1.1 SYSTEM OF ACCOUNTING
The financial statement are prepared under the historical cost
convention on an accrual basis and are in accordance with the
requirement of the companies Act, 1956
1.2 REVENUE RECOGNITION
a) Interest income is recognized on accrual basis except in case of
nonperforming assets where it is recognized upon realization as per RBI
b) Penal interest is recognized as income on realization.
c) Dividend income is accounted on an accrual basis when the company’s
right to receive the dividend is established.
1.3 INVESTMENTS Investment is long term in nature and is valued at
1.4 FIXED ASSETS The company does not possess any Fixed Assets.
Income Taxes are accounted for in accordance with Accounting Standard
22 on Accounting for Taxes on Income (AS-22) issued by the Institute
of Chartered Accountants of India. Tax expenses comprise both current
and deferred tax.
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period using the applicable tax rates and tax
laws. Deferred tax assets and liabilities are recognized, subject to
consideration of prudence, on timing differences, being the difference
between taxable incomes and accounting income, that originate in one
period and are capable of reversal in one or more subsequent periods
and are measured using tax rates enacted or substantively enacted as at
the Balance Sheet date. The carrying amount of deferred tax assets and
liabilities are reviewed at each Balance Sheet date.
1.6 Accounting policies are not specifically referred to otherwise are
consistent and in accordance with generally accepted accounting
1.7 Foreign Currency converted into Indian Rupee is N.A..
1.8 Contingent Liability is Nil. (Previous Year Nil).
1.9 Debit balances of debtors are subjected to confirmation and
reconciliation form respective parties. The final adjustment, if any,
in the account of parties shall be known only after confirmation /
reconciliation, the amount of which could not be ascertained.
In compliance of Sec. 45 IC of the Reserve Bank of India Act, 1934, the
company has transferred a sum of Rs. 87,943/- to Special reserve Fund.
The reserve fund so created is available for utilization for specified
purposes as may be prescribed by the Reserve Bank from time to time.
1.10 Remuneration and perquisites to the directors is Rs. Nil.
1.11 There are certain parties to whom advances in the nature of loans
have been given by the company. As per management, principal and
interest thereon is recoverable at a later date as per stipulations
made with respective parties. As such, interest income is accounted for
on yearly basis, but their recovery is deferred to a later date.
1.12 There is no related party transaction as in accordance with
Accounting Standard 18 issued by the institute of Chartered Accountants
1.13 Segment Reporting
The Company operates in one segment only namely Finance, Investment and
related consultancy. Therefore, information about segment reporting in
line with AS -17 of ICAI has not been given.