Mar 31, 2014
I. The financial statements have been prepared under the historical
cost convention in accordance with the accounting standards issued by
the Institute of Chartered Accountants of India and the provisions of
the Companies Act, 1956, as adopted consistently by the Company. All
income & expenditure having the material bearing on the financial
statements are recognized on accrual basis.
ii. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amount of assets and liabilities on the
date of financial statements and a reported amount of revenues and
expenses during the reporting period. Difference between the actual
expenses and estimates is recognised in the period in which the results
are known/materialised.
iii. Own Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price, including duties, legal fees, other
non-refundable taxes or levies directly attributable cost of bringing
the assets to its working condition.
iv. Depreciation and Amortisation
Depreciation has been provided on ''Written down value method'' as per
rates specified in schedule XIV to the Companies Act, 1956.
v. Impairment of Assets
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an assets is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
vi. Revenue Recognition
a) Revenue/Incomes and Cost/Expenditure are generally accounted on
accrual, as they are earned or incurred.
b) Sale/purchase of Mutual Fund units is recognised on transfer of
ownership as per date of transaction.
c) Sale/purchase of Shares are recognised on date of transaction.
d) Dividend income is recognised on receipt basis.
vii. Borrowing costs
Interest and other borrowing costs attributable to qualifying assets
are capitalised. Other interest and borrowing costs are charged to
revenue in the year they are incurred.
viii. Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred tax is recognised, on the 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 in respect of unabsorbed depreciation and
carry forward of losses are recognised if there is virtual certainty
that there will be sufficient future taxable income available to
realize such losses.
The company has not recognised the net deferred tax assets in respect
of accumulated business losses as well as capital losses in view of non
availability of benefit in future.
ix. Earnings per Share
Basic earnings per share is computed by dividing the net profit after
tax by the average number of equity shares outstanding during the
period.
x. Investments
Investments are classified into Current and Long-term Investments.
Current Investments are stated at lower of cost and fair value.
Long-term Investments are stated at cost. Provision for diminution in
the value of long-term Investments is made only if such a decline is
other than temporary.
xi. Purchase/sale
Purchases of shares/securities is accounted for inclusive of stamp,
security transaction tax and transfer fees and booked on the date of
contract.
xii. Provisions, Contingent Liabilities and Contingent Assets
Provisions and Contingent Liability: The Company recognises a provision
when there is a present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can
be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require outflow of
resources. Where there is a possible obligation or a present obligation
and the likelihood of outflow of resources is remote, no provision or
disclosure is made. Contingent Assets are neither recognized nor
disclosed in the financial statements.
xiii. Retirement benefits
The laws relating to payment of Provident Fund, E.S.I.C. and Gratuity
to employees are not applicable to the Company. The Company does not
have any scheme for retirement benefits for its employees. Other
benefits such as leave encashment etc are provided in accordance with
the service rule of the company.
xiv. Segment reporting
The Company is engaged primarily in the business of investments and
accordingly there are no separate reportable segments as per Accounting
Standard - AS-17 ''Segment Reporting'' issued by ICAI.
Mar 31, 2013
1 Significant Accounting policies
Basis of Accounting i rI he financial statements have been prepared
under the historical cost convention in accordance with the accounting
standard'' issued ,¦ n. ¦ hv~ LuS:< ni hartered Accountants of India
and the provisions of the Companies Act, 1956, as adopted consistently
by the Company. AH income & expenditure having the material bearing on
the financial statements are recognized on accrual basis.
ii Use of Estimates
The preparation of financial statements in confirmity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amount of assets and libilities on the
date of financial statements and a reported amount of revenues and
expenses during the reporting period. Difference between the actual
expenses and estimates is recognised in the period in which the results
are known/materialised.
hi Own Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price, including duties, legal fees, other
non-refundable taxes or levies directly attributable cost of bringing
the assets to its working condition.
iv Depreciation and Amortisation
Depreciation has been provided on "Written down value method'' as per
rates specified in schedule XIV to the Companies Act, 1956.
v Impairment of Assets
An assets is treated as impaired when the can
impairment loss is
charged to the Profit and Loss Account in the year in which an assets
is idetified as impaired. The impairment loss recognised, in prioi
accounting period, is reversed if there has been a change hi the
estimate of recoverable amount.
vi Revenue Recognition
a) Pevoiui;''/ [nee ally accounted on accrual, as they are earned or
incurred.
b) Sale/ purchase of Mutual Fund units is recognised on transfer of
ownership as per date of trails action.
c) Sale/purchase of Shares are recognised on date of transaction.
d) Dividend income i::. recognised on receipt basis.
vii Borrowing costs
Interest and other borrowing costs attributable to qualifying assets
are capitalised. Other interest and borrowing costs are charged to
revenue in the year they are incurred.
viii Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of she Income Tax
Act, 1961.
Deferred tax is recognised, on the 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 in respect of unabsorbed depreciaK: < '' t
virtual certainty that there will be sufficient future taxable income
available to realize such losses.
The coirt Sated business losses in view of nor benefit in future.
ix Earnings per Share
Basic earnings per sh.ire is computed by dividing the net profit after
tax by the average nunyfi^o^^CJtwty^^Jiares outstanding during the
period.
Investments
Investments are classified into Current and Long-term Investments.
Current Investments are stated at lower of cost and fair value.
Long-term Investments are stated at cost. Provision for diminution in
the value of long-term Investments is made only if such a decline is
other than temporary.
xi Inventories
Items of inventories are measured at lower of cost and net realisable
value. Cost of inventories comprises of cost of purchase, brokerage &
other expenses.
xii Purchase/sale
Purchases of shares/sec unties is accounted for inclusive of stamp,
security transaction tax and transfer fees and booked on the date of
contract.
xiii Provisions, Contingent Liabilities and Contingent Assets
Provisions and Contingent Liability: The Company recognises a provision
when there is a present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can
be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require outflow of
resources. Where there is a possible obligation or a present obligation
and the likelihood of outflow of resources is remote, no provision or
disclosure is made. Continegent Assets are neither recognized nor
disclosed in the financial statements.
xiv Retirement benefits
The laws relating to payment of Provident Fund, E.S.I.C. and Gratuity
to employees are not applicable to the Com.pany.The Company does not
have any scheme for retirement benefits for its employees.Other
benefits such as leave encashment etc are provided in accordance with
the service rule of the company.
xv Segment reporting
The Company is engaged primarily in the business of investments and
accordingly there are no separata reportable segments as per Accounting
Standard - AS - 17 ''Segment Reporting1 issued by ICA1.
xx Related party disclosure
Disclosures as required by the Accounting Standard 18 "Related Party
Disclosures" are given below - a) Lisi of Related Parties : Associate
Companies:
1. Healthy Investment Ltd.
2. Lakshmi Finance & Industrial Corporation Ltd.
Key management personnel:
1. Sri Murali D. Kanuri
2, Sri K. Harishchandra Prasad
3. Smt. Kanuri Prabhavati
4, Smt. C. Shanta Prasad
Mar 31, 2012
Basis of Accounting
i The financial statements have been prepared under the historical cost
convention in accordance with the accounting standards issued by the
Institute of Chartered Accountants of India and the provisions of Hie
Companies Act, 1956, as adopted consistently by the Company. All income
& expenditure having the material bearing on the financial statements
are recognized on accrual basis.
ii Use of Estimates
The preparation of financial statements in confirmity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect, the reported amount of assets and libilities on the
date of financial statements and a reported amount of revenues and
expenses during the reporting period. Difference between the actual
expenses and estimates is recognised in the period in which the results
are known/materialised.
iii Own Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price, including duties, legal fees, other
non-refundable taxes or levies directly attributable cost of bringing
the assets to its working condition.
iv Depreciation and Amortisation
Depreciation has been provided on 'Written down value method' as per
rates specified in schedule XTV to the Companies Act, 1956. On revalued
assets, depreciation has been provided as per rates specified in
schedule XIV to the Companies Act, 1956 from the date of revaluation
and depreciation to the extent of revaluation debited to revaluation
reserve.
v Impairment of Assets
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an assets is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount,
vi Revenue Recognition
i) Revenue/Incomes and Cost/Expenditure are generally accounted on
accrual, as they are earned or
ii) Sale/purchase of Mutual Fund units is recognised on transfer of
ownership as per date of
iii) Sale/purchase of Shares are recognised on date of transaction.
iv) Dividend income is recognised on receipt basis.
vii Borrowing costs
Interest and other borrowing costs attributable to qualifying assets
are capitalised. Other interest and borrowing costs are charged to
revenue in the year they are incurred.
viii Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred tax is recognised, on the 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 in respect of unabsorbed depreciation and
carry forward of losses are recognised it there is virtual certainty
that there will be sufficient future taxable income available to
realize such losses.
The company has not recognised the net deferred tax assets in respect
of accumulated business losses as well as capital losses in view of non
availability of benefit in future.
ix Earnings per Share
Basic earnings per share is computed by dividing the net profit after
tax by the average number of equity shares outstanding during the
period.
x Investments
Investments are classified into Current and Long-term Investments.
Current Investments are stated at lower of cost and fan-value.
Long-term Investments are stated at east Provision for diminution in
the value of long-term Investments is made only if such a decline is
other than temporary.
xi Inventories
Items of inventories are measured at lower of cost and net realisable
value. Cost of inventories comprises of cost of purchase, brokerage &
other expenses.
xii Purchase/sale
Purchases of shares/securities is accounted for inclusive of stamp, SIT
and transfer fees and booked on the date of contract.
xiii Provisions, Contingent Liabilities and Contingent Assets
Provisions and Contingent Liability: The Company recognises a provision
when there is a present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can
be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require outflow of
resources. Where there is a possible obligation or a present obligation
and the likelihood of outflow of resources is remote, no provision or
disclosure is made. Contingent Assets are neither recognized nor
disclosed in the financial statements.
xiv Retirement benefits
The laws relating to payment of Provident Fund, E.S.LC. and Gratuity to
employees are not applicable to the Company. The Company does not have
any scheme for retirement benefits for its employees. Other benefits
such as leave encashment etc are provided in accordance with the
service rule of the company.
xv Segment reporting
The Company is engaged primarily in the business of investments and
accordingly there are no separate reportable segments as per Accounting
Standard - AS -17 'Segment Reporting' issued by ICAI.
xvi Earning per share 31st March 2012 31st March 2011
1) Profit after taxation 835,734 1,047,712
2) Average number of Equity
shares outstanding 200,000 200,000
3) Earnings per share in Rs. 4.18 5.24
( Face value Rs. 10/- per share )
xvii Foreign exchange
a) Earings in Foreign Currency : Rs NIL (Previous Year Rs. NIL )
b) Expenditure in Foreign Currency : Rs NIL (Previous Year Rs. NIL )
xx Related party disclosure
Disclosures as required by the Accounting Standard 18 "Related Party
Disclosures" are given below:
a) List of Related Parties r Associate Companies :
1. Healthy Investment Ltd,
2. Lakshmi Finance & Industrial Corporation Ltd.
Key management personnel and relatives
1. Sri Murali D. Kanuri
2. Sri K. Harishchandra Prasad
3. Smt. Kanuri Prabhavati
4. Smt. C. Shanta Prasad
b) Transactions with related parties :
Mar 31, 2010
I) SYSTEM OF ACCOUNTING :
a) Basis of accountin:
The financial statements have been prepared under the historical cost
convention in accordance with the accounting standards issued by the
Institute of Chartered accountants of India and the provisions of the
Companies act, 1956, as adopted consistently by the Company. All income
& expenditure having the material bearing on the financial statements
are recognized on acrrual basis.
b) Use of estimates :
The preparation of financial statements in confirmity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect, the reported amount of assets and libilities on the
date of financial statements and a reported amount of revenues and
expenses during the reporting period. Difference between the actual
expenses and estimates is is recognised in the period in which the
results are known/materialised.
ii) REVENUE RECOGNITION:
Dividend income is accounted for as and when declared. Sale / purchase
of shares / securities are considered on contract basis. Interest
income is considered on accrual basis over the full financial year.
iii) INVESTMENTS:
Investments are stated at cost of acquisition inclusive of brokerage
and stamp duty.
iv) FIXED ASSETS:
Fixed assets are capitalised at cost inclusive of legal and/or
installation expenses.
1 Statement on Accounting Policies :
v) DEPRECIATION:
Depreciation is provided under the Written Down Value Method at
rates provided by Schedule XIV to the Companies Act, 1956.
vi) STOCK IN TRADE :
Shares and securities are carried at lower of cost or market value.
vii) PURCHASE / SALE :
Purchases of shares / securities is accounted for inclusive of stamp &
transfer fees.
viii) CONTINGENCY & EVENT OCCURING AFTER THE BALANCE SHEET DATE :
There has been no material events occuring after the balance sheet date
that require adjustments to as disclosure in the financial statements.
ix) RETIREMENT BENEFITS:
The company does not have any retirement benefit scheme. However until
such scheme is framed the company will follow pay and go method.
x) BORROWING COST:
Borrowing cost are charged to profit & loss account in the year in
which they are incurred.
xi) SEGMENT REPORTING:
The Company is engage primarily in the business of investments and
accordingly there are no separate reportable segments as per Accounting
Standard - AS - 17 Segment Reporting by ICAI.
xiii) FOREIGN EXCHANGE :
a) Earnings in Foreign Currency : Rs. NIL ( Previous year Rs. NIL )
b) Expenditure in Foreign Currency Rs. NIL (Previous year Rs. NIL)