2. Significant accounting policies
2.1 Basis of Preparation of Financial Statements
The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
2.2 Use of Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect thereported 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 estimatesare recognised in the period in which the results are known/ materialised.
2.3 Inventories
(a) Stock in Trade (Shares) :The Company has valued its Closing Stock of Shares/Debentures at “Cost Price”
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* Includes Bonus, Merger, Spilit and Conversion of shares etc.
2.4 Revenue Recognition
a) Revenue is being recognized in accordance with the Guidance Note on accrual basis of accounting issued by the Institute of Chartered Accountants of India. As per the Prudential Norms prescribed by the Reserve Bank of India with regard to Income Recognition (as amended till 31.1.98) no Income has been recognized on Non Performing Assets as defined in the said guidelines.
b) Income from dividends on shares is accounted for on receipt basis.
c) Casual & Incomes of Non-recurring nature are accounted for on Receipt Basis.
d) FIFO method has been adopted with regard to valuations and Income of shares and securities.
2.5 Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation less accumulated depreciation. The carrying amount of fixed assetsare reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. There is no impairment of assets during the year as stated by management.
2.6 Depreciation and Amortization
Entire block of Assets is fully depreciated in previous year.
2.7 Employee Benefits
Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered. The company recognizes termination benefits as a liability and an expense when the enterprise has a present obligation as a result of a past event. The provision for the gratuity has been made in the books of accounts as per gratuity act.
2.8 Earning Per Share (EPS)
In determining earnings per share (EPS), the Company considers the net profit after tax and includes the post tax effect of any extra-ordinary / exceptional item. In absence of any dilutive effect of equity shares the basic and diluted EPS are calculated on the same basis. The number of shares used in computing basic and diluted earnings per share is the weighted average number of shares outstanding during the period
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