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Wallfort Financial Services
BSE: 532053|ISIN: INE121B01014|SECTOR: Finance - General
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Wallfort Financial Services is not listed on NSE
Mar 12
Accounting Policy Year : Mar '13
1.  Basis of preparation of financial statements
 
 The accompanying financial statements are prepared under the historical
 cost convention, in accordance with Generally Accepted Accounting
 Principles in India comprising the mandatory accounting standards
 issued by the Institute of Chartered Accountants of India and the
 provisions of the Companies Act, 1956, on the accrual basis, as adopted
 consistently by the Company.
 
 2.  Use of estimates
 
 The preparation of financial statements in accordance with Generally
 Accepted Accounting Principles requires the management to make
 estimates and assumptions that affect the reported amounts of assets,
 liabilities, revenues and expenses including the disclosures of
 contingent assets and liabilities as of the date of the financial
 statements. The estimates and assumptions used in the accompanying
 financial statements are based upon management''s evaluation of the
 relevant facts and circumstances as of the date of financial
 statements.  Actual results may differ from the estimates and
 assumptions used in preparing the accompanying financial statements.
 Any differences of actual results to such estimates are recognized in
 the period in which the results are known / materialized.
 
 3.  Fixed Assets and Depreciation
 
 Fixed Assets are stated at cost less accumulated depreciation. The cost
 of the Fixed Assets comprises purchase price and any attributable cost
 of bringing the asset to its working condition for its intended use.
 The company provides pro-rata depreciation from the date on which asset
 is acquired / put to use. In respect of assets sold, pro rata
 depreciation is provided up o the date on which the asset is sold. On
 all assets depreciation has been provided using the Straight Line
 Method at the rates and in the manner prescribed in Schedule XIV to the
 Companies Act, 1956.
 
 Depreciation on assets whose actual cost is not more than five thousand
 rupees has been provided at the rate of 100%.
 
 4.  Borrowing Costs
 
 Interest and other costs in connection with the borrowing of the funds
 to the extent related / attributed to the acquisition of qualifying
 fixed assets are capitalized upto the date when such assets are ready
 for its intended use and other borrowing costs are charged to the
 Profit and Loss Account
 
 5.  Investments
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. AH other
 Investments are classified as Long Term Investments. Investments are
 further classified into Investments in Unquoted shares, Investments in
 Quoted shares, Investment in Partnership Firm and Investment in Mutual
 Fund.
 
 Long term investments are stated at cost. However, provision for
 diminution in value is made to recognize a decline other than
 temporary, if any in the value of investments. Current investments are
 valued at lower of cost and marketvalue.
 
 6. Revenue Recognition
 
 Income from operations comprises profit / loss on sale of investments
 and derivative instruments.  Dividend Income is recognized when the
 right to receive payment is established.
 
 Interest on fixed deposits is recognized on time proportion basis.
 
 In respect of other heads of income the company accounts the same on
 accrual basis.
 
 7. Employee Benefits
 
 Defined Contribution Schemes:
 
 The Company has Defined Contribution Plans for post employment benefits
 namely Provident
 
 Fund that is recognized by the Income Tax Authorities.
 
 Under the Provident Fund Plan, the company to the Government
 administered provident fund on behalf of its employees and has no
 further obligation beyond making its contribution.
 
 The company contributes to state plans namely Employees State Insurance
 Fund and Employees Pension Scheme and has no further obligation beyond
 making its contribution.
 
 The company''s contribution to the above funds is charged to revenue
 every year.
 
 Defined Benefit Plans:
 
 Gratuity is post employment benefit and is in the nature of Defined
 Benefit Plan. The liability recognized in the Balance sheet in respect
 of gratuity is the present value of defined benefit obligation at the
 balance sheet date together with the adjustments for unrecognized
 actuarial gains or losses and the past service cost. An independent
 actuary calculates the defined benefit obligation at the balance sheet
 date. Actuarial Gains or losses comprise experience adjustments and the
 effects of changes in actuarial assumptions and are recognized
 immediately in the Profit and Loss account as Income or Expense.
 
 Compensated Absences:
 
 As per the policy of the company, an employee cannot carry forward
 leave. The accumulated leave has to be enchased annually. As no
 obligation arises on account of employees rendering service that
 increases their entitlement to future compensated absences, the amount
 of compensated absence paid is charged to the Profit and Loss account.
 
 Termination benefits are recognized as an expense as and when incurred.
 
 8. Taxes on Income
 
 Income Tax expense comprises current tax (i.e. amount of tax for the
 period determined in accordance with the income tax law), deferred tax
 charge or credit (reflecting the tax effect of timing differences
 between accounting income and taxable income for the period).
 
 I Current Tax:
 
 Provision forcurrent tax is made on the basis of estimated taxable
 income for the accounting year in accordance with the Income Tax Act
 1961 after considering tax allowances and exemptions, if any.
 
 Deferred Tax:
 
 A deferred tax charge or credit and the corresponding deferred tax
 liabilities and assets are recognized using the tax rates that have
 been enacted or substantively enacted by the Balance sheet date.
 Deferred tax charge or credit is recorded for timing differences,
 namely the differences that originate in one accounting period and
 reverse in another, based on the tax effect of the aggregate amount.
 Deferred tax assets are recognized only if there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realized and are
 re-assessed for the appropriateness of their respective carrying values
 at each balance sheet date.
 
 9. Impairment of Assets
 
 The carrying value of fixed assets is reviewed for impairment at each
 Balance Sheet date to determine whether there is any indication of
 impairment.
 
 If the carrying value of the fixed assets exceeds its estimated
 recoverable amount, an impairment loss is recognized in the Profit &
 Loss account and the fixed assets are written down to their recoverable
 amount.
 
 10.  Foreign Currency Transactions
 
 Transactions in the foreign currency, which are of revenue nature, are
 accounted for at the exchange rate prevailing on the date of
 transaction. Current liabilities and/or assets are translated at the
 year-end rate. The difference between the rate prevailing on the date
 of transaction and on the date of settlement as also on translation at
 the end of the year is recognized as income or expenses as the case may
 be.
 
 11.  Provisions, Contingent Liabilities and Contingent Assets
 
 The company recognizes a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. Adisclosure of a contingent liability is made when there is
 a possible obligation or a present obligation that probably will not
 require an outflow of resources. When there is a possible obligation or
 a present obligation that the likelihood of outflow of resource is
 remote, no provision or disclosure is made. Contingent liabilities are
 disclosed by way of a note.
 
 Contingent assets are not recognized. However, contingent assets are
 assessed continually and if it is virtually certain that an economic
 benefit will arise, the asset and related income are recognized in the
 period in which the change occurs.
 
 12.  Prior Period
 
 The Income or expense which arise in the current period as a result of
 errors and omissions in preparation of financial statement of one or
 more prior period are considered as prior period items and are shown
 separately in the financial statements.
 
 13.  Cash Flow
 
 Cash Flows are reported using the Indirect Method whereby Profit before
 tax is adjusted for the effects of transaction of non cash nature and
 any deferrals or accruals of past or future cash receipts or payments.
 The cash flows from regular operating, financing and investing
 activities of the company are segregated.
Source : Dion Global Solutions Limited
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