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Accounting Policies of Pasupati Fincap Ltd. Company

Mar 31, 2012

1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) comply with the Accounting Standards notified under the Companies (Accounting Standards} Rules, 2006 (as amended) and the relevant provisions of tl Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention except for categories of fixed assets acquired before 1 April. 2010, that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements a consistent with those followed in the previous year.

2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to "make estimates and assumptions considered the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimate and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize. _

Revenue Recognition

Revenue and expenses are recognized on their accrual including provisions and/or adjustments for committed obligations and amounts determined as payable and receivables during the period.

4 Foreign Currency Transaction

Foreign Currency Transaction are accounted for at the prevailing foreign exchange rates at the time the transaction took place.

5 Depreciation

The company is not having any Fixed Assets.

6 Investments

The Unquoted Investments are stated at the purchase price plus expenses i.e. brokerage. fees and duties etc. related with the purchases.

7 Impairment of Assets '

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the selling price and the value determined by the present value of estimated future cash flows.

8 Fixed Assets

No Fixed Assets have been held by company.

9 Inventory

Company Is not carrying any inventory

10 Disclosure under AS-15 (Revised) - Employee Benefits

There are no long Term Employees Benefits which require assessment of future liability of the company as per AS-15 issued under the company (Accounting Standards) Rules, 2006

11 Sundry Debtors, Loans and Advances and Sundry Creditors

In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realized in the course of business The provisions for all known liabilities are adequate and not in excess of the amount reasonable required.

Balance of Sundry Creditors, Sundry Debtors and Loans & Advances are subject to confirmation and reconciliation.

12 Earnings Per Share

The Company report Basic and Diluted earnings per share (EPS) in accordance with Accounting Standard - 20 issued by the Institute of Chartered Accountants of India. The Basic EPS has been computed by dividing the "income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year The Diluted EPS have been computed using the weighted average number of equity shares and Diluted potential equity shares outstanding at the end of the year.

Mar 31, 2010

1. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles. ;

2. Recognition of Income & Expenditure

All income and expenditures are accounted for on accrual basis.

3. Inventories

Stock in trade is valued at cost or market price whichever is lower. Unquoted shares and debenture held as stock in trade are valued at net asset value and in the case the net worth is fully eroded or the audited Balance sheet is not available , the value is taken at Rs 1/-.

4. Investments

a. Long term quoted Investments are valued at cost unless the diminution in the value is not temporary, which is being provided for unquoted investments are valued at net asset value and in the case the net worth is fully eroded or the audited Balance sheet is not available. the value is taken at Rs 1/-.

b. Profit on sale of Investments is calculated by considering the cost of the specific investments sold.

5. Fixed Assets

Fixed Assets are taken at cost of acquisition and installation less sales & depreciation.

6. Depreciation

a. The Company follows written down method of depreciation.

b. Depreciation of Fixed Assets has been charged at rates specified in Schedule XIV of Companies Act, 1956.

7. Retirement Benefits

The provisions of Provident Fund Act are not applicable to the Company. Leave encashment is not provided for in the service rules of the company.

8. Deferred Tax:

Deferred Tax being the effect of timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or subsequent periods. Jj

9. Related Party Disclosure

The company is not following AS-18 relating to Related Party Disclosures.

Oct 25, 4:01 pm
Oct 25, 3:59 pm
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