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Accounting Policies of Rajkot Investment Trust Ltd. Company

Mar 31, 2013

1 ACCOUNTING POLICIES :

The accounts are prepared in accordance with Accounting Policies and principles generally accepted in India. The Company follow accrual method of Accounting as per the Companies Act, 1956 and complies with the Reserve Bank of India guidelines for Non Banking Financial Companies not holding Public Deposits.

The Company has followed all the prudential norms , to the extent applicable, as prescribed by Reserve Bank of India for Non Banking Financial Companies not Holding Public Deposits.

(a) Fixed Assets:

All fixed assets are stated at cost less depreciation.

(b) Depreciation:

Depreciation is provided under the straight line method at rates provided by Schedule - XIV to the Companies Act, 1956

(c) Inventory:

Stock-in-trade (Shares, Debentures and Bonds) are valued as under :

(1) Quoted Scrips - at lower of market value or cost (FIFO)

(2) Unquoted Scrips - at cost (FIFO)

(d) Recognition of Income & Expenditure :

(i) As in the past, on the prudent basis, Dividend and interest on Shares/Debentures are being accounted for as and when received.

(ii) There are few expenditure (like Insurance, Subscription, which though warranting provision for accounting on accrual basis have not been so provided as the impact of non-provision is not material on the profit/ loss of the year.

(e) Investment:

(i) All Investments are intended to be kept as long term investments as per the guidelines by Reserve Bank of India.

(ii) Investments are stated at cost. The Market Value of Quoted Investments as at 31-3-2013 is Rs.6366024/ - as against Cost of Rs.4098077/-.

(iii) Cost of those shares which are received by the company consequent upon part/full redemption of debentures/bonds as taken at the nominal amount of the redeemed portion of debentures/bonds and the premium if any charged by the issuing company.

(iv) Bonus Shares received on Trading Stocks are considered as Capital Receipt and are treated as Investment.

(f) Taxation

Current Tax

Provision is made for Income-tax on yearly basis, under the tax payable method, based on tax liability, as computed after taking credit for allowances and exemptions.

Deferred Tax

Deferred tax liability or assets is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient taxable income will be available to realize these assets.


Mar 31, 2012

1 ACCOUNTING POLICIES :

The accounts are prepared in accordance with Accounting Policies and principles generally accepted in India. The Company follow accrual method of Accounting as per the Companies Act, 1956 and complies with the Reserve Bank of India guidelines for Non Banking Financial Companies not holding Public Deposits.

The Company has followed all the prudential norms , to the extent applicable, as prescribed by Reserve Bank of India for Non Banking Financial Companies not Holding Public Deposits.

(a) Fixed Assets:

All fixed assets are stated at cost less depreciation.

(b) Depreciation:

Depreciation is provided under the straight line method at rates provided by Schedule - XIV to the Companies Act, 1956

(c) Inventory:

Stock-in-trade (Shares, Debentures and Bonds) are valued as under :

(1) Quoted Scrips - at lower of market value or cost (FIFO)

(2) Unquoted Scrips - at cost (FIFO)

(d) Recognition of Income & Expenditure :

(i) As in the past, on the prudent basis, Dividend and interest on Shares/Debentures are being accounted for as and when received.

(ii) There are few expenditure (like Insurance, Subscription, which though warranting provision for accounting on accrual basis have not been so provided as the impact of non-provision is not material on the profit/ loss of the year.

(e) Investment:

(i) All Investments are intended to be kept as long term investments as per the guidelines by Reserve Bank of India.

(ii) Investments are stated at cost. The Market Value of Quoted Investments as at 31-3-2012 is Rs.8400972/- as against Cost of Rs.430350/-.

(iii) Cost of those shares which are received by the company consequent upon part/full redemption of debentures/bonds as taken at the nominal amount of the redeemed portion of debentures/bonds and the premium if any charged by the issuing company.

(iv) Bonus Shares received on Trading Stocks are considered as Capital Receipt and are treated as Investment.

(f) Taxation

Current Tax

Provision is made for Income-tax on yearly basis, under the tax payable method, based on tax liability, as computed after taking credit for allowances and exemptions.

Deferred Tax

Deferred tax liability or assets is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient taxable income will be available to realize these assets.


Mar 31, 2011

1 ACCOUNTING POLICIES :

The accounts are prepared in accordance with Accounting Policies and principles generally accepted in India. The Company follow accrual method of Accounting as per the Companies Act, 1956 and complies with the Reserve Bank of India guidelines for Non Banking Financial Companies not holding Public Deposits.

The Company has followed all the prudential norms , to the extent applicable, as prescribed by Reserve Bank of India for Non Banking Financial Companies not Holding Public Deposits.

(a) Fixed Assets:

All fixed assets are stated at cost less depreciation.

(b) Depreciation:

Depreciation is provided under the straight line method at rates provided by Schedule - XIV to the Companies Act, 1956

(c) Inventory:

Stock-in-trade (Shares, Debentures and Bonds) are valued as under :

(1) Quoted Scrips - at lower of market value or cost (FIFO)

(2) Unquoted Scrips - at cost (FIFO)

(d) Recognition of Income & Expenditure :

(i) As in the past, on the prudent basis, Dividend and interest on Shares/Debentures are being accounted for as and when received.

(ii) There are few expenditure (like Insurance, Subscription, which though warranting provision for accounting on accrual basis have not been so provided as the impact of non-provision is not material on the profit/ loss of the year.

(e) Investment:

(i) All Investments are intended to be kept as long term investments as per the guidelines by Reserve Bank of India.

(ii) Investments are stated at cost. The Market Value of Quoted Investments as at 31-3-2013 is Rs.6366024/ - as against Cost of Rs.4098077/-.

(iii) Cost of those shares which are received by the company consequent upon part/full redemption of debentures/bonds as taken at the nominal amount of the redeemed portion of debentures/bonds and the premium if any charged by the issuing company.

(iv) Bonus Shares received on Trading Stocks are considered as Capital Receipt and are treated as Investment.

(f) Taxation

Current Tax

Provision is made for Income-tax on yearly basis, under the tax payable method, based on tax liability, as computed after taking credit for allowances and exemptions.

Deferred Tax

Deferred tax liability or assets is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only to the extent that there is virtual certainty that sufficient taxable income will be available to realise these assets. All other deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient taxable income will be available to realise these assets.

 
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