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.
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.
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.
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.
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.
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.
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