Mar 31, 2018
1. SIGNIFICANT ACCOUNTING POLICIES
1. Basis of accounting
These financial statements have been prepared in accordance with accounting principles generally accepted in India under the historical cost convention on an accrual basis and complying with the accounting standards as prescribed under Section 133 of Companies Act, 2013 (âthe Actâ) read with Rule 7 of the Companies (Accounts) Rules, 2014 and of the Act (to the extent notified generally accepted accounting principles in India, the provisions) and regulations of Reserve Bank of India to the extent applicable.
2. Method of Accounting
The company follows the mercantile system of accounting.
3. Use of Estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon managementâs evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized. Examples of such estimates include future obligations under employee retirement benefit plans, provision for income taxes.
4. Investment
Investments are classified into current investments and non-current investments. Investments that are intended to be held for one year or more as on the date of Balance Sheet are classified as non-current investments and investments that are intended to be held for less than one year as on the date of Balance Sheet are classified as current investments.
Non-current investments are valued at cost. Provision for diminution in value of non-current investments is made if in the opinion of management such a decline is other than temporary.
Current investments are valued at cost or market/fair value, whichever is lower.
Net asset value of units declared by mutual funds is considered as market value.
5. Inventories
Inventories are valued at cost or Net Realisable Value whichever is lower.
6. Property plant & equipments
Property plant and equipments are stated at acquisition cost less accumulated depreciation and impairment losses, if any. Acquisition cost comprises of purchase price and directly attributable cost of bringing the asset to its working condition for its intended use.
Profit or loss on disposal of the assets is determined as the difference between the carrying amount of the assets at the time of the disposal and the proceeds, and is accounted for in the year of disposal.
7. Depreciation
Depreciation is provided on Written Down Value Method on all assets except for Immovable Property which is treated as investment. Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013. The Company provides pro-rata depreciation from the date on which asset is acquired / put to use. In respect of assets sold, pro-rata depreciation is provided up to the date on which the asset is sold.
8. Revenue Recognition:
a) Dividend Income is accounted when the right to receive the dividend is established.
b) Profit earned on sale of Investment is recognized on trade date/basis. Profit/Loss on sale of investments is determined based on the weighted average cost of investments sold.
c) In case of Non Performing Assets, interest income is recognized on receipt basis, as per prudential norms issued by Reserve Bank of India (RBI).
d) Profit or loss on sale of shares is accounted for on delivery of shares. Further, on sale of shares referred to in Note No. 22, the company writes back the amount of dividend which was not credited to P & L account in the earlier years.
e) All other incomes are accounted for on accrual basis.
9. Borrowing Cost
Borrowing cost attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of respective assets up to the date when such asset is ready for its intended use. Other borrowing cost is charged to revenue.
10. Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period).
Current Tax: :
Provision for current tax is made on the basis of estimated taxable income for the accounting year in accordance with the Income Tax Act, 1961.
Deferred Tax
The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realized.
11. Retirement Benefit
A. Short term employee benefit is recognized as an expense at undiscounted amount in the Profit & Loss Account of the year in which the relevant services is rendered.
B. Retirement Benefit Provident Fund:
Companyâs contribution paid/payable for the year on account of Provident Fund and Family Pension Fund are charged to Profit and Loss Account.
Gratuity:
Gratuity is post employment benefit and is in the nature of Defined Benefit Plan. The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plan is the present value of defined benefit obligations at the end of the reporting period less fair value of plan assets. The defined benefit obligation is calculated annually by actuaries through actuarial valuation using the projected unit credit method.
Superannuation:
During the year, the Company has not contributed to the Employees Superannuation Fund as per the LIC Scheme due to excess contribution in earlier years.
Leave Encashment:
As per companyâs leave encashment policy employee may encash all unavailed leaves at the end of the financial year accrued to him/her and it is not carried forward.
12. Provisions, Contingent Liabilities and Contingent Assets
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognized in the period in which the change occurs.
Mar 31, 2016
1. SIGNIFICANT ACCOUNTING POLICIES
1. Basis of accounting
These financial statements have been prepared under the historical cost convention, on the accrual basis of accounting and complying with the accounting standards as prescribed under Section 133 of Companies Act, 2013 (âthe Actâ) read with Rule 7 of the Companies (Accounts) Rules, 2014 and of the Act (to the extent notified generally accepted accounting principles in India, the provisions) and regulations of Reserve Bank of India to the extent applicable.
2. Method of Accounting
The company follows the mercantile system of accounting.
3. use of Estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon managementâs evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized. Examples of such estimates include future obligations under employee retirement benefit plans, provision for income taxes.
4. Investment
Investments are classified into current investments and noncurrent investments. Investments that are intended to be held for one year or more as on the date of Balance Sheet are classified as noncurrent investments and investments that are intended to be held for less than one year as on the date of Balance Sheet are classified as current investments.
Noncurrent investments are valued at cost. Provision for diminution in value of noncurrent investments is made if in the opinion of management such a decline is other than temporary.
Current investments are valued at cost or market/fair value, whichever is lower.
Net asset value of units declared by mutual funds is considered as market value.
5. Inventories
Inventories are valued at cost or Net Realizable Value whichever is lower.
6. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation thereon. The cost of fixed assets comprises purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use.
Profit or loss on disposal of the assets is determined as the difference between the carrying amount of the assets at the time of the disposal and the proceeds, and is accounted for in the year of disposal.
7. Depreciation
Depreciation is provided on Written Down Value Method on all assets except for Immovable Property which is treated as investment. Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013. The Company provides pro-rata depreciation from the date on which asset is acquired / put to use. In respect of assets sold, pro-rata depreciation is provided up to the date on which the asset is sold.
8. Revenue Recognition:
a) Dividend Income is accounted when the right to receive the dividend is established.
b) Profit earned on sale of Investment is recognized on trade date/basis. Profit/Loss on sale of investments is determined based on the weighted average cost of investments sold.
c) All other incomes are accounted for on accrual basis.
d) In case of Non Performing Assets, interest income is recognized on receipt basis, as per prudential norms issued by Reserve Bank of India (RBI).
9. Borrowing Cost
Borrowing cost attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of respective assets up to the date when such asset is ready for its intended use. Other borrowing cost is charged to revenue.
10. Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period).
Current Tax: :
Provision for current tax is made on the basis of estimated taxable income for the accounting year in accordance with the Income Tax Act, 1961.
Deferred Tax
The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realized.
11. Retirement Benefit
A. Short term employee benefit is recognized as an expense at undiscounted amount in the Profit & Loss Account of the year in which the relevant services is rendered.
B. Retirement Benefit Provident Fund:
Companyâs contribution paid/payable for the year on account of Provident Fund and Family Pension Fund are charged to Profit and Loss Account.
Gratuity:
Gratuity is post employment benefit and is in the nature of Defined Benefit Plan. The Liability recognized in the balance sheet in respect of gratuity is the present value of defined benefit obligation at the balance sheet date together with the adjustments for unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method.
Superannuation:
During the year, the Company has contributed to the Employees Superannuation Fund as per the LIC Scheme in that behalf.
Leave Encashment:
As per companyâs leave encashment policy employee may encase all unveiled leaves at the end of the financial year accrued to him/her and it is not carried forward.
12. Provisions, Contingent Liabilities and Contingent Assets
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognized in the period in which the change occurs.
b) Terms/ Rights Attached to equity shares
The company has one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend if any proposed by the Board of Director is subject to the approval of the share holders in the ensuing Annual General Meeting.
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
c) Shares held by holding/ ultimate holding company and / or their Subsidiaries/ associates
Out of the equity shares issued by the company, shares held by its holding company, ultimate holding company and their subsidiaries/associates are as follows :
19. Contingent Liabilities and Commitments
i) Claims not acknowledged as debts Rs. 34.28 lakhs. (PreviousyearRs.34.28lakhs). The company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered.
ii) Tax Demand - Based on the decisions of the Appellate authorities and interpretations of other relevant provisions, the company has been legally advised that the demand raised which is mentioned below is likely to be either deleted or substantially reduced accordingly no provision is considered.
a) Income Tax
The income tax assessment for the assessment year 1993-94 was completed resulting in demand of Rs. 144.42 Lakhs, (Previous year Rs. 144.42 lakhs) against which the Company is in appeal. The company has deposited the amount in dispute with the authorities.
b) sales Tax
Sales tax assessment under the Bombay Sales Tax Act for the assessment year 1998-99, was completed in respect of Lease Tax and resulted in demand for Rs. 15.67 lakhs. (Previous year Rs. 15.67 lakhs). The company has preferred an appeal against the orders with Tribunal.
20. Impairment of Assets
There are no such impair able Assets at the year ended in term of AS - 28. Hence company has not made any provision for impairment loss.
21. Asset Received under settlement
The company had received under settlement from debtors, an immovable property which is shown under the head Non Current Investment âInvestment in Immovable propertyâ. Prior to 31st Marchâ2005 this asset was treated as fixed asset and depreciation was charged on it. However, it was transferred to Investment in Immovable property from 01st Aprilâ 2005.
23. Inventories
During the earlier years, on account of non-availability of share certificates in respect of certain equity shares and transfer of shares for settlement of PMS account, relevant book value of such shares were written off / adjusted. Subsequently, after proper scrutiny and wherever the shares were available or shares have not been transferred, they have been included as part of stock of security and shown under Inventories by assigning a value of Re. 1 to each of such securities by crediting to profit & loss account of such year. Such value of Re. 1 is considered as cost for the purpose of valuation of relevant securities and accordingly any dividend received from these shares are shown in other current liabilities as dividend received on shares pending for settlement of PMS account.
26. Segment Reporting
The company has only one Business Segment, viz. Income from Investing and Financial activities the source of which is recovery of past dues and Companyâs business activities are confined only to India. Hence no additional disclosures are made as required under Accounting Standard 17 âSegment Reportingâ.
27. Related Party Disclosures
As per Accounting Standard 18, the disclosures of transactions with the related parties are given below
Related Party Relationship
Bennett, Coleman & Company Ltd. Holding Company
(Holds 74.92% of the Equity Share Capital as at March 31, 2016)
Fellow Subsidiaries
Dharmayug Investments Ltd., Bennett Institute of Higher Education, Times Journal India Ltd., Times Global Broadcasting Co. Ltd., ZOOM Entertainment Network Ltd., Times Digital Ltd., Times Centre for Learning Ltd., Centre for Excellence in Management Training & Development, Speaking Tree Properties Ltd., Media Network & Distribution (India) Ltd., Times Innovative Media Ltd., TIM Delhi Airport Advertising Pvt. Ltd., Worldwide Media Pvt. Ltd., Metropolitan Media Company Ltd., Brand Equity Treaties Ltd., Mind Games Shows Pvt. Ltd., Vardhaman Publishers Ltd., Mirchi Movies (India) Ltd., Entertainment Network (India) Ltd., Alternate Brand Solutions (India) Ltd., TIML Global Ltd., Times Internet Ltd., Times Internet Inc., USA, Times Internet(UK) Limited, UK, Times City Ltd., Gamma Gaana Ltd. (erstwhile known as Times Deals Ltd.), Times Jobs Ltd., Magic Bricks Reality Services Ltd., Digital Classifieds Ltd.,
Mar 31, 2015
1. Basis of accounting
These financial statements have been prepared under the historical cost
convention, on the accrual basis of accounting and complying with the
accounting standards as prescribed under Section 133 of Companies Act,
2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules,
2014 and generally accepted accounting principles in India, the
provisions of the Act (to the extent notified) and regulations of
Reserve Bank of India to the extent applicable.
2. method of accounting
The company follows the mercantile system of accounting.
3. use of estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
assets and liabilities. The estimates and assumptions used in the
accompanying financial statements are based upon management's evaluation
of the relevant facts and circumstances as of the date of the financial
statements. Actual results may differ from the estimates and
assumptions used in preparing the accompanying financial statements. Any
differences of actual results to such estimates are recognized in the
period in which the results are known / materialized. Examples of such
estimates include future obligations under employee retirement benefit
plans, provision for income taxes.
4. investment
Investments are classified into current investments and non current
investments. Investments that are intended to be held for one year or
more as on the date of Balance Sheet are classified as non current
investments and investments that are intended to be held for less than
one year as on the date of Balance Sheet are classified as current
investments.
Non current investments are valued at cost. Provision for diminution in
value of non current investments is made if in the opinion of
management such a decline is other than temporary.
Current investments are valued at cost or market/fair value, whichever
is lower.
Net asset value of units declared by mutual funds is considered as
market value.
5. inventories
Inventories are valued at cost or Net Realisable Value whichever is
lower.
6. Fixed assets
Fixed Assets are stated at cost less accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any directly
attributable cost of bringing the asset to its working condition for
its intended use.
Profit or loss on disposal of the assets is determined as the difference
between the carrying amount of the assets at the time of the disposal
and the proceeds, and is accounted for in the year of disposal.
7. Depreciation
Depreciation is provided on Written Down Value Method on all assets
except for Immovable Property which is treated as investment on which
depreciation is provided on Straight Line Method. Depreciation is
provided based on useful life of the assets as prescribed in Schedule
II of the Companies Act, 2013. The Company provides pro-rata
depreciation from the date on which asset is acquired / put to use. In
respect of assets sold, pro-rata depreciation is provided up to the
date on which the asset is sold.
8. revenue recognition:
a) Dividend Income is accounted when the right to receive the dividend
is established.
b) Profit earned on sale of Investment is recognized on trade
date/basis. Profit/Loss on sale of investments is determined based on
the weighted average cost of investments sold.
c) All other incomes are accounted for on accrual basis.
d) In case of Non Performing Assets, interest income is recognized on
receipt basis, as per prudential norms issued by Reserve Bank of India
(RBI).
9. Borrowing Cost
Borrowing cost attributable to the acquisition and construction of
qualifying assets are capitalized less as part of the cost of
respective assets up to the date when such asset is ready for its
intended use. Other borrowing cost is charged to revenue.
10. Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the
period determined in accordance with the income- tax law), deferred tax
charge or credit (reflecting the tax effect of timing differences
between accounting income and taxable income for the period).
Current Tax: :
Provision for current tax is made on the basis of estimated taxable
income for the accounting year in accordance with the Income Tax Act,
1961.
Deferred Tax
The deferred tax charge or credit and the corresponding deferred tax
liabilities and assets are recognized using the tax rates that have
been enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the asset can be realized in future; however,
where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of the assets. Deferred tax assets are
reviewed as at each balance sheet date and written down or written-up
to reflect the amount that is reasonable/virtually certain (as the case
may be) to be realized.
11. Retirement Benefit
a. Short term employee benefit is recognized as an expense at
undiscounted amount in the Profit & Loss Account of the year in which
the relevant services is rendered.
B. Retirement Benefit
Provident Fund:
Company's contribution paid/payable for the year on account of
Provident Fund and Family Pension Fund are charged to Profit and Loss
Account.
Gratuity:
Gratuity is post employment benefit and is in the nature of Defined
Benefit Plan. The Liability recognized in the balance sheet in respect
of gratuity is the present value of defined benefit obligation at the
balance sheet date together with the adjustments for unrecognized
actuarial gain or losses and the past service costs. The defined benefit
obligation is calculated at or near the balance sheet date by an
independent actuary using the projected unit credit method.
superannuation:
During the year, the Company has contributed to the Employees
Superannuation Fund as per the LIC Scheme in that behalf.
Leave encashment:
As per company's leave encashment policy employee may encash all
unavailed leaves at the end of the financial year accrued to him/her and
it is not carried forward.
12. Provisions, Contingent Liabilities and Contingent assets
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognized in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an economic benefit will arise, the asset and
related income are recognized in the period in which the change occurs.
Mar 31, 2014
1. Basis of accounting
The accompanying fnancial statements are consistently prepared under
the historical cost convention, on the accrual basis of accounting and
comply with the accounting standards (to the extent applicable) and in
accordance with the generally accepted accounting principles, the
provisions of the Companies Act, 1956 and 2013 and regulations of
Reserve Bank of India to the extent applicable.
2. Method of accounting
The company follows the mercantile system of accounting.
3. Use of estimates
The preparation of the fnancial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
assets and liabilities. The estimates and assumptions used in the
accompanying fnancial statements are based upon management''s evaluation
of the relevant facts and circumstances as of the date of the fnancial
statements. Actual results may differ from the estimates and
assumptions used in preparing the accompanying fnancial statements. Any
differences of actual results to such estimates are recognized in the
period in which the results are known / materialized. Examples of such
estimates include future obligations under employee retirement benefit
plans, provision for income taxes.
4. Investment
Investments are classified into current investments and non current
investments. Investments that are intended to be held for one year or
more as on the date of Balance Sheet are classified as non current
investments and investments that are intended to be held for less than
one year as on the date of Balance Sheet are classified as current
investments.
Non current investments are valued at cost. Provision for diminution in
value of non current investments is made if in the opinion of
management such a decline is other than temporary.
Current investments are valued at cost or market/fair value, whichever
is lower.
Net asset value of units declared by mutual funds is considered as
market value.
5. Inventories
Inventories are valued at cost or Net Realisable Value whichever is
lower.
6. Fixed assets
Fixed Assets are stated at cost less accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any directly
attributable cost of bringing the asset to its working condition for
its intended use.
Profit or loss on disposal of the assets is determined as the difference
between the carrying amount of the assets at the time of the disposal
and the proceeds, and is accounted for in the year of disposal.
7. Depreciation
The Company provides pro-rata depreciation from the date on which asset
is acquired / put to use. In respect of assets sold, pro-rata
depreciation is provided up to the date on which the asset is sold. On
all assets, except as mentioned below, depreciation has been provided
using the Straight-line method at the rates specified in Schedule XIV to
the Companies Act, 1956.
Assets costing Rs. 5,000/- or less are fully depreciated in the year of
purchase.
8. Revenue recognition:
a) Dividend Income is accounted when the right to receive the dividend
is established.
b) Profit earned on sale of Investment is recognized on trade
date/basis. Profit/Loss on sale of investments is determined based on
the weighted average cost of investments sold.
c) All other incomes are accounted for on accrual basis.
d) In case of Non Performing Assets, interest income is recognized on
receipt basis, as per prudential norms issued by Reserve Bank of India
(RBI).
9. Borrowing Cost
Borrowing cost attributable to the acquisition and construction of
qualifying assets are capitalized as part of the cost of respective
assets up to the date when such asset is ready for its intended use.
Other borrowing cost is charged to revenue.
10. Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the
period determined in accordance with the income- tax law), deferred tax
charge or credit (refecting the tax effect of timing differences
between accounting income and taxable income for the period).
Current Tax: :
Provision for current tax is made on the basis of estimated taxable
income for the accounting year in accordance with the Income Tax Act,
1961.
Deferred Tax
The deferred tax charge or credit and the corresponding deferred tax
liabilities and assets are recognized using the tax rates that have
been enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the asset can be realized in future; however,
where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of the assets. Deferred tax assets are
reviewed as at each balance sheet date and written down or written-up
to refect the amount that is reasonable/virtually certain (as the case
may be) to be realized.
11. Retirement benefit
a. Short term employee benefit is recognized as an expense at
undiscounted amount in the Profit & Loss Account of the year in which
the relevant services is rendered.
B. Retirement benefit provident Fund:
Company''s contribution paid/payable for the year on account of
Provident Fund and Family Pension Fund are charged to Profit and Loss
Account.
Gratuity:
Gratuity is post employment benefit and is in the nature of Defined
benefit Plan. The Liability recognized in the balance sheet in respect
of gratuity is the present value of Defined benefit obligation at the
balance sheet date together with the adjustments for unrecognized
actuarial gain or losses and the past service costs. The Defined benefit
obligation is calculated at or near the balance sheet date by an
independent actuary using the projected unit credit method.
Superannuation:
During the year, the Company has contributed to the Employees
Superannuation Fund as per the LIC Scheme in that behalf.
Leave encashment:
As per company''s leave encashment policy employee may encash all
unavailed leaves at the end of the fnancial year accrued to him/her and
it is not carried forward.
12. provisions, Contingent Liabilities and Contingent assets
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
refect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed. Contingent assets are not recognized in the
fnancial statements. However, contingent assets are assessed
continually and if it is virtually certain that an economic benefit will
arise, the asset and related income are recognized in the period in
which the change occurs.
b) Terms/ rights attached to equity shares
The company has one class of equity shares having a par value of Rs. 10
per share. Each holder of equity shares is entitled to one vote per
share. The company declares and pays dividend in Indian Rupees. The
dividend if any proposed by the Board of Director is subject to the
approval of the share holders in the ensuing Annual General Meeting.
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.
c) shares held by holding/ ultimate holding company and / or their
subsidiaries/ associates
Out of the equity shares issued by the company, shares held by its
holding company, ultimate holding company and their
subsidiaries/associates are as follows :
19. Contingent Liabilities and Commitments
i) Claims not acknowledged as debts Rs. 34.28 lakhs. (Previous year
Rs.34.28 lakhs)
ii) Tax Demand
a) Income Tax
The income tax assessment for the assessment year 1993-94 was completed
resulting in demand of Rs. 113.06 Lakhs, (Previous year Rs.113.06
lakhs) against which the Company is in appeal. The company has
deposited the amount in dispute with the authorities.
b) Sales Tax
Sales tax assessment under the Bombay Sales Tax Act for the assessment
year 1998-99, was completed in respect of Bombay Sales Tax and Lease
Tax and resulted in demand for Rs.3.92 lakhs and Rs. 15.67 lakhs
respectively (Previous year Rs. 3.92 lakhs and Rs. 15.67 lakhs
respectively). The company has preferred an appeal against the orders
with Deputy Commissioner.
Mar 31, 2012
1. Basis of Accounting
The accompanying financial statements are consistently prepared under
the historical cost convention, on the accrual basis of accounting and
comply with the accounting standards (to the extent applicable) and in
accordance with the generally accepted accounting principles, the
provisions of the Companies Act, 1956 and regulations of Reserve Bank
of India to the extent applicable.
2. Method of Accounting
The company follows the mercantile system of accounting.
3. Use of Estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
assets and liabilities. The estimates and assumptions used in the
accompanying financial statements are based upon management's
evaluation of the relevant facts and circumstances as of the date of
the financial statements. Actual results may differ from the estimates
and assumptions used in preparing the accompanying financial
statements. Any differences of actual results to such estimates are
recognized in the period in which the results are known/materialized.
Examples of such estimates include future obligations under employee
retirement benefit plans, provision for income taxes.
4. Investment
Investments are classified into current investments and non current
investments. Investments that are intended to be held for one year or
more as on the date of Balance Sheet are classified as non current
investments and investments that are intended to be held for less than
one year as on the date of Balance Sheet are classified as current
investments.
Non current investments are valued at cost. Provision for diminution in
value of non current investments is made if in the opinion of
management such a decline is other than temporary.
Current investments are valued at cost or market/fair value, whichever
is lower.
Net asset value of units declared by mutual funds is considered as
market value.
5. Inventories
Inventories are valued at cost or Net Realisable Value whichever is
lower.
6. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any directly
attributable cost of bringing the asset to its working condition for
its intended use.
Profit or loss on disposal of the assets is determined as the
difference between the carrying amount of the assets at the time of the
disposal and the proceeds, and is accounted for in the year of
disposal.
SIGNIFICANT ACCOUNTING POLICIES
7. Depreciation
The Company provides pro-rata depreciation from the date on which asset
is acquired/put to use. In respect of assets sold, prorate
depreciation is provided up to the date on which the asset is sold. On
all assets, except as mentioned below, depreciation has been provided
using the Straight-line method at the rates specified in Schedule XIV
to the Companies Act, 1956.
Assets costing Rs. 5,000/- or less are fully depreciated in the year of
purchase.
8. Revenue Recognition
a) Dividend Income is accounted when the right to receive the dividend
is established.
b) Profit/loss on sale of Investment is determined based on the
Weighted Average cost of the investments sold.
c) All expenses and other income are accounted for on accrual basis.
d) In case of Non Performing Assets, interest income is recognized on
receipt basis, as per prudential norms issued by Reserve Bank of India
(RBI).
9. Borrowing Cost
Borrowing cost attributable to the acquisition and construction of
qualifying assets are capitalized as part of the cost of respective
assets upto the date when such asset is ready for its intended use.
Other borrowing cost are charged to revenue.
10. Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the
period determined in accordance with the income-tax law), deferred tax
charge or credit (reflecting the tax effect of timing differences
between accounting income and taxable income for the period).
Current Tax
Provision for current tax is made on the basis of estimated taxable
income for the accounting years in accordance with the Income Tax Act,
1961.
Deferred Tax
The deferred tax charge or credit and the corresponding deferred tax
liabilities and assets are recognized using the tax rates that have
been enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the asset can be realized in future; however,
where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of the assets. Deferred tax assets are
reviewed as at each balance sheet date and written down or written-up
to reflect the amount that is reasonable/virtually certain (as the case
may be) to be realized.
11. Retirement Benefit
A. Short term employee benefit are recognized as an expenses at
undiscounted amount in the Profit & Loss Account of the year in which
the relevant services is rendered.
B. Retirement Benefit
Provident Fund :
Company's contribution paid/payable for the year on account of
Provident Fund and Family Pension Fund are charged to Profit and Loss
Account.
Gratuity:
Gratuity is post employment benefit and is in the nature of Defined
Benefit Plan. The Liability recognized in the balance sheet in respect
of gratuity is the present value of defined benefit obligation at the
balance sheet date together with the adjustments for unrecognized
actuarial gain or losses and the past service costs. The defined
benefit obligation is calculated at or near the balance sheet date by
an independent actuary using the projected unit credit method.
Superannuation:
During the year, the Company has contributed to the Employees
Superannuation Fund as per the LIC Scheme in that behalf.
Leave Encashment:
As per company's leave encashment policy employee may encash all
unavailed leaves at the end of the financial year accrued to him/her
and it is not carried forward.
12. Provisions, Contingent Liabilities and Contingent Assets
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognized in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an economic benefit will arise, the asset and
related income are recognized in the period in which the change occurs.
Mar 31, 2011
1. Basis of Accounting
The accompanying financial statements are consistently prepared under
the historical cost convention, on the accrual basis of accounting and
comply with the accounting standards (to the extent applicable) and in
accordance with the generally accepted accounting principles, the
provisions of the Companies Act, 1956 and regulations of Reserve Bank
of India to the extent applicable.
2. Method of Accounting
The company follows the mercantile system of accounting.
3. Use of Estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
assets and liabilities. The estimates and assumptions used in the
accompanying financial statements are based upon management's
evaluation of the relevant facts and circumstances as of the date of
the financial statements. Actual results may differ from the estimates
and assumptions used in preparing the accompanying financial
statements. Any differences of actual results to such estimates are
recognized in the period in which the results are known/ materialized.
Examples of such estimates include future obligations under employee
retirement benefit plans, provision for income taxes.
4. Investment
Investments are classified into long-term investments and current
investments. Investments that are intended to be held for one year or
more are classified as long-term investments and investments that are
intended to be held for less than one year are classified as current
investments.
Long term investments are valued at cost. Provision for diminution in
value of long term investments is made if in the opinion of management
such a decline is other than temporary.
Current investments are valued at cost or market/fair value, whichever
islower.
Net asset value of units declared by mutual funds is considered at
market value.
5. Inventories
Inventories are valued at cost or fair value whichever is lower.
6. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any directly
attributable cost of bringing the asset to its working condition for
its intended use.
Profit or loss on disposal of the assets is determined as the
difference between the carrying amount of the assets at the time of the
disposal and the proceeds, and is accounted .for in the year of
disposal.
7. Depreciation
The Company provides pro-rata depreciation from the date on which asset
is acquired / put to use. In respect of assets sold. prorata
depreciation is provided up to the date on which the asset is sold. On
all assets, except as mentioned below, depreciation has been provided
using the Straight-line method at the rates specified in Schedule XIV
to the Companies Act, 1956.
Assets costing Rs. 5,000/- or less are fully depreciated in the year of
purchase.
8. Revenue Recognition :
a) Dividend Income is accounted when the right to receive the dividend
is established.
b) Profit/loss on sale of investment is determined based on the
Weighted Average cost of the investments 'sold.
c) All expenses and other income are accounted for on accrual basis.
d) In case of Non Performing Assets, interest income is recognized on
receipt basis, as per prudential norms issued by Reserve Bank of India
(RBI).
9. Borrowing Cost
Borrowing cost attributable to the acquisition and construction of
qualifying assets are capitalized as part of the cost of respective
assets upto the date when such asset is ready for its intended use.
Other borrowing cost are charged to revenue.
10. Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the
period determined in accordance with the income-tax law), deferred tax
charge or credit (reflecting the tax effect of timing differences
between accounting income and taxable income for the period) and fringe
benefit tax.
Current Tax: :
Provision for current tax is made on the basis of estimated taxable
income for the accounting year in accordance with the Income Tax Act,
1961.
Deferred Tax
The deferred tax charge or credit and the corresponding deferred tax
liabilities and assets are recognized using the tax rates that have
been enacted or substantively enacted by the balance sheet, date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the asset can be realized in future; however,
where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of the assets. Deferred tax assets are
reviewed as at each balance sheet date and written down or written-up
to reflect the amount that is reasonable/virtually certain (as the case
may be) to be realized.
11. Retirement Benefit
A. Short term employee benefit are recognized as an expenses at
undiscounted amount in the Profit & Loss Account of the year in which
the relevant services are rendered.
B. Retirement Benefit
Provident Fund :
Company's contribution paid/payable for the year on account of
Provident Fund and Family Pension Fund are charged to Profit and Loss
Account.
Gratuity:
Gratuity is post ernployment benefit and is in the nature of Defined
Benefit Plan. The Liability recognized in the balance sheet in respect
of gratuity is the present value of defined benefit obligation at the
balance sheet date together with the adjustments for unrecognized
actuarial gain or losses and the past service costs. The defined
benefit obligation is calculated at or near the balance sheet date by
an independent actuary using the projected unit credit method.
Superannuation:
During the year, the Company has contributed to the Employees
Superannuation Fund as per the LIC Scheme in that behalf.
Leave Encashment:
As per company's leave encashment policy employee may encash all
unavailed leaves at the end of the financial year accrued to him/her
and it is not carried Forward.
12. Provisions, Contingent Liabilities and Contingent Assets
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may. but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that
the outflow of resources would be required to settle the obligation,
the provision is reversed.
Contingent assets are not recognized in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an economic benefit will arise, the asset and
related income are recognized in the period in which the change occurs.
Mar 31, 2010
I. Basis of Accounting
The accompanying financial statements are consistently prepared under
the historical cost convention, on the accrual basis of accounting and
comply with the accounting standards issued by the Institute of
Chartered Accountants of India (to the extent applicable) and in
accordance with the generally accepted accounting principles, the
provisions of the Companies Act, 1956 and regulations of Reserve Bank
of India to the extent applicable.
ii. Use of estimates:
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
assets and liabilities. The estimates and assumptions used in the
accompanying financial statements are based upon managementÃs
evaluation of the relevant facts and circumstances as of the date of
the financial statements. Actual results may differ from the estimates
and assumptions used in preparing the accompanying financial
statements. Any differences of actual results to such estimates are
recognized in the period in which the results are known / materialized.
iii. Investments
Investments are classified into long-term investments and current
investments. Investments that are intended to be held for one year or
more are classified as long-term investments and investments that are
intended to be held for less than one year are classified as current
investments.
Long term investments are valued at cost. Provision for diminution in
value of long term investments is made if in the opinion of management
such a decline is other than temporary.
Current investments are valued at cost or market/fair value, whichever
is lower.
Net asset value of units declared by mutual funds is considered at
market value.
iv. Stock of Securities
Stocks of Securities are valued at cost or fair value whichever is
lower.
v. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any directly
attributable cost of bringing the asset to its working condition for
its intended use.
Profit or loss on disposal of the assets is determined as the
difference between the carrying amount of the assets at the time of the
disposal and the proceeds, and is accounted for in the year of
disposal.
vi. Depreciation
The Company provides pro-rata depreciation from the date on which asset
is acquired / put to use. In respect of assets sold, prorate
depreciation is provided up to the date on which the asset is sold. On
all assets, except as mentioned below, depreciation has been provided
using the Straight-line method at the rates specified in Schedule XIV
to the Companies Act, 1956.
Assets costing Rs. 5,000/- or less are fully depreciated in the year of
purchase.
vii. Revenue Recognition
In case of Non Performing Assets, interest income is recognized on
receipt basis, as per prudential norms issued by Reserve Bank of India
(RBI).
Dividend is accounted as and when the right to receive income is
established.
Profit/loss on sale of Investment is determined based on the Weighted
Average cost of the investments sold.
Other income is booked on accrual basis.
viii. Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the
period determined in accordance with the income-tax law), deferred tax
charge or credit (reflecting the tax effect of timing differences
between accounting income and taxable income for the period) and fringe
benefit tax.
Current Tax:
Provision for current tax is made on the basis of estimated taxable
income for the accounting year in accordance with the Income Tax Act,
1961.
Deferred Tax
The deferred tax charge or credit and the corresponding deferred tax
liabilities and assets are recognized using the tax rates that have
been enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the asset can be realized in future; however,
where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of the assets. Deferred tax assets
are reviewed as at each balance sheet date and written down or
written-up to reflect the amount that is reasonable/virtually certain
(as the case may be) to be realized.
ix. Employee Benefits
Provident Fund:
CompanyÃs contribution paid/payable for the year on account of
Provident Fund and Family Pension Fund are charged to Profit and Loss
Account.
Gratuity:
Gratuity is post employment benefit and is in the nature of Defined
Benefit Plan. The Liability recognized in the balance sheet in respect
of gratuity is the present value of defined benefit obligation at the
balance sheet date together with the adjustments for unrecognized
actuarial gain or losses and the past service costs. The defined
benefit obligation is calculated at or near the balance sheet date by
an independent actuary using the projected unit credit method.
Superannuation:
During the year, the Company has contributed to the Employees
Superannuation Fund as per the LIC Scheme in that behalf.
Leave Encashment:
As per companyÃs leave encashment policy employee may encash all
unavailed leaves at the end of the financial year accrued to him.
x. Provisions and contingencies:
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognized in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an economic benefit will arise, the asset and
related income are recognized in the period in which the change occurs.