1.1 Change in accounting Policy
Presentation and Disclosure of financial statements
During the year ended 31st March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statement. Except
accounting for dividend on investments in subsidiary companies, the
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However it has significant impact on presentation and
disclosures made in the financial statements. The company has also
reclassified the previous year''s figures in accordance with the
requirements applicable in the current year.
1.2 Use of Estimates
Estimates and assumptions used in the preparation of the financial
statements are based on management''s evaluation of the relevant facts
and circumstances as on date of the financial statements, which may
differ from the actual results at a subsequent date.
1.3 Fixed Assets
As on the date of the Balance Sheet, the company does not own any fixed
assets, hence disclosure under this Clause is not required. ¦
The Company does not have inventories of Raw Materials, Stores &
Spares. The Stock-in-Trade consists of shares, which is valued at cost.
Investment, which are readily realizable and intended to be held for
not more than one year from the date in which investments are made, are
classified as current investment. All other investments are classified
as long term investment.
On initial recognition, all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges.
Current Investment if any are carried in the financial statements at
lower of cost and fair value determined on individual investment basis.
Long term investments are carried at cost. Temporary
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH
31il, 2012 diminution in the value of Investments meant to be held for
long term period of time is not recognized.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of Profit and Loss.
1.6 Revenue Recognition
Income from Commodity Trading / Sale of Shares is recognized on the
date of sales as per the bills/contract and is accounted on accrual
1.7 Other Income
Interest and Other Income, if any is accounted on accrual basis.
Dividend Income is accounted for when the right to receive income is
established by the reporting date.
1.8 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
1.9 Taxes on Income
a) The tax expense comprises of current tax and charged or credited to
profit & loss account.
b) Current Tax is calculated in accordance with the tax laws applicable
to the current financial year.
c) The Company has been advised that as there is no material tax effect
of timing difference based on the estimated computation for a
reasonable period and hence there is no provision for deferred tax in
terms of Accounting Standard (AS-22) on Accounting for Taxes on
Income issued by the Institute of Chartered Accountants of India.
d) Advance taxes and provisions for current income tax are presented in
the Balance Sheet after off-setting advance taxes paid and Income Tax
provision arising in the same tax jurisdiction and the Company intends
to settle the assets on liabilities on a net basis.
1.10 Impairment of Assets
The Company makes an assessment of any indicator that may lead to
impairment of assets on an annual basis.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value, which is higher of the net selling price
and value in use. Any impairment loss is charged to profit and loss
account in the year in which it is identified as impaired.
1.11 Earning Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends if any and attributable taxes) by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating dilutive earnings per share, the net
profit or loss for the period attributable to equity shareholders and
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity snares if