Accounting Policies of Blue Chip India Ltd. Company

Mar 31, 2014

(1) Basis of Accounting :

The Financial Statements have been prepared underthe Historical Cost Convention and one on accrual basis.

(2) INCOME RECOGNATION:

All revenues/incomes except Dividend,lnterest on Debentures are recognised on accrual basis of accounting

(3) PRINCIPAL ACCOUNTING POLICIES:

Accounting Policies unless specifically stated to be otherwise, and are consistent and are in consonance with generally accepted accounting principles.

(4) GRATUITY

The Company has taken Group Gratuity Policy from LlC of India for its employees and contribution paid during the year has been charged to Profit & Loss Account

(5) STOCK IN TRADE:

Stock in Trade are valued at lower of Cost and Market Value

(6) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition less depreciation

(7) DEPRECIATION:

Depreciation has been provided on Straight Line Method at the rates prescribed in Schedule XlV to the Companies Act,1956

(8) CONTINGENT LIABILITIES:

Contingent liabilities are generally not provided for in the books of accounts of accounts and are separately shown in the Notes on Accounts.

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Mar 31, 2013

(1) BASIS OF ACCOUNTING :

The Financial Statements have been prepared under the Historical Cost Convention and one on accrual basis.

(2) INCOME RECOGNATION:

All revenues/incomes except Dividend, Interest on Debentures are recognized on accrual basis of accounting.

(3) PRINCIPAL ACCOUNTING POLICIES:

Accounting Policies unless specifically stated to be otherwise, and are consistent and are in consonance with generally accepted accounting principles.

(4) GRATUITY:

The Company has taken Group Gratuity Policy from LIC of India for its employees and contribution paid during the year has been charged to Profit & Loss Account.

(5) STOCK IN TRADE:

Stock in Trade are valued at lower of Cost and Market Value.

(6) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition less depreciation.

(7) DEPRECIATION:

Depreciation has been provided on Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act,1956.

(8) CONTINGENT LIABILITES :

Contingent liabilities are generally not provided for in the books of accounts of accounts and are separately shown in the Notes on Accounts.

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Mar 31, 2010

A) Accounting Convention:

The Financial Statements have been prepared ureter the historical cost convention and are in accordance with the provisions of the Companies Act, 1956 and accounting standards issued by ICAI. Accounting has been done on Accrual basis.

b) Fixed Assets & Depredation:

- Fixed Assets of the Company have been valued at their cost of acquisition less depreciation.

- Depreciation has been charged on straight line basis in accordance with the rates prescribed under Schedule XIV to the Companies Act, 1958.

c) Inventory and Valuation thereof :

Inventories are stated at lower of Cost or Market Value for quoted shares and at cost for unquoted shares. Cost is calculated at FIFO basis.

d) Retirement Benefit:

The Company has taken Group Gratuity policy from Life Insurance Corporation of India for its employees and contribution relating to previous year liability Is being paid In five annual instalments.

e) Taxation:

Consequent to mandatory Accounting Standard Issued by ICAI on accounting for taxes on income, the Company has recorded cumulative net deferred tax Assets of Fta. 3,71,609/- till 31st March, 2010 as an addition to Revenue Reserves- Deferred tax adjustment for the year ended 31st March, 2010 amount to Rs. 4,34,10,908/-.