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Accounting Policies of Sangam Advisors Ltd. Company

Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principle and the provision of the companies Act, 2013 . All income and expenditure having a material bearing on the financial statements are recognized on accrual basis except elsewhere stated. The preparation of financial statements in conformity with Accounting Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in 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 estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Revenue recognition

The company follows the mercantile system of accounting and recognizes income and expenditure accrual basis except stated elsewhere.

1.4 Fixed assets & Depreciation

I. All fixed assets are stated at historical cost of acquisition/Construction cost less depreciation. Expenses for bringing the respective assets to working condition for their intended use are capitalized.

II. In accordance with the requirement of schedule II to the Companies Act 2013, The Company has re assessed the useful life and residual value of its fixed assets and :- (a) An amount of Rs. 89,618/- has been charged to opening balance of retained earnings in respect of assets whose remaining useful life is nil as at April 1st 2014. (b) An amount of Rs. 15787/- has been charged to the financials results representing the depreciation on the carrying value of the assets as at April 1st 2014 due to change in useful life of fixed assets..

III. Pursuant to accounting standard 28 "Impairment of Assets" issued by the ICAI, the company has a system to review the carrying cost of all the assets vis-a- vis recoverable value and impairment loss, if any is charged to profit and loss account in the year in which asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in estimate of recoverable amount.

1.5 Investments

Non-Current Investments and deposits are carried at cost less provision, if any, for decline in value which is other than temporary. Interest on deposits accounted on accrual basis. Dividend on shares accounted on receipt basis.

1.6 Stock

Stock consist quoted and unquoted shares of companies. It has valued at cost or market value whichever is less.

1.7 Taxes on income

Taxation expenses comprise Current tax and deferred tax charge or credit. Provision for income tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. Deferred tax resulting from timing differences between book and tax profit Is accounted at the current rate of income tax to the extent that the timing differences are expected to crystallize as deferred tax charge/benefit in the profit and loss account and as deferred tax assets/liability in the balance sheet. Deferred Tax Liability at the end of the year is Rs. 22412/-.

1.8 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.9 Provisions and contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. In the opinion of management, there is no contingent liability at the end of year.

1.10 Employee benefit

None of the employees has completed five years of service, so gratuity is not payable to employees.

1.11 Segment Reporting

Company operates in one business segment of consultancy service hence segment reporting is not applicable.

1.12 Previous Year Figures

Previous year figures have been regrouped, rearranged wherever considered necessary.


Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principle and the provision of the companies Act, 1956 . All income and expenditure having a material bearing on the financial statements are recognized on accrual basis except elsewhere stated. The preparation of financial statements in conformity with Accounting Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in 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 estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Revenue recognition

The company follows the mercantile system of accounting and recognizes income and expenditure accrual basis except stated elsewhere.

1.4 Fixed assets & Depreciation

I. All fixed assets are stated at historical cost of acquisition/Construction cost less depreciation. Expenses for bringing the respective assets to working condition for their intended use are capitalized.

II. Depreciation on Fixed Asset is provided on WDV basis at the rates and in manner specified in schedule XIV of the Companies Act, 1956.

III. Pursuant to accounting standard 28 "Impairment of Assets" issued by the ICAI, the company has a system to review the carrying cost of all the assets vis-a- vis recoverable value and impairment loss, if any is charged to profit and loss account in the year in which asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in estimate of recoverable amount.

1.5 Investments

Non-Current Investments and deposits are carried at cost less provision, if any, for decline in value which is other than temporary. Interest on deposits accounted on accrual basis. Dividend on shares accounted on receipt basis.

1.6 Stock

Stock consist quoted and unquoted shares of companies. It has valued at cost or market value whichever is less.

1.7 Taxes on income

Taxation expenses comprise Current tax and deferred tax charge or credit. Provision for income tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year.

Deferred tax resulting from timing differences between book and tax profit Is accounted at the current rate of income tax to the extent that the timing differences are expected to crystallize as deferred tax charge/benefit in the profit and loss account and as deferred tax assets/liability in the balance sheet. Deferred Tax Liability at the end of the year is Rs. 19169/-.

1.8 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.9 Provisions and contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. In the opinion of management, there is no contingent liability at the end of year.


Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principle and the provision of the companies Act, 1956 . All income and expenditure having a material bearing on the financial statements are recognized on accrual basis except elsewhere stated. The preparation of financial statements in conformity with Accounting Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in 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 estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Revenue recognition

The company follows the mercantile system of accounting and recognizes income and expenditure accrual basis except stated elsewhere.

1.4 Fixed assets & Depreciation

I. All fixed assets are stated at historical cost of acquisition/Construction cost less depreciation. Expenses for bringing the respective assets to working condition for their intended use are capitalized.

II. Depreciation on Fixed Asset is provided on WDV basis at the rates and in manner specified in schedule XIV of the Companies Act, 1956.

III. Pursuant to accounting standard 28 "Impairment of Assets" issued by the ICAI, the company has a system to review the carrying cost of all the assets vis-a- vis recoverable value and impairment loss, if any is charged to profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in estimate of recoverable amount.

1.5 Investments

Non-Current Investments and deposits are carried at cost less provision, if any, for decline in value which is other than temporary. Interest on deposits accounted on accrual basis. Dividend on shares accounted on receipt basis. Current market value of quoted equity shares is Rs. 8190428/-.

1.6 Stock

Stock consist quoted and unquoted shares of companies. It has valued at cost or market value whichever is less.

1.7 Taxes on income

Taxation expenses comprise Current tax and deferred tax charge or credit. Provision for income tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year.

Deferred tax resulting from timing differences between book and tax profit Is accounted at the current rate of income tax to the extent that the timing differences are expected to crystallize as deferred tax charge/benefit in the profit and loss account and as deferred tax assets/liability in the balance sheet. Deferred Tax Liability at the end of the year is Rs. 21280/-.

1.8 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.9 Provisions and contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. In the opinion of management, there is no contingent liability at the end of year.

1.10 Employee benefit

None of the employees has completed five years of service, so gratuity is not payable to employees.

1.11 Segment Reporting

Company operates in one business segment of providing consultancy service related to Investment and Finance.

1.12 Previous Year Figures

Previous year figures have been regrouped, rearranged wherever considered necessary.

 
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