b) Depreciation on fixed assets isprovided ons traight line method at the rates specified on schdule XIV (as amended) of the Companies ACt, 1956.

Depreciation

Depreciation on Fixed assets has been provided for the entire financial year on straight line method at trhe rates prescribed by schedule XIV (as amended) to the Companies Act. Depreciation in respect of addition to such assets has been provided on prorata basis. Fixed assets costing below Rs.5,000/- purchased during the year have been fully written off during the year.

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Mar 31, 1993

System of accounting The company follows the merchantile system of accounting and recognises income and expenditure on accrual basis except those with significant uncertainities

Depreciation Depreciation on all the assets has been calculated on the straight line method at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on the Assets added during the year has been provided on pro-rata basis from the date of such additions.

The method of charging Depreciation on Fixed assets has been deviated from written down value of straight line method.