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Accounting Policies of Shreejal Info Hubs Ltd. Company

Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements

The financial statements have been prepared in accordance with historical cost convention, applicable Accounting Standards notified by The Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 as applicable to small & medium size non trading non manufacturing Company. The financial statements have been prepared on accrual basis and are consistent with those followed in the previous year except for change in the accounting policy for not amourtising Rs.242500 for Net Work & Rs. 42625 for Data Base for 1st and 2nd Quarter in the year 2012/13

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.

1.2 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information,

1.3 Depreciation and amortisation

Depreciation has been provided on the WDV as per the rates prescribed in Schedule XIV to the Companies Act, 1956 except in respect of the following categories of assets, in whose case the life of the assets has been assessed as under;

Computers and data processing equipments - 4 years

Assets costing less than 5,000 each are fully depreciated in the year of capitalisation Intangible assets are amortised over their estimated useful life, subject to note 1.1 above, as follow;

Net Work 14 years ( 3.5 years remaining as at the Balance Sheet date)

Data Base 17.5 years (13.5 years remaining as at the Balance Sheet date)

Amortisation is based on estimations.

Amortisation is based on the estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each financial year.

1.4 Revenue recognition : Income from Operation

Income from Operation is as per Invoices contracts & terms & conditions of finance transactions and is accounted on accrual basis.

1.5 Tangible fixed assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any and depreciated over the remaining useful life of such assets.

1.6 Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises its purchase price,

1.7 Single Segment reporting

The Information vending business & deployment of the surplus of the Company.

1.8 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any). However due to nrgligibir difference between Basic &. Diluted EPS ( -) remains one and the same and hence reported accordingly.

1.9 Taxes on income

Minimum Alternate Tax (MAT) is charged to Profit & Loss AC and the same is not considered as an asset.

''Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

1.10 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.


Mar 31, 2011

A) GENERAL:

i) The accounts are prepared under the Historical cost convention, in accordance with the generally accepted accounting principles on the accrual basis. All mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 are adopted consistently by the Company.

ii) Accounting policies not specifically referred to otherwise, are consistent with generally accepted accounting principles followed by the Company.

B) REVENUE RECOGNITION

Income from operation is taken as per Bills raised on accrual system.

C) FIXED ASSETS & DEPRECIATION

Fixed assets are recorded at cost of acquisition inclusive of other expenses incidental to acquisition. Depreciation is provided on Written Down Value Method in the manner laid down in Schedule XIV to the Companies Act, 1956. Database is written off over a period of 10 years.

D) TAXATION

Appropriate Provision for Taxation (MAT Provision) is not applicable for the year. Also provision for Deferred Tax as required by Accounting Standard 22 has been credited to Profit & Loss A/c, Appropriate Provision for FBT is made.

E) MISCELLANEOUS EXPENDITURE:

II) 3) Balances of Loans & advances, Outstanding Expenses, Sundry Debtors and Sundry Creditors are subject to confirmation.


Mar 31, 2010

A) GENERAL:

I) The accounts are prepared under the Historical cost convention, in accordance with the generally accepted accounting principles on the accrual basis. All mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 are adopted consistently by the Company.

ii) Accounting policies not specifically referred to otherwise, are consistent with generally accepted accounting principles followed by the Company.

B) REVENUE RECOGNITION

Income from operation is taken as per Bills raised on accrual system.

C) FIXED ASSETS & DEPRECIATION

Fixed assets are recorded at cost of acquisition inclusive of other expenses incidental to acquisition. Depreciation is provided on Written Down Value Method in the manner laid down in Schedule XIV to the Companies Act, 1956. Database is written off over a period of 10 years.

D) TAXATION

Appropriate Provision for Taxation (MAT Provision) is not applicable for the year. Also provision for Deferred Tax as required by Accounting Standard 22 has been credited to Profit & Loss A/c, Appropriate Provision for FBT is made.

E) MISCELLANEOUS EXPENDITURE :

I) PREOPERATIVE & PRELIMINARY EXPENSES

Pre-operative & Preliminary Expenses are amortised over a period of 10 years.

 
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