Mar 31, 2014
I. Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amount of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amount of assets or
liabilities for future periods.
II. Cash Flow Statement
Cash flow are reported using the indirect method where by cash flow
from operating, investing and financing activities of the Group are
segregated and profit before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past
or future cash or receipts.
III. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefit will flow to the company and the revenue can be
reliably measured. The following specific recognition criteria must be
fulfilled before revenue is recognized.
a. Interest and other dues are accounted on accrual basis except in the
case of non- performing loans where it is recognized upon realization,
as per the income recognition and assets classification norms
prescribed by the RBI.
b. Income or discounted instruments are recognized over the tenure of
the investment on a straight line method.
c. Dividend is accounted when the right to receive is established.
d. Front end fees on processing of loans are recognized upfront as
income
e. Profit/loss on sale of Investments is recognized on trade data
basis. Profit/loss on sale of Investment is determined based on
'weighted average' cost for Investment.
f. All other fees are recognized when reasonable right to recovery is
established, revenue can be reliably measured as and when they become
due
g. Other revenue is recognized on accrual basis and no significant
uncertainty exists as to its realization or collection.
IV. Fixed Assets
Fixed cost is stated at cost, net of accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use.
Subsequent expenditure related to an item of fixed assets is added to
book value only if it increases the future benefits from the existing
assets beyond its previously assessed standard of performance. All
other expenses of existing fixed assets, including day-to-day repair
and maintenance expenditure and cost of replacing parts, are charged to
statement of profit and loss for the period during which such expenses
are incurred.
Gains or losses arising from the de-recognition of fixed assets are
measured as the difference between the net disposal proceeds and the
carrying amount of fixed asset and are recognized in the statement of
profit and loss when the asset is de-recognized.
V. Depreciation
Depreciation of fixed assets is provided using the Straight Line Basis
based on or at the rate prescribed under schedule XIV of the Companies
Act, 1956.
VI. Taxes on Income
Tax expenses comprise Current and Deferred Tax. Current Income Tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively
enacted, at the reporting date.
VII. Retirement and Other Employee Benefits
Provident Fund
Retirement benefit in the form of provident fund is a defined
contribution scheme. The company has not deducted or deposited any
provident fund on behalf of employee so there is no obligation of
company towards provident fund.
Gratuity
The company has not made any provision for the gratuity and will be
charged to the Profit & Loss Account in the year in which it is paid.
VIII. Earnings Per Share
Basic Earnings per Share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting all attributable taxes) by the weighted average number of
equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholder and
the weighted average no of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
IX. Cash and Cash Equivalent
Cash and cash equivalent for the purpose of cash flow statement
comprise cash at bank and cash on hand, fixed deposit and interest
accrued on deposits upto 31.03.2014.
Mar 31, 2013
1. Income Recognition and Basis of Accounting
The Company prepares its financial statement in according with
generally accepted accounting principals and also in accordance with
the requirement of the Companies Act, 1956. Specific Income has been
recognized as under.
a) Interest on Loans & Advances on accrual basis.
b) Dividends .are acxountedifoEsas& when received.
2. Treatment of expenses
All expenses are accounted for on accrual basis
3. Depreciation
The Company has charged depreciation on straight-line method as per
schedule XIV of the Companies Act, 1956 on pro-rata basis with
reference to period of use.
4. Treatment of miscellaneous expenditure
Expenditure related to share issue and preliminary expenses are to be
written off in ten yearly equal installments.
5. Valuation of Stock In Trade
Stock-in trade is valued at lower of cost or market price. Cost is
computed on the basis of weighted average cost method.
Mar 31, 2010
1. Income Recognition and Basis of Accounting
The Company prepares its financial statement in according with
generally accepted accounting principals and also in accordance with
the requirement of the Companies Act, 1956. Specific Income has been
recognized as under.
a) Interest on Loans & Advances on accrual basis.
b) Dividends are accounted for as & when received.
2. Treatment of expenses
All expenses are accounted for on accrual basis
3. Depreciation
The Company has charged depreciation on straight-line method as per
schedule XIV of the Companies Act, 1956 on pro-rata basis with
reference to period of use.
4. Treatment of miscellaneous expenditure
Expenditure related to share issue and preliminary expenses are to be
written off in ten yearly equal installments.
5. Valuation of Stock In Trade
Stock-in trade is valued at lower of cost or market price. Cost is
computed on the basis of weighted average cost method.
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