SENSEX NIFTY India | Accounting Policy > Finance - General > Accounting Policy followed by Comfort Infotech - BSE: 531216, NSE: N.A

Comfort Infotech

BSE: 531216|ISIN: INE819A01023|SECTOR: Finance - General
Apr 24, 16:00
-0.01 (-0.68%)
VOLUME 33,966
Comfort Infotech is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
A. Basis of Preparation:
 The financial statements have been prepared under the historical cost
 convention and materially comply with the Accounting Standards issued
 by the Institute of Chartered Accountants of India (ICAI) and the
 relevant provisions of the Companies Act, 2013. All income and
 expenditure having material bearing on the financial statements have
 been recognized on the accrual basis.
 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
 D. Investments:
 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 2015, 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
 i) Fixed assets are shown at historical cost inclusive of incidental
 expenses less accumulated depreciation.
 ii) Depreciation on fixed assets is provided as per part C of
 Schedule II of the Companies Act, 2013.
 iii) Pursuant to applicability of the Companies Act, 2013 with effect
 from 01st April, 2014, the company has reassessed the useful life of
 the assets based on technical evaluation. Consequently an amount of
 Rs.130,673/- has been recognized in the opening balance of Surplus in
 the Profit & Loss Account where the remaining useful life of the asset
 is exhausted.
 iv) Depreciation on Fixed Assets added or sold during the year, is
 provided on pro-rata basis with reference to the date of
 G. Taxation:
 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.
 M. Contingent Liability
 Contingent Liability are disclosed unless the possibility of outflow of
 resources is remote.
 i) The Company has only one class of Equity Shares having a par value
 of Rs. 1/- per share. Each holder of Equity Share is entitled to one
 vote per share.
 ii) The Company declares and pays dividend in Indian Rupees.During the
 year ended 31st March 2015, amount of Dividend recognised as
 distributions to Equity Shareholders is Rs. 63,98,762/- (31st March,
 2014 was Rs. Nil/-).
 iii) In the event of liquidation of the Company, the holders of Equity
 shares will be entitled to receive remaining assets of the Company,
 after distribution of all preferential amounts. The distribution will
 be in proportion to the number of Equity shares held by the
Source : Dion Global Solutions Limited
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