Accounting Policies of Flomic Global Logistics Ltd. Company

Mar 31, 2014

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the generally accepted accounting principles in India under historical cost convention on accrual basis, except those with significant uncertainty. These financial statements have been prepared to comply with in all aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended and other relevant provisions of the Companies Act, 1956.

All the Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to The Companies Act, 1956.

b) USE OF ESTIMATES

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities as at the date of the financial statements. Actual results could differ from the estimates. Any revision to accounting estimates is recognied prospectively in current and future periods.

c) RECOGNITION OF INCOME

Revenue is recognized net of Discount, if any, at the month end during which service has been rendered.

In respect of interest, dividend, insurance claim and other claim are accounted in the books only when it is reasonable certain that amount is due and receivable.

d) INVESTMENTS

Investments being long term are valued at cost of acquisition, less provision for diminution in value other than temporary if any.

e) INVENTORIES

Inventories of shares are valued at cost or net realizable value whichever is lower. Cost of inventories comprises of cost of purchases and other costs incurred directly.

f) FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the Balance Sheet. Gain and losses arising

on account of differences in foreign exchange rates on settlement/ translation of monetary assets and liabilities are recognised in the Profit and Loss Account.

g) PROVISIONS AND CONTINGENT LIABILITIES

> Provisions are recognised when the Company has legal and constructive obligations as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

> Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

h) TAXATION

Tax expense comprise of current & deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred Tax is recognised, subject to the consideration of prudence, on 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 Asset is not recognised unless there are timing differences, the reversal of which will result in sufficient income or there is virtual certainty that sufficient future income will be available against which such deferred tax asset can be realized.

i) EARNING PER SHARE

The earnings per share is calculated by dividing the net profit for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares and hence the basic and diluted earnings per share are the same.

a) The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year-end together with interest paid/payable as required under the Act have not been given.

b) Calculation of Basic & diluted earnings/ (loss) per share

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Mar 31, 2012

A) Income and expenditure is recognoized and accounted for accural basis.

b) Stock has been valued at lower of cost or net realisable value.

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Mar 31, 2010

(A) System of Accontlng :-

The Company adopts the accruals concept in the preparation of its accounts.

(b) Investments

Investments are valued at Cost.