1: ACCOUNTING POLICIES AND NOTES ON FINANCIAL STATEMENTS 1.1 ACCOUNTING POLICIES i) Accounting Concepts The financial statements are brpared under the historical cost convention in accordance with the generally accepted accounting principles in India and in accordance with Accounting Standards as notified by (Accounting Standards) Rules, 2006. ii) Uses of Estimates The brparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised. iii) Revenue Recognition a) All income is accounted on accrual basis. b) Dividend declared within close of the accounting year are accounted for in respect of shares & securities held by the company. iv) Expenses All expenses are accounted on accrual basis. v) In accordance with guidelines for Prudential Norms issued by the Reserve Bank of India to Non-Banking (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directors,2007, provision is made for non - performing assets in respect of income and debts/assets vi) Debrciation Debrciation is provided based on life assigned to each asset in accordance with Schedule 11 of the Companies Act, 2013. vii) Fixed Assets Fixed assets are stated at cost less debrciation. viii) Investments Long term investments are stated at cost plus incidental expenses thereto. Provision for diminution in value of investments is made by the company to recognise permanent decline, if any, in the value of each investment. Current investments are valued at lower of cost and market value. ix) Inventories Shares & Securities - At cost or net realisable value, whichever is lower, script wise. x) Deferred Tax Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred tax assets on unabsorbed debrciation and carry forward of losses are recognised only to the extent there is a virtual certainty of its realisation. xi) Employee Benefits Liability for employee benefits, both short term and long term for brsent and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) -15 "Employees Benefits" as notified by Companies (Accounting Standard) Rules, 2006. a) Gratuity The company makes annual contribution to an approved gratuity fund covered by a policy with Life Insurance Corporation of India. The plan assets are sufficient to cover liability for gratuity fully. b) Contribution to Provident & Other Funds Contribution to Provident Fund and Employees State Insurance are recognised and expensed on accrual basis. c) Compensated Absences Liability for leave is treated as a short term liability and is accounted for on accrual basis, xii) Contingent Liabilities Contingent liabilities are not provided for and are shown by way of notes in the Notes to Financial Statements. 1.2 227212.5% Fully Convertible Debentures of Rs.125 each alloted on 25th January, 1993 have not been converted into fully paid equity shares since allotment money has not been received. Additions to subscribed and paid up share capital will be made as and when allotment money is received. 1.3 Accounts relating to allotment money in arrears of Fully Convertible Debentures are not reconciled. The notes referred to above form an integral part of the Financial Statements As per our report of even date attached. For SALARPURIA & PARTN ERS Chartered Accountants (Registration No. 302113E) Kamal Kumar Gupta Partner Membership No.89190 For and on behalf of the Board Ranjan Kumar Poddar Chairman & Managing Director Anuradha Rawat Company Secretary Sushil Kumar Chief Financial Officer Ashok Kumar Sharma Directors Naresh Birla Directors Place: Camp Gurgaon Dated :21st May, 2015 |