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.
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.
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.
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