Note-1 SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of accounting and brparation of financial statements. The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year. 1.2 Inventories Stock in trade is valued scrip wise, at cost or net realisable value whichever is lower in case of listed shares. Whereas in case of unquoted shares, valuation is at cost. Cost is calculated on the basis of first- in- first- out method. 1.3 Cash & Cash Equivalents In the cash flow statement, cash and cash equivalents includes cash on hand, demand deposites with banks, other short term highly liquid investments with original maturities of three months or less. 1.4 Tangible Fixed Assets: Fixed Assets have been stated at historical cost inclusive of incidental expenses, less accumulated debrciation. 1.5 Debrciation: Debrciation has been provided on Straight line Method on prorata-basis and in some cases to the extent available at the rates and in the manner brscribed in schedule II to the Companies Act, 2013. 1.6 Revenue Recognition Sales are recognised on transfer of significant risks and rewards of the ownership of the goods to the buyer and are reported net of turnover / trade discounts, returns and claims if any. Revenue from services are accounted as and when incurred. Dividend income on investments is accounted for when the right to receive the payment is established. Interest income is accounted on time proportion basis taking into account the amount outstanding and applicable interest rate. 1.7 Investments Long term investments are stated at cost, less provision for diminution in the value other than temporary, if any. 1.8 Employee benefits The Company does not have any employee to whom gratuity or any retirement benefits are payable. 1.9 Earning per Share: Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. 1.10 Taxation Tax liability is estimated considering the provision of the Income Tax, 1961. Deferred tax is recognised on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, deferred tax assets are recognised and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future. Note 15 -Previous year figures The figures of the brvious year have been re-arranged, re-grouped and re- classified wherever necessary. For MVK Associates Chartered Accountants Firm Reg. No : 120222W CA. Vishnu Garg Partner Membership No. - 045560 For & On Behalf of the Board Director Director Place : Mumbai Dated : 30/05/2015 |