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Accounting Policies of Unijolly Investments Co Ltd. Company

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)

 
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