Mar 31, 2015
A) System of Accounting:
i) The books of accounts are maintained on mercantile basis except
where otherwise stated.
ii) The financial statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards
issued by The Institute of Chartered Accountants of India and as per
the relevant representational requirements of the Companies Act, 2013.
iii) Accounting policies not specifically referred to are consistent
with generally accepted accounting practices, except where otherwise
stated.
b) Revenue Recognition:
i) Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
ii) Interest income is recognized on time proportion basis.
iii) Dividend income is recognized when right to receive is established.
iv) Profit / Loss on sale of investments accounted on the trade dates.
c) Investment:
Investments are classified into non-current investments and current
investments. Non-current investments are stated at cost and provisions
have been made wherever required to recognize any decline, other than
temporary, in the value of such investments. Current investments are
carried at lower of cost and fair value and provision wherever
required, made to recognize any decline in carrying value.
d) Retirement Benefits:
i) Leave encashment benefits are charged to Profit & Loss account in
each year on the basis of actual payment made to employee. There are no
rules for carried forward leave.
ii) No provision has been made for the retirement benefits payable to
the employees since no employee has yet put in the qualifying period of
service and the liability for the same will be provided when it becomes
due.
e) Inventories:
Inventories are valued at cost (using FIFO method) or net realisable
value, whichever is lower.
f) Impairment of Assets:
The carrying amounts of assets are reviewed at the balance sheet date
to determine whether there are any indications of impairment. If the
carrying amount of the fixed assets exceeds the recoverable amount at
the reporting, the carrying amount is reduced to the recoverable
amount. The recoverable amount is the greater of the assets net selling
price and value in use, the value in use determined by the
present value estimated future cash flows. Here carrying amounts of
fixed assets are equal to recoverable amounts.
g) Earning Per Share:
i) Earning per share is 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.
ii) For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all diluted potential equity shares.
h) Provisions:
Contingent Liabilities and Contingent Assets Provisions are recognised
when there is a present obligation as a result of past events and when
a reliable estimate of the amount of the obligation can be made.
Contingent liability is disclosed for: i) Possible obligations which
will be confirmed by future events not wholly within the control of the
company, or ii) Present obligation arising from past events where it is
not probable that an outflow of resources will be required to settle
the obligation or a reliable estimate of the amount of the obligation
cannot be made. Contingent assets are not recognized in the financial
statements since this may result in the recognition of income that may
never be realized.
i) Accounting for Taxes on Income:
i) Current tax is determined as the amount of tax payable in respect of
taxable income for the year.
ii) Deferred Tax is recognized subject to the consideration of prudence
on timing difference, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods and measured using relevant
enacted tax rates.
j) Contingent Liability:
a) Claims against the company not acknowledged as debts Nil Previous
Year Nil
b) Guarantees to Banks and Financial institutions against credit
facilities extended to third parties Nil Previous Year Nil
c) Other money for which the company is contingently liable Nil
Previous Year Nil
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