Accounting Policies of Darjeeling Ropeway Company Ltd. Company

Mar 31, 2018

Note 1 Significant accounting policies

Basis of Preparation of Financial Statements

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles ["GAAP"] in India. GAAP comprises mandatory accounting standards as prescribed under section 133 of Companies Act, 2013 (the Act) read with Rule 7 of Companies (Accounts) Rules,2014, the provisions of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

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 recognized in the periods in which the results are known / materialize.

Revenue Recognitions

Revenue in respect of income is recognized when a reasonable certainty as to its realization exists.

Employee Benefits

All Employees benefits falling due wholly within twelve month of rendering the services are classified as short term employee benefits which include benefits like salary, wages, short term compensated, absences and performance incentives and are recognized as expense in the period in which the employee renders the related services.

Material events after balance sheet date

Events which are of material nature after the balance sheet date are accounted for in the accounts.

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) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations.

Cash and Cash equivalents

Cash and Cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

Cash Flow Statements

Cash Flow Statement has been prepared in accordance with Accounting Standard 3 issued by Institute of Chartered of India.

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Mar 31, 2012

(i) The Company follows the mercantile system of accounting and conform to the prevailing statutory provisions and practices.

(ii) Fixed Assets have been accounted for on historical cost basis.

(iii) The fundamental accounting assumption of going concern has been followed in preparing the accounts of the Company.

(iv) Depreciation on Fixed Assets have been provided for on Written down value method as per provisions contained in Schedule-XIV of the Companies Act, 1956.

(v) As per usual practices consistently followed by the Company, Bonus to Employees has been accounted for on payment basis.

(vi) Stock of traded Shares, Debentures etc. are valued at lower of cost or market value and Investments are valued at cost.

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Mar 31, 2011

(i) The Company follows the mercantile system of accounting and conform to the prevailing statutory provisions and practices.

(ii) Fixed Assets have been accounted for on historical cost basis.

(iii) The fundamental accounting assumption of going concern has been followed in preparing the accounts of the Company.

(iv) Depreciation on Fixed Assets have been provided for on Written down value method as per provisions contained in Schedule-XIV of the Companies Act, 1956.

(v) As per usual practices consistently followed by the Company, Bonus to Employees has been accounted for on payment basis.

(vi) Stock of traded Shares, Debentures etc. are valued at lower of cost or market value and Investments are valued at cost.