SIGNIFICANT ACCOUNTING POLICIES 1 BASIS OF brPARATION OF FINANCIAL STATEMENTS These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as brscribed under section 133 of the Companies Act, 2013 ('the Act') read with Rules 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly - issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in use. 2 USE OF ESTIMATES The brparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liability at the date of the financial statements and the results of operation during the reporting period. Although these estimates are based upon managements' best knowledge of current events and actions, actual results could differ from these estimates. 3 FIXED ASSETS AND DEbrCIATION a) Leasehold Land and Building as at March 31, 2003 are stated at valuation made by an approved valuer at the then current cost. Subsequent acquisition of these assets and other fixed assets are stated at their purchase cost together with any incidental expenses of acquisition/installation including borrowing cost, wherever applicable, directly attributable to the acquisition, construction and production of qualifying assets, which are capitalized. b) Leasehold Land is being amortized over the lease period. c) Up to the financial year 2013-14 the company used to provide debrciation on fixed assets other than leasehold land on written down value in accordance with Schedule XIV of the Companies Act, 1956. d) With effect from the financial year 2014-15, debrciation on tangible assets is provided on the straight line method over the useful lives of assets estimated by the Management. Debrciation for assets purcahsed / sold during a period is proportionately charged. The Management estimates the useful lives for the fixed assets as follows: i) Office Buildings - 60 years ii) Furniture & Fixtures - 10 years iii) Computers - 3 years e) The difference between the values of debrciable tangible assets calculated under the straight line method as per the provisions of Schedule II of the Companies Act, 2013, as at 01.04.2014, and values of debrciable tangible assets calculated under the written down value method as per the erstwhile Companies Act, 1956, as at 01.04.2014, has been adjusted with the opening balance of retained earnings. f) Profit or Loss on disposal of debrciable fixed assets is recognized in the Statement of Profit and Loss. g) An impairment loss is recognized wherever the carrying value of the Fixed Assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher. 4 REVENUE RECOGNITION a) Interest income is accounted for on time proportion basis. b) Interest income is accounted for on time proportion basis taking in to account the amount outstanding and applicable interest rate. c) Other Incomes are accounted for on confirmation provided by the constituents. 5 EMPLOYEE BENEFITS a) Short - term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service has been rendered. b) Contributions to Provident Fund & other Funds including under the provisions of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, will be accounted for on an accrual basis whenever applicable. c) Leave encashment benefit had been determined on the basis of actuarial valuation up to March 31, 2010. However, during the brvious year as well as in current year no Actuarial Valuation was considered necessary in view of resignation of most of the employees. d) Provision for Gratuity is not made in accounts and is accounted for as and when paid. 6 BORROWING COST Borrowing cost relating to (i) funds borrowed for acquisition/construction of qualifying assets are capitalised up to the date the assets are put to use, and (ii) funds borrowed for other purposes are charged to the Statement of Profit and Loss. 7 TAXATION a) Tax liability is estimated considering the provisions of the Income Tax Act, 1961. b) 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 asset is recognised and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future. There is no Deferred Tax Liability / Asset at the year end. 8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS a) Provisions involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. b) Contingent Liabilities are not recognised but are disclosed in the notes. c) Contingent Assets are neither recognised nor disclosed in the financial statements. 9 PRIOR PERIOD ITEMS, EXTRA ORDINARY ITEMS, EXCEPTIONAL ITEMS & CHANGES IN ACCOUNTING POLICIES Prior period items, Extra-ordinary items, Exceptional items and Changes in Accounting Policies having material impact, if any, on the financial affairs of the company are disclosed, wherever applicable. 10 Claims against the Company not acknowledged as debts: Income Tax claims for the financial years: 2001-02 - 1 83,59,411, 2002-03 - 1 33,79,059, 2003-04 - 1 12,35,977, 200405 - 1 26,77,782, and 2005-06 - 1 2,77,248 towards appeals pending before the Commissioner of Income Tax (Appeals). 11 There were no employees who were in receipt of remuneration not less than 1 60,00,000 per annum when employed throughout the year or 1 5,00,000 per month when employed for a part of the year. 12 There was no manufacturing or trading activity of the Company during the current year or in the brvious year and hence disclosure under Segment Reporting does not arise. 13 The Company is in the process of compiling relevant information from its suppliers about their coverage under the Micro, Small and Medium Enterprises Development Act, 2006. As the company has not received any intimation from its suppliers as on date regarding their status under the above Act, no disclosure has been made. 14 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure. In terms of our report of even date On behalf of the Board For ROHIT SHUKLA & ASSOCIATES BEEYU OVERSEAS LIMITED Chartered Accountants [Firm's Regn. No. 315178E] Hemant Premji Thacker Executive Director Ramesh Kumar Jhawar Director Rohit Shukla Director Santanu Chattopadhyay Proprietor Membership No. 52453 Place : Kolkata, date : May 29, 2015 |