SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING CONVENTION
The financial statements of the company are prepared under historical cost convention and in accordance with the Generally Accepted Accounting Principles (GAAP) in India and comply with the accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013. The Financial Statements are prepared on accrual basis under the historical cost convention .
USE OF ESTIMATES
In preparing the accounts in accordance with generally accepted accounting principles, the management is required to make estimates and assumptions that effect the reported balances of assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Examples of such estimates include Provision For Income Tax, etc.
BASIS OF ACCOUNTING
The Company follows mercantile system of accounting in accordance with requirements of the Companies Act, 2013.
REVENUE RECOGNITION
a. ) The company recognises interest income using effective interest rate on all financial assets. The company recognises interest income on accrual basis.
b. ) Transactions in respect of Investments/ Dealing in Securities are recognised on settlement date.
c. ) All other income are recognised on accrual basis.
EXPENSES
a. ) Borrowing Costs on Financial Liabilities are accounted on accrual basis
b. )Expenses are accounted on accrual basis.
FIXED ASSETS
Fixed assets are stated at the cost of acquisition, net of Goods and Service Tax less accumulated depreciation and impairment loss, if any. All costs, including incidental costs related to acquisition and installation till the asset is put to use commercially or otherwise, attributable to fixed assets are capitalized.
DEPRECIATION & AMORTISATION
Depreciation on tangible fixed assets is provided at the written down value of assets based on the usefull life of the assets as prescribed in schedule II of the companies Act 2013.
STOCK-IN-TRADE (INVENTORIES)
During the current year quoted shares are valued at cost or Net Realisable Value whichever is lower.
TAXATION
a) Income tax comprises of the current tax provision and the net change in the deferred tax asset or liability in the year.
b) Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between carrying values of the assets and liabilities and their respective tax basis. Deferred tax assets are recognized subject to management's judgement that realization is more likely than not. Deferred Tax Assets or Liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The effect on deferred tax assets or liabilities of a change in tax rates is recognized in the period of enactment of the change.
RETIREMENT BENEFITS
Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 are charged to Profit & Loss account on accrual basis.
All other contributions / employee benefits are charged to Profit and Loss account on accrual basis.
INVESTMENTS
Invetsments are measured at amortised cost.
IMPAIRMENT OF FIXED ASSETS
An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment loss recognized in prior year is recorded when there is an indication that impairment loss recognized earlier for the assets no longer exists or has decreased.
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