Accounting Policies of Indo-Global Enterprises Ltd. Company

Mar 31, 2016

1.01 Basis of Preparation of financial statements: The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules 2014and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.02 Use of Estimates: The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future events could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods.

1.03 Cash flow: Cash flows are reported using indirect method.

1.04 Fixed Assets: Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition of Fixed Assets is net of credit under Cenvat scheme and inclusive of freight, duties, taxes, incidental expenses relating to cost of acquisition, the cost of installation/erection as applicable and interest on related borrowings up to the date of acquisition / capitalization.

1.05 Depreciation: Depreciation on fixed assets is provided to the extent of depreciable amount on written down value (WDV) method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

1.06 Valuation of Inventories: Inventories are valued at Cost and the Net Realizable Value whichever is less.

1.07 Revenue Recognition: Sales are recognized on accrual basis.

1.08 Employee Benefits: Payments to defined contribution scheme are charged as expenses as and when incurred. Postemployment and other long term benefits are defined benefit plans are recognized based on the present value of the obligation determined in accordance with AS-15 on Employee''s Benefits.

1.09 Taxes on Income:

a. Income Tax: Provision for current tax is made in accordance with the Income- tax laws prevailing for the relevant assessment years

b. Deferred Tax: Deferred Tax is recognized, 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 Assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such Deferred tax assets can be realized.

1.10 Valuation of Investments: 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 in the opinion of the management.

1.11 Impairment of Assets: An asset 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 which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.12 Provisions, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes on accounts, if any. Contingent assets are neither recognized nor disclosed in the financial statements. Provision for expenditure relating to Voluntary Retirement is made when the employee accepts the offer of early retirement. Contingent liabilities are not recognized in the books of accounts.

1.13 Earnings Per Share: The Company presents basic and diluted earnings per share (EPS) data for its common shares. Basic EPS is calculated by dividing the net income attributable to shareholders of the Company by the weighted average number of common shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the Statement of income attributable to shareholders and the weighted average number of common shares outstanding, adjusted for own shares held, for the effects of all dilutive potential common shares, which comprise convertible personnel debentures, restricted shares, performance shares and share options granted to employees.