Mar 31, 2018
Notes: SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE ACCOUNTS (A) SIGNIFICANT ACCOUNTING POLICIES
1. Basis of preparation of financial statements
The accompanying financial statements are prepared under the historical cost convention, in accordance with Generally Accepted Accounting Principles in India comprising the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the ¦provisions of the Companies Act, 2013, on the accrual basis, as adopted consistently by the Company.
2. Use of estimates
The preparation of financial statements in accordance with Generally Accepted Accounting Principles requires the management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses including the disclosures of contingent assets and liabilities as of the date of the financial statements. 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 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.
3. Fixed Assets and Depreciation
Fixed Assets are stated at cost less accumulated depreciation. The cost of the Fixed Assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use. 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 o the date on which the asset is sold. On all assets depreciation has been provided using the Straight Line Method at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013.
4. Borrowing Costs
Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to the Profit and Loss Account
5. Investments
Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other Investments are classified as Long Term Investments. Investments are further classified into Investments in Unquoted shares, Investments in Quoted shares, Investment in Partnership Firm and Investment in Mutual Fund.
Long term investments are stated at cost. However, provision for diminution in value is made to recognize a decline other than temporary, if any in the value of investments. Current investments are valued at lower of cost and market value. Silver has been valued at Cost.
6. Revenue Recognition
Income from operations comprises profit / loss on sale of investments and derivative instruments.
Dividend income is recognized when the right to receive payment is established. Interest on fixed deposits is recognized on time proportion basis.
In respect of other heads of income the company accounts the same on accrual basis.
7. Employee Benefits
Defined Contribution Schemes:
The Company has Defined Contribution Plans for post-employment benefits namely Provident Fund that is recognized by the Income Tax Authorities.
Under the Provident Fund Plan, the company to the Government administered provident fund on behalf of its employees and has no further obligation beyond making its contribution.
The company contributes to state plans namely Employees State Insurance Fund and Employeesâ Pension Scheme and has no further obligation beyond making its contribution.
The companyâs contribution to the above funds is charged to revenue every year.
Defined Benefit Plans:
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 gains or losses and the past service cost. An independent actuary calculates the defined benefit obligation at the balance sheet date. Actuarial Gains or losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognized immediately in the Profit and Loss account as Income or Expense.
Compensated Absences:
As per the policy of the company, an employee cannot carry forward leave. The accumulated leave has to be enchased annually. As no obligation arises on account of employees rendering service that increases their entitlement to future compensated absences, the amount of compensated absence paid is charged to the Profit and Loss account.
Termination benefits are recognized as an expense as and when incurred.
8. Taxes on Income
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 after considering tax allowances and exemptions, if any.
A 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 charge or credit is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are re assessed for the appropriateness of their respective carrying values at each balance sheet date.
9. Impairment of Assets
the carrying value of fixed assets is reviewed for impairment at each Balance Sheet date to determine '' whether there is any indication of impairment.
If the carrying value of the fixed assets exceeds its estimated recoverable amount, an impairment loss is recognized in the Profit & Loss account and the fixed assets are written down to their recoverable amount.
10. Foreign Currency Transactions
Transactions in the foreign currency, which are of revenue nature, are accounted for at the exchange rate prevailing on the date of transaction. Current liabilities and/or assets are translated at the yearend rate. The difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation at the end of the year is recognized as income or expenses as the case may be.
11. Provisions, Contingent Liabilities and Contingent Assets
The company recognizes a provision when there is a 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 of a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resource is remote, no provision or disclosure is made. Contingent liabilities are disclosed by way of a note.
Contingent assets are not recognized. 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.
12. Prior Period
The Income or expense which arise in the current period as a result of errors and omissions in preparation of financial statement of one or more prior period are considered as prior period items and are shown separately in the financial statements.
13. Cash Flow
Cash Flows are reported using the Indirect Method whereby Profit before tax is adjusted for the effects of transaction of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular operating, financing and investing activities of the company are segregated.
Mar 31, 2016
1. Basis of preparation of financial statements
The accompanying financial statements are prepared under the historical cost convention, in accordance with Generally Accepted Accounting Principles in India comprising the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, on the accrual basis, as adopted consistently by the Company.
2. Use of estimates
The preparation of financial statements in accordance with Generally Accepted Accounting Principles requires the& management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses including the disclosures of contingent assets and liabilities as of the date of the financial statements, 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 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
3. Fixed Assets and Depreciation
Fixed Assets are stated at cost less accumulated depredation The cost of the Fixed Assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use. The company provides pro-rata depreciation from the date on which assets acquired / put to use In respect of assets sold, pro rata depreciation is provided up o the date on which the asset is sold. Or- all assets depreciation has been provided using the Straight Line Method at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013.
4. Borrowing Costs
Interest and other costs in connection with the borrowing of the funds to the extent related I attributed to the acquisition of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to the Profit and Loss Account
5. Investments
Investments that are readily realizable and intended to be held for not more than a year are classified as current investments, All other Investments are classified as Long Term Investments, investments are further classified into Investments in Unquoted shares. Investments in Quoted shares. Investment in Partnership Firm and Investment in Mutual Fund. Long term investments are stated at cost. However, provision for diminution in value is made to recognize a decline other than temporary, if any in the value of investments. Current investments are valued at lower of cost and market value. â
6- Revenue Recognition
Income from operations comprises profit I loss or sale of investments and derivative instruments. Dividend Income is recognized when the right to receive payment is established, interest on fixed deposits is recognized on time proportion basis. In respect of other heads of income the company accounts the same on accrual basis.
7. Employee Benefits
Defined Contribution Schemes:
The Company has Defined Contribution Plans for post employment benefits namely Provident Fund that is recognized by the Income Tax Authorities.
Under the Provident Fund Plan, the company to the Government administered provident fund on behalf of its employees and has no further obligation beyond making its contribution.
The company contributes to state plans namely Employees State Insurance Fund and Employees Pension Scheme and has no further obligation beyond making its contribution.
The company''s contribution to the above funds is charged to revenue every year.
Defined Benefit Plans:
Gratuity is post employment benefit and is in the nature of Defined Benefit Plan, ''he 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 gains or losses and the past service cost. An independent actuary calculates the defined benefit obligation at the balance sheet date. Actuarial Gains or losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognized immediately in the Profit and Loss account as Income or Expense.
Compensated Absences:
As per the policy of the company, an employee cannot carry forward leave. The accumulated leave has to be enchased annually. As no obligation arises on account of employees rendering service that increases their entitlement to future compensated absences, the amount of compensated absence paid is charged to the Profit and Loss account.
Termination benefits are recognized as an expense as and when incurred.
8. Taxes on Income
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 after considering lax allowances and exemptions, if any.
Deferred Tax:
A 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 charge or credit is recorded For timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount. Deferred tax assets are re cognized only if there is reason able certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are re assessed for the appropriateness of the irrespective carrying values at each balance sheet date.
9. Impairment of Assets
The carrying value of fixed assets is reviewed for impairment 31 each Balance Sheet dale to determine whether there is any indication of impairment.
If the earning value of the fixed assets exceeds its estimated recoverable amount, an impairment loss is recognized in the Profit & Loss account and the fixed assets 5re written down to their recoverable amount.
10. Foreign Currency Transactions
Transactions in the foreign currency, which are of revenue nature, are accounted for at the exchange rate prevailing on the date of transaction. Current liabilities and/or assets are translated at the yearend rate. The difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation at the end to the year is recognized as income or expenses as the case maybe.
11. Provisions, Contingent Liabilities and Contingent Assets
The company recognizes a provision when there is a 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 of a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources. When there is a Possible obligation or a present obligation that the likelihood of outflow of resource is remote, no provision or disclosure is made. Contingent! liabilities are disclosed by way of a note.
Contingent assets are not recognized. 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.
12. Prior Period
The income or expense which arise in :he current period as a result of errors and omissions in preparation of financial statement of one or more prior period are considered as prior period items and are shown separately ''n the financial statements
13. Cash Flow
Cash Flows are reported using the Indirect Method whereby Profit before tax is adjusted for the effects Of -transaction of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular operating, financing and investing activities of the company are segregated,
Mar 31, 2014
1. Basis of preparation of financial statements
The accompanying financial statements are prepared under the historical
cost convention, in accordance with Generally Accepted Accounting
Principles in India comprising the mandatory accounting standards
issued by the Institute of Chartered Accountants of India and the
provisions of the Companies Act, 1956, on the accrual basis, as adopted
consistently by the Company.
2. Use of estimates
The preparation of financial statements in accordance with Generally
Accepted Accounting Principles requires the management to make e
stimates and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses including the disclosures of
contingent assets and liabilities as of the date of the financial
statements. 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 financial
statements. Actual results may differ from the estimates and
assumptions used in preparing the accompanying fin ancial statements.
Any differences of actual results to such estimates are recognized in
the period in which the results are known / materialized.
3. Fixed Assets and Depreciation
Fixed Assets are stated at cost less accumulated depreciation. The cost
of the Fixed Assets comprises purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.
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 o the date on which the asset is sold. On
all assets depreciation has been provided using the Straight Line
Method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
Depreciation on assets whose actual cost is not more than five thousand
rupees has been provided at the rate of 100%.
4. Borrowing Costs
Interest and other costs in connection with the borrowing of the funds
to the extent related / attr ibuted to the acquisition of qualifying
fixed assets are capitalized upto the date when such assets are ready
for its intended use and other borrowing costs are charged to the
Profit and Loss Account
5. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classi fied as current investments. All other
Investments are classified as Long Term Investments. Investments are
further classified into Investments in Unquoted shares, Investments in
Quoted shares, Investment in Partnership Firm and Investment in Mutual
Fund.
Long term investments are stated at cost. However, provision for
diminution in value is made to recognize a decline other than
temporary, if any in the value of investments. Current investments a re
valued at lower of cost and market value.
6. Revenue Recognition
Income from operations comprises profit / loss on sale of investments
and derivative instruments. Dividend Income is recognized when the
right to receive payment is established.
Interest on fixed deposits is recognized on time proportion basis.
In respect of other heads of income the company accounts the same on
accrual basis.
7. Employee Benefits
Defined Contribution Schemes:
The Company has Defined Contribution Plans for post employment benefits
namely Provident Fund that is recognized by the Income Tax Authorities.
Under the Provident Fund Plan, the company to the Government
administered provident fund on behalf ofits employees and has no
further obligation beyond making its contribution.
The company contributes to state plans namely Employees State Insurance
Fund and Employees Pension Scheme and has no further obligation beyond
making its contribution.
The company''s contri bution to the above funds is charged to revenue
every year.
Defined Benefit Plans:
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 gains or losses and the past service cost. An independent
actuary calculates the defined bene fit obligation at the balance sheet
date. Actuarial Gains or losses comprise experience adjustments and the
effects of changes in actuarial assumptions and are recognized
immediately in the Profit and Loss account as Income or Expense.
Compensated Absences:
As per the policy of the company, an employee cannot carry forward
leave. The accumulated leave has to be enchased annually. As no
obligation arises on account of employees rendering service that
increases their entitlement to future compensated absences, the amount
of compensated absence paid is charged to the Profit and Loss account.
Termination benefits are recognized as an expense as and when incurred.
8. Taxes on Income
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 ti ming differences
between accounting income and taxable income for the period).
Current Tax:
Provision for current tax is made on the basis of estimated taxable i
ncome for the accounti ng yea r in accordance with the Income Tax Act
1961 after considering tax allowances and exemptions, if any.
Deferred Tax:
A 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 charge or credit is recorded for timing differences,
namely the differences that originate in one accounting period and
reverse in another, based on the tax effect of the aggregate amount.
Deferred tax assets are recognized only if there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized and are
re-assessed for the appropriateness of their respective carrying values
at each balance sheet date.
9. Impairment ofAssets
The carrying value of fixed assets is reviewed for impairment at each
Balance Sheet date to determine whether there is any i ndication of
impairment.
If the carrying value of the fixed assets exceeds its estimated
recoverable amount, an impairment loss is recognized in the Profit &
Loss account and the fixed asset are written down to their recoverable
amount.
10. Foreign Currency Transactions
Transactions in the foreign currency, which are of revenue nature, are
accounted for at the exchange rate prevailing on the date of
transaction. Current liabilities and/or assets are translat ed at the
year-end rate. The difference between the rate prevailing on the date
of transaction and on the date of settlement as also on translation at
the end of the year is recognized as income or expenses as the case may
be.
11. Provisions, Contingent Liabilities and Contingent Assets
The company recognizes a provision wh en there is a 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 of a contingent liability is made when there is
a possible obligati on or a present obligation that probably will not
require an outflow of resources. When there is a possib le obligation
or a present obligation that the likelihood of outflow of resource is
remote, no provison or disclosure is made. Contingent liabilities are
disclosed by way of a note.
Contingent assets are not recognized. However, contingent assets are
assessed continually and ifit is virtually certain that an economic
benefit will arise, the asset and related income are recognized in the
period in which the change occurs.
12. Prior Period
The Income or expense which arise in the current period as a result of
errors and omissions in preparation of financial statement of one or
more prior period are considered as prior period items and are shown
separately in the financial statements.
13. Cash Flow
Cash Flows are reported using the Indirect Method whereby Profit before
tax is adjusted for the effects of transaction of non cash nature and
any deferrals or accruals of past or future cash receipts or payments.
The cash flows from regular operating, financing and investing
activities of the company are segregated.
Mar 31, 2012
1. Basis of preparation of financial statements
The accompanying financial statements are prepared under the historical
cost convention, in accordance with Generally Accepted Accounting
Principles in India comprising the mandatory accounting standards
issued by the Institute of Chartered Accountants of India and the
provisions of the Companies Act, 1956, on the accrual basis, as adopted
consistently by the Company.
2. Use of estimates
The preparation of financial statements in accordance with Generally
Accepted Accounting Principles requires the management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses including the disclosures of
contingent assets and liabilities as of the date of the financial
statements. 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 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.
3. Fixed Assets and Depreciation
Fixed Assets are stated at cost less accumulated depreciation. The cost
of the Fixed Assets comprises purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.
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 o the date on which the asset is sold. On
all assets depreciation has been provided using the Straight Line
Method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
Depreciation on assets whose actual cost is not more than five thousand
rupees has been provided at the rate of 100%.
4. Borrowing Costs
Interest and other costs in connection with the borrowing of the funds
to the extent related / attributed to the acquisition of qualifying
fixed assets are capitalized upto the date when such assets are ready
for its intended use and other borrowing costs are charged to the
Profit and Loss Account
5. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
Investments are classified as Long Term Investments. Investments are
further classified into Investments in Unquoted shares, Investments in
Quoted shares, Investment in Partnership Firm and Investment in Mutual
Fund.
Long term investments are stated at cost. However, provision for
diminution in value is made to recognize a decline other than
temporary, if any in the value of investments. Current investments are
valued at lower of cost and market value.
6. Revenue Recognition
Income from operations comprises profit / loss on sale of investments
and derivative instruments.
Dividend Income is recognized when the right to receive payment is
established.
Interest on fixed deposits is recognized on time proportion basis.
In respect of other heads of income the company accounts the same on
accrual basis.
7. Employee Benefits Defined Contribution Schemes:
The Company has Defined Contribution Plans for post employment benefits
namely Provident Fund that is recognized by the Income Tax Authorities.
Under the Provident Fund Plan, the company to the Government
administered provident fund on behalf of its employees and has no
further obligation beyond making its contribution.
The company contributes to state plans namely Employees State Insurance
Fund and Employees Pension Scheme and has no further obligation beyond
making its contribution.
The company's contribution to the above funds is charged to revenue
every year.
Defined Benefit Plans:
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 gains or losses and the past service cost. An independent
actuary calculates the defined benefit obligation at the balance sheet
date. Actuarial Gains or losses comprise experience adjustments and the
effects of changes in actuarial assumptions and are recognized
immediately in the Profit and Loss account as Income or Expense.
Compensated Absences:
As per the policy of the company, an employee cannot carry forward
leave. The accumulated leave has to be enchased annually. As no
obligation arises on account of employees rendering service that
increases their entitlement to future compensated absences, the amount
of compensated absence paid is charged to the Profit and Loss account.
Termination benefits are recognized as an expense as and when incurred.
8. Taxes on Income
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 after considering tax allowances and exemptions, if any.
Deferred Tax:
A 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 charge or credit is recorded for timing differences,
namely the differences that originate in one accounting period and
reverse in another, based on the tax effect of the aggregate amount.
Deferred tax assets are recognized only if there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized and are
re-assessed for the appropriateness of their respective carrying values
at each balance sheet date.
9. Impairment of Assets
The carrying value of fixed assets is reviewed for impairment at each
Balance Sheet date to determine whether there is any indication of
impairment.
If the carrying value of the fixed assets exceeds its estimated
recoverable amount, an impairment loss is recognized in the Profit &
Loss account and the fixed assets are written down to their recoverable
amount.
10. Foreign Currency Transactions
Transactions in the foreign currency, which are of revenue nature, are
accounted for at the exchange rate prevailing on the date of
transaction. Current liabilities and/or assets are translated at the
year-end rate. The difference between the rate prevailing on the date
of transaction and on the date of settlement as also on translation at
the end of the year is recognized as income or expenses as the case may
be.
11. Provisions, Contingent Liabilities and Contingent Assets
The company recognizes a provision when there is a 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 of a contingent liability is made when there
is a possible obligation or a present obligation that probably will not
require an outflow of resources. When there is a possible obligation or
a present obligation that the likelihood of outflow of resource is
remote, no provision or disclosure is made. Contingent liabilities are
disclosed by way of a note.
Contingent assets are not recognized. 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.
12. Prior Period
The Income or expense which arise in the current period as a result of
errors and omissions in preparation of financial statement of one or
more prior period are considered as prior period items and are shown
separately in the financial statements.
13. Cash Flow
Cash Flows are reported using the Indirect Method whereby Profit before
tax is adjusted for the effects of transaction of non cash nature and
any deferrals or accruals of past or future cash receipts or payments.
The cash flows from regular operating, financing and investing
activities of the company are segregated.
Mar 31, 2010
1. Basis of preparation of financial statements
The accompanying financial statements are prepared under the historical
cost convention, in accordance with Generally Accepted Accounting
Principles in India comprising the mandatory accounting standards
issued by the Institute of Chartered Accountants of India and the
provisions of the Companies Act, 1956, on the accrual basis, as adopted
consistently by the Company.
2. Use of estimates
The preparation of financial statements in accordance with Generally
Accepted Accounting Principles requires the management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses including the disclosures of
contingent assets and liabilities as of the date of the financial
statements. The estimates and assumptions used in the accompanying
financial statements are based upon managements evaluation of die
relevant facts and circumstances as of the date of 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.
3. Fixed Assets and Depreciation
Fixed Assets are stated at cost less accumulated depreciation. The cost
of the Fixed Assets comprises purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.
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 o the date on which the asset is sold. On
all assets depreciation has been provided using the Straight Line
Method at the rates and in the manner prescribed in Schedule XTV to the
Companies Act, 1956.
Depreciation on assets whose actual cost is not more than five thousand
rupees has been provided at the rate of 100%.
4. Borrowing Costs
Interest and other costs in connection with the borrowing of the funds
to the extent related / attributed to the acquisition of qualifying
fixed assets are capitalized upto the date when such assets are ready
for its intended use and otiier borrowing costs are charged to die
Profit and Loss Account.
5. Investments
Investments are stated at cost.
6. Revenue Recognition
Income from operations comprises profit / loss on sale of investments
and derivative instruments.
Dividend Income is recognized when the right to receive payment is
established.
Interest on fixed deposits is recognized on time proportion basis.
In respect of other heads of income the company accounts the same on
accrual basis.
7. Employee Benefits
Defined Contribution Schemes:
The Company has Defined Contribution Plans for post employment benefits
namely Provident Fund that is recognized by the Income Tax Authorities.
Under the Provident Fund Plan, the company to the Government
administered provident fund on behalf of its employees and has no
further obligation beyond making its contribution.
The company contributes to state plans namely Employees State Insurance
Fund and Employees Pension Scheme and has no further obligation beyond
making its contribution.
The companys contribution to the above funds is charged to revenue
every year.
Defined Benefit Plans:
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 gains or losses and the past service cost. An independent
actuary calculates the defined benefit obligation at the balance sheet
date. Actuarial Gains or losses comprise experience adjustments and the
effects of changes in actuarial assumptions and are recognized
immediately in the Profit and Loss account as Income or Expense.
Compensated Absences:
As per the policy of the company, an employee cannot carry forward
leave. The accumulated leave has to be enchased annually. As no
obligation arises on account of employees rendering service that
increases their entitlement to future compensated absences, die amount
of compensated absence paid is charged to die Profit and Loss account.
Termination benefits are recognized as an expense as and when incurred.
8. Taxes on Income
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 after considering tax allowances and exemptions, if any.
Deferred Tax:
A 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 charge or credit is recorded for timing differences,
namely the differences that originate in one accounting period and
reverse in another, based on the tax effect of the aggregate amount.
Deferred tax assets are recognized only if there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized and are
re-assessed for the appropriateness of their respective carrying values
at each balance sheet date.
9. Impairment of Assets
The carrying value of fixed assets is reviewed for impairment at each
Balance Sheet date to determine whether there is any indication of
impairment.
If the carrying value of the fixed assets exceeds its estimated
recoverable amount, an impairment loss is recognized in the Profit &
Loss account and the fixed assets are written down to their recoverable
amount.
10. Foreign Currency Transactions
Transactions in the foreign currency, which are of revenue nature, are
accounted for at the exchange rate prevailing on the date of
transaction. Current liabilities and/or assets are translated at the
year-end rate. The difference between the rate prevailing on the date
of transaction and on the date of settlement as also on translation at
the end of the year is recognized as income or expenses as the case may
be.
11. Provisions, Contingent Liabilities and Contingent Assets
The company recognizes a provision when there is a 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 of a contingent liability is made when mere is
a possible obligation or a present obligation that probably will not
require an outflow of resources. When mere is a possible obligation or
a present obligation that die likelihood of outflow of resource is
remote, no provision or disclosure is made. Contingent liabilities are
disclosed by way of a note.
Contingent assets are not recognized. 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.
12. Prior Period
The Income or expense which arise in the current period as a result of
errors and omissions in preparation of financial statement of one or
morepriorperiod are considered as prior period items and are shown
separately in the financial statements.
13. Cash Flow
Cash Flows are reported using the Indirect Method whereby Profit before
tax is adjusted for the effects of transaction of non cash nature and
any deferrals or accruals of past or future cash receipts or payments.
The cash flows from regular operating, financing and investing
activities of the company are segregated.