Accounting Policies of PFL Infotech Ltd. Company

Mar 31, 2014

1.1. Accounting Convention

The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

1.2. Fixed Assets

"Fixed Assets are stated at cost and include installation charges, freight, duties, taxes and expenditure incurred during construction period wherever applicable. Assets under erection / commissioning are shown as capital work in progress. All expenditure during the construction period is allocated to Buildings and Plant & Machinery in the same proportion of the balances in the respective heads as on the date of commissioning of the project. "

1.3. Depreciation

Depreciation on the fixed assets is provided on Written Down Value Method at the rates and in the manner prescribed in Schedule - XIV to the Companies Act, 1956 for all the assets during the year under consideration.

1.4. Revenue Recognition

The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.

1.5. Employee Benefits

"Retirement benefits to the employees have not been provided as no employee is eligible for the same. No Provision has been made in respect of Gratuity Liability. Provident Fund and ESI as no employee is eligible for the same, leave encashment shall be accounted on cash basis"".""

1.6. Provision For Income Tax Provision for Current Tax :

Provision for Income Tax is made taking into consideration the Provisions of Income Tax Act, 1961.

Provision for Deferred Taxation :

As per the AS 22, since there is no reasonable certainty that the Company will get profits so as to absorb the carried forward losses and depreciation, the deferred tax asset has not been recognized in the financial statements.

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Mar 31, 2013

1.1. Accounting Convention

The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

1.2. Fixed Assets

Fixed Assets are stated at cost and include installation charges, freight, duties, taxes and expenditure incurred during construction period wherever applicable. Assets under erection / commissioning are shown as capital work in progress. All expenditure during the construction period is allocated to Buildings and Plant & Machinery in the same proportion of the balances in the respective heads as on the date of commissioning of the project.

1.3. Depreciation

Depreciation on the fixed assets is provided on Written Down Value Method at the rates and in the manner prescribed in Schedule - XIV to the Companies Act, 1956 for all the assets during the year under consideration.

1.4. Revenue Recognition

The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.

1.5. Employee Benefits

Retirement benefits to the employees have not been provided as no employee is eligible for the same. No Provision has been made in respect of Gratuity Liability. Provident Fund and ESI as no employee is eligible for the same, leave encashment shall be accounted on cash basis.

1.6. Provision For Income Tax

Provision for Current Tax:

Provision for Income Tax is made taking into consideration the Provisions of Income Tax Act, 1961.

Provision for Deferred Taxation:

As per the AS 22, since there is no reasonable certainty that the Company will get profits so as to absorb the carried forward losses and depreciation, the deferred tax asset has not been recognized in the financial statements.

The revised Schedule VI has become effective from 1st April 2011, for the preparation of financial statement. This has significantly impacted the disclosure and presentation made in the financial statements. Previous years figures hav e been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2012

1.1. Accounting Convention

The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

1.2. Fixed Assets

Fixed Assets are stated at cost and include installation charges, freight, duties, taxes and expenditure incurred during construction period wherever applicable. Assets under erection / commissioning are shown as capital work in progress. All expenditure during the construction period is allocated to Buildings and Plant & Machinery in the same proportion of the balances in the respective heads as on the date of commissioning of the project.

1.3. Depreciation =

Depreciation on the fixed assets is provided on Written Down Value Method at the rates and in the manner prescribed in Schedule - XIV to the Companies Act, 1956 for all the assets during the year under consideration.

1.4. Revenue Recognition

The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.

1.5. Employee Benefits

Retirement benefits to the employees have not been provided as no employee is eligible for the same. No Provision has been made in respect of Gratuity Liability. Provident Fund and ESI as no employee is eligible for the same, leave encashment shall be accounted on cash basis.

1.6. Provision For Income Tax

Provision for Current Tax:

Provision for Income Tax is made taking into consideration the Provisions of Income Tax Act, 1961.

Provision for Deferred Taxation:

As per the AS 22, since there is no reasonable certainty that the Company will get profits so as to absorb the carried forward losses and depreciation, the deferred tax asset has not been recognized in the financial statements.

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Mar 31, 2011

1. ACCOUNTING CONVENTION

The financial statements are prepared under historical cost convention and on accrual basis

2. REVENUE RECOGNITION

The Company follows the mercantile system of accounting and recog- nizes income, and expenditure on accrual basis

3. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition. The cost of an asset com- prises of all direct costs relating to acquisition and installation of fixed assets and indirect costs incurred up to putting the same to use.

4. DEPRECIATION:

Depreciation has been provided proportionately on fixed assets at the rates specified in Schedule XIV of the Companies Act, 1956.

5. Accounting Policies not specifically referred to are consistent with the generally Accepted accounting practices and accounting standards un- der section 211 of the Companies Act, 1956.

6. RETIREMENT BENEFITS

Retirement benefits to the employees have not been provided as no employee is eligible for the same. No Provision has been made in respect of Gratuity Liability. Provident Fund and ESI as no employee is eligible for the same, leave encashment shall be accounted on cash basis.

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Mar 31, 2010

1. ACCOUNTING CONVENTION

The financial statements are prepared under historical cost convention and on accrual basis

2. REVENUE RECOGNITION

The Company follows the mercantile system of accounting and recognizes income, and expenditure on accrual basis

3. FIXED ASSETS

Fixed Assets are stated at cost of acquisition including freight, duties and other incidental expenses.

4. DEPRECIATION

Depreciation has been provided proportionately on fixed assets at the rates specified in Schedule XIV of the Companies Act, 1956.

5. Accounting Policies not specifically referred to are consistent with the generally Accepted accounting practices and accounting standards under section 211 of the Companies Act, 1956.

6. RETIREMENT BENEFITS

Retirement benefits to the employees have not been provided as no employee is eligible for the same. No Provision has been made in respect of Gratuity Liability. Provident Fund and ESI as no employee is eligible for the same, leave encashment shall be accounted on cash basis.