Accounting Policies of Indoworth Holdings Ltd. Company

Mar 31, 2014

A) Use of Estimate

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenue, incomes, assets and liabilities and disclosures of contingent liabilities at the end of the 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 amounts of assets or liabilities in future periods.

1.1 Tangible Fixed Assets, Depreciation & Impairment

I. Fixed Assets are stated at cost of acquisition.

II. Depreciation on Fixed Assets has been provided on straight line method at the rates prescribed in Schedule XIV of the Companies Act,1956 on pro-rata basis.

III. The carrying amount of assets is reviewed at Balance Sheet date to determine, if there is any indication of impairment thereof based on external/internal factors and impairment loss is recognized wherever the carrying amount of an assets exceeds its recoverable amount which represent the greater of the net selling price of the assets and its value in use. In assessing value in use, the estimated future cash flow are discounted to their present value based on an appropriate discount factor.

1.2 Investments

Investments are stated at cost. Provision for diminution in the value of investments has not been made as the same is temporary in nature, based on management''s evaluation.

1.3 Inventories

Stock of shares has been valued at cost or market price whichever is lower.

1.4 RECOGNITION OF INCOME & EXPENDITURE

Items of income and expenditure are recognized on accrual basis except for Dividend Income, Debenture Interest and Interest from Unit''64 which are being accounted for on cash basis.

1.5 CONTINGENT LIABILITIES

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

1.6 RETIREMENT BENEFITS

Retirement benefits to the employees in terms of gratuity are being accounted for as and when paid. Leave is encashed on annual basis as per the Rules of the Company.

1.7 TAXES ON INCOME

I. Provision for current tax is made in accordance with and at the rates specified under the Income Tax Ac, 1961, as amended.

II. The deferred tax charge is recognized using current tax rates. Deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at Balance Sheet date based on developments during the year and available case laws, to reassess realization /liabilities.

1.8 PRIOR PERIOD ADJUSTMENTS, EXTRA ORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior period adjustments, extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

1.9 Contingent liabilities are all Nil (Previous year Rs.Nil).

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Mar 31, 2012

A) Presentation and disclosure of Financial Statements

During the year ended March 31, 2012 the new Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for the preparation and presentation of its financial statements. The adoption of this Schedule VI does not impact recognition and measurement principles followed for the preparation of financial statements. However, it has significant impact on preparation and disclosures made in the financial statements. The Company has reclassified the previous year figures in accordance with the requirements applicable in the year.

b) Use of Estimate

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenue, incomes, assets and liabilities and disclosures of contingent liabilities at the end of the 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 amounts of assets or liabilities in future periods.

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Mar 31, 2011

1. ACCOUNTING ASSUMPTIONS

The accounts have been prepared under historical cost convention on the basis of going concern, with revenue recognized and expenses accounted on their accrual basis and amounts determined as payable and receivable during the year except those with significant uncertainties and in accordance with Generally Accepted Accounting Principles (GAAP) applicable in India and the provisions of Indian Companies act 1956 (as amended).

2. FIXED ASSETS DEPRECIATION AND IMPAIRMENTS OF ASSETS

I. Fixed Assets are stated at cost of acquisition.

II. Depreciation on Fixed Assets has been provided on straight line method at the rates prescribed in Schedule XIV of the Companies Act,1956 on pro-rata basis.

III. The carrying amount of assets is reviewed at Balance Sheet date to determine, if there ia any indication of impairment thereof based on external/internal factors and impairment loss is recognized wherever the carrying amount of an assets exceeds its recoverable amount which represent the greater of the/it selling price of the assets and its value in use. In assessing value in use, the estimated future cash flow are discounted to their present value based on an appropriate discount factor.

3. INVESTMENTS

Investments are stated at cost. Provision for diminution in the value of investments has not been made as the same is temporary in nature, based on management's evaluation.

4. INVENTORIES

Stock of shares has been valued at cost or market price whichever is lower.

5. RECOGNITION OF INCOME & EXPENDITURE

Items of income and expenditure are recognized on accrual basis except for Dividend Income, Debenture Interest and Interest from Unit'64 which are being accounted for on cash basis.

6. CONTINGENT LIABILITIES

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

7. RETIREMENT BENEFITS

Retirement benefits to the employees in terms of gratuity are being accounted for as and when paid. Leave is encashed on annual basis as per the Rules of the Company.

8. TAXES ON INCOME

I. Provision for current tax is made in accordance with and at the rates specified under Income Tax Act,1961, as amended.

II. The deferred tax charge or credit is recognized using current tax rates. Deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on developments during the year and available case laws, to reassess realization/liabilities.

9. PRIOR PERIOD ADJUSTMENTS, EXTRA-ORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES Prior period adjustments, extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.