NOTE - 1: SIGNIFICANT ACCOUNTING POLICIES I. Basis of brparation of financial statements: These financial statements have been brpared to comply with Accounting Principles Generally accepted in India (Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements are brpared on accrual basis under the historical cost convention. The financial statements are brsented in Indian rupees. II. Income and Expenditure Income and Expenditure are accounted for on accrual basis except finance charges and interest on bad & doubtful debts which is recognized as per IRAC norms of RBI guidelines. III. Tangible & Intangible Fixed Assets & Debrciation a) Fixed Assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in their acquisition, construction / installation. b) Debrciation / amortization on tangible and intangible fixed assets is provided to the extent of debrciable amount on the straight line (SLM) Method. Debrciation is provided at the rates and in the manner brscribed in Schedule II to the Companies Act, 2013. IV. Investments Investment has been bifurcated into 'long term' and 'current' categories as per RBI Norms. Long term investment is valued at cost and current investment at cost or market value whichever is less. However, provision is being made where diminution in the value of long term investment other than temporary. V. inventories Inventories of shares have been valued at cost or market price whichever is less. VI. loans & advances Loans and Advances are classified in accordance with IRAC norms issued by RBI. VII. Dividend is accounted for as and when it is declared. VIII. Cash and cash equivalents Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less IX. Provision, Contingent Liabilities and Contingent Assets: Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent 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 financial statements. X. Unless specifically stated to be otherwise, these policies are consistently followed. Note 1. Companies in the same group means companies under the same Management as per section 370 (1B) of the Companies Act, 1956 Note 2. In case of Investments in unquoted shares, it is assumed that market value is same as book value. For KRISHAN RAKESH & CO. CHARTERED ACCOUNTANTS PARTNER Mg. DIRECTOR DIRECTOR CFO CO. SECRETARY DATE : 28/05/2015 PLACE : NEW DELHI |