SIGNIFICANT ACCOUNTING POLICIES &. NOTES ON ACCOUNTS A. SIGNIFICANT ACCOUNTING POLICIES 1. Basis of Preparation of Financial Statements The financial Statements have been brpared to comply with the generally accepted accounting principles in India, including the Accounting Standard notified under the relevant, provision of the Companies Act, 2013. The financial statements are brp fired on accrual basis under the historical cost convention. 2. Use of Estimates The brparation of financial statements require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period hi which the results are known /materialized 3. Fixed Assets Fixed assets are stated at cost. All cost attributable to bring the fixed assets to a working condition is capitalized. 4. Debrciation Debrciation on fixed assets is provided on Written down Value method in accordance with the Schedule II to the Companies Act, 2013. 5. Impairment of Assets An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged fur when asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. 6 . Investments Investments that are intended to be held for more than a year from the date of acquisitions are classified as Long Term Investments and are carried at cost, Provision for diminution in value of long term investments 13 made only if, such a decline is other than temporary in nature in opinion of management. Current Investments are stated as cost or fair market value whichever is lower. Inventory- consists of shares and securities purchased for trading purposes. These are valued at lover of cost and net realizable value. Cost is computed on FIFO basis. 8. Revenue Recognition Interest income is accounted on accrual basis. Dividend income is recognised on receipt basis. Realized gains and losses in respect of shares & securities and units of mutual funds are calculated as the difference between die net sales proceeds and their cost.. Transaction in respect of dealing in share and securities are recognised on trade date*. 9. Provision for Current and Deferred Tax Provision for current tax is made after taking into consideration benefits admissible under die provisions of die Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using die tax rates and laws chat are enacted or substantively enacted as on the balance sheet dare. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable /virtual certainty' that die asset will be realized in future. 10. Provision, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimate in measurement are recognized when there, is a brsent obligation as a result of past events and it is probable that there -will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets arc neither recognized nor disclosed in the financial statements. 11. Employee Benefits Short-term employee benefits are charged off in the year in which the related service is rendered. 12. Foreign Currency Transaction Transactions in foreign exchange are accounted at the exchange rates brvailing on the date of the transaction. Changes in the fair value of derivative installments that do not qualify for hedge accounting are recognized in the Profit & Loss account as they arise. 13. Events occurring after the Balance Sheet Date Assets and liabilities arc adjusted for events occurring after the balance sheet dare that provide additional evidence to assist the estimation of amounts relating to conditions existing at the balance sheet date. 14. Borrowing Costs Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such as asset- A qualifying asset is one that necessarily takes substantial period of lime to get ready for its intended use. Ail other borrowing costs are charged to revenue. NOTES FORMING PART OF THE ACCOUNTS i-'OK THE YEAR ENDED MARCH 2015 1. Public Deposits The Company has not accepted any public deposit during die year, 6. Segment Reporting The Company deals in only one segment and in one geographic id location only hence the detailed segment reporting as per Accounting Standard 17 notified by (fee Companies (Accounting Standard) Rules, 2006 is not required. 8. No employee benefits in the form of Provident fund, Superannuation and Gratuity etc. ace applicable to the Company. 9, The Company has not received any intimation from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2000 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act has not been given. 10. As a matter of prudence, die Company has given effect to a RBI Circular No.DMBS.PD.CCNo.207/ 03.02.002 / 2010-11 dated 17th January, 2011 and accordingly created Contingent Provision against Standard Assets in its financial Statement. 11 Figures for the brvious year have been re-grouped and/or re-arranged wherever found necessary. For SANGHAI & CO Chartered Accountants Firm Reg. No. 19079E Kamlesh Kumar Agarwal Partner Membership No, 067461 For and on behalf of Board Navin Kumar Jain Managing Director DIN: 00465888 Aditya Parakh Director DIN: 00459679 Bishul Agarwal Company Secretary Place: Kolkata Date: 29/05/2015 |
