A. The financial accounts are prepared under the accrual method,
unless otherwise stated, and at historical cost.
B. Use of Estimates
The preparation of financial statements in conformity with generally
accepted principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities at the date of the financial
statements and the results of operations during the reporting period
end. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
C. Accounting of Income/Expenditure
All income and expenditure items having a material bearing on the
financial statements are recognised on accrual basis except in the case
of dividend income & interest receivable from / payable to government
on tax refunds / late payment of taxes, duties / levies which are
accounted for on cash basis.
As per prudential norms prescribed by Reserve Bank of India, interest
income has been recognized only on standard advances given by the
Investments in Shares / Mutual Funds are stated at cost.
E. Stock in Trade:
i) Closing stock in case of quoted shares has been valued at cost or
market value whichever is lower. Wherever quotations are not available
as on 31 March 2013, inventory has been valued at last traded price or
at cost whichever is lower. Wherever quotations are not available due
to scrip has been suspended / delisted for a considerable period of
time by stock exchanges has been valued at nil rate.
ii) Closing stock of properties acquired in satisfaction of loan
claimed has been valued at cost to the company.
F. Fixed Assets/Depreciation
Fixed assets are shown at historical cost inclusive of incidental
expenses less accumulated depreciation.
Depreciation on fixed assets is provided on Straight Line Method at the
rates prescribed under Schedule XIV of the Companies Act, 1956.
Depreciation on Fixed Assets added or sold during the year, is provided
on pro-rata basis with reference to the date of addition/deletion.
Provision for income tax has been made in accordance with normal
provisions of Income Tax Act, 1961. The deferred tax for timing
differences between the book and tax profits for the year is accounted
for, using tax rates and laws that have been substantively enacted as
of the balance sheet date.
H. Foreign Exchange Transactions:
Foreign Currency transactions are accounted for at the exchange rates
prevailing at the time of recognition of income/ expenditure and
difference if any, resulting in income or expenses dealt with in profit
& loss account under the head Foreign Exchange Fluctuation Gain.
Foreign currency monitory items are reported using the closing rates.
Exchange difference arising on reporting them at closing rate i.e. at
the rate different from those at which they were initially recorded are
recognized as income or expenses as the case may be.
I. Retirement Benefits:
No provision has been made for Gratuity and Leave encashment as the
same is accounted for on Payment basis.
J. Impairment of assets
The carrying amounts of assets are viewed at each Balance Sheet date if
there is any indication of impairment based on internal / external
factors. An asset is impaired when the carrying amount of the asset
exceeds the recoverable amount. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. An impairment loss recognized in prior accounting periods is
reversed if there has been change in the estimate of the recoverable
K. Earnings per share
In determining earning per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional item. The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during
the year. The number of shares used in computing diluted earnings per
share comprises the weighted average shares considered for deriving
basic earnings per share, and also the weighted average number of
shares that could have been issued on the conversion of all diluted
potential equity shares. The diluted potential equity shares are
adjusted for the proceeds receivable, had the shares been actually
issued at fair value (i.e. the average market value of the shares
outstanding). Dilutive potential equity shares are deemed converted as
of the beginning of the period, unless issued at a later date. The
number of shares and potentially dilutive equity shares adjusted for
any stock splits and issues of bonus shares effected prior to the
approval of the financial statements by the Board of Directors.
L. Preliminary Expenses
Preliminary expenses are amortised over a period of five years.