SIGNIFICANT ACCOUNTING POLICIES
2.2 Property, plant and equipment
a Tangible Assets are stated at cost of acquisition or cost of construction less depreciation. All
costs, relating to the acquisition and installation of fixed assets have been capitalised and include
financing costs relating to borrowed funds upto the date the assets are ready and put to use.
b There are no intangible assets.
c Profit/Losses arising from the retirement of and gains & losses arising from disposal of fixed
assets, which are carried at cost, are recognized in the statement of profit & loss.
d Depreciation & Amortisation
Depreciation on fixed assets is provided on Straight-Line-Method (SLM) over their useful life in the
manner as specified in the Companies Act, 2013.
Depreciation on assets added/ disposed off during the year has been provided on pro-rata basis
with reference to the days of addition/ disposal.
2.3 Investment Properties
Investment Property is measured initially at cost, including transaction costs.
2.4 Foreign Currency Transactions
(i) Functional currency and presentation currency :
The functional currency of the Company is the Indian rupee. These financial statements are
presented in Indian rupees, which is the Company's functional and presentation currency.
(ii) Transactions and balances
Transactions denominated in foreign currencies are translated into the functional currency at
the exchange rates prevailing at the time of the transaction. Foreign exchange gains and losses
resulting from the settlement of such transactions and from Monetary assets and liabilities in
foreign currency, outstanding at the end of the year are converted into Indian currency at the rate
prevailing on the Balance Sheet date. Resulting gain or loss is recognized in statement of profit or
loss.However there are no foreign currency transactions during the financial Year.
At the reporting date, non-monetary items which are carried in terms of historical cost denominated
in foreign currency are reported using the exchange rate at the date of transaction.
2.5 Investments
Investments that are readily realizable and are intended to be held for not more than one year
from the date, on which such investments are made, are classified as current investments. All the
other investments are classified as Non current investments. Current investments and Non Current
Investments are carried at Fair Market Value / Net realizable value at the Balance sheet date.
2.6 Impairment of Assets
Assessment is done at each Balance Sheet date as to whether there is any indication that a tangible
asset may be impaired. For the purpose of assessing impairment, the smallest identifiable group of
asset that generates cash inflows from continuing use that are largely independent of the cash inflow
from other assets or groups of assets, is considered as a cash generating unit. If any such indication
exists, an estimate of the recoverable amount of the asset/cash generating unit is made.
Assets whose carrying value exceeds their recoverable amount are written down to the recoverable
amount. Recoverable amount is higher of an asset's or cash generating unit's net selling price and its
value in use. Value in use is the present value of estimated future cash flows expected to arise from the
continuing use of an assets and from its disposal at the end of its useful life. Assessment is also done
at each Balance Sheet date as to whether there is any indication that an impairment loss recognized
for an asset in prior accounting periods may no longer exist or may have decreased.
2.7 Recognition of Income & Expenditure
a Revenue/ Incomes and Costs/ Expenditure are generally accounted on accrual, as they are
earned or incurred.
b Interest income is accounted on accrual basis.
c Dividend income is accounted for when the right to receive it is established.
2.8 Employee Benefits
a) Defined Benefit Plan
1 Gratuity
The number of Employees employed is less than the threshold limit and therefore provision
for Gratuity is not applicable as on the end of the year.
2 Leave Salary / Wages
No leave is accumulated beyond one year. Provision is made for leave accumulated at the
end of every year and is paid in the immediate next year.
3 Bonus
Bonus is part of employee costs and is paid during the year.
b) Defined Contribution Plan
The Company incurs no expenditure under any defined contribution plan.
2.9 Segment Reporting
The Company has deployed major funds in the Investment in Equity and deposits yielding Interest
income. Accordingly it is operating its business in single segment.
2.10 Leases
Leases in which a significant portion and rewards of ownership are not transferred to the company
as lessee are classified as operating leases. Lease Rentals for assets taken on operating lease are
recognized as under expenses in Profit and Loss Account over the lease term on accrual basis. The
same have ceased to exist in earlier year.
2.11 Taxes on Income
Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at
the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets
and liabilities are measured using tax rates and tax laws that have been or substantively enacted
as of balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is
recognized in the profit and loss account in the year of change. Deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between the financial statements
carrying amounts of existing assets and liabilities and their respective tax bases and operating loss
carry forwards.
|