Mar 31, 2018
Note 22 : Summary of significant accounting policies and other notes to the financial statements:
22.01 Nature of Operations
The main business of the Company is of investments and financing activities.
22.02 Summary of significant accounting policies
(A) Basis of Accounting
The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards notified under Section 133 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis except claims/refund which are accounted for on receipt basis due to uncertainties. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.
(B) Revenue Recognition
Income from Investments and financing activities is taken into account when it accrues to the Company.
(C) Fixed Assets
Fixed assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses and erection/ commissioning expenses etc.
(D) Depreciation
i) Depreciation on the fixed assets has been charged at Straight Line method with reference to the economic useful life of its fixed assets as prescribed by Schedule II of the Companies Act, 201 3.
ii) Depreciation on the fixed assets disposed off during the year is provided on pro-rata basis with reference to the date of disposal.
(E) Investments
Non-Current (Long term) investments are stated at cost. The Company provides for diminution, other than temporary, in the value of Long term investments. Current investments are valued at lower of cost or fair value.
(F) Retirement Benefits
a) Retirement benefits in the form of Provident Fund is not applicable to the Company as the total number of employees are below the minimum required number of employees under payment of Employees Provident Fund (Misc. Provisions) Act, 1952.
b) Gratuity has not been provided as the Payment of Gratuity Act is not applicable to the Company as total number of employees are below the minimum required number of employees under Payment of Gratuity Act, 1972.
c) Year end leave encashment benefit is provided for on accrual basis.
(G) Provisions
A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions except those disclosed elsewhere in the notes to the financial statements, are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
(H) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
(I) Current Tax and Deferred Tax
Tax expense comprises of current and deferred income 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. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantially enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future and the same is reviewed at each balance sheet.
(J) Earning per equity share
The Company reports basic and diluted earning per share in accordance with Accounting Standard-20 on "Earning Per Share". Basic earning per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.
22.03 As there is only one segment in the Company, hence Segment Reporting (AS-1 7) is not applicable.
22.04 There is a shortfall in the market value of certain non-current & current investments in shares, hence, the Company has not made provision in respect of such shortfall is Rs.75.85 lakhs (Previous year shortfall Rs. Nil). As the same in the opinion of the Management is not permanent in nature. However, there is no dimunition in overall market value of the Quoted Investments.
22.05 RELATED PARTY DISCLOSURE
A Subsidiaries |
â SCM Investment & Trading Co. Ltd. â RTM Investment & Trading Co. Ltd. -SIL Properties Ltd. - RTM Properties Ltd. |
B Key Management Personnel and their relatives |
Mrs. Shalini Nopany (Managing Director) Mr. C. S. Nopany (Relative of Managing Director) |
C Enterprise owned or significantly influenced by Key Management Personnel and their relatives |
- |
D Transactions with Related Parties during the year |
. |
Particulars |
Key Management Subsidiaries personnel and their relatives |
(Rs. in lakhs) Enterprise owned or significantly influenced by Key Management Personnel and their relatives |
|
(a) 1 Inter Corporate Loan placed â SCM Investment & Trading Co. Ltd. |
(A) |
(B) |
(C) |
H |
|||
â RTM Investment & Trading Co. Ltd. |
1350.00 |
||
H |
|||
2 Intercorporate Loan received back â SCM Investment & Trading Co. Ltd. |
233.00 |
||
(98.00) |
(Rs. in lakhs) |
|||
Particulars |
Key Management Subsidiaries personnel and their relatives |
Enterprise owned or significantly influenced by Key Management Personnel and their relatives |
|
(A) (B) |
(C) |
||
â RTM Investment & Trading Co. Ltd. |
651.00 |
||
(68.75) |
|||
3 |
Remuneration to Managing Director |
60.29 |
|
(38.54) |
|||
4 |
Sitting Fees of Mr. C.S. Nopany |
0.63 |
|
(0.53) |
|||
5 |
Interest income on Intercorporate Loan |
||
â SCM Investment & Trading Co. Ltd. |
151.75 |
||
(183.93) |
|||
â RTM Investment & Trading Co. Ltd. |
312.34 |
||
(382.03) |
|||
(b) |
Balance outstanding as on 31 .03.201 8 |
||
Incorporate Loan receivable |
|||
â SCM Investment & Trading Co. Ltd. |
1950.00 |
||
(1403.00) |
|||
â RTM Investment & Trading Co. Ltd. |
3655.00 |
||
(2956.00) |
|||
(c) |
Interest receivable on Intercorporate Loan as on 31.03.2018 |
||
â SCM Investment & Trading Co. Ltd. |
13.69 |
||
(26.13) |
|||
â RTM Investment & Trading Co. Ltd. |
25.74 |
||
(65.04) |
|||
Figures in bracket represent previous year''s amounts. |
22.06 DISCLOSURES AS PER SCHEDULE V OF SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURES REQUIREMENTS) REGULATIONS, 2015
(Rs. in lakhs) |
||
Particulars |
Balance Maximum outstanding as on |
amount of loan during the year (Previous year) |
31st March, 2018 |
(31st March, 2017) |
|
Loan to Subsidiaries: |
||
â SCM Investment & Trading Co. Ltd. |
1950.00 |
1950.00 |
(1403.00) |
(1501.00) |
|
â RTM Investment & Trading Co. Ltd. |
3655.00 |
3655.00 |
(2956.00) |
(3024.75) |
|
Others : |
||
â Avadh Sugar & Energy Limited |
1500.00 |
1500.00 |
(1 500.00) |
(1500.00) |
|
â Magadh Sugar & Energy Limited |
2000.00 |
500.00 |
(500.00) |
(1500.00) |
|
â Champaran Marketing Co. Ltd. |
- |
2000.00 |
(2000.00) |
(2000.00) |
(Rs. in lakhs) |
||
Particulars |
Balance as on 31st March, 2018 (31st March, 2017) |
Maximum outstanding amount of loan during the year (Previous year) |
â Hargaon Investments & Trading Co. Ltd. |
350.00 |
1900.00 |
(1 900.00) |
(1900.00) |
|
â Yashovardhan Investment & Trading Co. Ltd. |
1 500.00 |
2000.00 |
(2000.00) |
(2000.00) |
|
- GMB Investments Pvt. Ltd. |
- |
200.00 |
(200.00) |
(200.00) |
|
â Shital Commercial Ltd. |
- |
200.00 |
(200.00) |
(200.00) |
|
â Uttam Commercial Ltd. |
- |
200.00 |
(200.00) |
(200.00) |
|
â Deepshikha Trading Co. Pvt. Ltd. |
- |
200.00 |
(200.00) |
(200.00) |
|
â Uttar Pradesh Trading Co. Ltd. |
475.00 |
1000.00 |
(1 000.00) |
(1000.00) |
22.07 DISCLOSURES UNDER SECTION 186(4) OF THE COMPANIES ACT, 2013
Name |
Amount Purpose (Rs. in lakhs) |
|
SCM Investments & Trading Co. Ltd. |
1950.00 |
|
RTM Investments & Trading Co. Ltd. |
3655.00 |
|
Avadh Sugar & Energy Limited Magadh Sugar & Energy Limited Hargaon Investments & Trading Co. Ltd. |
1500.00 2000.00 350.00 |
Inter Corporate Deposit on commercial terms |
Yashovardhan Investments & Trading Co. Ltd. |
1500.00 |
|
Uttar Pradesh Trading Co. Ltd. |
475.00 |
|
Avadh Sugar & Energy Ltd. Magadh Sugar & Energy Ltd. Ganges Securities Ltd. |
1022.08 |
7m on I Investment in equity shares 90.65 J |
Ganges Securities Ltd. |
11.49 Investment in Preference shares |
22.08 EARNINGS PER SHARE (EPS)
The numerators and denominators used to calculate Basic and Diluted Earnings Per Share :
(Rs. in lakhs) |
||
Particulars |
For the Year ended 31st March, 2018 |
For the Year ended 31stMarch,2017 |
Profit for the Year (A) (Rs.in Lakhs) |
12880.25 |
1718.63 |
Number of Equity Shares (B) |
10595860 |
10595860 |
Nominal Value of Equity Share (Rs.) |
10.00 |
10 |
Basic and Diluted Earnings per Share (Rs.) A/B |
121.56 |
16.22 |
22.09 EXPENDITURE IN FOREIGN CURRENCY (On Accrual Basis)
|
(Rs. in lakhs) |
|
Particulars |
2017-18 |
2016-17 |
Travelling : |
57.17 |
17.44 |
REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDENDS
Particulars |
Year ended 31st March, 2018 |
Year ended 31stMarch,2017 |
Amount of Dividend related to 201 6-1 7 remitted in Foreign Exchange (Rs |
- |
- |
Number of Non-Resident Shareholders |
149 |
26 |
Number of Shares held by such Non-Resident Shareholders |
45980 |
15236 |
Deposited in Indian Rupees in the Bank Accounts maintained by the |
shareholders in India. |
22.11 Previous year figures have been reclassified/regrouped to conform current year figures.
Signature to Notes 1 to 22.1 1
In terms of our Report of even date attached.
For Jitendra K. Agarwal & Associates |
For and on behalf of Board of Directors of |
Chartered Accountants |
SIL Investments Limited |
Firm Reg. No. 318086E |
Kuldeep Ma loo |
Brij Mohan Agarwal |
C. S. Nopany |
Shalini Nopany |
Partner |
Director- In -Charge |
Chairman |
Managing Director |
Membership No. 515708 |
DIN: 03101758 |
DIN: 00014587 |
DIN: 00077299 |
Camp : |
Kolkata |
Vikas Baheti |
Lokesh Gandhi |
Date : |
08th May, 2018 |
Chief Financial Officer |
Company Secretary & Compliance Officer |
PAN: ALUPB2706M |
Membership No. F9053 |
Mar 31, 2016
Terms/ Rights attached to Equity Shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend. However, same is subject to the approval of the shareholders in the Annual General Meeting.
22.01 Nature of Operations
The main business of the Company is of investments and financing activities.
22.02 Summary of significant accounting policies
(A) Basis of Accounting
The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards notified under Section 133 and the relevant provisions of the Companies Act,2013. The financial statements have been prepared under the historical cost convention on accrual basis except claims/refund which are accounted for on receipt basis due to uncertainties. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.
(B) Revenue Recognition
Income from Investments and financing activities is taken into account when it become accrue to the Company.
(C) Fixed Assets
Fixed assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses and erection/commissioning expenses etc.
(D) Depreciation
i) Depreciation on the fixed assets has been charged at Straight Line method with reference to the economic useful life of its fixed assets as per prescribed by Schedule II of the Companies Act, 2013.
ii) Depreciation on the fixed assets disposed off during the year is provided on pro-rata basis with reference to the date of disposal.
(E) Investments
Non-Current (Long term) investments are stated at cost. The company provides for diminution, other than temporary, in the value of Long term investments. Current investments are valued at lower of cost or fair value.
(F) Retirement Benefits
a) Retirement benefits in the form of Provident Fund is not applicable to the Company as the total number of employees are below the minimum required number of employees under payment of Employees Provident Fund (Misc. Provisions) Act, 1952.
b) Gratuity has not been provided as the Payment of Gratuity Act is not applicable to the Company as total number of employees are below the minimum required number of employees under Payment of Gratuity Act, 1972.
c) Year end leave encashment benefit is provided for on accrual basis.
(G) Provisions
A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions except those disclosed elsewhere in the notes to the financial statements, are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates
Mar 31, 2015
(A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards notified under Section
133 and the relevant provisions of the Companies Act,2013. The
financial statements have been prepared under the historical cost
convention on accrual basis except claims/refund which are accounted
for on receipt basis due to uncertainties. The accounting policies have
been consistently applied by the Company and are consistent with those
used in the previous year.
(B) Revenue Recognition
Income from Investments and financing activities is taken into account
when it become accrue to the Company.
(C) Fixed Assets
Fixed assets are stated at cost of acquisition inclusive of
duties,taxes,incidental expenses and erection/commissioning expenses
etc.
(D) Depreciation
i) Depreciation on the fixed assets has been charged at Straight Line
method with reference to the economic useful life of its fixed assets
as per prescribed by Schedule II to the Companies Act, 2013.
ii) Depreciation on the fixed assets disposed off during the year is
provided on pro-rata basis with reference to the date of disposal.
(E) Investments
Non-Current (Long term) investments are stated at cost. The Company
provides for diminution, other than temporary, in the value of Long
term investments. Current investments are valued at lower of cost or
fair value.
(F) Retirement Benefits
a) Retirement benefits in the form of Provident Fund is not applicable
to the Company as the total number of employees are below the minimum
required number of employees under payment of Employees Provident Fund
(Misc. Provisions) Act, 1952.
b) Gratuity has not been provided as the Payment of Gratuity Act is not
applicable to the Company as total number of employees are below the
minimum required number of employees under Payment of Gratuity Act,
1972.
c) Year end leave encashment benefit is provided for on accrual basis.
(G) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions except those disclosed
elsewhere in the notes to the financial statements, are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Mar 31, 2014
1.01 Nature of Operations
The main business of the Company is of investments and financing
activities.
(A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued under the
Accounting Standard Rules,2006 notified by the Central Government and
the relevant provisions of the Companies Act,1956. The financial
statements have been prepared under the historical cost convention on
accrual basis except claims/refund which are accounted for on receipt
basis due to undertainties. The accounting policies have been
consistently applied by the company and are consistent with those used
in the previous year.
(B) Revenue Recognition
Income from Investments and financing activities is taken into account
when it become accrue to the Company.
(C) Fixed Assets
Fixed assets are stated at cost of acquisition inclusive of
duties,taxes,incidental expenses and erection commissioning expenses
etc.
(D) Depreciation
i) Depreciation on the fixed assets is provided on Straight Line method
at the rates specified in the Schedule XIV of the Companies Act, 1956.
ii) Depreciation on the fixed assets disposed off during the year is
provided on pro-rata basis with reference to the date of disposal.
(E) Investments
Non-Current Investments are stated at cost. The Company provides for
diminution, other than temporary, in the value of Non-Current
Investments. Current Investments are valued at lower of cost or fair
value.
(F) Retirement Benefits
a) Retirement benefits in the form of Provident Fund is not applicable
to the Company as the total number of employees are below the minimum
required number of employees under payment of Employees Provident Fund
(Misc. Provisions) Act, 1952.
b) Gratuity has not been provided as the Payment of Gratuity Act is not
applicable to the Company as total number of employees are below the
minimum required number of employees under Payment of Gratuity Act,
1972.
c) Year end leave encashment benefit is provided for on accrual basis.
(G) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions except those disclosed
elsewhere in the notes to the financial statements, are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Mar 31, 2013
(A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued under the
Accounting Standard Rules, 2006 notified by the Central Government and
the relevant provisions of the Companies Act,1956. The financial
statements have been prepared under the historical cost convention on
accrual basis except claims/refund which are accounted for on receipt
basis due to uncertainties. The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
(B) Revenue Recognition
Income from Investments and financing activities is taken into account
when it become accrue to the Company.
(C) Fixed Assets
Fixed assets are stated at cost of acquisition inclusive of
duties,taxes,incidental expenses and erection/ commissioning expenses,
etc.
(D) Depreciation
i) Depreciation on the fixed assets is provided on Straight Line method
at the rates specified in the Schedule XIV of the Companies Act, 1956.
ii) Depreciation on the fixed assets disposed off during the year is
provided on pro-rata basis with reference to the date of disposal.
(E) Investments
Long term investments are stated at cost. The Company provides for
diminution, other than temporary, in the value of Long term
investments. Current investments are valued at lower of cost or fair
value.
(F) Retirement Benefits
a) Retirement benefits in the form of Provident Fund is not applicable
to the Company as the total number of employees are below the minimum
required number of employees under Payment of Employees Provident Fund
(Misc. Provisions) Act, 1952.
b) Gratuity has not been provided as the Payment of Gratuity Act is not
applicable to the Company as total number of employees are below the
minimum required number of employees under Payment of Gratuity Act,
1972.
c) Year end leave encashment benefit is provided for on accrual basis.
(G) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions except those disclosed
elsewhere in the notes to the financial statements, are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Mar 31, 2012
01 Nature of Operations
The main business of the Company is of investments and financing
activities.
(A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued under the
Accounting Standard Rules/2006 notified by the Central Government and
the relevant provisions of the Companies Act,1956. The financial
statements have been prepared under the historical cost convention on
accrual basis except claims/refund which are accounted for on receipt
basis due to uncertainties. The accounting policies have been
consistently applied by the company and are consistent with those used
in the previous year.
(B) Revenue Recognition
Income from Investments and financing activities is taken into account
when it become accrue to the Company.
(C) Fixed Assets
Fixed assets are stated at cost of acquisition inclusive of
duties,taxes,incidental expenses and erection/commissioning expenses
etc.
(D) Depreciation
i) Depreciation on the fixed assets is provided on Straight Line method
at the rates specified in the Schedule XIV of the Companies Act, 1956.
ii) Depreciation on the fixed assets disposed off during the year is
provided on pro-rata basis with reference to the date of disposal.
(E) Investments
Long term investments are stated at cost. The company provides for
diminution, other than temporary, in the value of Long term
investments. Current investments are valued at lower of cost or fair
value.
(F) Retirement Benefits
a) Retirement benefits in the form of Provident Fund are charged to the
Profit & Loss Statement of the year when the contributions to the
respective funds are due.
b) Gratuity has not been provided as the Payment of Gratuity Act is not
applicable to the Company as total number of employees are below the
minimum required number of employees under Payment of Gratuity Act,
1972.
c) Year end leave encashment benefit is provided for on accrual basis.
(G) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions except those disclosed
elsewhere in the notes to the financial statements, are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Mar 31, 2011
(A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued under the
Companies Accounting Standard Rule, 2006 notified by the Central
Government and the relevant provisions of the Companies Act,1956. The
financial statements have been prepared under the historical cost
convention on an accrual basis except claims/refund which are accounted
for on receipt basis due to uncertainties. The accounting policies have
been consistently applied by the company and are consistent with those
used in the previous year.
(B) Revenue Recognition
Income from Investments and financing activities is taken into account
when it become accrue to the Company.
(C) Fixed Assets
Fixed assets are stated at cost of acquisition inclusive of duties,
taxes, incidental expenses and erection / commissioning expenses etc.
(D) Depreciation
(i) Depreciation on the fixed assets is provided on Straight Line
method at the rates specified in the Schedule XIV of the Companies Act,
1956.
(ii) Depreciation on the fixed assets disposed off during the year is
provided on pro-rata basis with reference to the date of disposal.
(E) Investments
Long term Investments are stated at cost . The company provides for
diminution, other than temporary, in the value of Long term
Investments. Current Investments are valued at lower of cost or fair
value.
(F) Retirement Benefits
a) Retirement benefits in the form of Provident Fund are charged to the
Profit & Loss Account of the year when the contributions to the
respective funds are due.
(b) Gratuity has not been provided as the Payment of Gratuity Act is
not applicable to the Company as total number of employees are below
the minimum required number of employees under Payment of Gratuity Act,
1972.
(c) Year end leave encashment benefits is provided for on accrual
basis.
(G) Earnings per share
Earnings per share is calculated by dividing the net profit or loss for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
(H) Accounting Policy on Deferred Tax
In accordance with Accounting Standard -22 "Accounting for Taxes on
Income" issued under the Accounting Standard Rule 2006 notified by the
Central Government and the relevant provision of Companies Act, 1956.
The deferred tax for timing differences between the book and taxable
income for the year is accounted for using the tax rates and laws that
have been enacted or substantively enacted as of the balance sheet
date. Deferred Tax assets arising from temporary timing differences are
recognised to the extent there is reasonable certainty that the assets
can be realised in future and the same is reviewed at each Balance
Sheet Date.
(I) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions except those disclosed
elsewhere in the notes to the financial statements, are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Notes:
* Excluding provision for accrued leave.
Mar 31, 2010
(A) Basis of Accounting
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued under the
Companies Accounting Standard Rule,2006 notified by the Central
Government and the relevant provisions of the Companies Act, 1956. The
financial statements have been prepared under the historical cost
convention on an accrual basis except claims/refund which are accounted
for on receipt basis due to uncertainties. The accounting policies have
been consistently applied by the company and are consistent with those
used in the previous year.
(B) Revenue Recognition
Income from Investments and financing activities is taken into account
when it become accrue to the Company.
(C) Fixed Assets
Fixed assets are stated at cost of acquisition inclusive of duties,
taxes, incidental expenses and erection / commissioning expenses etc.
(D) Depreciation
(i) Depreciation on the fixed assets is provided on Straight Line
method at the rates specified in the Schedule XIV of the Companies Act,
1956.
(ii) Depreciation on the fixed assets disposed off during the year is
provided on pro-rata basis with reference to the date of disposal.
(E) Investments
Long term Investments are stated at cost . The company provides for
diminution, other than temporary, in the value of Long term
Investments. Current Investments are valued at lower of cost or fair
value.
(F) Retirement Benefits
(a) Retirement benefits in the form of Provident Fund are charged to
the Profit & Loss Account of the year when the contributions to the
respective funds are due.
(b) Gratuity has not been provided as the Payment of Gratuity Act is
not applicable to the Company as total number of employees are below
the minimum required number of employees under Payment of Gratuity Act,
1972.
(c) Year end leave encashment benefits is provided for on accrual
basis.
(G) Earning per share
Earning per share is calculated by dividing the net profit or loss for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
(H) Accounting Policy on Deferred Tax
In accordance with Accounting Standard -22 ÃAccounting for Taxes on
Incomeà issued under the Accounting Standard Rule 2006 notified by the
Central Government and the relevant provision of Companies Act, 1956.
The deferred tax for timing differences between the book and taxable
income for the year is accounted for using the tax rates and laws that
have been enacted or substantively enacted as of the balance sheet
date. Deferred Tax assets arising from temporary timing differences are
recognised to the extent there is reasonable certainty that the assets
can be realised in future and the same is reviewed at each Balance
Sheet Date.
(I) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions except those disclosed
elsewhere in the notes to the financial statements, are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.